Exporters can now import only 50 percent of the raw materials they need under FoC, under which international buyers supply fabrics, accessories and other inputs, while local manufacturers are paid only for cutting and making the garments.
Although the policy aims at reducing costs and encouraging high-end exports, the amendment could undermine Bangladesh's domestic textile and accessories industries, industry representatives told Commerce Adviser Sheikh Bashir Uddin recently.
The domestic primary textile sector that offers yarn, fabrics, dyeing, washing and finishing services to garment exporters could face severe disruption due to the amendment, they cautioned.
Bangladesh Textile Mills Association (BTMA) president Showkat Aziz Russell said in a statement that the FoC amendment "will destroy the primary textile sector."
Domestic mills are already struggling with gas shortages and cannot operate at full capacity, he was cited as saying by domestic media reports.
In another statement, Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) president Mohammad Shahriar expressed concern that the Tk 40,000-crore packaging and accessories sector will be severely affected due to the change.
ALCHEMPro News Desk (DS)
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