Only 37 buying houses have been registered with the Department of Textile (DoT) within the official deadline that ended in July last.
475 garment buying houses are registered with the Bangladesh Garment Buying House Association (BGBA). Besides, 1,472 buying houses are registered with Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
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. The DoT received a total of 135 applications from the buying houses and provided registration to some 37.
Lack of necessary documents is one of the main reasons for low number of registration while many were not aware of the instruction.
However, DoT 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.
All the textile and clothing sector units including ready-made garment, cotton and fabrics, and buying houses must be registered with the department for running their business in the country.
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. The ministry has set Tk 20,000 as fee for the registration and it would have to be paid through bank draft or pay order.
Subject to receiving documents and if necessary, inspection report, the registrar would give registration within 60 days of submitting application and the validity of the registration certificate would be three years.
Prior to applying for the DoT registration, the buying house has to be registered with the concerned trade body.