Only 37 RMG buying houses get registration from DoT

Only 37 buying houses have been registered with the Department of Textile (DoT) within the official deadline that ended in July last, officials said.

The Ministry of Textiles and Jute (MoTJ) issued an amended circular on May 28 last, asking all the buying houses operating in the country to get registered with the DoT within next two months of the issuance of the circular, they added.

Some 475 garment buying houses are registered with the Bangladesh Garment Buying House Association (BGBA), according to the trade body.

Besides, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), some 1,472 buying houses are its registered associate members.

The BGMEA on July 22 also asked its associate member buying houses to get registered with the DoT to comply with the government's instruction.

The DoT received a total of 135 applications from the buying houses and provided registration to some 37, said an official.

Lack of necessary documents is one of the main reasons for low number of registration while many were not aware of the instruction, he added.

When asked, DoT director general Dilip Kumar Saha said the department has extended the time for registration by 60 days.

According to the ministry circular, the time could be extended by 60 more days provided the buying houses have valid reasons. According to 7(1) provision of the circular, the government could take legal action against those who will fail to receive registration within the stipulated time.

Earlier, the government had empowered the DoT as the sponsoring authority for providing services to the country's textile and clothing sector by enacting Textile Law 2018.

The law also brought the buying house owners under the department for the first time, officials said.

All the textile and clothing sector units including readymade garment, cotton and fabrics, and buying houses must be registered with the department for running their business in the country, they added.

According to the notification, the buying houses would have to submit their applications to the DoT along with the documents of updated trade licence, income tax certificate, certificate of incorporation for limited company, estimated yearly turnover and bank solvency certificate.

Prior to applying for the DoT registration, the buying house has to be registered with the concerned trade body, said Kazi Iftekhar Hossain, president of Bangladesh Garment Buying House Association (BGBA).

The BGBA is receiving a dozen of applications daily from the buying houses to be registered with it, he said, adding that they need maximum a week to inspect and do the required formalities in this regard.

Moreover, the buying houses those are not affiliated with the BGBA or remained outside of any regulation are also unwilling to come under any obligation, he noted, holding responsible for the small number of registration with the DoT.

A buying house can operate its business only by obtaining a trade licence from the authorities concerned and there is no obligation to get registered with a supervisory body or an association, according to the industry people.

Buying houses play an important role in garment export earnings as the majority of apparel factories are dependent on them, they said.

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