Non-Compliant Rmg Factories
Govt body for customs, CSP certificate facility cancellation
A government committee has suggested for cancellation or suspension of customs bond and GSP certificate facility, and import-export license of non-compliant readymade garment factories in line with the existing laws and rules related to workplace safety and workers’ welfare, commerce ministry officials said. The National Board of Revenue provides duty-free raw materials import facility widely known as bonded warehouse facility to export-oriented industries while the Export Promotion Bureau issues generalised systems of preference certificate against export of RMG products.
The Office of the Chief Controller of Imports and Exports provides import and export licenses under which businesses can import and export any permissible products.
‘The committee has suggested the government for cancellation or suspension of those facilities for ensuring workplace safety and workers’ welfare,’ a committee member told New Age on Wednesday.
The initiative is also related to revive GSP facility for the Bangladeshi products to the US markets, he said.
‘If any factory fails to comply the laws and rules related to safety and working conditions, the authorities will cancel or suspend the facilities following the recommendation of the overseeing agencies,’ said another member.
The commerce ministry on September 3 formed a technical committee headed by its joint secretary Atiqur Rahman Khan to recommend an increase in fines and penalties for non-compliant apparel factories after reviewing the existing provisions of fines and penalties in the current laws and rules related to workplace safety and workers’ welfare.
The move has been taken as part of a series of official steps toward revival of the GSP facility in the US market.
The committee, consisting of representatives from different ministries and apparel makers, exporters and other stakeholders, reviewed the provisions containing penalties and other punishments in the existing laws and rules related to trade, labour, fire safety, building constructions and on Wednesday submitted its report to commerce secretary Mahbub Ahmed.
‘We found the levels and amounts of penalties in the existing laws and regulations quite enough, sometimes very harsh, to ensure workplace safety in the RMG factories but the problems remain in imple
mentation of the provisions,’ another committee member told New Age.
There are provisions of tough punishments including license cancellation in the fire safety law-2003, in the building construction law-1952, in the new labour law and in the importers, exporters and indenters (registration) order-1981.
Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association can also cancel or suspend utilisation declaration certificates for violation of labour rights and workers’ safety rules.
Under the UD certificates of BGMEA and BKMEA, garment manufacturers avail of facility to import raw materials tax-free against export orders from foreign buyers. So the committee has mainly suggested for ensuring proper implementation of the existing laws and rules, and strengthening monitoring mechanism, he said.
The committee also emphasised on formulating different rules which are specified in the labour, fire and building construction laws, he added.
He said that the team had also recommended the way to ensure legal actions in line with the current laws and rules.
The commerce secretary, however, said that he was yet to get the report.
‘We will send a progress report based on actions Bangladesh has taken including this one to revive GSP facility to the US before November 15,’ he said.
The ministry will finalise the report very soon, he added.
-With New Age input
