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Business leaders have strongly opposed a commerce ministry proposal to drop the requirement for chamber or trade-association membership certificates when issuing or renewing import registration certificates (IRCs), warning that the move could increase fraudulent trade and weaken existing compliance safeguards.

They argue that without mandatory membership, dishonest traders could more easily secure IRCs, raising the risk of non-compliance, misrepresentation, money laundering, and trade-based financial crimes such as over- and under-invoicing.

The proposal, which emerged from a commerce ministry meeting on December 21, is aimed at simplifying business processes. On December 30, the ministry instructed the Office of the Chief Controller of Imports and Exports to implement several decisions, including removing the membership certificate requirement.

At present, IRC applicants must submit trade licences, bank solvency certificates, tax identification numbers, photographs, national identity cards, partnership or company documents, prescribed fees, and membership certificates from recognised trade bodies. Stakeholders say dropping the latter would eliminate a critical layer of institutional verification.

Major trade bodies, including the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Metropolitan Chamber of Commerce and Industry (MCCI), have written to the ministry seeking a review.

In a letter to the commerce adviser on January 19, BKMEA President Mohammad Hatem urged the government to reconsider the move, calling it impractical and risky. He said the garment sector’s global standing is built on strict compliance standards.

“We regularly monitor labour law compliance, fire safety, and environmental standards of our member factories,” he said, warning that issuing IRCs without mandatory membership could allow unregulated entities to enter international trade and damage the sector’s reputation.

Hatem also said membership certificates serve as a basic form of institutional verification, and removing them could facilitate the creation of shell companies and increase the risk of money laundering and trade mis-invoicing, posing a threat to the national economy.

He added that the association’s arbitration and labour cells play a crucial role in resolving labour disputes in coordination with the government, a function that would weaken if factories operate outside association oversight.

Trade leaders further noted that the Trade Organisations Act 2022 was enacted to ensure businesses operate within a structured and accountable framework through mandatory membership.

BGMEA Vice-President Shehab Udduza Chowdhury said the rationale behind the proposal remained unclear and warned it could be harmful to compliant businesses. Meanwhile, BKMEA Executive President Fazlee Shamim Ehsan said the ministry had stepped back from immediate implementation following objections and agreed to hold further consultations before taking a final decision.

The meeting also discussed other changes, including allowing foreign investors seeking multinational IRCs to submit registration certificates from the Bangladesh Investment Development Authority instead of passports and work permits.