The readymade garment (RMG) sector will soon be regulated by the Directorate of Textiles, under a new law aimed at streamlining Bangladesh’s main export-earner. The Textile Industries Establishment Act 2015, which is the new law in the making, will take effect early next year according to officials. The Directorate of Textiles would be under the Ministry of Textiles and Jute as an effective ‘sponsoring authority’ for the apparel industry as per the draft law proposed, said the officials. This means that the control of all major activities, including registration, permission for import, utilisation declaration (UD), and even import of capital machinery would be under the authority of the directorate. None can establish and run textile and garment factories without registration from the Directorate of Textiles, according to legal provisions.

All new establishments, (textiles and garments) would have to register under the Act and all the existing factories would have to come under registration with the directorate within six months, after the enactment of the law. Besides, the directorate will enjoy the authority to suspend or cancel registration of any industry if it finds proper reason to do so after carrying out investigation, according to the proposed law.

However, the implementation of the law may take some more time said officials concerned as they are yet to sit with major stakeholders, including Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), though the draft of the law has already been sent to the stakeholders.