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Outsourcing in garment industry undermines compliance: US officials

Local garment makers say they outsource jobs from compliant units

Jasim Uddin Khan
US officials have expressed concerns about the practice of outsourcing by Bangladeshi apparel makers, saying it (outsourcing) sometimes undermines compliance issues.
However, local garment manufacturers said they outsource jobs only from members of BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association), who are compliant with US buyers' requirements.
A team of US Customs and Border Protection (CBP) officials recently inspected around two dozens readymade garment factories in Dhaka and Chittagong and found these units outsource their products from other factories.
CBP is one of the Department of Homeland Security's largest and most complex components, with a responsibility for securing and facilitating trade and travel while enforcing hundreds of US regulations, including immigration and drug laws.
When asked, a leading garment manufacturer said many Bangladeshi garment factories need to outsource their jobs as an individual they have limitations to complete big buying orders.
"We sometimes receive orders from a single buyer which cannot be completed
at our own facility within the set time limit. For this reason we need to outsource,” he added.
The team after visiting the factories identified that as per the US rules the manufacturers must mention the details about the manufacturing facility of the company. But in case of outsourcing the exporters do not mention the facility, the team added.
The US team will send written suggestions and other opinions soon to^the Bangladesh government/
The team meanwhile verbally informed the matter to the Export Promotion Bureau during the visit and asked the officials to ensure proper compliance at those units.
The US officials observed despite the fact that big manufacturers have satisfactory compliance practice their outsourcing partners do not have adequate facilities.
When contacted, EBP Vice Chairman Sahab Ullah said it is a common practice in Bangladesh that manufacturers outsource when they receive orders beyond their capacity.
He said the EPB officials told the US team that the compliance is fully maintained at outsourcing destinations.
"We assured them that if any factory is found non -compliant, measures will be taken to make-it compliant," Sahab Ullah added.
jasim@thedailystar.net