Home Recent Increased work orders boost UD permission taking rates

Increased work orders boost UD permission taking rates

Recently, Utilization Declaration (UD) permission shown an increase in the January-August period of 2021.

UD permission given to an exporter to import raw materials to execute work orders placed by an importer. The UD permission increase means the readymade garment (RMG) manufacturers are now getting increased work orders.

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Figure: UD permission increase means the RMG manufacturers are now getting increased work orders.

As per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, the number of UD permissions taken from the trade body rose by 30.48% to 17,999 during the January-August period of 2021 from 13,794 in the same period last year.

In March 2020, the number of UD permissions nosedived to 520 with global COVID-19 pandemic on the loose. Which was 2,090 in April 2020.

In August 2021 alone, the number of UD permission was 2,706 with 58.9% growth rate which was 1,703 in the same time previous year.

Industry leaders opined that till August, RMG work orders surpassed the pre-COVID-19 level and surpassed manufacturers’ capacities. This is because of an upsurge in demand for goods in the US and EU markets.

On top of it, work orders moved from India and Vietnam as COVID-19 hit disrupted apparel businesses there in the last couple of months while that in Bangladesh continued in full swing.

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