The authorities concerned are to give incentives on four new products exported from the country from this fiscal.
The newly added four products are; tea produced in the country, bicycles and their parts, MS steel products, and cement sheets. As a result, 43 products and sectors will get cash assistance for export in the current financial year.
Bangladesh Bank issued four separate circulars in this regard from the Foreign Exchange Policy Department on Wednesday.
At the same time, in a separate circular the Central Bank has said one percent export incentive will be given for all categories of products produced in the specialized zone in the country.
In the context of providing export, incentives would be offered for the export of cement sheets produced in the country. The government has decided to provide incentives for the export of cement sheets produced in the country in order to encourage the export trade of the country. This facility will be applicable for shipped goods in FY 2021-2022. Instructions will be followed by the authorized dealer bank regarding incentive payment.
Recipient side and level of availability of incentives: In case of export of cement sheets produced in their own factory, producer-exporter incentives will be available at the rate of 4 percent on the net FOB price. Level of local value added: In the case of the export of cement sheets, the rate of local value added should be at least 30 percent. Export incentives and duty drawback or duty bond facilities will not be applied simultaneously in this sector.
In the context of providing export incentives for the export of tea produced in the country; It is pertinent to note that the government has decided to provide export incentives in exchange for the export of tea produced in the country in order to encourage the export trade of the country.
This facility will be applicable for shipped goods in FY 2021-2022. Instructions will be followed by the authorized dealer bank regarding incentive payment. Recipient side of the incentive and the level of availability of net FOB value in case of export of tea produced in one's own garden.
Free on Board (FOB) is a term of sale under which the manufacturer quotes the price including all charges for placing goods on board a ship or aircraft. It is also called freight. The seller also must clear goods for export.
Producer-exporter incentives will be available at the rate of 4 percent. Level of local value added: In the case of tea export, the rate of local value added should be at least 30 percent. Export incentives and duty drawback or duty bond facilities will not be applied simultaneously in this sector.
In the context of providing export incentives to export MS Steel Products produced in the country; It is pertinent to note that the government has decided to provide export incentives in exchange for the export of MS Steel Products produced in the country in order to encourage the export trade of the country. This facility will be applicable for shipped goods in FY 2021-2022. Incentive payment to the authorized dealer bank
Recipient side and level of availability of incentives: In the case of export of MS Steel Products manufactured in their own factory, the producer-exporter incentive will be available at the rate of 4 percent on the net FOR price.
Local Value Added Level; In the case of export of MS Steel Products, the local value added rate should be at least 30 per cent. Export incentives and duty draw-back or duty bond facility will not be applicable simultaneously in this sector.
In the context of providing export, incentives for the export of bicycles and their parts produced in the country. It is to be noted that the government has decided to provide incentives for the export of bicycles and their parts produced in the country in order to encourage the export trade of the country. This facility will be applicable for shipped goods in FY 2021-2022. The following paragraphs follow the instructions of the authorized dealer bank regarding payment of incentives:
Incentive recipients and availability levels: Manufacturers-exporters will receive incentives at the rate of 4 percent on the net FOR price for the export of bicycles and their parts manufactured in their own factories. Local Value Added Level: In the case of export of bicycles and their parts, the local value added rate should be at least 30 percent. Export incentives and duty draw-back or duty bond facility will not be applicable simultaneously in this sector.
On the other hand, in the case of tea, bicycles and its parts, MS steel products and cement sheets, export incentives and duty bond facilities will not be available simultaneously.
In all cases, export incentives will be provided in accordance with World Trade Organization (WTO) rules as opposed to the cost of handling, quality improvement, processing and payment of domestic and international transport and freight charges.
