In a move that would allow Bangladesh garment exporters to import more yarn and fabrics duty free compared to the current level, for the same amount of export, the Commerce Ministry has decided to increase the maximum wastage rate in producing garment items from raw materials to 28 per cent from the current 16 per cent.
Citing sources within the Commerce Ministry, media reports claimed this adding, as per the Government decision, maximum wastage rate will be 28 per cent for specialised garment items, 25 per cent for basic readymade apparel items and 3 per cent for sweaters and socks while adding a circular to this effect will be issued soon.
However, the knitwear exporters have, reportedly, rejected the same as they think the wastage rate should be 35 per cent even as those into woven products have, reportedly, labelled the decision in this regard as “better than nothing.”
