Desk Report,
Partial exporters will get bond benefits if they provide bank guarantees
The government has taken the initiative to provide temporary duty-free bond facilities against bank guarantees to partial exporters in order to increase export earnings and diversify them. At the same time, the complete automation of bond services is under process, which will close the old service system once completed.
Partial exporters will get bond benefits if they provide bank guarantees
This progress was announced at a coordination meeting of the National Board of Revenue (NBR) and investment development agencies at the Bangladesh Investment Development Authority (BIDA) office in Agargaon in the capital on Tuesday.
The meeting was attended by NBR Chairman Md. Abdur Rahman Khan and officials from Bangladesh Economic Zones Authority (BEZA), Bangladesh Hi-Tech Park Authority, Public-Private Partnership Authority, Maheshkhali Integrated Development Authority and Chittagong Port Authority. BIDA Executive Chairman Ashiq Chowdhury presided over the meeting. This information was given in a press release. It was informed in the meeting that in order to facilitate the export of goods at competitive prices, duty-free bond facilities will be provided against 100 percent bank guarantees equivalent to the applicable duties and taxes on imported raw materials and equipment for partial export-oriented industrial enterprises. Apart from this, the applicability of UD (Utilization Declaration) has been relaxed conditionally for industrial establishments with warehouse licenses established in export processing areas and economic zones.
It was further informed that even if there is a slight discrepancy between the HS code declared in the bond license and the HS code determined by customs through examination, the consignment can be released. However, the condition is that the first four digits of the customs-determined code and the first four digits of the code declared in the bond license must match. In this case, the importer will have to give an undertaking to amend the bond license or UD within 30 days. This instruction is applicable to all ongoing consignments of goods.
The meeting took decisions on 31 more issues to improve the investment environment.
BIDA Executive Chairman Ashiq Chowdhury said, “We are working on various policy support proposals including bond facilities for partial exporters based on the reasonable needs of investors. If this facility is implemented through the government’s concerted efforts, it will increase exports, diversification and domestic and foreign investment in the non-ready-made garment sector.’
NBR Chairman Abdur Rahman Khan said that in addition to providing reasonable and investment-friendly facilities, special emphasis is being placed on self-assessment and post-clearance audit to ensure quick clearance of goods from the port. He said that he will personally supervise this matter.
