The enemy of the house is the buying house

Buying House
  • Foreign buyers are taking sides in trade disputes, blocking export earnings
  • Doing business in this country. Income is also from this country.

Even then, buying houses are taking the side of foreign buyers against any kind of trade. The situation has now reached such a stage that in many cases these buying houses are blocking the export earnings of the readymade garments sector. 

Even paying the price as per the agreement is hampering. The Ministry of Commerce has been accused of such negative activities of buying houses. The Export Promotion Bureau (EPB) in a recent letter to the Commerce Ministry said that in the recent past, buying houses have become involved in anti-trade in the textile sector. 

They play a helpful role in expanding exports by fulfilling the responsibilities of the buyer. However, as a result of the role of some organizations, they are being forced to give discounts from the contract price including non-payment of dues. On the one hand, these problems are hurting the exporters and on the other hand, the country is being deprived of the foreign exchange it deserves. 

Acknowledging the allegations against the buying houses, EPB Vice-Chairman Vijay Bhattacharya told Bangladesh Pratidin that "we have informed the Commerce Ministry about the way we have been informed about them." Now the ministry will decide what to do next. It is learned that there is no specific authority in the country to control the buying house. Besides, buying houses are allowed to become members of the BGMEA, but there is no obligation to 'become a member'. At this point, they are becoming arbitrary.

ANM Manzur Morshed, chairman of AMZ Texworld Ltd., a buying house in the capital's Gulshan, said the allegations were "absolutely true". This is because 90 percent of the buying house business in the country is now run by foreigners. Those who are working here are also foreigners. They have been working for years without work permits and taking money from this country. 

There is no policy in managing these buying houses. As a result, they are getting through even after committing various misdeeds including breaking the contract, withholding the payment, and not paying the promised money. Manjur Morshed said that at one time buying houses from China and Hong Kong used to do business in this country. 

Now all the big brands have liaison offices in Dhaka. It is very easy to set up such a liaison office with a trade license. Foreign buying companies have taken advantage of this opportunity in the country. According to the EPB, before 2015, Bangladesh Bank had a system of registration of buying houses, but now that the relevant rules have been amended, there is no need for any specific registration other than a trade license and TIN-VAT certificate. 

It is now much easier to get a trade license from a union council or city corporation for business. After the issue of trade license, there is an opportunity to get a VAT certificate, leaving the opportunity for buying houses to conduct business without a VAT certificate. As a result, even if the buying license of the buying house is revoked on any complaint, it will not be considered as an effective solution in resolving the trade dispute, the EPB said. 

The vice-chairman of the company said that buying houses need to have the responsibility in their commercial activities. They should be in any kind of framework. The person who will sign the contract with the buying house must at least legally attach the issues of arbitration. This will reduce the trade dispute to some extent.

Collection and publication of information - Alokacitra