BGMEA seeks customs leniency, citing financial struggles
It says the industry needs support as exports dwindle, production costs rise
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested the customs authorities to provide a window for rectifying inadvertent errors in the customs clearance process without an incurring of exorbitant fines.
BGMEA First Vice President Syed Nazrul Islam submitted a letter to the commissioner of Chattogram Custom House, seeking instructions on how customs duties for readymade garments could be more leniently applied amid mounting financial setbacks faced by garment owners.
In the letter, the BGMEA said the core issue revolves around customs officers imposing substantial fines through irregularity cases for inspection and unintended errors in the export shipment of garment companies operating in private inland container depots. This approach not only leads to delays in the permission process for product exports but also forces garment owners into costly air shipments on meeting tight deadlines, it said. The financial toll is exacerbated by the punitive fines, hampering the institutions' capacity to export and impacting the repatriation of foreign exchange, it said.
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The BGMEA emphasised that streamlining the export process is crucial, particularly after the submission of the bill of export. It called for a positive and expedited approach by customs officers in rectifying inadvertent mistakes. Simplifying this aspect of the customs clearance process would alleviate the financial burden on garment owners, allowing them to meet export deadlines more efficiently, it said.
Highlighting the challenges faced by the readymade garment industry, the BGMEA pointed to a 13.93% decline in exports in October due to a global economic slowdown. With production costs soaring, the industry is grappling with a precarious economic landscape, it said. Compounded by issues such as a 30% drop in carting and making charges of garments and disruptions caused by political unrest, achieving the export target of $52.27 billion in the financial year 2023-2024 is proving to be an uphill battle, it said.
In a separate letter dated November 22, the BGMEA underscored the need for swift solutions to various problems afflicting the garment industry. The issues ranged from addressing weight discrepancies in exported goods and complications in shipping items with local fabrics to streamlining customs clearance processes and the expeditious re-routing of shipments by revenue officers, it said, urging a simplified process in providing certification for updating bills of export information related to codes and short shipments.
Chattogram Custom House spokesperson, Deputy Commissioner Badruzzaman Munshi told The Business Standard that discussions with the BGMEA on the issues raised in the two letters would take place promptly. The customs authorities are committed to considering BGMEA's claims, provided they align with legal resolutions. However, Badruzzaman Munshi clarified that any discrepancies in export shipments done with fraudulent intent would be met with appropriate actions in accordance with customs law.
