Bangladesh Exporters Seek Clarity on EU Supply Chain Rules
Bdbusinessdaily.com – Exporters seek clarity as EU supply-chain traceability requirements move closer to implementation, with Bangladesh’s garment manufacturers seeking detailed guidance before the planned Digital Product Passport (DPP) rollout from 2027. Industry representatives say clearer rules are needed on data collection, verification, costs and responsibilities across the supply chain.
The DPP is intended to provide information about a product’s environmental footprint and support decarbonisation across production and distribution. For ready-made garment factories in Bangladesh, the challenge is turning that broad objective into workable systems for collecting and sharing reliable information.
Factories seek practical guidance
At the launch of Circular Textiles Bangladesh: Advancing Traceability and Decarbonization in Dhaka on 4 October, speakers said exporters still lacked sufficient detail about how the new obligations would operate in practice.
“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).
Exporters seek clarity as EU supply-chain requirements could place particular pressure on small and medium-sized factories. These businesses account for an estimated 60% to 70% of local value addition, but many may not have the technology, finance or staff needed to manage large volumes of traceability data.
Hoque said installing Internet of Things devices and flow meters to automate data collection would require substantial capital investment. Without targeted financing, many smaller manufacturers may find it difficult to make those upgrades.
Data must travel beyond the factory gate
Traceability is not limited to information produced inside a garment factory. Manufacturers may need data from raw-material suppliers, processing facilities and other upstream partners before a finished product reaches a retailer.
An Epyllion Group representative pointed to the difficulty of obtaining consistent information from a broad network of suppliers. That concern reinforces why exporters seek clarity as EU supply-chain rules are developed: common standards could help suppliers avoid fragmented reporting systems and duplicated costs.
Industry representatives have called for an implementation period beyond 2027. They argue that extra time would allow factories to develop shared systems, train workers, coordinate with suppliers and obtain funding for equipment and digital infrastructure.
Traceability could become a commercial advantage
Despite the immediate concerns, speakers said traceability is increasingly a market issue as well as a regulatory requirement. Consumers and brands in Western markets are paying greater attention to material origins, production conditions and carbon-related information.
Products without credible supply-chain data could face higher costs or weaker market access, while garments supported by verifiable information on sourcing, emissions and production may become more attractive to buyers.
“Traceability is the core engine that converts regulatory risks into a distinct market advantage,” said Commerce Secretary Md Ataur Rahman Khan.
Khan said verified data from fibre to retail garment could give global brands greater confidence. He urged manufacturers to view digital traceability as a business opportunity and said the Commerce Ministry remained committed to preparing the garment industry for future requirements and expanding successful pilot initiatives.
Exporters seek clarity as EU supply-chain expectations evolve, but they also want brands, buyers, technology providers and regulators to share responsibility. Manufacturers say meaningful progress will require cooperation across the full supply chain rather than investment by factories alone.
Frequently Asked Questions
What is the EU Digital Product Passport? The Digital Product Passport is a planned system intended to provide detailed information about products, including supply-chain and environmental data. For textile exporters, it is expected to increase the need for verifiable records from materials through finished garments.
When is the system expected to be introduced? Industry representatives said the DPP is expected to be implemented from 2027, although exporters are seeking more detailed guidelines and a longer transition period.
Why are Bangladesh garment exporters concerned? Factories are concerned about the cost of technology, access to financing, staff training and the difficulty of collecting reliable information from upstream suppliers.
What can factories do now? Manufacturers can begin assessing their existing data systems, identifying gaps in supplier information, exploring automation options and working with buyers and industry bodies on common traceability approaches.
