50 Star US Inc.
The Uyghur Forced Labor Prevention Act (UFLPA), passed by the US government, went into effect on June 21, 2022. Greater authority to stop or confiscate commodities created partially or entirely in the autonomous region of Xinjiang in northwest China, which is linked to forced labor in China, is given to US border authorities.
Bangladesh's textile producers asserted that they are in a secure position and may even gain, since Vietnam's textile and footwear producers are under pressure as a result of the US's refusal to clear parts of the Southeast Asian nation's consignments, citing products produced of Xinjiang cotton as the reason.
Up to one million Uyghurs have been imprisoned and forced into labor by the Chinese government since 2017.
According to media reports, by using cotton and exporting to a country in North America, some Vietnamese businesses have assisted Chinese companies in avoiding US taxes or penalties. Finally, according to US customs data up to April 3 only 13% of Vietnam's cargoes were cleared for entrance while $15 million worth of shipments of clothing and footwear were held up for UFLPA procedures.
Although many US importers remain upbeat, their supply chains may still be affected because roughly half of the raw materials used by Vietnam's textile manufacturers come from China, according to media sources.
Tension increased between US brands and Vietnam-based clothing exporters as a result of the circumstance. Bangladesh's ready-to-wear exporters are particularly concerned because the country imports a significant amount of the textiles and yarn it needs, a majority of which is cotton and originates from China.
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), asserted that they are in a safe zone because all clothing producers are aware of the US sanctions against cotton from Xinjiang.
"We wrote a message to all members after the UFLPA law was passed asking them to confirm the country of origin of the cotton before importing raw materials from any other nation. Bangladesh will benefit as a result of the US confiscation of Vietnamese clothing since less US consumers will be confident in acquiring goods from Vietnam.
Even if they import from other nations, he continued, "I am encouraging all the apparel exporters to be more aware about importing raw materials.
Bangladesh imported more than 99 percent of the cotton it needed to meet its needs, with China perhaps contributing a small amount, according to the United States Department of Agriculture (USDA). However, 59% of the nation's imported fabrics come from China.
Additionally, Bangladesh fulfills its yearly 12 percent demand for yarn imports from China.
Industry insiders claimed that about 85% of the demand for cotton yarn was satisfied locally, with the remaining 15% coming from India, Pakistan, Turkey, and other nations. Less than 1% of the items come from China.
Although the nation imports a sizable portion of Bangladesh's yarn and fabrics, the most of them are not cotton. Bangladesh also imports some cotton yarn from Vietnam and Indonesia, although they insist that they always verify the cotton's place of origin.
Additionally, as the US is Bangladesh's top export market, manufacturers are well-versed in the laws and regulations of the nation. Because of this, there is no option to challenge the UFLPA statute.
Fazlee Shamim Ehsan, vice president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stated, "We believed in trust and transparency and always maintained our obligations. Now that other purchasers have fallen through, the US and other western buyers should visit Bangladesh with bigger orders.
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