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Lack of awareness about digital product passports, the latest European Union regulations and circular supply chains among the country’s manufacturers, especially small and medium-sized ones, is a significant challenge in ensuring traceability of exportable goods, said experts.

They also stated that most of the country’s suppliers lack expertise, proficiency and digital readiness necessary for the digital product passports or DPP.

They were speaking at a seminar titled ‘EU Trade Forum: Spotlight on the Digital Product Passport,’ jointly organised by the Ministry of Commerce and German development agency GIZ at a hotel in the capital on Monday.

The DPP, under the EU Green Deal framework of 2019, is a framework that tracks a product’s lifecycle in areas of sustainability, circularity and legal compliance.

It consists of data pertaining to general information, labels, certification, carbon footprint, supply chain due diligence, materials, composition, resource efficiency, performance and durability, promoting a circular economy and sustainability. 

The seminar shared understanding of the DPP and assessed Bangladesh’s preparedness to align its export sectors with the EU’s Ecodesign for Sustainable Products Regulation.

At the event, Abdul Quaium, sustainability manager of Italian sourcing company OVS, stated that they had been working for the last four to five years on reducing post- and pre-consumer level wastages to create a circular supply chain.

‘However, many of the suppliers are selling jhut or garment wastage without relying on traceability, which is the main challenge for us to have these data because we want to have circular supply chain,’ he said.

He added that they found that if jhuts were segregated based on their colour, at least 30 per cent of the cost could be reduced on the recycling side.

Vidiya Amrit Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, stated that a significant number of factories, including DBL, Square and Urmi Group, had already implemented the DPP system. 

‘We don’t want to be non-compliant and lag behind. But we also don’t want audit fatigue,’ she added, saying that a unified measure from brands was mandatory so that all brands and buyers follow single standard.

Michael Klode, head of the STILE II project of GIZ, moderated the session.

The main objective of the event was to provide insights into the EU’s requirements for traceability and a circular economy.

Speakers also discussed technical structure of the DPP and how it can ensure traceability across the entire supply chain, from the raw materials used in production to the final product.

Minhazul Hoque, director of the Bangladesh Knitwear Manufacturers and Exporters Association, stressed the need to change entrepreneurs’ mindset about digital investment in the right tools or technology to get maximum output.

Speaking at the opening session as chief guest, commerce secretary Mahbubur Rahman said that the EU was a crucial market for the country and Bangladesh get familiarised with the concept of DPP, which would ensure sustainability and identity of products. 

‘This type of technology-driven event has been organised in Bangladesh for the first time,’ he said adding that while implementing regulations like DPP, it was important to ensure that costs did not increase excessively.

German ambassador to Bangladesh Rüdiger Lotz said that the DPP was an essential tool for maintaining traceability and transparency of a product.

Commerce additional secretary Abdur Rahim Khan said that there was no denying that DPP was needed to comply with the EU Green Deal and meet its buyers’ requirements.

‘However, the synchronisation of the system is must so that the burden could be shared among all stakeholders, including buyers,’ he added.

He stated that the government could provide necessary policy support once the industry’s needs in this regard were identified. 

Anwar Hossain, vice-chairman of the Export Promotion Bureau, stated that they aimed to develop a data ecosystem for DPP, which would remain under government ownership, enabling exporters, factory owners and other private sector entities to benefit.

He also emphasised the need for a standardised policy framework to facilitate the onboarding of small and medium-sized enterprises, noting that SMEs were lagging in their digital footprint. 

Experts from various sectors, including apparel, food, pharmaceuticals and batteries, shared their practical experiences and challenges at the seminar.