Bangladesh's Export Policy 2021-24 becomes effective

The ministry of commerce issued a gazette notification to that effect. The government aims annualised export earnings of $80 billion during the 2021-2024 term, according to Bangladeshi media reports.

The priority sectors having untapped export potential include apparel having highest value addition, denim, man-made fibre, garment accessories, pharmaceuticals, plastic products, shoes (both leather and synthetic), jute and agro-products, light engineering, shipbuilding and ocean-going trawler building, furniture, home textiles and home decor, luggage, active pharmaceutical ingredients and reagent.

"Exporters would be able to deposit a certain amount of their export earnings into their foreign-currency account under retention quota. Bangladesh Bank would determine the amount time to time," said the policy statement.

Exporters can now borrow up to 90 per cent of the amount stated in the irrecoverable letter of credit or confirmed contract.

"The commercial banks would deal with the issue with due priority as per instructions of the Bangladesh Bank," it said. For new industry, value addition should be at least 30 per cent for getting export incentives.

The National Board of Revenue (NBR) would consider offering bonded-warehouse facility to the partial exporting sector on fast-track basis under the Customs Act 1969.

For research and development, the government can offer policy support allowing a certain part as expenditure of annual turnover of the exporting company. Leather-sector exporters would get financial support from export-readiness fund.

The export policy lays emphasis on building capacity of trade regime of Bangladesh through establishing connectivity and partnership with other countries.

Fibre2Fashion News Desk (DS)