Bangladesh has relaxed the restriction on the import of raw materials, which have already been shipped, under the free of cost scheme for the readymade garment industry.

Export-oriented readymade garment manufacturers have been allowed to release the excess raw materials, mainly fabrics, imported beyond the permissible limit. A hundred per cent export-oriented garment manufacturer can import raw materials worth one-third of its total export earnings in the previous year under the scheme without paying any duty and other taxes.

Foreign buyers sometimes directly provide raw materials free of cost for manufacturers to speed up the export process. But many importers from the readymade garment sector import raw materials, mainly fabrics, up to several times the limit beyond the permissible level.

The provisions were relaxed as many apparel exporters had already bought excess raw materials under the facility.

Some importers brought raw materials several times higher than the limit and sold them in the local market instead of producing finished goods for export. According to the order, raw materials only recently imported, unreleased and those which have already been shipped will get the benefit.

The facility will not be applicable for goods imported in future after releasing the current consignments.