10 RMG exporters in trouble as French retailer not paying $5m

Staff Correspondent | Published: 22:30, Dec 03,2016

 
 

A least 10 Bangladeshi readymade garment exporters are facing trouble to run their business as a French fashion retailer, Mim, has not paying about $5 million against its import of RMG products from the exporters three or four months back.
According to the exporters, letter of credit usually is settled within 21 days of export but the retailer has not paid the money to the Bangladeshi exporters in three or four months.
Leaders of the Bangladesh Garment Manufacturers and Exporters Association said that six of their member companies had so far filed complaints to the association against Mim for non-repatriation of the export proceeds.
‘We placed the issue before a meeting with France ambassador Sophie Aubert on November 14, requesting her to take necessary action to realise the money of the exporters,’ BGMEA president Siddiqur Rahman told New Age on Saturday.
He said that the ambassador assured the BGMEA that she would look into the matter.
The BGMEA alleged that the buyer was not cooperating with the manufacturers in this regard and the buyer’s lien bank was not responding to the exporters’ demand.
Only six companies has filed complaint with the trade body but many exporters are facing trouble in making payment for raw materials which were imported to produce products for Mim as under back-to-back LC exporters pay for raw materials import after receiving export proceeds from buyers, Mohammed Nasir, vice-president of the BGMEA, said.
He said that banks and manufacturers of raw materials were putting pressure on exporters to pay for raw materials but the buyer and its lien bank were not paying heed to the call of the Bangladeshi exporters to settle payments.
As per the LC agreement, banks in favour of clients are supposed to pay the manufacturers as the banks have to endorse Bill of Landing for the clients to get their products delivered.
Nasir said that the BGMEA would sit with the Bangladesh Bank governor within a short time and would request the BB to communicate the matter to the central bank of France for putting pressure on the buyer’s lien bank to settle the payment as per the rules.
‘We are also thinking to write to Bangladesh ambassador in French to take initiative to resolve the issue,’ he said.

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