UD certificates: BGMEA introduces obligatory unit price protestation for UD instruments The Bangladesh Garment Manufacturers and Exporters Association( BGMEA), the leading trade body for the vesture assiduity, has blazoned new regulations taking manufactories to expose the unit prices of imported raw accoutrements and finished garments during the allocation of Application protestation( UD) instruments.
The move aims to promote translucency and insure accurate valuation within the sector. In a indirect issued on Sunday, BGMEA directed its member manufactories to include detailed unit price information when applying for UD instruments starting 1st September. The indirect emphasises that accurate protestation of unit prices is vital for maintaining the competitiveness of Bangladesh’s import garments in transnational requests and for sustaining the trust of global buyers. “ The accurate protestation of unit prices for imported raw accoutrements and import-ready garments is essential to uphold translucency and make confidence among our trading mates, ” the indirect countries. It also notes that the National Board of profit( NBR) and transnational buyers have raised enterprises over the assiduity’s translucency and valuation practices in the absence of similar data.
UD certificates
The UD instrument is a crucial document used in customs concurrence, easing duty-free import of raw accoutrements for import product, and enabling access to trade preferences, impulses, and import facilitation. Both BGMEA and BKMEA( Bangladesh Knitwear Manufacturers and Exporters Association) issue UD instruments to their members grounded on each work order, detailing information about exporters, importers, and raw accoutrements involved. presently, roughly 1,700 to 1,800 manufactories admit UD instruments yearly, corresponding to each work order.
Mahmud Hasan Khan, President of BGMEA and Managing Director of Rising Group, stated that this is the first time the assiduity will bear the protestation of unit prices in UD services. “ This action helps us understand the factual position of value addition in our sector, ” he explained. Khan added that the data collected will be used to induce yearly reports and companion assiduity strategies. He further noted that, at present, there’s limited data on the assiduity’s value addition situations. Once similar data becomes available, BGMEA intends to advise its members on producing advanced- value products or fastening on products with better profit perimeters, shifting the emphasis from volume to value.
Despite recent oscillations, the value addition to Bangladesh’s ready- made garments( RMG) assiduity has yet to recover topre-pandemic situations. Rising raw material costs, especially for yarn and fabric, have impacted import returns. Assiduity interposers point to increased significances of raw accoutrements , similar as yarn and fabric, which have contributed to restrained profit perimeters. Data from Bangladesh Bank indicates that the assiduity’s value addition has changed over recent times, generally remaining between 54 and 64. In FY25, Bangladesh exported roughly$ 39.34 billion worth of vesture, with significances of raw accoutrements totaling around$ 16.12 billion, performing in a net import value of$ 23.21 billion and a value addition rate of roughly 59.
Bangladesh relies heavily on imported raw accoutrements for woven garments, while numerous knitted particulars are sourced locally. still, recent internal issues like a gas deficit and reduced cash impulses for using domestic raw accoutrements have led to increased significances. According to the Bangladesh Textile Mills Association( BTMA), knit fabric significances surged by over 32 to 0.51 million tonnes in FY25, over from 0.38 million tonnes in the former time. Woven fabric significances also increased by roughly 16 to 0.62 million tonnes. Yarn significances also rose by 13.35, reaching 1.24 million tonnes.
Also, Bangladesh imported 8.35 million bales of cotton last financial time, compared to 7.75 million bales in FY24, according to BTMA data. The assiduity continues to grapple with rising raw material costs and shifting import values, but the new protestation demand aims to enhance translucency and support strategic assiduity development.
