Local apparel manufacturers in Bangladesh have urged the bond authorities to increase the amount of waste permitted while producing garments to 30 per cent from items imported duty free under bonded warehouse benefit.
Currently, manufacturers are allowed to waste 7 to 9 per cent of the required materials while making export-oriented garment items. It is 7 per cent during the dyeing process and 9 per cent in case of processed knitted fabrics.
However, the percentage of waste in making export-oriented garment items has risen as most local manufacturers are entering the high-end market.
A portion of fabrics is wasted for various reasons during manufacturing. For instance, incidents of wasting fabrics and yarn take place when these materials are cut or processed. Scraps are also produced while sewing fabrics. The process of making fancy or high-value added garment items generate more waste compared to the production of basic apparel products.
This is because, in many cases, garment manufacturers and exporters cannot maintain the commerce ministry's fixed 7 per cent and 9 per cent waste allowances in making fancy and high-end garment items.
As a result, the bond office and customs offices sometimes cause delays in releasing goods from ports because of a mismatch in the amount of fabrics imported and its consumption for making finished apparel goods for export under bond licenses.