Bangladesh, Nov. 12 -- The Bangladesh Textile Mills Association (BTMA) has sought to replace the existing bonded warehouse facility for yarn and fabric imports with a bank guarantee system, alleging that duty-free imported materials are being diverted to the domestic market, undermining local textile manufacturers.

Advertisement The proposal, if accepted, would fundamentally change the way export-oriented industries import yarn and fabrics, shifting from the existing bond facility to imports secured by bank guarantees.

In a letter to Commerce Minister Khandakar Abdul Muktadir on Wednesday, the association said widespread misuse of the bond facility was causing revenue losses, distorting market competition and threatening investment in ...