Garment makers have identified the banking and customs-related bottlenecks that have long been hurting business of the country’s largest export earner, industry insiders said. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has informed commerce ministry of these problems in writing and sought immediate intervention of the policymakers, they added. Accordingly, an inter-ministerial meeting is due this month to devise strategies to redress the problems facing the apparel sector, a ministry official said. The high-profile meeting is likely to be held on September 19 with commerce minister Tipu Munshi in the chair. “We’ll hold an inter-ministerial meeting to discuss the banking and customs-related problems as cited by BGMEA and take the next course of action,” the official said. Representatives from different ministries and divisions will discuss the setbacks facing the ready-made garment (RMG) owners. The BGMEA letter sent to the ministry has sought exemption from stamp duty on bill of exchange, single-digit bank interest rate and cuts in Export Development Fund’s interest. It also demanded separate exchange rate for exporters and an increase in the loan payment tenure of capital machinery imports under the deferred line of credit. When askd, BGMEA president Dr Rubana Huq said, “We’re giving 0.20-per cent stamp duty on import. It will be double taxation if we give the same on bill of exchange.” She termed this move unjustified. For the sake of national interests, Ms Rubana hoped, the authorities should take prompt steps to address existing banking-related problems. The first female president of the apex body of apparel traders said, “We discussed the customs-related issues with the National Board of Revenue (NBR).” Bangladesh expects the volume of garment exports to reach $60 billion within the next three to five years. The country’s total export earnings stood at $40.53 billion in fiscal year (FY) 2018-19, riding on a high volume of RMG shipments. Garment fetched more than 84 per cent of the total national exports, amounting to $34.13 billion, registering 11.49 per cent year-on-year growth. Of the amount, $16.88 billion came from knitwear and $17.24 billion from woven garment items. Earnings from apparel shipment were 4.57 per cent higher than the target of $32.68 billion. An estimated $30.61 billion was earned in FY 2017-18
