The National Board of Revenue (NBR) has stopped the import of yarn from India through all land ports. A new decision was announced through a notification on Tuesday, which takes effect immediately. It replaces the previous notification issued on August 27, 2024. 

As per the NBR, yarn can no longer be imported through land ports such as Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari. However, importing yarn by sea or through other routes is still allowed. In February this year, the Bangladesh Textile Mills Association (BTMA) requested the government to stop importing yarn from India through land routes. They said that Indian yarn was cheaper and hurting local producers by causing them big financial losses. In response, the Bangladesh Trade and Tariff Commission suggested in March that land-port imports should be temporarily stopped to protect the local textile industry. 

The commission observed that land ports don’t have the proper facilities to check and confirm yarn counts as per international standards. So, it is suggested that yarn should be imported only through sea ports. Reports suggest that yarn made in northern and southern India is usually sent to warehouses in Kolkata before being exported to Bangladesh, mainly through land ports. These shipments are much cheaper than the yarn made locally in Bangladesh or imported from countries like China, Turkey and Uzbekistan. 

In some cases, Indian yarn entered Bangladesh at prices even lower than what was officially declared at Chittagong Customs House, making it hard for local mills to compete. NBR Chairman Abdur Rahman Khan said the decision was taken to support local industries based on a recommendation from the Tariff Commission. Experts think this step will help local yarn producers a bit, but importers are worried it might increase costs and slow down the process of getting raw materials.