Many foreign buyers are getting unfair discounts by trapping exporters of ready-made garments. Many buyers are not paying for the product. The industrial owners’ association BGMEA has asked the factories for a list of such fraudulent circles. The leaders of the organization said that collective action will be taken against the identified fraudsters.
Buyers are forced to discount the price if the product does not arrive on time or if there is a defect. Exporters have to accept such demands. Five percent discount is normally allowed by Bangladesh Bank.
However, many buyers trap the entrepreneur by colluding with freight forwarders and buying houses. After redeeming the goods, they go to court for voluntary bankruptcy. Others fear cancellation of purchase orders at the last moment. Entrepreneurs said that in this way, some buyers have received up to 40 percent discount.
Many entrepreneurs also fall into the clutches of fake buyers. Eight factories were recently defrauded by one person in the United States. Not paying the price with a purchase order of hundreds of crores of rupees. Independent television broadcasts news about it. Fraud is common in the clothing industry.
BGMEA director Mohiuddin Rubel said that there are some agents in the country with the help of foreign fraudsters. This is how they steal money by creating fraudulent circles and using dishonest means. They are not really buyers.
Factories face problems in paying salaries if they don’t get money. Repayment of bank loans is also difficult. Again, if the export money is not returned, it creates various legal complications including money laundering. The leaders said that besides exchanging the information of fraudsters among themselves, banks and related institutions will be informed.
BGMEA director Abdullah Hill Rakib said, ‘If the discount is reasonable, it is necessary to have the consent of both parties. And if a buyer unreasonably asks for a discount or an entrepreneur wants to pay, we will give them a warning. Actions will be taken to make the government decide if it doesn’t work.
The tendency to ask for discounts may increase in the coming days due to various reasons including entrepreneurs’ apprehension, global economic situation, US labor policy.