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Bangladesh Clears Import Hurdles For Specialised Apparel

Bangladesh wants to make it easier for garment exporters to move into products that require fabrics and materials its domestic supply chain cannot always provide.

The government has amended the Import Policy Order 2026-2029, immediately easing several import requirements for specialised fabrics and materials used in products such as seamless sportswear, underwear and functional garments. The changes took effect following a Commerce Ministry notification issued on September 20.

Under the revised rules, exporters can import specialised fabrics and materials with recommendations from either the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Bangladesh's apparel industry has long been built around large volumes of relatively standard products. But specialised apparel - performance sportswear, functional clothing, intimate wear and other higher-value products - often requires fabrics and inputs that are not widely available locally.

One less approval to chase

The government has also removed a separate approval requirement that applied in certain cases to imported knit fabrics and yarn.

Previously, importers could have needed Commerce Ministry approval even when the imports were already covered by the country's import policy and the Utilisation Declaration (UD) system.

BKMEA President Mohammad Hatem said the requirement could have forced companies to seek ministry approval for individual letters of credit, adding another layer of paperwork.

That requirement has now gone.

Hatem said the changes largely correct inconsistencies and unnecessary restrictions in the existing policy and should reduce disruptions for exporters.

A broken machine gets a little more breathing room

There is another change that could matter on the factory floor.

Bangladesh has removed limits on imports of spare parts for industrial machinery.

Previously, spare part imports were capped at 2% of the value of machinery in the first year and 5% in subsequent years.

That could create a bizarre situation: a critical machine breaks down, but the replacement part costs more than the permitted import value.

The restriction has now been removed.

For factories running expensive knitting, weaving, dyeing, finishing or garment machinery, that could mean less risk of production being held up by an import-value ceiling.

Not a duty cut

There is an important distinction.

The amendment does not offer a blanket duty concession or set a new quantitative limit for specialised fabrics and materials. Instead, it changes the conditions and procedures under which these inputs can be imported.

So, this is primarily a trade-facilitation move, not a new tariff incentive.

The timing is significant.

Bangladesh is under pressure to move further into higher-value apparel while dealing with rising competition and changing sourcing requirements. At the same time, its garment industry has been facing substantial disruption: a recent BKMEA survey found that nearly 55% of knitwear factories had experienced order cancellations or reductions between August 21 and September 14.

Against that backdrop, making specialised inputs easier to source could give manufacturers more flexibility to chase product categories beyond conventional basics.

Bangladesh is under pressure to move further into higher-value apparel while dealing with rising competition and changing sourcing requirements. At the same time, its garment industry has been facing substantial disruption: a recent BKMEA survey found that nearly 55% of knitwear factories had experienced order cancellations or reductions between August 21 and September 14. Against that backdrop, making specialised inputs easier to source could give manufacturers more flexibility to chase product categories beyond conventional basics.

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