Warisul Abid, Chief People Officer, SQ Group has sent a rejoinder to a secondary news published in Textile Today referring a report of a daily newspaper on 31 August 2019 where an allegation was made against 76 apparel manufacturers, including SQ Celsius Ltd, for misusing bond facility.
He claimed that the news article ‘76 apparel firms found abusing bond facility’ has been made by the reporter of The Business Standard without going into the details and ascertaining the actual issue.
He also said that Resultantly, such a generalized opinion formed against them is not only huge reputational damage for their, but also significant negative publicity for the entire apparel industry.
As Textile Today made the report from a secondary source (The Business Standard) and mentioned the source in the news, so that, Textile Today is not able to explain the authenticity of the news. It should come from the The Business Standard as they actually made the report on the basis of The National Board of Revenue (NBR).
We have put below the full explanation provided by Warisul Abid for the better understanding of our readers:
“With this rejoinder, we would like to clarify the actual issue that we are having with the Benapole Customs House. This issue was neither a case of misusing bond facility nor a matter dodging applicable duties of imported raw materials. In fact, it was a mere confusion raised at Benapole Customs House on a specific count of 100% Cotton Melange Yarn that we imported back in the year 2018. Hence, we believe the below information will adequately clarify our position since we refute the allegation made against us in the above-mentioned news article:
Back in 2018, we initiated procurement of a total of 13,269 KG of 100% BCI Cotton Melange Yarn in two different counts, i.e., NE 32/2 and NE 20/2, to produce and ship Sweaters to one of our valued global customers. The styles of the Sweaters were designed on 100% BCI Cotton Melange yarn of two different counts; and they required to be produced in our knitting machines of three different gauges, i.e., 12-gauge, 9-gauge and 7-gauge.
Accordingly, we issued LC to our customer’s nominated Yarn Supplier to ship the materials through Benapole Customs port. We released those materials on August 16, 2018, against the Yarn Supplier’s Invoice and Bill of Entry; and in all those documents, the yarn composition and the counts were categorically reconfirmed. Subsequently, we produced the Sweaters and shipped them to our customer strictly conforming with all parameters, including the yarn composition.
Now the confusion is: when Benapole Customs House, conducted a separate material test at Bangladesh Textiles University, the yarn count came as NE 24/2 instead of NE 32/2 and NE 20/2. This is basically beyond our knowledge; and there is absolutely no possibility of mismatch in the yarn-counts, since the composition of the yarn was checked and reconfirmed at all stages of this import.
We would also like to inform here that before shipment of yarns, our yarn supplier sent us a lab-test report as confirmation on the yarn composition and the counts. Also, as a standard practice, we had to conduct a pre-shipment lab test on the samples of finished products (i.e., sweaters) at the test lab of ITS Lab test Bangladesh Ltd to ensure overall materials composition of the products.
Moreover, to further re-establish our position on the yarn-counts, we re-tested the sample products at the renowned test lab of Bureau Veritas Bangladesh on September 9, 2019; and as usual, yarn counts have come as NE 32/2 and NE 20/2.
It is also very important to mention that NE 24/2 is a non-conventional yarn-count for sweater manufacturing, and we have never come across and used such yarn-count in our long 26 years of sweater manufacturing business. With that count (i.e., NE 24/2), we couldn’t have produced the Sweaters on 7-gauge, 9-gauge and 12-gauge machines, and met the strict specifications of the products.
We trust the above information clarifies the matter. And it becomes evident that the allegation made against us in the news article is not only wrong but also built on inaccurate information. And unfortunately, we have been quoted in the news article as one of the offenders whereas we have not committed any wrongdoings.”