Bangladesh: Bangladesh Increases Ready Made Garment Wastage Rate

On December 19, 2021, the Bangladesh Ministry of Commerce increased the maximum wastage rate for producing ready-made garment items from raw materials (yarn, fabric, finished products). The Ministry of Commerce set the new maximum wastage rate at 27 percent for basic knitwear, 30 percent for special items, and 4 percent for sweaters and socks. Contacts note the higher permissible wastage rate will likely encourage apparel manufacturers to import more yarn and fabric due to reduced duties, versus importing raw cotton.