The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked its members to be cautious when dealing with US-based company Zinntex LLC.
On 16 March, BGMEA secretary Major Md Saiful Islam issued a letter warning members.
The letter said that Zinntex LLC purchased 96,576 pieces of ready-made garments from Doreen Garments Ltd, valued at $6,784,13, but has not made the payment.
BGMEA also noted that several other member companies are currently exporting to the same buyer.
Members have been advised to inform BGMEA before doing business with Zinntex LLC. Companies that proceed without notifying BGMEA will be fully responsible for any issues that may arise with the buyer in the future.
Doreen Garments Ltd director Tahzeeb Alam Siddique told The Business Standard that the shipment was sent 20 months ago under contract without a letter of credit. After receiving the goods, the buyer refused to make the payment.
He added that a case has been filed in a US court. BGMEA had invited the buyer for arbitration, but they did not attend.
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