Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has blacklisted Seduka Jeans Inc USA, one of its buyers from the United States, for not paying dues to its sources in Bangladesh. The decision was taken after a request from the foreign exchange policy department of the Bangladesh Bank, said a leader of BGMEA in Dhaka. “This (Seduka Jeans Inc) is a fraudulent company. They have not paid their dues to the producers and that’s why it has been blacklisted,” BGMEA Vice President Shahidullah Azim told reporters. The decision to blacklist the company was taken to avoid further harassment of Bangladeshi companies by Seduka. Central bank officials said that Seduka had sourced apparels from a Bangladeshi company, but did not pay for it. Bangladesh Bank had looked in to the matter after the exporter complained. In 2013, an LC was opened by Excelsior Garments Ltd with the state-owned Sonali Bank against a buying order from Seduka Jeans Inc. An LC or Letter of Credit is a written commitment to pay, by a buyer’s or importer’s bank to the seller’s or exporter’s bank. It guarantees payment of a specified sum in a specified currency, provided the seller meets conditions and submits the prescribed documents within a fixed timeframe. The LC was valued at $48,816 but Seduka paid $25,321.25 less than the committed amount.
Source: https://www.observerbd.com/2015/05/07/87401.php#sthash.TZPkiHDy.dpuf
