Industries
Textile & Garments
Buyer compliance, sourcing and supply contracts, bonded warehousing, and labour regulation for the ready-made garments sector.
In short
Tuhin & Partners advises ready-made garment and textile businesses in Bangladesh on buyer compliance and social audits, sourcing and supply contracts, bonded warehouse licensing, factory safety and building compliance, and the labour regulation that governs a large workforce. The RMG sector is Bangladesh's largest export industry, and its legal exposure is concentrated in labour, buyer compliance obligations and customs treatment of imported inputs.
Key takeaways
- Employment in the sector is governed by the Bangladesh Labour Act 2006 and the Labour Rules 2015, which apply with particular force to factories of this size.
- Duty-free import of inputs for export production runs through bonded warehouse licensing, and audit of that facility is a recurring exposure.
- Buyer codes of conduct impose obligations that are contractual rather than statutory, and are enforced by audit and by cancellation.
- Tuhin & Partners advises on supply contracts, compliance programmes, factory licensing and labour disputes in the sector.
The ready-made garments and textile sector is the backbone of Bangladesh’s export economy. Participants operate under intense buyer compliance expectations, evolving labour and safety regulation, and complex customs and bond arrangements.
We advise garment manufacturers, buying houses, and international buyers on sourcing and supply agreements, factory compliance, bonded warehouse licensing, sub-contracting arrangements, and employment matters — and support sector investors on acquisitions, joint ventures, and restructuring.
Common questions
What licences does a garment factory in Bangladesh need?
A factory typically needs a trade licence, factory registration with the Department of Inspection for Factories and Establishments, fire safety and environmental clearances, and — where it imports inputs for export production — a bonded warehouse licence. Export businesses also require an export registration certificate.
What is a bonded warehouse licence and who needs one?
A bonded warehouse licence allows an exporter to import raw materials without paying duty at the point of import, on the basis that the finished goods are exported. It is central to the economics of the RMG sector, and it comes with strict record-keeping and audit obligations on the use of the imported inputs.
Are buyer codes of conduct legally enforceable in Bangladesh?
They take effect through the supply contract rather than through statute, which means breach is a contractual matter — usually cancellation, chargeback or delisting rather than a regulatory penalty. They frequently impose standards above the statutory minimum, so compliance with Bangladeshi law alone does not guarantee compliance with the buyer.
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