The Ministry of Commerce has recommended withdrawing the bonded warehouse facility for importing 10 to 30 count yarn used in export-oriented garment manufacturing. A letter signed on January 12, 2026, from the ministry’s WTO Cell-2 instructed the National Board of Revenue to take necessary action. The move follows recommendations from the Bangladesh Tariff Commission and the Bangladesh Textile Mills Association to safeguard domestic spinning mills, promote employment, and strengthen local value addition ahead of Bangladesh’s graduation from least developed country (LDC) status.

According to the ministry, bonded imports under HS headings 52.05, 52.06, and 52.07 have surged in recent years, particularly from India, rising from 351,000 tons in 2022–23 to 697,000 tons in 2024–25. The ministry noted that duty-free or low-duty yarn imports are being sold at lower prices, undermining local mills that are operating at only 60% capacity. Around 50 spinning mills have already closed, and many others face losses.

The ministry believes ending the facility will restore balance in the spinning sector, boost domestic production, and help Bangladesh meet local value addition requirements in global trade after LDC graduation.