The National Board of Revenue has issued a gazette notification regarding the ban on the import of yarn and some other products through the country's land ports from India, Nepal and Bhutan, following repeated demands from local textile millers.
The information was revealed in a notification issued on Tuesday (April 15). The new directive replaces a previous one issued on August 27, 2024.
According to the notification, signed by NBR Chairman Md Abdur Rahman Khan, importing yarn through all land ports鈥攊ncluding Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari鈥攈as been prohibited.
However, as per the earlier announcement, imports of other goods through these land ports will continue without restrictions, and importers can also import yarns through seaports and airports.
The notification also directed to halt the import of powder milk through land ports along with duplex board, newsprint, craft paper, cigarette paper, juice and tobacco from India.
Earlier, in February this year, the Bangladesh Textile Mills Association (BTMA) had urged the government to stop the import of Indian yarn via land routes.
On March 28, the commerce ministry instructed the NBR to take regulatory action to halt yarn imports through land ports. The ministry noted the significant possibility of under-invoicing, which is severely impacting the domestic textile industry.
The directive stated that, according to findings based on data from the Bangladesh Textile Mills Association, stakeholders鈥� feedback, and necessary investigations, the declared value of yarn imported through land ports was significantly lower than prices set at Chattogram Customs House.
This price discrepancy has made it increasingly difficult for local yarn manufacturers to maintain competitiveness.
Moreover, Indian yarn, stocked at Kolkata warehouses before swift shipment to Bangladesh, is entering the market at dumping prices, leading to an increased preference for imported yarn over locally produced alternatives, placing the domestic textile sector at substantial risk.
In light of this situation, the commerce ministry has formally instructed the NBR to take necessary steps to halt yarn imports through land ports by issuing a new notification or making relevant amendments to existing regulations.
However, apparel manufacturers expressed concerns regarding such a decision just after the government directives.
Meanwhile, in a pre-budget discussion on Tuesday at NBR, the textile millers welcomed the decision, but the RMG manufacturers criticized it.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the move would hurt small and medium garment industries during his speech at the pre-budget discussion.
He also said that banning yarn imports through land ports will deprive small and medium garment industries of the opportunity to import yarn within a short lead time, further increasing their costs.
He demanded that the facilities be extended for the next six months.
However, NBR Chairman Abdur Rahman Khan said the matter had already been finalized at a high-level government meeting, and the board could not revise the decision.
Meanwhile, according to industry sources, India has recently withdrawn its transshipment facility for Bangladesh amid Bangladesh鈥檚 move to restrict yarn imports via land ports.