Bangladesh’s knit clothing exports to Japan are set to rise as Asia’s economic powerhouse has relaxed origination rules, industry people said. “… the government of Japan has relaxed the preferential rules of origin under the Generalised System of Preferences (GSP) for apparels and clothing accessories, knitted or crocheted (Chapter 61 of HS Code) effective from 1 April 2015,” the Embassy of Japan in Bangladesh said in a letter to the ministry of foreign affairs. “Under the new rule, the products classified in Chapter 61 of HS Code shall be qualified as originating goods if they were manufactured from yarns of textile fibres,” said the letter. “According to the new rule, knitwear exports from Bangladesh will enjoy GSP (zero tariffs) even if the knitwear product is made of imported fabrics,” Faruque Hassan, former vice president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), told the FE about the new rule, known as single stage GSP. For further relaxation of GSP rules, local exporters will get more preference in Japanese market. It will also help knitwear items to grab more market shares in that country. In April 2011, Japan relaxed its GSP rules of origin from 2-stage to 1-stage for woven apparel and 3-stage to 2-stage for knitwear, Mr Hassan said, adding that now Bangladesh can export any RMG item (woven or knit) free of duty to Japan, even though the fabric is local or imported. “Japan is one of the most important non-traditional markets for Bangladeshi apparel products,” said Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Some non-cotton knitted items have good demand in the Japanese market which Bangladesh earlier could not export under the GSP scheme as such fabric is not locally produced, he added. To grab more market shares there, he stressed the need for strengthening business-to-business communication. Jahangir Alamin, former president of Bangladesh Textile Mills Association (BTMA), said the new relaxation would not have any negative impact on local textile millers. “Rather exporters now will be able to import the fabrics that are not locally produced and add more value,” he said. Bangladesh’s readymade garment (RMG) export to Japan was only $ 74.33 million in the fiscal year 2008-2009, which now has reached $ 572.27 million in the fiscal year 2013-2014, the Export Promotion Bureau (EPB) data showed.

Source: https://www.thefinancialexpress-bd.com/2015/05/03/91136

The government has selected 56 Commercially Important Persons (CIPs-Industry) for 2014 in recognition of their contribution in trade and economy, a senior official said. The CIP (industry) status recognises contributions of the awardees to industrial development, manufacturing, employment generation and economic upliftment. Industries Minister Amir Hossain Amu will hand over the CIP (industry) cards as chief guest on May 7 at a ceremony at Purbani Hotel in the city. “We selected 56 persons (CIP- Industry) under seven categories. Industries Minister Amir Hossain Amu will handover cards to them on May 7 at Purbani Hotel,” Jamal Abdul Naser Chowdhury, an additional secretary of the ministry of industries (MoI) told the FE Thursday. They were selected as per CIP (Industry) Guidelines 2012. The ex-officio twelve CIPs are President of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Kazi Akram Uddin Ahmed, President of Bangladesh Chamber of Industries (BCI) AK Azad, President of National Association of Small and Cottage Industries Bangladesh Samity (NASCIB) Mirza Nurul Gani Swapan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Atiqul Islam, President of Bangladesh Employers Federation Tapan Chowdhury, President of Women Entrepreneurs Association of Bangladesh (WEAB) Nasrin Fatema Awal, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Salim Osman, President of Bangladesh Women Chamber of Commerce and Industries (BWCCI) Sangita Ahmed, Chairman of Bangladesh Jute Mills Association (BJMA) Mohammad Shams-Uz-Joha, President of Foreign Investors Chamber of Commerce and Industry (FICCI) Bangladesh Rupali Chowdhury, former president of Dhaka Chamber of Commerce and Industry (DCCI) Mohammad Shahjahan Khan and former president of Metropolitan Chamber of Commerce and Industry (MCCI,) Bangladesh Rokia Afzal Rahman. . The MoI selected 21 persons in large scale industrial category while nine for medium scale industries, six for small industrial category, two for micro industry category , one in cottage industry category and 5 in service industry sector.

Source: https://thefinancialexpress-bd.com/2015/05/01/91003

The International Labour Organisation (ILO) has moved to introduce employment injury insurance scheme in Bangladesh in view of rising number of factory accidents in recent times, officials said. The move came after the deadly Rana Plaza collapse and Tazreen Fashions fires in the garment industry killed more than 1,200 workers, exposing the vulnerabilities of workers, they said. The insurance scheme, at the first stage, is aimed at covering workers of readymade garment industry (RMG), which will later be expanded into other factories, said a labour ministry official. The ILO will soon launch a feasibility study on the scheme and in this regard, a three-member delegation of the world body will visit Bangladesh next week to meet stakeholders including workers, employers and government agencies. “After the fatal incidents in Rana Plaza and Tazreen Fashions, the compensation process could be introduced in Bangladesh. Now, the ILO thinks that insurance coverage of workers against injury in workspaces should be there,” said an official. He said in most cases, owners insure only their factories and assets there. In some cases, it was found that an owner goes for insurance for one factory and some workers of a group of companies. “Now the ILO wants every worker of factories to be insured and get compensation in case of any incident,” he added. He said employers will be responsible to pay premium for the proposed injury scheme. Initially, a pilot project will be taken after consultation with workers, employers, and the government before making it compulsory. According to the draft terms of reference of the study forwarded by the ILO to the government, the scheme aims to provide workers temporary disability benefits, permanent disability and survival benefits, health care for injured and disabled workers as well as physical and vocational rehabilitation. Vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidullah Azim told the FE Thursday that garment workers are covered under life insurance and they get compensation in case of incidents. He said if any worker is injured in workplace, the factory owner bears the treatment cost. “In case of death of any worker while on work, his or her heirs get Tk 0.2 million from insurance companies.” Mr Azim said life insurance of workers is mandatory for every factory to get services from the BGMEA as well as other benefits from the government. “The workers of garment factories in Rana Plaza and Tazreen Fashions were also covered by life insurance and they got compensation from the insurance company,” he said.

Source: https://www.thefinancialexpress-bd.com/2015/05/01/91001

The government has worked out a plan to minimise trade gap with China, a senior trade official said. The plan includes persuading China to give import licences to Chinese retailers, issue multiple visas to Bangladeshi businessman and arrange visits of increased Chinese trade delegations. It also includes seeking Chinese help in establishing fashion institutes in Bangladesh, local infrastructural development and taking part in increased international fairs held in China. The move comes at a time when trade gap with the world’s biggest economy hit a new high of US$ 6.0 billion, even if Dhaka gets duty-free benefits. “Despite having duty-free facility, our businessmen could not do well in boosting exports to China. But import from China is gradually increasing,” vice chairman of EPB Suvashis Bose told the FE. He said that this has prompted his agency to sit with relevant parties to find out ways on how to reduce the trade gap. “There is a good demand of Bangladeshi products in China, but there are certain reasons that hold back increasing exports to China,” he said. “If we can implement the recommendations, we hope, our exports to China will grow,” he said. “China is a friendly country and we hope our negotiation with the government will bring a positive result,” Mr Bose added. President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) A. K. M. Salim Osman said if the recommendations are implemented, garment exporters would be able to increase exports, since China is importing clothes from different countries across the world. “China does not issue import licenses to the retailers, if the government can convince China to issue import license to them, then import from Bangladesh to that country will increase significantly,” he added. The BKMEA president also urged the government to facilitate local raw-material producers to lessen dependence on China, thus make local exporters more competitive in that country. An inter-ministerial meeting, held in February at the commerce ministry, empowered the Export Promotion Bureau (EPB) to make recommendations on how to increase merchandise shipment to China, while also narrowing the trade gap. In the last financial year, Bangladesh imported goods worth $7.55 billion from China on the other hand local exporters have exported only $746.2 million worth of goods to the country. While China offers duty-free facility of 4,788 Bangladeshi products, it has urged Beijing to include 17 more items on the duty-free list. Raw jute, leather, frozen fish, Knit and oven garment, pet flex, Jute yarn, glass wear, copper wear, medicine, chemical items and textile fabrics are among the products that local exporters export to China. China, a major trading partner of the country, accounts for around 2.47 per cent of Bangladesh’s annual exports of $30 billion.

Source: https://www.thefinancialexpress-bd.com/2015/05/01/90997

The government of Bangladesh, Wal-Mart, J.C.Penney and The Children’s Place have been sued by victims and families of victims of a garment factory collapse that killed more than 1,000 people two years ago. The lawsuit, filed in federal court in Washington, claims the retailers and the government were aware of the unsafe conditions, according to US media.

When the eight-story building collapsed on April 24, 2013, 1,129 people were killed and about 2,515 people were injured. Many of the people were women and children. “Defendants knew, or with the exercise of reasonable diligence, should have known, that the Rana Plaza facility was not safe for human habitation,” said the lawsuit filed Thursday in U.S. District Court for the District of Columbia. The Bangladesh government breached its duty to its citizens by failing to properly inspect the building, failing to ensure compliance with local construction standards and failing to ensure the safety of factory workers, the lawsuit said. Retail defendants breached their duty to workers in the building, the lawsuit claims, by failing to implement standards and oversight mechanisms designed to ensure the health and safety of workers who manufactured clothing for their stores.

Source: https://www.dhakatribune.com/business/2015/apr/29/rana-plaza-victims-sue-bangladesh-govt-wal-mart-jc-penney#sthash.QDAGYKxt.dpuf

Industrial production increased in the first half of this fiscal year on the back of higher growth in pharmaceuticals, iron and steel, and cement sectors. Relatively calm political situation after January 5 election helped the industries boost their output. The industrial production in the July-December period of FY2014-15 grew 10% from a year earlier, showed data released by Bangladesh Bureau of Statistics recently. During the period, manufacturing output, which contributes about 20% to industrial production, rose 10% from a year earlier, while electricity output rose 10.8% and mining increased 10%. During the period, October marked the lowest production declining nearly 12% from the previous month. Among medium and large-scale manufacturing industries, the cement sector grew 66.3%, followed by pharmaceuticals 47.5% and iron and steel 23.2%. Beverage, tobacco, textile, chemicals and chemical products saw negative growths while garment, food products, electrical equipment, non-metallic mineral products, leather and related products and fabricated metal products posted positive growths during the period. “The positive industrial production is a result of cloudless political sky during the period,” said Mirza Azizul Islam, former finance adviser to a caretaker government. But this growth might slow down in the second half of the fiscal year, he observed as the January-March period was marred by the political unrest. Asian Development Bank (ADB), in its latest quarterly update on Bangladesh economy, said industry sector growth in FY2015 will be lower than expected, as exports, small-scale manufacturing, and construction activities have been affected by the political unrest. However, better performance of large and medium-scale industries prior to the onset of the unrest is expected to hold up industrial sector’s growth, it said. Industry growth dropped to 8.4% in FY2014 from 9.6% a year earlier, because of supply disruption and weaker consumer confidence resulting from political unrest, according to ADB. It forecast that the industrail growth is expected to rise to 9% in FY2016 with brighter prospects for the readymade garment industry following compliance and safety standard reforms together with increased external demand as eurozone economies recover. The industry sector will be boosted by better availability of electricity and infrastructure, as expected new power generation is added to supply and ongoing road and railway projects are completed, and improved business confidence, ADB said.

Source: https://www.dhakatribune.com/business/2015/apr/29/industrial-output-grows-10-h1#sthash.wrektv5j.dpuf

Bangladeshi garment exporters are going to take part in an international exhibition of textile machinery in Italy next November to be familiar with new technology and machinery suitable for making apparel products. The exhibition named International Textile Machinery Exhibition is an eight-day event. Several seminars and discussion sessions on new technology of making garments will also be arranged there which will benefit the garment makers across the world. Organised by MP Exposition, the event is the world’s largest international textile machinery exhibition recognised as ‘Olympics’ of the textile machinery industry – a showcase of the latest technology scheduled to start on November 12 next at Fiera Milano Rho in Malan, Italy. A promotional presentation on the occasion of the exhibition was held in the city recently. Bangladesh Textile Today is the local media partner of the show that organised the event in cooperation with MP International. Shahidullah Azim, Vice-President of Bangladesh Garment Manufacturers and Exporters Association, Regional Marketing Communication Director of MP Exposition, the organiser of the exhibition, Dephne Poon, Engineer Md Shafiqur Rahman, Senior Vice President of Institution of Textile Engineers and Technologists (ITET), were present there as the special guest. The event was chaired by ASM Tareq Amin, Editor and Publisher of Bangladesh Textile Today. Bangladeshi entrepreneurs and garment exporters have a unique scope to explore new avenues to expand their clientele base as well as attract foreign investors,” Dephne Poon said noting that the main purpose of the exhibition is to introduce modern and latest textile machinery to potential entrepreneurs and investors. In his speech, Shahidulla Azim said there is no alternative to use developed and modern technology to achieve vision 2021 of exporting 50 million dollar of readymade garments. Mentionable, the exhibition along with an attractive show for the global garment makers are also a lucrative scope for the Bangladeshi apparel makers. Around 200 sector insiders from Bangladesh visited the event in 2011.

Source: https://www.daily-sun.com/print/business/2015/04/29/500484#sthash.0t4jCfPg.dpuf

The industries ministry is going to recognise 56 industrialists as commercially important persons (CIP) for their contributions to the economy and industrialisation for the year 2014, according to a gazette notification issued last week. The notification said that 12 businessmen would get the CIP cards with various facilities in ex-officio category, 21 from large-scale industries, 9 from medium-scale industries, 6 from small-scale industries, 2 from micro-scale industries, one from cottage and 5 from services industry categories. The industrialists were selected for their contributions to the economy by setting up industries in private sector, creating employment and increasing national income in the year, it said. Officials said that the CIP cards would be handed over to the awardees at a function to be organised soon. The government will provide various facilities including entrance to the secretariat, invitation at national receptions organised by the government and the city corporations, priority in seat reservation on Biman Bangladesh Airlines and other government vehicles for business travels, letters of introduction issued by foreign ministry for getting visa to visit abroad for business purposes, priority in getting cabin facility in government hospitals and facility to use VIP lounge at airports, according to CIP (Industry) Policy-2012. CIPs from ex-officio category are the Federation of Bangladesh Chambers of Commerce and Industry president Kazi Akram Uddin Ahmed, Bangladesh Chamber of Industries president AK Azad, National Association of Small and Cottage Industries of Bangladesh president Mirza Nurul Gani Shovon, Bangladesh Garments Manufacturers and Exporters Association president Atiqul Islam, Bangladesh Employers Federation president Tapan Chowdhury, Women Entrepreneurs Association of Bangladesh president Nasreen Fatema Awal, Bangladesh Knitwear Manufacturers and Exporters Association president AKM Salim Osman, Bangladesh Women Chamber of Commerce and Industry president Sangita Ahmed, Bangladesh Jute Mills Association president Mohammad Shams-Uz-Zoha, Foreign Investors Chamber of Commerce and Industry president Rupali Haque Chowdhury, Dhaka Chamber of Commerce and Industry former president Mohammad Shahjahan Khan and Metropolitan Chamber of Commerce and Industry former president Rokya Afzal Rahman. From the large scale industries, selected persons are Jaber and Jobayer Fabrics Ltd Managing Director Abdus Samad Mohammad Rafiqul Islam, Abdul Monem Limited managing director Md Abdul Monem, BRB Cable Industries Ltd managing director Parvez Rahman, Super Refinery Ltd managing director Selim Ahmed, Fariha Knit Tex Ltd managing director Mohammad Asadul Islam, Islam Re-Rolling Mills Ltd managing director Azharul Islam, MRS Industries Ltd managing director M Shamsur Rahman, Pahartali Textile and Hosiery Mills managing director Mirza Salman Ispahani, Envoy Textiles Ltd chairman Kutubuddin Ahmed, Cosmopolitan Industries Ltd director Tanvir Ahmed, Fuji Ink Industries Limited Chairman Farhana Monem, Polo Composite Knit Industry Ltd managing director MA Jalil, Universal Jeans Limited managing director Nasir Uddin, Square Consumer Products limited managing director Anjan Chowdhury, BSRM Steels Ltd Chairman Alihussain Akberali, ACI Formulations Ltd Chairman M Anis Ud Dowla, Pacific Jeans Ltd Director Syed Mohammad Tanvir, Jalal Ahmed Spinning Mills Ltd managing director M Shahjahan, Runner Automobiles Ltd chairman Hafizur Rahman Khan, FARR Ceramics Ltd chairman Khodeza Farhad Ruhi and Gem Jute Ltd managing Director Kazi Enam Ahmed. CIPs from medium-scale industry category are Citadel Apparels Ltd managing director Mahidul Islam Khan, BD Seafood Ltd director Badrul Haider Chowdhury, Oeko Tex Ltd managing director Abdus Sobhan, Basumati Distribution Ltd MD Z M Golam Nabi, BRB Polymer Ltd MD Mojibur Rahman, Gemini Sea Food Ltd MD Kazi Shahid Ahmed, BD Foods Ltd director Tafhim Al Azmi, Atlas Sea Food Ltd MD SM Mizanur Rahman and Igloo Foods Ltd Director ASM Moinuddin Monem. Kiam Metal Industries Ltd MD Mizber Rahman, Baly Yarn Dyeing Ltd MD Masud Zaman, Footbed Footwear Ltd MD Aniruddho Kumer Ray, Karim Spinning Mills Ltd chairman Abdul Hai Sarker, Amanat Shah Weaving Processing Ltd director Lutfa Begum and Technomedia Ltd MD Joshoda Jibon Debnath were selected as CIPs under small industry category. CIPs under micro industry category are RMM Leather Industries chairman Mohiuddin Ahmed Mahin and AB Fashion Maker proprietor Sanaul Haque Babul. Janani Weaving Factory owner Rafiqul Islam Paran was selected as CIP under cottage industry category. CIPs under services sector are Navana Real Estate vice-chairman Sajedul Islam, STS Holdings Ltd MD Khandaker Monir Uddin, Shanta Properties Ltd director Jasmine Sultana, Navana Limited chairman Shafiul Islam and Sheltech Limited MD Taufiq M Seraj.

Source: https://newagebd.net/115539/56-industrialists-get-cip-status-for-2014/#sthash.WoE5R3aA.dpuf

Garment exporters have strongly opposed a decision of the National Board of Revenue permitting a private organisation to set up a quality control centre for inspecting the quality of apparel products before shipment. The revenue board on April 5 permitted Ispahani Summit Alliance Terminals Ltd to set up a special bonded warehouse and the quality centre. Bangladesh Garment Manufacturers and Exporters Association in a letter to the NBR demanded for withdrawal of the permission for the sake of export of RMG products. Exporters also blamed that the revenue board took the decision to facilitate a vested quarter to run monopoly business in the sector. A high official of the revenue board, however, told New Age on Tuesday that the permission was given on the basis of buyers’ requirement as they were showing reluctance to send their quality control team to Bangladesh on security reasons and to reduce costs. Some international buyers appointed the ISATL, a joint venture of Alliance Holdings Ltd, MM Ispahani Ltd and Summit Group, for conducting quality control inspection and for doing other activities including packing for shipment, he said. The joint venture has the backing of the high ups of the Awami League-led government, sources said. He also said that the third party quality control system was not a new one as another 20 private organisations were doing the same since 1998. Exporters, in general, are not bound to make inspection of their products in the centre. They will have to send their products to the centre if their buyers want, he said. The entrepreneurs of Alliance Holdings Ltd and Summit Group have influential relatives within the Awami League-led government, sources said. BGMEA leaders, however, said that there were no such third party quality control organisations in the country. In a letter sent to the revenue board on April 13, BGMEA president Atiqul Islam said that the decision would increase cost of transportation and security of products to be exported if the quality control activities were done outside the factory by a third party. It will also take extra time to complete the export procedures reducing lead time in export, he said. ‘The revenue board did not take any opinion of the BGMEA, the largest association of RMG products exporters, which is unfortunate,’ he said. Quality control officers assigned by the international buyers examine the quality of products inside the factory before shipment and then the products, after packing, are handed over to the representatives of the buyers for shipment, he said. Currently, exporters get the scope to alter the items if buyers’ quality control team found any fault in any set of products during inspection inside the factory, BGMEA leaders said. But if the quality control activities are done by third party at a private Inland Container Depot or Container Freight Stations situated near ports, altering any products will be costly and time consuming as the products will have to be brought back to the factories, they said. Exporters Association of Bangladesh president, also former president of BGMEA, Abdus Salam Murshedy, said that the decision was totally unacceptable as it would severely hamper export business. ‘The decision has been taken to provide special privilege of monopoly business to a certain quarter,’ he said. He also said that only C&A, a UK-based international buyer, conduct their quality control tasks by their nominated organisation at Chittagong before shipment.

Source: https://newagebd.net/115543/exporters-oppose-pvt-quality-control-centre-for-rmg-items/#sthash.BVGySR9h.dpuf

Bangladesh Ambassador to the United States Mohammad Ziauddin has said Bangladesh is destined to become a vibrant economic hub of the region, reports UNB. He said Bangladesh’s economy is moving at a fast pace to become a middle-income ‘Digital Bangladesh’ by fulfilling Prime Minister Sheikh Hasina’s vision 2021 and also a developed country by 2041. “To attain those goals, there is a strong emphasis on increasing export, remittance and foreign direct investment as well as establishing a physical multimodal connectivity with all countries in the region and beyond as a bridge between South and South East Asia,” he said while inaugurating the ‘Asian Festival 2015’ in Kansas, USA recently. Mayor of Olathe, Kansas, White House representative, diplomats, corporate representatives and high-profile businessmen were present on the occasion, said a press release here on Tuesday. The diplomat said the advancing innovations of information and communication technology followed by the ever-increasing flow of trade and investments, goods and services and peoples, is transforming the world into a global village. “Thus cultures, traditions, customs and norms are inevitably mixing freely and creating better understanding among the peoples of the world,” he said. ‘Asian Festival 2015’ is the largest yearly celebration for the 15 Asian nations in Kansas organised by the Mid-American Asian Cultural Association (MAACA). MAACA is an umbrella Association of 15 South and South East Asian diasporas in Kansas. The diplomat said in the process of such celebration peoples of different ethnicity, religions and beliefs are learning to understand and respect one another and adjust to living together in peace and harmony. “Asian nations should be proud of their ancient heritage and culture, they’re not only integrating well among themselves also merging gracefully with the larger socio-cultural fabric and pluralistic democratic society of the United States,” the Ambassador added. He said Bangladesh diaspora is contributing to the socio-economic growth of both their countries, to their home of origin they are sending remittances, which are doing wonders in transforming the lives of those they have left behind and on the other hand merging smoothly with the culture and values of their adopted home. The daylong ‘Asian Festival 2015’ was swamped by the Asian diasporas and Americans. The Festival started with the introduction of 15 national flags of the Asian countries. Bangladesh and other South-Asian countries showcased traditional cultural performances, indoor games, yoyo tricks and traditional stage parade etc. Bangladesh and other South-East Asian countries also opened individual food stalls in the festival.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=256391:bangladesh-destined-to-be-economic-hub&catid=110:business-others&Itemid=156