Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has made it mandatory for its members to include the unit price of imported raw materials and exportable readymade garments in Utilisation Declaration (UD) applications, effective from September 1.

In a letter sent to members on August 24, the trade body stated that the move aimed to enhance transparency, maintain international standards, and uphold the confidence of global buyers in Bangladeshi readymade garment (RMG) products.

The letter mentioned that many UD applications had historically been submitted without specifying the unit prices of fabrics or finished apparel, and that this practice had drawn concerns from international buyers, regulators, and particularly the National Board of Revenue, raising questions about accurate valuation of products.

BGMEA highlighted that including unit prices would help monitor the industry more effectively, ensure smoother operations, and strengthen Bangladesh’s competitiveness and credibility in the global apparel supply chain.

It explained that UD is a crucial customs document for RMG manufacturers and other export-oriented industries importing duty-free raw materials for production, confirming that the imported materials had been used to produce export goods and enabling companies to fulfil export orders and claim benefits such as cash incentives.

While the new rule aims to improve transparency, some manufacturers, speaking on condition of anonymity, expressed concerns that revealing unit prices could compromise business privacy.

One of them said that this would only be possible if a two- or three-factor privacy system were adopted, with a clear definition of who could access the data.

Addressing privacy concerns, BGMEA vice president Md Shehab Udduza Chowdhury said that the value would be added to the UD only after the order was placed, ensuring confidentiality.

He said that the step was part of a broader effort to identify value addition in the sector and that, once the database was complete, members would be encouraged to focus more on value addition rather than just production volume.

Shehab Udduza further emphasised that including the Free on Board (FoB) value in UD applications was now mandatory, reinforcing the accuracy of product valuation.

He said that with this initiative, BGMEA aimed to maintain global buyer trust, strengthen regulatory compliance, and secure Bangladesh’s position in the competitive international apparel market.