National Board of Revenue (NBR) has issued a gazette notification imposing a ban on the import of yarn through all land ports in the country, responding to repeated calls from local textile millers.

The directive, issued on April 15 replaces a previous notification dated 27 August 2024.

According to the latest order, signed by NBR Chairman Md Abdur Rahman Khan, the import of yarn through land ports including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari has been prohibited.

However, imports of other goods through these land ports will continue without restriction. Importers will still be allowed to bring in yarn through seaports and airports, as per the revised policy.

Earlier in February, the Bangladesh Textile Mills Association (BTMA) had urged the government to halt yarn imports from India via land routes, citing concerns over unfair competition and the protection of local industry.

On March 28, the Ministry of Commerce instructed NBR to take regulatory action to halt the import of yarn through land ports, citing concerns over under-invoicing that is significantly affecting the domestic textile industry.

The directive said that, based on data from BTMA, stakeholder feedback, and relevant investigations, the declared value of yarn imported through land ports was found to be considerably lower than the prices recorded at Chattogram Customs House. This price discrepancy has made it increasingly difficult for local yarn manufacturers to remain competitive.

The ministry further highlighted that Indian yarn, stocked in warehouses in Kolkata for rapid shipment to Bangladesh, is entering the market at dumping prices. This has led to a growing preference among buyers for imported yarn over locally produced alternatives, placing the domestic textile sector under substantial pressure.

In response, the ministry formally instructed the NBR to take appropriate steps by issuing a fresh notification or amending existing regulations to prohibit yarn imports through land ports.

However, the directive has drawn criticism from apparel manufacturers. Following the government’s move, industry stakeholders voiced concerns about the potential impact on small and medium-sized garment factories.

During a pre-budget discussion held at the NBR on April 15 textile millers welcomed the decision, while representatives from the readymade garment (RMG) sector expressed opposition.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), warned that the ban would adversely affect small and medium garment factories.

He argued that restricting yarn imports through land ports would deprive these factories of access to yarn with short lead times, thereby driving up production costs.

He called for the continuation of existing import facilities for at least another six months.

In response, NBR Chairman Md Abdur Rahman Khan said that the decision had already been finalised at a high-level government meeting and that the board was not in a position to amend it.

Meanwhile, India has recently withdrawn its transshipment facility for Bangladesh, coinciding with Bangladesh’s decision to restrict yarn imports via land ports.