RMG makers for raw materials delivery from port, not ICDs

block

Economic Reporter :
The country’s readymade garment makers want delivery of imported raw materials from Chattogram port instead of inland container depots (ICDs) mainly to save time and money.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) made the plea in a letter to the state minister for shipping on Monday.
The lion share of export-import activities is done through Chattogram port, the letter signed by its vice president Mohammad Hatem said adding though export activities are done through private ICDs, import works are done through Chattogram port.
During the lockdown period, the imported goods of the RMG sector have been releasing from the Chattogram port without any difficulties.
“We are informed that to keep operation of the port activities smooth, the port authority has taken an initiative for shifting import delivery to private ICDs,” he said.
The BKMEA in the letter said while imported goods can be released within two days, ICD delivery takes six to seven days.
It alleged that private ICDs have scarcity of space, machinery and workforce that resulted in lengthy process of goods release.
Besides, private ICDs charges are much higher than that of Chattogram port, the trade body said alleging that exporters in many cases were forced to pay higher charges.
The additional cost and lengthy process will erode the RMG sector’s competitiveness in the global market that would finally affect the economy, it said.
The second wave of corona virus has confronted the local industry with new challenges when the industry just started to recovering from the first wave challenges like cancellation of orders, deferred payments and shipments and discount.
“So, during the crisis moment, it is not possible to release imported goods with additional high charges from the private ICDs,” the BKMEA said requesting measures to delivery of imported goods directly from the Chattogram port.
While talking BGMEA president Faruque Hassan also echoed the BKMEA and said against the backdrop of the pandemic-induced worldwide crises, it is impossible for them to take import delivery from private ICDs with additional payment.

block