Buyer’s LC should not be misinterpreted as an economic sanction: BGMEA

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Staff Reporter  :
Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex trade body of the country’s apparel exporters, yesterday said that the letter of credit (LC) from a foreign buyer to one of the BGMEA members should be not be misinterpreted as an economic sanction on the country.

“The global trade landscape is changing fast; human rights and environmental due are getting increased priorities, while geo-political issues are also influencing trade.

Since Bangladesh’s economy and its growth is heavily reliant on trade, any development around trade policy concerns us,” BGMEA President Faruque Hasan said in a statement on Wednesday.

“A copy of a letter of credit (LC) from a foreign buyer to one of the Members of BGMEA has come to our attention.

The LC contains the following text – ‘We will not process transactions involving any country, region or party sanctioned by the UN, US, EU, UK. We are not liable for any delay, non-performance or/ disclosure of information for Sanctions Reasons’.

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There is a concern and confusion caused by the interpretation of this clause that a sanction might have been imposed against Bangladesh, which is not correct,” he added.

He also said the LC came from a particular buyer, and this is not a statutory order or notice by any country.

“So this should not be misinterpreted as a measure of trade enforcement or economic sanction on Bangladesh,” Faruque Hasan said.

He also said that individual buyers or entities may have their own internal policies and protocols, but an LC copy or a private commercial instrument is not an official declaration.