Outsourcing in garment industry undermines compliance

Tag : Garment Protection
US officials have expressed concerns about the practice ofoutsourcing by Bangladeshi apparel makers, saying it (outsourcing)sometimes undermines compliance issues.

However, local garment manufacturers said they outsource jobs onlyfrom members of BGMEA (Bangladesh Garment Manufacturers andExporters Association) and BKMEA (Bangladesh Knitwear Manufacturersand Exporters Association), who are compliant with US buyers'requirements.

A team of US Customs and Border Protection (CBP) officials recentlyinspected around two dozens readymade garment factories in Dhakaand Chittagong and found these units outsource their products fromother factories.

CBP is one of the Department of Homeland Security's largest andmost complex components, with a responsibility for securing andfacilitating trade and travel while enforcing hundreds of USregulations, including immigration and drug laws.

When asked, a leading garment manufacturer said many Bangladeshigarment factories need to outsource their jobs as an individualthey have limitations to complete big buying orders.

We sometimes receive orders from a single buyer which cannot becompleted at our own facility within the set time limit. For thisreason we need to outsource, he added.

The team after visiting the factories identified that as per the USrules the manufacturers must mention the details about themanufacturing facility of the company. But in case of outsourcingthe exporters do not mention the facility, the team added.

The US team will send written suggestions and other opinions soonto the Bangladesh government.

The team meanwhile verbally informed the matter to the ExportPromotion Bureau during the visit and asked the officials to ensureproper compliance at those units.

The US officials observed despite the fact that big manufacturershave satisfactory compliance practice their outsourcing partners donot have adequate facilities.

When contacted, EBP Vice Chairman Sahab Ullah said it is a commonpractice in Bangladesh that manufacturers outsource when theyreceive orders beyond their capacity.

He said the EPB officials told the US team that the compliance isfully maintained at outsourcing destinations.