Experts have sought cost reduction measures and called for ensuring receipts to exporters so as to make popular the open account transactions method in international trade and boost export.
As per media reports, experts and the exporters came up with these observations at a webinar on ‘Global Awareness on Open Account Export Transactions and Recent Policy Changes in Bangladesh’ organised by the Asian Development Bank and the International Chamber of Commerce (ICC) Bangladesh even as they, reportedly, maintained that adopting the latest supply chain financing was a must to cope with the global trend.
Taking part in the event, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Dr. Rubana Huq, reportedly, underlined that exporters were under duress from global buyers to follow the open account method as they wanted flexibility, simplicity and reduction in cost of trade while also adding that there are no problems in trading under the system with established and well-known buyers and brands with whom local exporters have good relations even as she went on to add it would create huge risks to extend credit to unproven retailers and brands while adding that somebody needed to offer underwriting to protect the right of the exporters.
Meanwhile, speaking to the media, Md. Fazlul Hoque, former President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), reportedly, maintained that global buyers are increasingly becoming disinterested to offer letters of credit due to higher costs and documentary complexities and, instead preferring the factoring method.
