Monday 4 May 2015

Exporters Oppose Pvt Quality Control Centre For RMG Items

The garment exporters have strongly opposed the decision of the National Board of Revenue allowing a private organization to establish a quality control center for quality inspection before shipment clothing products.

The Ministry of Revenue on April 5th Summit Ispahani enabled Terminals Partnership Ltd to establish a repository and special customs quality.

Bangladesh Garment Manufacturers and Exporters Association in a letter to the NBR demanded the withdrawal of the authorization for the good of the export of RMG products.

Exporters also blamed the General Tax Bureau decided to facilitate fourth monopoly created to run the business in the sector. 

 

A senior official of the Directorate General of Taxation, however, told New Age on Tuesday that the authorization was granted on the basis of the requirement of buyers, and they were reluctant to send its quality control team in Bangladesh safety reasons and to reduce costs.

Some international buyers named the ISATL, a joint venture of Alliance Holdings Ltd, MM Ispahani Ltd and Summit Group for the conduct of the inspection and quality control for other activities, including packaging for shipping, he said.

The joint venture is supported by the highest levels of government of the Awami League-led, according to sources.

He also said that the control system as a third party was not new than 20 other private organizations doing the same since 1998.

Exporters are generally not required to inspect their products at the center. They must send their products to the center if their buyers want, he said.

Contractors Alliance Group Holdings Ltd and the Summit have influential relatives in the government led by the Awami League, sources said.

BGMEA leaders, however, said that there was no control agencies, such as third in the country.
In a letter to the Department of Revenue, April 13, President of the BGMEA Atiqul Islam said the decision would increase the cost of transportation and the safety of products intended for export if the quality control activities were conducted outside the plant by a third party.

It will also take longer to complete export procedures to reduce the waiting time for export, he said.
"The Ministry of Revenue has no view of the BGMEA, the largest association of exporters of RMG products, which is unfortunate," he said.

The officials responsible for quality control assigned by international buyers consider the quality of products in the factory before shipment, then the products, after packaging, buyers representatives gave for sending he said.

Currently, exporters are getting the scope to amend the articles if the buyers of quality control equipment to find fault with any set of products during the inspection inside the factory, the BGMEA leaders said.

But if the quality control activities are performed by third parties in private Inland Container Depot or containers stations located near ports, disrupts any product will be expensive and slow because the products must be returned to the factory, they said.

President of Exporters Association of Bangladesh, also a former president of the BGMEA, Abdus Salam Murshedy, said the decision was totally unacceptable as severely hamper export business.
"The decision was taken to give a special privilege of the monopoly business at a given quarter," he said.

He also said that only C & A, an international buyer based in the UK, performed their tasks in quality control for your organization nominated in Chittagong before shipment.

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