Even as the Commerce Ministry of Bangladesh has hiked the wastage rate and set the new maximum wastage rate at 27 per cent for basic knitwear, 4 per cent for sweaters and socks and 30 per cent for special items, the USDA or the US Department of Agriculture has maintained higher wastage rate will likely encourage apparel manufacturers to import more yarn and fabric over raw cotton.
Media reports maintained this adding USDA’s voluntary report, published recently, further added raw cotton is not imported under a bonded warehouse facility in Bangladesh even as it added but the export-oriented apparel manufacturers are supported by duty-free imports of certain fabrics and accessories under a bonded warehouse facility, while underlining wastage rate was an important component for defining duties applied on different finished products.
The report also stated higher permissible wastage rate will likely encourage garment makers to import more yarn and fabric due to reduced duties, as opposed to raw cotton import.
