The Bangladesh Textile Mills Association (BTMA) has warned that all spinning mills across the country may be shut down from 1 February if the government does not withdraw duty-free import privileges for specific categories of cotton yarn.
BTMA President Showkat Aziz Russell issued the warning at a press briefing held at the association’s Dhaka office on Thursday.
He said the continued duty-free import of 10–30 count cotton yarn under bond facilities is posing a serious threat to the survival of domestic spinning mills.
The association has called for the immediate suspension of the bond facility that allows certain industries to import yarn without paying duties, claiming the policy has created unfair competition and is damaging local producers.
Under the current National Board of Revenue (NBR) system, export-oriented businesses are permitted to import raw materials duty-free on the condition that finished goods are exported.
According to BTMA leaders, this mechanism has been misused, particularly in the case of 10-30 count yarn - one of the core products of the local spinning sector.
They argue that an influx of duty-free imported yarn of the same category has made domestic production financially unviable.
Russell stressed that withdrawing the bond facility should not be mistaken for introducing new tariffs.
Importers would still be eligible to receive duty drawbacks under existing regulations, he explained.
The BTMA’s demand follows a recommendation from the Bangladesh Trade and Tariff Commission (BTTC), which recently advised the Ministry of Commerce to suspend the bond facility for 10-30 count cotton yarn.
The Commerce Ministry has since formally urged the NBR to act on the recommendation to protect domestic investment and maintain a level playing field in the textile industry.
BTMA leaders said swift government action is crucial to prevent large-scale closures and protect thousands of jobs in the spinning sector.
