Garment export to the US In certain quota categories may face temporary embargo this year as 90 per cent export in a number of categories was made four months ahead of the year end. Export Promotion Bureau (EPB) sources said-

Leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) however thinks otherwise.

There is hardly any chance of embargo on export of garment in any category this year." said Anlsul Haque.'Vice President of BGMEA.

Chairman of BGMEA standing committee on quota policy and administration Abu Taber said, "hi view of the export trend this year, the question of embargo on any category' does not arise." Embargo is Imposed mainly due to forgery in export by third party and that is not possible now because of electronic visa delivery system, he added.

The quota categories in which export already crossed 90 per cent Till rates' are 342/642 indicating skirts and 331 indicating gloves. The EPB 'visa fill rates' of these categories are 96 per cent and 90.5 per cent respectively.

Export in five more quota categories crossed 80 per cent fill rates as of August 26. according to EPB quota monitoring report.

The categories in which export crossed 80 per cent fill rates are: 647/648-- 82.3 per cent: 645/646-- 87.8 per cent; 635-- 80.9 per cent. 351/65I--83.2 per cent. 338/339-- 80.4 per cent and 331- 90. 5 per cent.

EPB officials fear that export in some quota categories is likely to face temporary embargo in October this year because their export quota would be exhausted by that time.

But Anlsul Haque said there would not be much shipment

against those categories because most of the export orders were already met.

One source said. "If such an embargo Is Imposed, many genuine exporters would suffer because they would not be able to export garment to US markets even after having exf>ort orders."

He attributed the high fill rates' In some categories to 'higher allocation of quota'. Besides, the big companies are much ahead of the small ones In fulfilling export quota, he mentioned.

As a result, many small exporters would face difficulty and there would be a quota crisis. The big companies which got huge performance quota would be able to make money by selling quota documents. It would create a crisis in the illegal quota market, the source noted.

A senior ullk lai of EPB told The Daily Star that the Ministry

of Commerce had specifically ordered EPB not to allocate more quota than available quantity.

But the quota committee consistiiig of representatives from different associations of garment exporters often gives additional allocation under pressure from a big association, he said seeking anounnlty.

The oiTicial further said the present quota distribution rule should be changed because the 'performers get garment export quota from the govenunent free of cost but if they fail to export goods, they can sell ft to others.'

Earlier, temporary embargo was imposed on at least five quota categories tn October 1997 as the export quota was exhausted.