Al Amin :
The apparel exporters are worrying over addition of a special clause in the Letter of Credits (LCs) of the country’s garment sector by the buyers of the western countries.
A UK buyer has added a special clause in LC, citing international sanctions recently and the entrepreneurs of the readymade garments are seeing complications in paying against import-export for it.
The exporters think that the new clause could create a big obstacle in the import-export trade of Bangladesh.
The new clause, issued on January 30, said, “All parties should be advised that by virtue of the sanctions imposed by UN, EU, USA and other international and local authorities and bodies which may require information disclosure we might be unable to make any transaction in relation to this documentary credit or any amendments there to, processing of the forgoing sanctions occur.”
“For example, direct or indirect involvement of any party that is itself sanctioned or directly or indirectly connected to any sanctioned parties. It should be further noted that we will assume no liability and will not be held responsible for any no-payment, loss, damage or delay whatsoever arising out of the above matters,” it said.
The leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that the exporters must be careful about the new clause. However, whether to accept the LC or not will depend on the authority of the concerned garment exporter.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “The new clause is a matter of concern for the RMG exporters. For the sake of the country’s economy, we will talk to the government in order to find way for coming out from the situation.”
The USA has imposed sanctions on one organization and seven individuals in last December accusing violation of human rights. At that time, the concerned exporters feared that the
sanction could have a direct impact on Bangladesh’s bilateral trade.
The fear is now starting to be reality through inclusion of the new clause.
Businesses said there is no chance to avoid such a clause in the LC for both exporters and buyers.
BGMEA Director Mohiuddin Rubel told The New Nation on Tuesday, “Such clause is not expected to us. It’s a harmful clause. It will tarnish the image of the country’s RMG sector. We don’t want support it.”
“Usually, no individual can impose ban on business. A lot of things could be added in LCs from the buyer’s side for legal obligation. But, we have to be more cautious regarding it. The exporter should accept LC by scrutinizing properly,” he said.
The US Treasury controls the flow of dollars around the world. In this case, it is not important what the company, involved in business transactions through the LC, wants.
Rather the obligation of the regulatory body of the concerned bank is important and the banks follow the international rule and have to negotiate with US’s bank regarding the LC.
According a data published by the Office of Textiles and Apparel (OTEXA), the USA’s import of textiles and apparel from Bangladesh has increased by 30.68 per cent in January-November period of the last year compared to the same time of the previous year.and the banks follow the international rule and have to negotiate with US’s bank regarding the LC.
According a data published by the Office of Textiles and Apparel (OTEXA), the USA’s import of textiles and apparel from Bangladesh has increased by 30.68 per cent in January-November period of the last year compared to the same time of the previous year.
