The National Board of Revenue (NBR) has restricted the import of yarn through land ports to protect the local textile and spinning sector, according to a notification with immediate effect. 

The decision comes just over two weeks after the commerce ministry recommended limiting such imports, citing that an influx of raw materials for the apparel industry had led to significant losses for domestic textile millers.

Local manufacturers are unable to compete with imported yarn, as importers often declare lower values for shipments brought in through land ports compared to those arriving via Chattogram port, the ministry said.

The recommendation followed pleas from local textile millers.

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Yarn imports rise, India dominates supply

In the notification issued on April 13, the revenue board blocked yarn imports through the Benapole, Bhomra, Banglabandha, Burimari and Sonamasjid land ports. The restriction takes immediate effect.

The government had allowed yarn imports through these ports in January 2023 to meet an abrupt surge in demand following the Covid-19 pandemic.

Meanwhile, India last week revoked the transshipment facility for Bangladesh's export cargo destined for third countries via its land borders to Indian airports and seaports. 

However, the neighbouring country claimed that the move would not affect Dhaka's trade with Nepal and Bhutan through Indian territory.

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Cotton, yarn imports plunge

The measure is expected to increase costs for Bangladesh's apparel exporters, many of whom ship orders to Western markets through Indian airports, particularly Indira Gandhi International Airport in New Delhi.

Previously, exporters transported goods overland through the Benapole–Petrapole border en route to Indian airports, including those in Kolkata and Delhi, for onward air shipment to global destinations.