The National Board of Revenue (NBR) has withdrawn the duty-free bonded warehouse facility for the import of 10 to 30-count cotton yarn to protect domestic spinning and textile industries. However, to maintain business continuity for warehouse license holders, garment exporters will be permitted to import these raw materials under the condition of submitting a bank guarantee equivalent to the applicable duties and taxes.
According to an order issued by the NBR on Monday (September 7, 2026), the previous duty-free bonded warehouse benefits applicable to 10–30 count cotton yarn imports are no longer effective. Under the revised regulations, bonded license holders in the readymade garments (RMG) sector can continue imports by satisfying specific compliance criteria and providing bank guarantees.
Under this facility, importing exporters must present a certificate from BGMEA, BKMEA, or BTMA at the respective customs station during clearance. Additionally, a bank guarantee equal to 100% of the total applicable customs duties and taxes must be lodged as security with customs authorities. The bank guarantee will be released upon export of the finished garments, validated by certification from the appropriate licensing authority. Consignments shipped prior to the issuance of this order remain exempt from the new directive.
