Bangladesh RMG exporters in trouble with GSP registration in EU

Moinul Haque | Published: 00:00, Jan 28,2020 | Updated: 14:40, Jan 28,2020

 
 

A file photo shows workers sewing clothes at a readymade garment factory on the outskirts of Dhaka. Readymade garment manufacturing groups with multiple companies but one tax identification number are facing troubles in getting registration numbers required for the units for enabling automated certification system for European Union GSP due to an EU regulation. — New Age photo

Readymade garment manufacturing groups with multiple companies but one tax identification number are facing troubles in getting registration numbers required for the units for enabling automated certification system for European Union GSP due to an EU regulation.

They are in apprehension that export might hamper in the EU as only one registered exporter (REX) number was given against each taxpayer identification number but many of the companies were running one more entities against a TIN number.

Citing the EU regulation, the EPB informed exporters that there was no scope for providing more than one registration number against a TIN number as the IT system of EU allowed one registration against a unique number.

The government, as per the instruction from the EU, introduced registered exporter system (REX) for the country’s exporters who made their shipment to the European Union in July last year through giving registration numbers to 10 exporters.

The commerce ministry had asked all the exporters to get registered with a database by the Export Promotion Bureau by December last year to get a unique registration number to avail the GSP facilitates in the EU market.

Till date, the EPB has registered some 1,904 local exporters with majority from textile and RMG sectors, the EPB official added.

Under the system, Bangladeshi exporters would make self-certification of the country of origin to avail the generalised system of preference in the EU market.

Currently, the EPB manually issues country of origin certificate to the exporters for the GSP facility in the EU market.

Recently, the Bangladesh Garment Manufacturers and Exporters Association has sent a letter to the EPB to provide REX number to all units under a company against a TIN number.

The trade body fears that if more than one REX number is not provided against a TIN number, the activities of many units would be shut down and labour unrest would take place in the country.

The BGMEA urged the EPB to provide REX number in favour of all units of Ananta Group, Azim Group, Standard Group and Envoy Group against their TIN numbers or in any alternative way.

EPB officials said that they held a number of meetings on the issue and it was discussed that REX number might be provided against business identification number but finally the proposal was not settled.

The EPB in a letter on January 22 requested the BGMEA to obtain separate TINs for the units of the business groups saying that despite having group/proprietorship Saad Musa Fabrics (unit-2 and 3), Garib and Garib Company Ltd (unit-2) and Divine Textile Ltd (unit-2) took separate TINs for getting Rex number.

The bureau also said that if the business group received a single REX against several of its factories and the EU revoked the REX under in any circumstance, all the factories would come under the purview of the revocation.

It also informed exporters that considering the present complexities in getting REX number against all entities the EU extended its time frame up to June 30 this year so that exporters could get separate TIN for separate entity.

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