A new law- the Textile Industries Establishment Act 2015 has been proposed recently by the Bangladesh government in order to crackdown on illegal units and streamline the readymade garment (RMG) sector. According to the law, no textile and garment factories can be established without registration under the textile industries establishment act. Violation of this law can lead to year-long imprisonment or taka 1 lakh (US $ 1290) penalty. The existing factories will have to come under the registration of the textile directorate too, within six months as per the new law. The Bangladesh Knitwear Manufacturers and Exports Association (BKMEA) said that the law should be applicable only for the new establishments and the license for the existing factories should be renewed based on the previous license of the Board of Investment. It also said that the period for renewal of license for the factories should be 10 years instead of three years.
