Fake clothing ‘from Bangladesh is going to the world market, America is worried

A market in Gulistan, Dhaka. On the 6th and 7th floors of the market, you can see different types of ready-made clothes arranged one by one in different shops. These are sourced from various garment factories.

From small to world famous – there are all kinds of brands. In the garment sector, if an order is cancelled or the goods are not exported due to any error, these shopkeepers buy the clothes at a low price and then sell them in the local market. In common parlance, they call these clothes’ stock lots’.

Khaleque Mondal, a shopkeeper, said that the brand names and tags on the clothes are removed when they are brought from the garment factory. It doesn’t matter what company’s products are.

According to the rules of the ‘stock lot’ clothes are supposed to be destroyed inside the factory. But this is not the case in many other parts of the country.

There are allegations that a part of these cancelled orders, which are of good quality, some are exporting outside the country. The world-famous bands that export fake products.

The United States has recently expressed concern. Many are calling it bad news for the clothing industry.

What do foreign brands say?

In the case of counterfeit products worldwide, it is considered a crime to make exact replicas of logos, designs, trademarks, etc.

The issue of exporting fake readymade garments from Bangladesh has recently come to the fore in a report of the US Trade Representative’s Office ‘USTR’.

Citing various studies, the United States says Bangladesh is one of the top 5 sources of fake ready-made garment exports in the world.

The American Apparel and Footwear Association (AAFA) filed the complaint with the USTR.

When contacted by BBC Bangla over email, the organisation said the shipment of counterfeit goods from Bangladesh is increasing.

The seized goods were shipped to 12 countries including the United States and the United Kingdom. Even the export of fake readymade garments from Bangladesh has increased by 50 percent in 2022 compared to the previous year.

As a result, the organization has recommended to the US Department of Commerce to put Bangladesh at the top of the watch list.

According to the organisation, in 2022, 175,000 items of counterfeit goods were seized in 17 raids in Malaysia and the Philippines alone, all of which were produced in Bangladesh.

The shipments of these counterfeit goods are most commonly sent through the postal service in small quantities instead of the sea route. Social media and online platforms are used.
How to make fake clothes?

Those involved in the garment sector say that there is an opportunity to make such fake products in two ways. Firstly, the ‘stock lot’ of garments in the garment sector can be collected from the local market and sent abroad by courier.

Secondly, someone may be copying the logo or design of a foreign brand and making a dress and exporting it.

Khandaker Golam Moazzem, research director of the Centre for Policy Dialogue, one of the leading non-governmental research organisations in Bangladesh, said a team has been formed to collect stock lots. After collecting them, they check the quality of the products, re-package them and send them abroad.

“Also, there are a lot of clothes in the market. Since they have the same basic fabric, some people can also make fake clothes using these fabrics and sell them in the name of export, “he told BBC Bangla. Moazzam.

He said fake clothes of foreign brands are easily available in the domestic market of Bangladesh and are sold openly. So the products that are being produced in the local market are spreading to different markets through Dubai.

What are the BJP and the government saying?

BGMEA denies allegations of exporting fake products from any factory under its control. The commerce minister and the senior secretary of the ministry were not available for comment as they were abroad. Officials at the ministry declined to comment.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) claimed that the companies did not provide any concrete evidence regarding the export of fake garments.

Faisal Samad, a director of the BGMEA, told the BBC that the US Trade Representative’s Office (USTR) had held a meeting with garment owners a week ago. But they did not complain about the export of fake products.

Besides, the allegations of exporting fake products from the brands are based on speculation. They could not provide any evidence or say who was producing them.

He said: “Why would garment owners want to spoil their reputation and export market by exporting fake products?

But when asked about taking out the ‘stock lot’ from the garment factory, he said that it is not illegal at all.

“The factories that do the work of different brands do it regularly. An order has now been cancelled. Now with their permission, the label of the brand can be opened and sold outside. It’s not illegal. From here, there may be two that may not have gone out according to the right rules. “

Mr. Samad said BGMEA is not responsible if someone makes counterfeit products locally. Because they are not part of the organization.

BGMEA, however, denies the allegation of exporting fake readymade garments.

Earlier this year, when the United States first accused Bangladesh of exporting counterfeit goods, the Ministry of Commerce said the same thing.

However, the reality is that in any case, fake clothes from Bangladesh are going to different countries of the world. And the United States is very concerned about that.

At the 7th US-Bangladesh TICAFA meeting in Dhaka this month, the US side raised the issue of new export of fake readymade garments.
Will it have a negative impact on exports?

Faisal Samad, director of BGMEA, said that if the export of fake clothes is proven, it can have a detrimental effect on garment exports. Export of garments may be taxed or restricted. The government should take action in this regard.

CPD Research Director Khandaker Golam Moazzem echoed similar sentiments.

“If this concern continues, then there may be conditions at the export level for any product of Bangladesh as a measure. Or there may be a long delay in checking when entering those countries.

“And if the export of counterfeit goods is strongly established and large in volume, then the imposition of quotas, the imposition of additional tariffs – such things can be added,” said Mr. Moazzam.