Ethics in the export business
Saturday, 27 October 2007
Ferdous Ahmed
CASH incentives are provided to exporters of various commodities including non conventional products to give incentives to their export activities. This system of providing a financial stimulus to their exporters is noted in many countries. Bangladesh's biggest neighbour, India, provides substantial cash incentives to its exporters. The same have been useful in also hugely increasing the export earnings of that country.
But it is doubtful whether the limited system of extending cash incentives is working out also in Bangladesh as it should. For, it is complained frequently that the cash incentives can be collected rather easily by underperforming exporters or pseudo exporters through their connivance with the government officials who disburse the money.
Bangladesh like some other East Asian countries has been pursuing an export led growth strategy to overcome its poverty and underdevelopment since the mid seventies. The efforts have led to some success. Bangladesh today is recognised as a major exporter of readymade apparels in international markets. It is also distinguished as an exporter of shrimp. Other export products being newly sent from Bangladesh are gradually winning over the esteem and preferences of the buyers. There is, no doubt, that our overall export effort is a hopeful one. Export activities, on an average, have been increasing by over 20 per cent in recent years, though the latest trends suggest some slacks in export performance during the current fiscal. However, there is greater optimism centred on the potential of much greater export earnings from the export trade. But not everything is so pure and pristine in the conduct of this trade either.
For example, impurities were repeatedly detected in the frozen foods that were exported. The same in some cases were sought to be made heavier by injecting or implanting different substances. Sometime ago, a regular exporter of food products to the UK, was charged for attempting to smuggle in heroin in that country by putting the same in the packets of the food products. Clearly, this crime had gone on for quite some time before it was detected. Recently, a substantial quantity of shrimps was rejected by the European buyers, for these included health hazarding additives which are not permissible by European Union (EU) standards.
Recently, reports have appeared in the press about China made garments being exported to a foreign country where with the 'made in Bangladesh'. Bangladesh enjoys duty-free and quota-free access. For taking advantage of this, some local unscrupulous so-called businessmen have been helping their foreign accomplices to do this crime. Allegedly, a section of officials, buying houses, freight forwarders, shipping agents and exporters are promoting such activities. Reportedly, garments produced in other countries through transshipment go to Singapore and Colombo, change labels as made in Bangladesh and get re-exported to other foreign countries. But if this illegality is facilitated for some time, then there is a strong possibility that one bad morning the quota-free and duty-free facilities that Bangladesh enjoys in many overseas markets may be withdrawn.
Actions such as these must be counted as not only unethical but their ill potentials of seriously undermining the total export endeavour of Bangladesh in the short and the long run, must also be realised immediately. A country wishing to be successful in the export trade and consolidating the market shares it wins, must necessarily be very scrupulous to maintain its reputation. It must build a reputation as one to be relied on for not encouraging any unfair activities under the guise of the export trade.
CASH incentives are provided to exporters of various commodities including non conventional products to give incentives to their export activities. This system of providing a financial stimulus to their exporters is noted in many countries. Bangladesh's biggest neighbour, India, provides substantial cash incentives to its exporters. The same have been useful in also hugely increasing the export earnings of that country.
But it is doubtful whether the limited system of extending cash incentives is working out also in Bangladesh as it should. For, it is complained frequently that the cash incentives can be collected rather easily by underperforming exporters or pseudo exporters through their connivance with the government officials who disburse the money.
Bangladesh like some other East Asian countries has been pursuing an export led growth strategy to overcome its poverty and underdevelopment since the mid seventies. The efforts have led to some success. Bangladesh today is recognised as a major exporter of readymade apparels in international markets. It is also distinguished as an exporter of shrimp. Other export products being newly sent from Bangladesh are gradually winning over the esteem and preferences of the buyers. There is, no doubt, that our overall export effort is a hopeful one. Export activities, on an average, have been increasing by over 20 per cent in recent years, though the latest trends suggest some slacks in export performance during the current fiscal. However, there is greater optimism centred on the potential of much greater export earnings from the export trade. But not everything is so pure and pristine in the conduct of this trade either.
For example, impurities were repeatedly detected in the frozen foods that were exported. The same in some cases were sought to be made heavier by injecting or implanting different substances. Sometime ago, a regular exporter of food products to the UK, was charged for attempting to smuggle in heroin in that country by putting the same in the packets of the food products. Clearly, this crime had gone on for quite some time before it was detected. Recently, a substantial quantity of shrimps was rejected by the European buyers, for these included health hazarding additives which are not permissible by European Union (EU) standards.
Recently, reports have appeared in the press about China made garments being exported to a foreign country where with the 'made in Bangladesh'. Bangladesh enjoys duty-free and quota-free access. For taking advantage of this, some local unscrupulous so-called businessmen have been helping their foreign accomplices to do this crime. Allegedly, a section of officials, buying houses, freight forwarders, shipping agents and exporters are promoting such activities. Reportedly, garments produced in other countries through transshipment go to Singapore and Colombo, change labels as made in Bangladesh and get re-exported to other foreign countries. But if this illegality is facilitated for some time, then there is a strong possibility that one bad morning the quota-free and duty-free facilities that Bangladesh enjoys in many overseas markets may be withdrawn.
Actions such as these must be counted as not only unethical but their ill potentials of seriously undermining the total export endeavour of Bangladesh in the short and the long run, must also be realised immediately. A country wishing to be successful in the export trade and consolidating the market shares it wins, must necessarily be very scrupulous to maintain its reputation. It must build a reputation as one to be relied on for not encouraging any unfair activities under the guise of the export trade.