BGMEA seeks clarification on US formula for raw material usage in duty waiver

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday requested clarification on the formula for calculating US raw material usage and the mechanisms to ensure transparency and traceability across the supply chain to qualify for the recently announced duty waiver on American raw materials.

The association also explored the idea of establishing a warehouse near Chattogram Port to speed up cotton imports from the United States.

These proposals came during a meeting between a US Embassy delegation and BGMEA President Mahmud Hasan Khan at the BGMEA Complex in Dhaka, according to a statement. The US team included Labour Attaché Leena Khan, Foreign Commercial Service Attaché Paul G Frost, Foreign Agricultural Service Attaché Erin Covert, and Economic Officer Richard Rasmussen. Senior Vice President Inamul Haq Khan, Vice Presidents Md Rezwan Selim, Mijanur Rahman (Finance), Vidiya Amrit Khan, and Directors Mohammad Abdur Rahim, Faisal Samad, and Sheikh Hossain Muhammad Mustafiz represented BGMEA.

Discussions centred on a recent US executive order allowing Bangladeshi garment exports to be proportionately exempt from a new 20 percent duty if at least 20 percent of the raw materials are sourced from the United States.

Welcoming the move, Mahmud Hasan Khan said the apparel sector is eager to take advantage of this opportunity. The warehouse proposal was discussed as a possible Bangladeshi, US, or joint initiative to help reduce lead times in production.

Beyond cotton, BGMEA expressed interest in importing US-made man-made fibres such as polyester and nylon and sought detailed information from the embassy. Other topics included boosting bilateral trade, expanding Bangladesh’s RMG exports to the US, and exploring broader economic cooperation.

Foreign Commercial Service Attaché Paul G Frost assured that they would consult with relevant US agencies and share more details. Potential collaboration with the US Cotton Council was also on the table.

The meeting touched on Bangladesh’s domestic energy situation, with BGMEA expressing hope for future LNG imports from the US. Labour rights were also discussed, with Khan noting his board’s engagement with 81 workers’ federations to promote industrial harmony and ongoing legal reforms to strengthen worker welfare.

The US delegation stressed the need for Bangladesh’s labour laws to meet international standards, as expected by the ILO, EU, and other partners. Both sides agreed on the importance of continuous dialogue to prevent misunderstandings on labour matters.

The US side invited BGMEA to participate in SelectUSA, a major investment promotion event in May 2026, as a way to expand exports and connect with American buyers. Both parties expressed optimism about deepening economic ties and cooperation.