Trade

BGMEA Plans Unified Audit Code to Ease Compliance Burden

Move aims to cut overlapping inspections, boost efficiency in garment sector

Written by The Banking Post


The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is working on a unified code of conduct to streamline audit practices and reduce repetitive inspections in the country’s readymade garment industry.

In a circular issued on September 10, the apex trade body asked its member factories to share information on audit practices and related costs as part of an ongoing survey. The initiative seeks to curb duplication while maintaining “robust and credible” compliance standards.

Factory owners say social audits are often repeated by different customers — and sometimes by the same auditors — collecting identical data. This wastes time, adds costs, and disrupts production schedules.

Social audits are meant to check labour, safety, and ethical standards across supply chains. But an International Trade Center (ITC) report last year showed Bangladesh facing the highest average number of such inspections among key garment-producing nations, with 3.6 to 3.7 audits per facility between 2021 and 2023. By contrast, audit numbers in China, Vietnam, Turkey, and India have declined.

On September 3, BGMEA leaders met with representatives from 40 global retailers — including H&M, Puma, Gap, Lidl, Aldi, and Tchibo — to seek support for the initiative. A BGMEA presentation revealed audit questionnaires covering 85 to over 600 data points on labour rights, safety, environment, ethics, wages, and working hours.

BGMEA Director Faisal Samad said many social issues overlap in buyer requirements. “If we adopt the highest standards for a single code, they should be acceptable to all,” he noted, adding that the survey will identify duplication and guide discussions with stakeholders to finalise the framework.


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