The apparel sector leaders have urged the government to stem the fraudulent activities of a section of local buying houses and agents appointed by foreign buyers, saying they tarnish the image of the industry. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to Commerce Minister Tofail Ahmed seeking ‘serious’ action against the buyers who are involved in illegal activities, the association leader said who deals with the matter. The letter was sent by the BGMEA president to the commerce minister Sunday last. Local agents and buying houses of foreign buyers collect export orders and transfer export Letters of Credit (LCs), while looking after the overall activities until execution of shipment orders. Currently, a section of dishonest domestic agents and buying houses are handing over the export orders or products to the foreign buyers without bank endorsement, disrupting the repatriation of exports proceeds, industry leaders said. They alleged that the local buyers hamper shipment of export items, provide lower quality fabrics to the factories in connivance with the some foreign buyers. Besides, the leaders said, the agents collect export orders at lower prices from the foreign buyers, but they make uneven deal with apparel factories playing trick. The country loses markets in many cases because of these fraudulent activities. The garment exporters have been counting losses in multiple ways due to the wrongdoing of some dishonest buying houses and agents, they added. The government should take strict measures to control the activities of the buying houses and agents, they said. The BGMEA said that the multiple illegal activities of the agents and houses should be controlled immediately for the sake of the country’s image and help maintain export competitiveness. “Most of the time we receive allegations on non-payment of exported products against the buying houses or agents,” president the BGMEA Md. Siddiqur Rahman told the FE. “I think that the activities of the buying houses and agents appointed by foreign customers should monitored by the government, BGMEA or buyers’ association,” he added.
