Chinese apparel producers abusing BD's free access

FE Team | Published: May 25, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report Chinese manufacturers are allegedly shipping textile products to the European Union (EU) using labels of Bangladesh, which enjoys duty-free and quota free access for its products to the EU, said OLAF, an anti-fraud investigator of the bloc, on Thursday. OLAF had conducted a series of investigations with the Bangladesh authorities over the import of textiles to the EU which were fraudulently declared as originating there, according to a senior source at the anti-fraud agency, German news agency DPA said. Bangladesh is the world's second biggest exporter of textiles behind China and enjoys duty-free access to the EU markets, the news agency said. "This makes Bangladesh an obvious choice for fraudulent operators seeking to avoid import duty on Chinese textiles," the news agency quoted OLAF source as saying.Two recent investigations into a Bangladeshi supplier found that the duties evaded amounted to 10 million euros ($12.9 million) during a period of two to three years, he said. This amount would now be recovered. "These investigations help to protect the Bangladesh textiles industry ... and therefore indirectly the Bangladeshi workers," the news agency said. Bangladesh has been in the spotlight after a building housing garment factories collapsed in Dhaka last month, killing more than 1,100 people and highlighting the conditions in which factory workers operate. Also on Thursday, lawmakers in the European Parliament called for justice for the victims of factory fires and collapses in Bangladesh, and said the EU should take action to prevent events similar to those in Dhaka last month. Lawmaker Veronique de Keyser described the situation in Bangladesh as 'exploitation of one human being by another human being.' "Bargains come at the highest price - blood. We all wear 'blood clothes', just like we speak about 'blood diamonds'," she said. The lawmakers called on the European Commission to promote responsible business conduct, and said Bangladesh must adhere to human rights conventions if it wants to retain its duty and quota-free access to the EU.