There are limitations now on the import availability for non-tariff bonded establishments compared to those located within designated tariff zones.

These zones, often managed by government authorities, offer certain benefits like tax breaks and simplified customs procedures. Businesses operating in these zones are considered bonded establishments.

A three-year import availability period for the accessories sector would allow manufacturers to manage their raw material needs more effectively and avoid delays caused by slow audits, which can be a particular issue for non-tariff bonded establishments, it said.

The demands were part of the association’s budget proposals for fiscal 2024-25.

The association proposed that the tax on their products be reduced from 1 per cent now to 0.25 per cent, in line with earlier government initiatives to encourage exports. It also sought a fixed tax rate for at least five years, domestic media outlets reported.

The association urged the government to eliminate the requirement for bank guarantees on imported goods, which can be a financial burden and cause delays.

It also proposed the exclusion of all local purchases made by export-oriented industries from the existing 15-per cent value-added tax to reduce production costs and a ban on the import of finished garment accessories and packaging products under bond.

Fibre2Fashion News Desk (DS)