Dhaka authorises BGBHA to certify garment buying houses

17 Aug '20

2 min read

Pic: Shutterstock

The Bangladesh textiles ministry last week recognised the Bangladesh Garment Buying House Association (BGBHA) as the authority to issue certificates to registered garment buying houses in the country. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), which has been at loggerheads with BGBHA, is dissatisfied over the government decision.

BGMEA leaders said recognising BGBHA as the related trade body for registering buying houses with the department of textiles (DoT) would hamper the country’s export business as more than 1,500 of its associate members are operating buying houses.

The government on May 28 last year asked all buying houses to get registered with the DoT within 60 days as per the section 14 of the Textile Act 2018.

Earlier, the ministry issued a gazette notification detailing the procedure for the registration of buying houses with the DoT that said applicants would have to produce membership certificates from the trade body concerned.

But the Textile Act 2018 did not mention any name of the related trade body that would be authorised to issue such a certificate.

Following the government circular, the BGMEA sent a letter to the textiles ministry to give registration of its 1,500 associate members who were running buying house business.

Opposing the BGMEA proposal, the BGBHA sent a letter to the textiles ministry and said that it was inappropriate for the BGMEA to have any role or say in determining the eligibility of an applicant for registration as a buying house.

BGBHA said the nature of business of BGMEA members and the buying house association members is different and the government should consider BGBHA as the sole trade organisation of buying houses in Bangladesh.

Fibre2Fashion News Desk (DS)

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