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How exporters can avoid fraud buyers

According to recent TV news, Bangladesh’s 30 garment exporters have been defrauded of millions of dollars by local Freight Forwarding Agent, Shipping Lines, and foreign buyers. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has intervened in the whole matter to the Home Minister as the deceived exporters are going door to door for justice.

Bangladesh-apparel-exporters-avoid-fraud-buyers
Figure 1: Bangladesh’s 30 garment exporters have been defrauded of millions of dollars by local Freight Forwarding Agent, Shipping Lines, and foreign buyers.

Md. Jahangir Hossain exported garments worth $388,000 through a local Freight Forwarding Agent. The shipment arrives at USA port and is picked up by freight forwarding agents and buyers later. First, the buyers place the order by LC then the buyers received the goods through freight forwarding agents at the port without any payment clearance.

However, under international law freight forwarders and shipping lines cannot release goods without the approval of exporters and banks.

correct-export-procedure-solution-avoid-fraud
Figure 2: Following the correct export procedure can be the best solution to avoid such fraud.

The 30 victims have sought justice from BGMEA. Faisal Samad, Vice-President of BGMEA, said that every year many traders are suffering due to such fraudulent buyers and agencies which needs a quick solution.

According to BGMEA, many traders have lost a huge amount of money worth TK 250 crore due to such fraud in exports. Therefore, BGMEA has taken the matter directly to the Home Minister to prevent this fraud.

The Bangladesh Freight Forwarders Association has claimed that it is not involved with rogue members. Syed Mohammad Bakhtiar, Vice President of Bangladesh Freight and Forwards Association, said, “We do not do this business with any personal initiative. We do not give any concessions to our members. The Freight and Forward Association has advised exporters to add fraudulent buyers to blacklisted companies and to trade with caution.

How-Bangladeshi-apparel-exporters-avoid-fraud-buyers

MM Uddin, CEO, A2Z Sourcing said, “Our exporters do not follow the proper process to identify the true buyers. We have some illogical foreigner fascination, while someone from foreign people approaches for buying products from us, many of us do not follow the right process to sell the products. So, to get rid of the problem we need to build proper policy/process and follow the process strictly.”

However, exporters are hoping for the best solution. They requested the banks and other financial institutions to cooperate with them without giving any pressure until these unexpected bills are resolved.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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