Ten readymade garment (RMG) manufacturers are facing difficulties in running business as their export payment worth US$5.0 million lies unsettled with a French retailer-Mim, sources said. Exporters said letters of credit (LCs) are usually settled within 21 days of the export proceeds while the French fashion retailer has not yet settled the payment of the apparel makers though three to four months have already elapsed. Six of the RMG manufacturers have recently lodged a complaint with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) against Mim for non-repatriation of the export proceeds and sought the association’s intervention in realising the outstanding payment. “At a meeting with the French ambassador last month, we raised the issue and requested her to take necessary steps in this regard and she assured of looking into the matter,” Mohammed Nasir, vice president of the BGMEA, said. The BGMEA alleged that the buyer is not responding to the call of the manufacturers and the lien bank of buyer is not considering the exporters’ demand either. Six apparel makers have so far complained with the trade body while the total number might be nine to ten, Mr Nasir added. They are facing trouble in making payment of raw materials imported for products for Mim as under back to back LC exporters pay for raw materials, he explained. Banks and manufacturers of raw materials are putting pressure on the exporters to make the payment of raw materials but the buyer and buyer’s lien bank are not paying heed to the exporters’ call to settle the export proceeds, he added. As per the LC agreement, banks in favour of the client are supposed to pay the manufacturers as it has to endorse Bill of Landing for the client to get their products delivered. The BGMEA leader said the trade body would sit with the Bangladesh Bank shortly so that the BB coordinates with the central bank of France to put pressure on the buyer’s lien bank to realise the money according to the rules. “We’ll also write to the Bangladesh ambassador in France to take initiative to resolve the issue,” he said.
