February 24, 2024, 4:02 pm

Staff Correspondent

2023-12-09 00:48:01 BdST

No legitimate grounds to warrant economic sanctions: BGMEA

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan on Friday said they "do not believe that there is any legitimate ground" for imposing economic sanctions against Bangladesh.

"As far as garment manufacturing is concerned, Bangladesh has made its position to be a responsible manufacturing hub ensuring workplace safety, workers wellbeing, and championing green industrialisation," he said.

The BGMEA chief urged all print, electronic and online media to highlight this clarification through their platforms in the interest of our industry and economy.

In the past two days an additional LC clause regarding sanction has caught significant media attention, Hassan observed.

BGMEA investigated the matter and issued clarification statements. "We still notice that the issue is being discussed and given attention in the media causing confusion and panic," he said.

BGMEA received official comments from the original buyer and their agent in Bangladesh.

The latest statement from BGMEA aims to further clear this issue, Hassan said, hoping the unnecessary attention, confusion and panic be avoided.

The original buyer, which is a French entity, did not insert this additional clause in its master LC to the Bangladesh agent, he said.

Secondly - the agent transferred its LC to a Bangladeshi garment factory, which was issued by the Standard Chartered Bank Dubai, and the Standard Chartered Bank inserted this additional clause in the LC on their own.

"So no buyer inserted the LC, a private commercial bank did it without being directed by its client," said the BGMEA chief.

Thirdly, he said, the agent confirmed that the SCB Dubai has already removed the alleged clause from the LC and transferred it to the Bangladeshi factory. So the additional clause doesn’t exist anymore.

The agent also assured the BGMEA that they will make sure not to insert such clauses in any LC transferred to Bangladeshi suppliers.

"This should end the debate and discussion on the misinterpretation of this additional LC clause," said the BGMEA President.

He appreciated the concerned buyer and the agent for taking prompt action to revise the LC in less than 24 hours.

"We want to make it clear to all the global buyers not to insert such clauses in their LC, and also to advise their banks not to make such unacceptable insertions," Hassan said.

He said they continue to urge the Bangladeshi factories to communicate with their buyers so that such additional clauses are not repeated in any LC. "We also request our member factories not to accept LCs with such clauses.

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