Exporters seek clarification on exemption of addl duty on exports

BGMEA president, Mahmud Hasan Khan, has demanded that the government should urgently provide the necessary clarifications on proportional exemption of duty from newly imposed additional duty on exports to the USA.

He said if steps are taken quickly in this regard, Bangladeshi entrepreneurs will be able to prepare for the tariff benefits without delay.

In addition, the BGMEA has requested US cotton exporters to provide training and technical assistance to increase the efficiency and productivity of Bangladeshi textile and garment factories and to conduct necessary technical cooperation to reduce waste.
The demand was made during a meeting between a delegation of US cotton exporters and the BGMEA to increase cooperation in Bangladesh-US textile and garment industry, emphasizing the importance of expanding bilateral trade.

A high-level delegation of US cotton exporters, organized by US cotton exporters met Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan at its Uttara BGMEA Complex on Tuesday.

The main topics of discussion at the meeting were increasing bilateral trade, expanding the use of US cotton, and utilizing the newly announced tariff concessions in garment exports from Bangladesh to the US.

The US delegation at the meeting included Lee In of ECOM, Christa Rickman of Cargill, Diego Lozada of LDC, Wesley Rentz of Olam Agri, Wayne Boseman of Carolina Cotton Growers Association, Chris Jones of Staplecotton Cooperative, and Will Bettendorf and Ali Arsalan of Cotton Council International.

BGMEA President Mahmud Hasan Khan was accompanied by Senior Vice President Enamul Haque Khan and Director Nafis-ud-Daula.

The discussion highlighted the importance of US cotton supply to Bangladesh's garment sector.

The main focus was on the recently announced US executive order, which has created an opportunity to get proportional exemption from the newly imposed additional duty on exports to the US if a minimum of 20 percent US raw materials are used in garment production.

The BGMEA President said that this new duty exemption opportunity has brought a huge potential to our industrial sector, which will make our products more competitive in the international market.

However, he mentioned that BGMEA still does not have clear instructions on the process through which Bangladeshi spinners and garment factories will get this facility.

The BGMEA President requested the US delegation to provide the trade body with necessary clarifications in this regard from the US administration as soon as possible. This will enable Bangladeshi entrepreneurs to prepare immediately to avail the tariff benefits without delay.

Mahmud Hasan Khan further said currently about 10 percent of imported cotton comes from the United States, which can be increased by two or three times. However, this requires a change in perspective and well-thought-out strategic steps.

He expressed the view that if spinners and factories are provided with information by conducting a detailed study on the high quality and comparative advantages of US cotton, they will be encouraged to increase imports.

The US delegation welcomed the proposal of the BGMEA President and pledged to work together on this issue.

The delegation mentioned in the meeting that there are some obstacles and complications in preparing commercial documentation for cotton exports to Bangladesh. They sought BGMEA's cooperation in resolving this problem.