CHATTOGRAM, Aug 03: Small garment factories in the port city of Chattogram are crying foul over a surge in export fraud that is costing them millions of dollars, as the exporters' association says they are "very concerned" over the issue.
According to local factory owners, foreign buyers are conspiring with freight forwarders and shipping lines to release goods without paying for them, leaving businesses in financial ruin.
At least 23 garment factories have fallen victim to the scam in the past five years, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
One exporter, Mellow Fashion Limited, claimed to have lost nearly $400,000 after its shipment was illegally released in New York and filed a case with a Chattogram court.
In November last year, Chattogram-based Mellow exported the ready-made garments to the US chain shop Family Dollar through Razor Freight Services Limited. Razor's local foreign freight forwarder agent was Weida Freight System (BD) Company.
The goods were released in New York with fake documents, alleged Muhammed Shaif Ullah Mansur, managing director of Mellow Fashion, adding they did not get paid for the export.
"We handed over the goods on 23 and 28 November last year," said Mr Mansur. "The importer unloaded the goods without any bank documents, which is illegal. We have informed the authorities."
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has accused foreign buyers, freight forwarders and shipping lines of defrauding local exporters of millions of dollars.
Syed Nazrul Islam, first vice-president of the BGMEA, said the industry was facing an increasing number of payment frauds. He blamed foreign buyers, freight forwarders and shipping lines for colluding to commit the scams.
"Many RMG factory owners are suffering a lot due to these," he said.
However, Khairul Alam Sujan, vice-president of the Bangladesh Freight Forwarders Association, said his members never allowed goods to be unloaded without payment.
"So, freight forwarders and buyers should be liable in this regard," he said.
AM Mahbub Chowdhury, vice-president of the Chittagong Metropolitan Chamber of Commerce and Industry, blamed shipping lines for long-running misappropriations.
"They should be controlled under the foreign currency act," he said.
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