The government has moved to bring garment buying houses under a legal framework to ensure their accountability in trade dispute resolution, officials said.
Presently, an entrepreneur can start a buying house business obtaining a trade license from any Union Parishad or City Corporation office and getting registered with a supervising body or an association is not mandatory for them.
In the past, the buying houses were to take registration from Bangladesh Bank under Foreign Exchange Regulation Act, 1947 for channelling foreign currency.
But due to amendment of the concerned rules, now buying houses can run business by only having trade license.
The government thinks that unless buying houses are put under a legal binding, they can not be regulated properly. Cancellation of trade license, which can be obtained again easily, can not compel them to act responsibly in trade dispute resolution.
Vice Chairman of Export Promotion Bureau (EPB) Bijoy Bhattacharjee, in a letter to Commerce Secretary Shubhashish Bose, said in the recent days buying houses have become involved in trade dispute resolutions on behalf of foreign buyers.
But, the role of some buying houses was found not to be proper. This deepens the dispute including non-payment of bills and price cut by buyers leading to their financial losses, he noted.
"The EPB thinks that commercial activities of buying houses should have accountability. It may help reduce trade disputes and brighten the country's image," he wrote.
Mr Bhattacharjee told the FE over telephone Bangladeshi businessmen are facing troubles while dealing with garment buying houses. "We want them to come under a legal framework."
President of Bangladesh Garment Buying House Association K I Hossain welcomed the government's move saying it is also a long demand of his organisation.
"Anyone can do buying house business just having a trade license. There is no control on them. None is there to regulate them," he told the FE.
Mr Hossain's association has 400 members and 100 other buying houses have membership of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Hundreds more have no affiliation from any entity, he said.
He suggested that getting registration from the Office of the Chief Controller of Imports and Exports could be made mandatory for garment buying houses and this can help bring them under a legal framework.
Mr Hossain also said membership of association concerned also can be made compulsory for them.
syful-islam@outlook.com
