The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has warned its member factories against entering new business deals with a China-based fabric supplier, citing non-compliance with trade contracts.
In a notification issued on June 23, the apex apparel body said it had received a written complaint from Fashion Power Bangladesh Ltd against China's Changzhou Fitzone Import and Export Co Ltd.
It said the Chinese supplier had failed to properly fulfil the business agreement and promises made, resulting in financial losses and business complications for Fashion Power.
The notice added the BGMEA was currently reviewing the issue.
To protect the interests of Bangladesh's ready-made garment industry, the BGMEA advised its member companies to exercise utmost caution and conduct proper due diligence before conducting business transactions, placing purchase orders, arranging letters of credit (LCs), or concluding new contracts with Changzhou.
"If any member conducts business activities with the mentioned company by ignoring this cautionary instruction of the BGMEA, it will have to bear any risk, loss, or liability arising from the related transaction," it warned.
Munni_fe@yahoo.com