Apparel exports to Japan doubled in the last decade, thanks to manufacturers’ efforts to meet Japanese standards
Bangladesh’s readymade garment (RMG) exports to Japan crossed the billion-dollar mark in fiscal year 2021-22.
Apparel exports to Japan doubled in the last decade, thanks to manufacturers’ efforts to meet Japanese standards and policy support like cash incentive, said industry insiders.
They also attribute this rise in exports to Japan’s China-plus policy and laxity in its rules of origin.
Locally-made knitwear has been enjoying duty-free facility in the Japanese market since 1 April 2011 and woven items since April 2014, although raw materials are imported, they added.
Bangladesh exported apparel items worth $1.098 billion marking over 16% growth in FY22, according to data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
It fetched $944.82 million in FY21.
RMG exports first crossed billion dollars with $1.091-billion earnings in FY19.
Apparel exports, including knit and woven items, were $478.48 million in FY13 which was only $74.33 million in FY09.
Local exporters, however, listed a number of issues, including buyers’ zero-tolerance policy on quality, timely shipment and language as obstacles to exporting apparel items to Japan.
According to a recent UNCTAD report, preferential access to Japan for duty-free treatment of T&C (textile and clothing) products for the targeted LDCs largely depends on their membership to the Association of SouthEast Asian Nations (ASEAN).
Bangladesh and Nepal will be subject to the GSP or MFN (most favoured nation) rate in their exports to Japan as they are not part of ASEAN and therefore do not benefit from the ASEAN-Japan Comprehensive Economic Partnership Agreement (CEPA), it notes.
In this context, they will face tariffs on their clothing exports ranging from 8.5-9%.
On the other hand, Cambodia, Lao PDR and Myanmar will continue enjoying duty-free market access to Japan through the CEPA, which applies to customs duties on T&C imports into Japan.
The size of the apparel market in Japan was expected to reach more than $90 billion by 2021, according to industry insiders.
Japanese buyers are very strict about quality products where they show zero tolerance as they check products piece by piece, they observed.
They explained that it took time to develop business relations with Japanese buyers as they want to know whether local exporters can meet quality requirements and make timely shipments.
Language is another barrier to making direct relationships with Japanese buyers, they added.
