Case Background
This report summarizes the findings of an investigation commissioned by the Korean chemical company SEWON CHEMICAL regarding unpaid export receivables from a Bangladeshi buyer. Because chemical raw material transactions tend to be high-value and recurring, payment defaults can create outsized losses unless they are managed through a disciplined control framework.
Bangladesh's chemical raw material import market exceeds $2B annually, with major demand centered on plastic feedstock, dyes, textile auxiliaries, and pharmaceutical inputs. Korean suppliers continue to face more than 50 payment dispute cases per year in the chemical segment alone.
Investigation Findings
| Cause | Share | Recovery Odds | Avg. Recovery Period | Response |
|---|---|---|---|---|
| Delayed FX allocation (Bangladesh Bank) | 45% | 80%+ | 3-6 months | Wait and split settlement |
| Buyer liquidity squeeze | 30% | 50-70% | 6-12 months | Installment negotiation |
| Quality complaint as pretext | 15% | 70%+ | 3-6 months | Inspection evidence |
| Intentional avoidance | 10% | 30% | 12+ months | Legal escalation |
Special Risks in Chemical Trade
Preventive Measures Against Non-Payment
Receivables Recovery Process
Chemical raw material exports concentrate loss exposure because shipment values are high and trading relationships are often repeated over time. A layered defense built around confirmed L/Cs, transaction limits, third-party inspection, and KSURE insurance remains the most practical way to reduce non-payment risk in Bangladesh.