The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has taken a firm stance to prevent the misuse of bond facilities. The organization’s president, Mahmud Hasan Khan, said that some institutions are abusing the bond facility and their names must be clearly provided to BGMEA. If misuse is proven, all services for the respective member will be suspended.

He made these remarks on Sunday (16 November) at a “Meet the Press” event organized by the National Board of Revenue (NBR) in Agargaon, Dhaka. The event was chaired by NBR Chairman Md. Abdur Rahman Khan. BKMEA President Mohammad Hatem and several business leaders were also present.

The BGMEA president said, “The entire industry cannot be blamed for the wrongdoing of a handful of people. We have already warned 22 member institutions. Whoever NBR identifies, we will take strict action against them.”

He added, “If the opportunity to import raw materials through bank guarantees without a bond license can be implemented, nearly 200 members will voluntarily surrender their bond licenses. Many institutions are eager to avoid the complications involved in maintaining the license.”

Welcoming the decision to vest authority over tax exemptions in Parliament, the BGMEA president said, “Any facility given should be approved through Parliament; similarly, any facility withdrawn should also be done through Parliament. Cancelling benefits suddenly through SROs is undesirable.”

Highlighting the need for automation, he said, “Corruption will not decrease without automation. All processes—including bond management—must be automated quickly.”

Meanwhile, NBR Chairman Md. Abdur Rahman Khan stated that it is not possible to publish the list of bond facility abusers. He said the entire bond management system is being brought under full automation and that a week-long mandatory training program has been introduced for bond officials. Those failing the training may find it difficult to retain their jobs. He also hinted at the removal of incompetent officials.

He added, “Very soon, no bond-related tasks will be done manually; everything will be shifted to a digital platform.”

This joint stance of BGMEA and NBR regarding transparency in bond management and discipline in the export sector has sparked new discussion within the industry.