Awareness gaps, regulatory hurdles threaten traceability of export goods: Experts

A lack of awareness about circular supply chains, the European Union's (EU) latest regulations, and factory digitalisation -- especially in small and medium units -- is a major barrier to tracking Bangladesh's export goods, experts and industry leaders say.

"Most of our suppliers don't even know what traceability means, and many have no understanding of circularity in the supply chain," said Abdul Quaium, sustainability manager of Italian fashion brand OVS. He was speaking on Monday at a seminar titled "EU Trade Forum: Spotlight on the Digital Product Passport (DPP)", held at a city hotel.

The day-long event was jointly organised by the Ministry of Commerce and the German Development Agency GIZ to create a shared understanding of the DPP and assess Bangladesh's readiness to align its export sectors with the EU's Ecodesign for Sustainable Products Regulation (ESPR).

The DPP, part of the EU Green Deal, is a mandatory electronic record that tracks a product's entire lifecycle, from raw materials to end-of-life disposal. It contains data on labelling, certifications, carbon footprint, supply chain due diligence, material composition, resource efficiency, performance, and durability, aimed at promoting sustainability and a circular economy.

Mr Quaium said OVS has been working for the past four to five years to minimise both pre- and post-consumer waste by ensuring traceability and transparency.

However, he noted that many suppliers still sell garment waste, or jhut, without maintaining any traceability. "This is the main challenge for us," he said, adding that segregating jhut by colour could reduce recycling costs by at least 30 per cent.

Vidiya Amrit Khan, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), pointed out that several factories -- such as DBL, Square, and Urmi Group -- have already implemented the DPP system.

She expressed concern about "audit fatigue", where factories complying with one set of regulations are simultaneously pressured to adopt new ones.

"We don't want to be non-compliant or fall behind, but we need unified measures from brands so that all buyers follow a single set of mandatory standards," she said.

Minhazul Hoque, director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), emphasised the need for entrepreneurs to change their mindset about investing in the right digital tools and technologies.

Commerce Secretary Mahbubur Rahman, who attended as chief guest, stressed the EU's importance as a market for Bangladesh and the need to prepare for the DPP framework to ensure product sustainability and identity.

"This is the first time such a technology-driven event has been held in Bangladesh. While implementing DPP, we must ensure costs do not rise excessively," he said.

German Ambassador to Bangladesh Dr Rüdiger Lotz described the DPP as "an important tool for maintaining the traceability and transparency of products."

Additional Commerce Secretary Abdur Rahim Khan acknowledged the necessity of complying with the EU Green Deal but called for a synchronised approach so that the compliance burden is shared by all stakeholders, including buyers.

He said the government could provide policy support once industry requirements are clearly identified.

At the seminar, Export Promotion Bureau Vice Chairman Anwar Hossain proposed developing a government-owned data ecosystem for the DPP to benefit exporters, factory owners, and private-sector players.

He also called for policy measures to help SMEs, which he said are "lagging behind in their digital footprint."

The session was moderated by Dr Michael Klode, head of the GIZ STILE II project.

munni_fe@yahoo.com