National, Front Page

Export incentives to continue this fiscal

Published : 21 Sep 2021 10:23 PM | Updated : 22 Sep 2021 01:45 PM

To encourage the country’s export trade the government is going to provide export incentives or cash assistance till this financial year, June 30, 2022.   

In the fiscal year 2021-22, four new sectors are being added to receive cash assistance against exports. The four sectors are home-made tea, bicycles and bicycle parts, MS steel products, and cement sheets. 

Against the export of each product will be 4 percent cash assistance. With the addition of these four new products, the number of cash-assisted export products will now be 42.

The Department of Foreign Exchange Policy of Bangladesh Bank has directed all authorized dealers to follow its newly announced transactions for providing export incentives or cash assistance against exports in FY 2021-2022.

The export incentives or cash assistance will be applicable for organizations located in specialized areas -Bangladesh Economic Zones Authority, Bangladesh Export Processing Zones Authority (BEPZA) and Hi-Tech Parks.

In addition to the existing facilities, cash assistance at the rate of 4 per cent will be provided for the export of processed agricultural products of ‘A’ type and ‘B’ type establishments in specialized areas. All categories of companies in the specialized region will get export incentive assistance at the rate of 1 per cent for the export of other products outside the country.

Footwear and bags and processed agricultural products in a mixture of synthetics and fabrics for industrial establishments located in the Economic Zone of Bangladesh; Software, ITES and hardware industries located in Bangladesh Hi-Tech Park; new product or new market expansion support in the textile sector for industrial establishments located in Bangladesh Export Processing Zone; And in the case of exports to the EU, USA and Canada, special assistance will be provided to the Export Processing Region.

Export incentive at the rate of 4 percent will be applicable against the export of processed agricultural products of the organizations.

In this case, after the issuance of a separate circular on the application process, the application for export incentive can be submitted.

Export subsidy at the rate of 4 percent will be applicable for individual level freelancers as opposed to export of software and ITES services.

Income earned from the recognized online marketplace by the Department of Information and Communication Technology ensures repatriation to the country. Individual level freelancers have to pay export subsidy;

Besides, the concerned Exporters Association approved by the Ministry of Commerce shall certify the application for export subsidy of individual level freelancers. In the absence of the Exporters Association, the Information and Communication Technology Department of the government will certify the export subsidy applications of individual level freelancers.

Export allowance applications can be submitted within 360 days of export value repatriation and any single person can submit one or more applications against all repatriated income, based on the financial year. In this case the conventional system of audit by the audit firm will apply;

Applicant freelancers must have a registered freelancer ID card issued by the government.

In the current Fiscal Year 2021-2022, it has been decided to provide Export Incentives or Cash Assistance on exported products at 4 percent for tea, bicycle and its parts and gauze and cement sheets.

After the issuance of the circular in the export sector of the products mentioned above, the application for export incentive or cash assistance can be submitted.

Float glass sheets, opal glassware, cast iron and aluminum engineering products will be considered for export subsidy under the light precast product sector.

Consumers as high-tech products (compressors) and HCFC free refrigerator electronic products export subsidies will be available in the electronics, electrical home and kitchen appliance sectors.

In case of receiving cash assistance or export subsidy or export incentive in all applicable sectors, there should be a minimum 30 percent domestic value added against the respective export in the absence of guidance on determining the level of local value addition in the relevant sector.

Related Topics