Apparel Exporters Seek Prime Minister’s Intervention as Yarn Piles Up at Chattogram Port

Bangladesh's ready-made garment (RMG) sector has once again found itself caught between shifting import rules and the practical realities of factory production. Industry leaders have formally asked Prime Minister Tarique Rahman to intervene so that large volumes of imported coarse cotton yarn can be released from Chattogram port before further damage is done to export schedules.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) sent a joint letter to the prime minister on Thursday. The letter focuses on consignments of 10- to 30-count cotton yarn—the coarser grades commonly used in knitwear. These shipments began facing clearance problems after the National Board of Revenue (NBR) suspended the bonded-warehouse facility for such yarn in the first week of September. Under the bonded system, exporters can normally import raw materials duty-free provided the finished goods are later exported. The sudden withdrawal of that facility for this specific yarn count range created immediate uncertainty for factories that had already opened letters of credit (LCs) under the earlier rules.

The Ministry of Commerce subsequently issued a circular in mid-September withdrawing the additional requirement for bank guarantees that customs authorities had begun demanding. Despite that step, exporters report that many consignments remain held at the port. Customs officials have reportedly continued to insist on further written instructions before allowing the goods to leave, even for shipments covered by LCs opened before the September policy change. Industry associations argue that applying the new conditions to earlier import commitments is unfair and is now disrupting production lines.

BGMEA President Mahmud Hasan Khan confirmed that the letter had been sent. BKMEA President Mohammad Hatem signed the document on behalf of the knitwear association. In their communication, the two bodies warned that continued delays could force factories to miss delivery deadlines with international buyers. They noted that global retailers and brands operate on tight schedules and may shift orders elsewhere if Bangladeshi suppliers cannot guarantee timely shipment of finished garments. The associations therefore requested that yarn imported under the previous regime be cleared without the imposition of the new restrictions.

The issue highlights the sensitivity of the RMG supply chain to administrative changes. Bangladesh's knitwear segment, in particular, depends heavily on imported yarn for a significant share of its production. When raw materials sit at the port for weeks, factories face idle capacity, rising storage costs, and the risk of having to source alternative material at higher prices on short notice. In an environment of already elevated freight rates and tighter financing conditions, these additional frictions compound the pressure on margins.
Exporters have also pointed out that confidence among overseas buyers can erode quickly when delivery reliability is questioned. Several international brands have in recent years diversified their sourcing base, and any prolonged disruption risks accelerating that trend. By seeking the prime minister's direct attention, BGMEA and BKMEA are effectively asking the government to resolve the gap between the commerce ministry's circular and the continued practices at the customs level.

As of Friday, the consignments remain at the port while factories wait for a practical solution. The associations have stressed that a swift, clear decision—one that honours the terms under which the earlier LCs were opened—would allow production to resume and protect existing export orders. Until such a resolution arrives, the stranded yarn continues to represent both a logistical bottleneck and a reminder of how quickly policy adjustments can affect the day-to-day operations of the country's largest export industry.