Written by The Banking Post
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government not to grant the Registered Exporter (REX) facility to the Bangladesh Garment Buying House Association (BGBA), arguing that buying houses are not directly involved in production or exports.
In a recent letter to the Ministry of Commerce (MoC), the apparel makers’ body warned that extending REX to buying houses would create a conflict of interest and pose risks to the country’s export credibility.
The BGBA had earlier sought the same REX privileges enjoyed by BGMEA and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Under the EU’s REX system, registered exporters in GSP beneficiary countries can self-certify the origin of their goods by making a “statement on origin.” The facility is currently administered by the Export Promotion Bureau (EPB) and the MoC.
“BGBA is an apex body of intermediaries and agents who neither own production facilities nor make financial investments in manufacturing. Extending the same privileges as BGMEA or BKMEA would be unrealistic,” BGMEA President Mahmud Hasan Khan said in the letter.
He cautioned that granting REX to buying houses could allow them to set product prices arbitrarily, increasing the risk of trade-based money laundering and false invoicing, which could undermine buyer confidence and trigger scrutiny from the Financial Action Task Force (FATF).
The BGMEA also noted that with Bangladesh graduating from LDC status in 2026, the apparel sector must prepare to adopt EU’s stricter GSP+ requirements, including compliance with labour, environmental, and intellectual property standards, as well as the upcoming Digital Product Passport (DPP).
In response, BGBA Vice President A.K.M. Saifur Rahman argued that any exporter, manufacturer, or trader of originating goods in a GSP beneficiary country is entitled to apply for REX registration. He stressed that exporters should be ready to provide documents proving the origin of goods whenever required by the authorities.
