Bangladesh Garment Manufacturers & Exporters Association (BGMEA) has welcomed the National Co-ordination Council's (NCC) recommendation for setting up central bonded warehouse and urged the government to implement it immediately.

In a statement yesterday, BGMEA President Annisul Huq termed the recommendation a "positive and timely" move towards boosting apparel exports.

"If the NCC recommendations are implemented, it will be possible for us to cut the lead-time and also help the readymade garment (RMG) industry face the challenges of post-MFA (multi-fibre arrangement) era from next January," he said.

The BGMEA chief also appreciated the NCC's recommendation for a Tk 3,000-crore fund to develop backward linkage industries for RMG sector. "I hope the government will implement the recommendations without further delay."

The garment exporters have long been demanding the government's approval for setting up central bonded warehouse (CBW) for keeping imported RMG raw materials to face the stiff competition in the quota-free regime after this year.

The high-powered NCC on textile and RMG industries on last Sunday recommended setting up CBWs in export processing zones (EPZs).

The BGMEA president however urged the government not to impose any condition on CBWs which may clog the present facilities for the RMG

industries. "It is necessary to set up CBWs as complementary to the existing facilities."

"It's a new facility which will take time to take shape," he said.

Annisul Huq further said the BGMEA got frustrated with the NCC's suggestion for maintaining status quo on the rules of origin issue for another six months for conducting further study, instead of taking move for relaxing it.

About the Tk 3,000-crore fund for backward linkage industries he said the NCC should look into the matter so that the exporters could take credits easily from the fund for BMRE (balancing, modernisation, renovation and expansion) of their units.