The National Board of Revenue (NBR) has revoked the facility of importing yarn from India through five key land ports — Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. However, yarn imports will still be allowed through seaports or other non-land routes. A new directive issued on Tuesday amends a previous notification from August 27, 2024, and takes effect immediately.

According to sources, yarn produced in northern and southern India is typically stockpiled in Kolkata before being transported to Bangladesh, often at lower prices than domestic alternatives. This pricing disparity has led local textile factories to increasingly rely on imported Indian yarn via land routes, prompting concerns from the Bangladesh Textile Mills Association (BTMA) about significant losses to local producers.

BTMA has pointed out that although yarn prices from China, Turkey, Uzbekistan, and domestic sources are relatively similar, the yarn entering through Indian land ports is significantly cheaper than the rates declared at the Chattogram Customs House. This price gap has undermined the competitiveness of local yarn manufacturers.

Earlier, in February, BTMA formally requested a ban on yarn imports from India via land ports. In March, the Bangladesh Trade and Tariff Commission under the Ministry of Commerce followed up with a letter to NBR recommending the suspension of such imports to encourage the use of locally produced yarn in the apparel industry. The commission also emphasized that until proper infrastructure is in place to ensure standard yarn count measurements at border points and customs houses, imports should be limited to seaports.