Archive · 26 Jan 2026
Bangladesh Textile Dispute Over Bonded Warehouse
There's a big argument in Bangladesh about a special rule that lets clothing makers import yarn without paying taxes.
The rule was supposed to help exports, but local yarn producers say it's hurting their business.
The government is thinking about changing this rule, which could cause big problems for the clothing industry starting February 1.
Both sides are waiting to see what the government will do.
Dispute centers on bonded warehouse facility allowing zero-duty yarn imports for garment manufacturers.
Domestic millers claim the policy undermines local spinning units.
Ministry of Commerce urged the National Board of Revenue to consider withdrawing the duty-free benefit.
Pressure on the interim government to act on the issue.
Potential impact on Bangladesh's textile heartland from February 1.
- Who
- Garment manufacturers and domestic millers in Bangladesh
- What
- Dispute over bonded warehouse facility for zero-duty yarn imports
- When
- Potential impact from February 1
- Where
- Bangladesh's textile heartland
- Why
- Domestic millers argue the policy undermines local spinning units
- Dispute Focus
- Bonded warehouse facility for zero-duty yarn imports
- Affected Industry
- Garment manufacturing and domestic spinning units
- Government Action
- Ministry of Commerce urged withdrawal of duty-free benefit
- Potential Impact
- Silencing of Bangladesh's textile heartland from February 1
- Stakeholders Involved
- Garment manufacturers and domestic millers