Staff Correspondent, bdnews24.com
Published: 2015-05-06 10:20:09 BdST
Seduka Jeans Inc USA stands boycotted by the Bangladesh Garment Manufacturers and Exporters’ Association (BGMEA).
The decision was taken after a request from the foreign exchange policy department of the Bangladesh Bank.
“This is a fraudulent company. They have not paid their dues to the producers and that’s why it has been blacklisted,” BGMEA Vice President Shahidullah Azim told bdnews24.com.
Central bank officials said that Seduka had sourced apparels from a Bangladeshi company, but did not pay for it. Bangladesh Bank had looked in to the matter after the exporter complained.
The decision to blacklist the company was taken to avoid further harassment of Bangladeshi companies by Seduka.
In 2013, an LC was opened by Excelsior Garments Ltd with the state-owned Sonali Bank against a buying order from Seduka Jeans Inc.
An LC or Letter of Credit is a written commitment to pay, by a buyer's or importer's bank to the seller's or exporter's bank.
It guarantees payment of a specified sum in a specified currency, provided the seller meets conditions and submits the prescribed documents within a fixed timeframe.
The LC was valued at $48,816 but Seduka paid $25,321.25 less than the committed amount.