Exporters seek clarity as supply-chain traceability guidelines remain pending
They called for shared responsibility among stakeholders to ensure a smooth and sustainable transition.
As the European Union prepares to introduce mandatory traceability requirements for imported products from 2027 to track carbon footprints and promote decarbonisation across supply chains, Bangladeshi suppliers are still waiting for clear guidelines on how the system will work and how they should implement it.
They also raised concerns over collecting data especially by the small and medium scale garment owners from multiple raw material suppliers, unified data platform, and the additional costs involved in implementation.
They called for shared responsibility among stakeholders to ensure a sustainable transition.
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"Digital Product Passport (DPP), a method of supply-chain traceability, is going to be implemented from 2027. However, we still have not received any guidelines on it," said Minhazul Hoque, director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), at the launch of Circular Textiles Bangladesh: Advancing Traceability and Decarbonization at a hotel in Dhaka today (5 October).
Solidaridad, an international civil-society organisation (CSO) working to make global supply chains more sustainable and inclusive, organised the programme in partnership with the Embassy of the Kingdom of the Netherlands, the Netherlands Enterprise Agency (RVO), several Dutch retail brands, technology innovators, and Bangladesh trade leaders.
Minhazul said those who contribute 60 to 70% local value addition – face immense data management challenges.
"Moreover, upgrading machinery with Internet of Things (IoT) devices and flow meters to automate data collection requires significant capital investment that many SMEs cannot manage without targeted financing," he added.
A representative of Epyllion Group, a leading ready-made garment (RMG) exporter, raised concerns over collecting data from its numerous raw material suppliers, saying, "There is a challenge in collecting data from upstream suppliers."
Given the situation, Bangladeshi suppliers have urged the EU to extend the timeline for implementing the DPP requirement beyond 2027.
Experts, however, said Western consumers are becoming increasingly conscious of the supply chains behind the products they buy and are likely to make purchasing decisions based on factors such as carbon footprints and the sourcing of raw materials.
Speaking as Chief Guest, Md Ataur Rahman Khan, Secretary of the Ministry of Commerce, urged factory leaders to view digital traceability as a strategic market advantage rather than an administrative burden, reaffirming the Ministry of Commerce's commitment to future-proofing the RMG industry and scaling pilot solutions nationwide.
"Bangladesh must redefine its global competitiveness beyond price, quality, and delivery to encompass circularity and verified origin," he added.
