The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has warned its member factories to exercise extreme caution in business dealings with a dozen foreign buyers, buying houses and a freight forwarder following complaints of non-payment, shipment delays and contractual violations.

In a circular issued on October 12, the trade body said it had reviewed complaints from more than half a dozen member factories alleging that some foreign buyers had failed to take delivery of goods within the stipulated time despite production and shipment arrangements being completed.

Other complaints involved shipment delays, breaches of contractual terms and failure to pay for exported goods, raising concerns about possible irregularities, fraudulent practices and uncertainty in export transactions, the circular said.

BKMEA president Mohammad Hatem said that the association had received seven complaints from six factories involving unpaid export proceeds worth about $2.34 million.

The association said some buying houses and intermediaries had reportedly performed various functions in export transactions but could not be held accountable in commercial disputes because their involvement was not reflected in the relevant commercial documents.

It also cited complaints that factories had not received export proceeds within the expected timeframe after producing and delivering goods.

In some cases, factories reportedly faced shipment holds after completing production, placing them under financial pressure and creating uncertainty over the recovery of payments, the circular added.

BKMEA advised its members to verify buyers’ credentials, financial capacity, business records and contractual terms before accepting orders or shipping goods.

The association specifically named eight foreign buyers in the circular: Sanjeev 1979 Limited, Unique Global Depot Inc, Stockitalia, Italian Moda.com SRL, Heellada Unlimited Inc, New York EPZ Corporation, NRM Holdings Inc and Top Tee Trading Inc.

It also identified several local buying houses and intermediaries, including Esquiss Fashion Ltd, Thoughts International Ltd, G Tex BD, Fashion Touch Inc and A & M Global Sourcing Ltd.

Of the five buying houses and intermediaries named, only Esquiss Fashion Ltd is registered with the Bangladesh Garment Buying House Association (BGBA), according to the information provided by the trade bodies.

BGBA president Abdul Hamid said the association had held a meeting with the buying house over the allegations and found complaints involving non-payment to six or seven factories, amounting to around $1 million.

He said the buying house’s membership could be cancelled over the issue.

The BKMEA circular also named Hatt Global Logistics as a buyer-nominated freight forwarder that had business dealings with all the complainant factories.

The association cited allegations that certain buyer-nominated freight forwarders had failed to transport export consignments to their designated destinations in accordance with contractual terms, bills of lading or relevant transport instructions.

BKMEA urged its members to remain particularly vigilant when dealing with the listed entities and to ensure that all commercial arrangements and shipping instructions were properly documented.

It also requested factories with relevant information or complaints about transactions involving the named buyers, buying houses and freight forwarder to submit supporting documents directly to the association.

The warning comes amid concerns over payment risks and contractual compliance in export transactions, which can leave manufacturers exposed to losses after they have incurred production costs and committed resources to fulfilling orders.