At a meeting with Finance and Planning Minister M Saifur Rahman at his office, BGMEA members led by its President Kazi Moniruzzaman sought the permission and placed seven other recommendations for avoiding possible crisis in the sector.

They said such a warehouse will help reduce lead-time for RMG exports.

Two-thirds of Bangladesh's total garment exports are woven apparel and 80 per cent raw materials of these woven products are imported.

"Due to over-dependency on imported raw materials and absence of central bonded warehouse, exporters need a 120-day delivery deadline which frustrates foreign buyers," BGMEA said in its recommendations.

"After 2004, when quota system will cease, reducing the delivery time of garments consignments will be a necessity to woo foreign clients," BGMEA leaders said.

"If we get the warehouse facility, the lead-time will be reduced to half. The infrastructure facility will also help grow dyeing and printing industry," the proposal said.

BGMEA also demanded necessary policy support to reap maximum benefits from quota and duty free access to the EU. It urged the government to press rich countries to relax rules of origin.

To overcome the post-MFA shock, the BGMEA suggested extension of tax holiday for RMG exports to 2008 and withdrawal of some restrictions on the tax waiver.

Though some samples enjoy duty exemption, others do not. So government should issue SRO to exempt them all from duty, they demanded.

Most of the LDCs have duty and quota free access to the US market and Vietnam, Laos, and Cambodia are negotiating with the US government to get the status. Recently, US Congress tabled a bill offering duty and quota free access to 18 Islamic countries including Bangladesh.

In view of this situation, the BGMEA leaders urged the government to take necessary diplomatic efforts to earn duty and quota free status to the US and the non-EU European countries.

They appreciated the central bank and government policy for floating the exchange rate.

First Vice-President of BGMEA SM Nurul Huq, Second Vice-President Md Jinnat Ali Miah, Vice-President Md Shafiul Islam (Mohiuddin) and directors were present at the meeting.