General Export Incentives1. Declaring 80% export oriented leather industries as 100% export-oriented industries. 2. Other 80% export-oriented industries to get identical incentives available to 100% export-oriented industries :
Other 80% export oriented industries (other than leather industries) will be given following incentives with a view to encouraging their export operations:
(a) Financial incentives including bank loan as available to 100% export-oriented industries. However, the benefits allowed to the 100% export-oriented industries by the National Board of Revenue in respect of duties and taxes will not be applicable to them.
(b) Sale permission upto 20% of their production in the local market on payment of usual duties and taxes. 3. Reduced airfreight for export of all crash programme items including fruits and vegetable.
4. Settlement of trade disputes :
With the expansion of exports trade disputes are also increasing. In many cases Bangladesh's image as an exporting country is being tarnished because of such disputes. On the other hand, Bangladeshi exporters are also incurring financial losses. To remove such difficulties, the Export Promotion Bureau will initiate steps for settlement of trade disputes through conciliation. For this, necessary amendment will be made in the Charter of Export Promotion Bureau to enable them to perform this responsibility effectively.
5. Recognizing small and medium size agricultural farms as Industry.
6. Research and development:
Marketing of products in the international market is becoming increasingly competitive due to globalization and liberalization of trade.To sustain in the face of such stiff competition, continuous quality improvement and market adaptability have become necessary. For this purpose, industrial enterprises should be equipped with their own Research and Development ( R & D ) facilities . For this duties and taxes on machinery and equipments imported by export units will be gradually lowered. Research institutions on the recommendation by the Export Promotion Bureau will also be entitled to such benefit.
7. Export on the basis of sub-contracting :
The sub-contracting service sector has immense potential for export. All out efforts will be made to exploit the opportunities in this sector especially in the automobile industry in Japan and the printing industries in the western countries.
8. Assistance to contract services abroad:
Contract Services like engineering, consulting and civil construction contract abroad have been identified as potential export sector.
The following facilities are extended to assist this sector :
(a) Issuance of bid bond and performance bond, at 1% margin by commercial banks for submission of tender and on receipt of work order respectively;
(b) Allocation of fifty thousand dollars annually to eachorganization to meet the expenditure like maintaining communication, sending representatives, making overseas trips, purchasing tender documents etc. before receipt of actual work order ;
(c) Permission for setting up overseas office and appointment of staff;
(d) Permission for Sadharan Bima's Individual professional guarantee/insurance in favour of project specialists ;
(e) Involving Bangladesh missions abroad to provide information and assistance.
9. Annual ceiling for despatch of export samples :
At present, the annual ceiling for despatch of samples to international trade fairs is fixed at US $ 2000 (two thousand). The ceiling for sending samples for purposes other than international fairs was however considered inadequate. It has been raised in phases from Tk.1000 per annum to US $ 1500 (approximately Taka 65,000) per annum. The maximum limit for sending out samples by parcel post will be raised from its present limit of Taka 2,000.00 to Taka 5,000.00.
10. Commodities under the Crash Programme :
(a) At present toys, luggage and fashion items, electronics, leather goods, diamond cutting and polishing, jewellery, silk fabric, stationery goods, cut and artificial flowers and orchid, gift items, vegetables and engineering consultancy and services have been included under the crash programme.
In order to boost production and export, promote goods/services under the crash programme, soft term credit will be provided for product development, market adaptation, and marketing. Import of raw materials, facilities will be provided for export on consignment basis and into duty drawback/bonded warehouse facilities.
In addition assistance will be provided for market exploration obtaining joint venture. Fresh flower, fruits and bamboo, cane and wooden furniture shall be included in list of crash programing items apart form the items listed above.
(b) In order to increase the export of agro-based products,necessary assistance will be provided to the high value added agricultural products.
11. Increased import facilities of samples for product development:
For product development and market promotion any exporter except of RMG sector is entitled to import duty free samples upto a maximum of US $ 1000 (One thousand) annually on obtaining clearance from the Export Promotion Bureau. For import of samples exceeding US $ 1000 (One thousand), clearance shall have to be obtained from the Chief Controller of Imports & Exports which will approve the import on the recommendation of the Export Promotion Bureau issued on the basis of export earnings.
12. Multiple entry visa to importers and foreign Investors :
Multiple entry visas are being issued to foreign investors and importers to make their entry into and stay in Bangladesh easy and trouble free.
13. Deemed Export Facilities :
Local raw materials used as direct import for export production for products supplied to local projects procurement in foreign exchange against international tender are regarded as 'deemed export' and qualify for all export incentives and benefits including duty drawback that extended to direct exporters.
14. Import of samples by Export Promotion Bureau and TCB :
The Export Promotion Bureau and the Trading Corporation of Bangladesh will be entitled to import duty free samples upto a maximum annual limit of taka 30,000.00 (Taka Thirty thousand ).
15. Import of banned items :
Export-oriented industries may be entitled to import raw materials put under the banned/restricted list of import against specific export orders subject to permission from the Ministry of Commerce.
16. Widening the Scope of deemed export:
The coverage of "deemed export" has been widened to include supply of goods to the Export Processing Zones and export of turn-key projects like engineering services contract, consulting services contract and various other construction contracts. The net foreign exchange earnings generated by such project exports will be considered as actual export and become eligible for all export incentives and facilities.
17. Waiver on Shipment of goods :
To avoid unnecessary delay in shipment of export cargo the Ministry of Shipping will grant waiver for shipment of export goods except those which are covered within 24 ( twenty four ) hours of receipt of application in the transportation of export goods. Besides, should an exporter decide to charter an aircraft for quick transportation of his export consignment, the government will consider for according necessary permission in this regard.
18. Re-export ( Entre-Pot) :
The existing system of taking permission from the Ministry of Commerce on case-to-case basis for re-export of imported cargo (entre-pot ) trade will not be necessary henceforth. The rate of value addition required for entre-pot trade has been lowered to 5% from the previous rate of 10%. However, each package under the re-export consignment must bear the mark 'entre-pot' or 'temporary importation' and must not claim Bangladeh as country of origin.
20. Export and Import without L/C.:
With a view to further simplifying export procedures, from now on, export may be effected without L.C. on the basis of purchase contract, agreement, purchase order or advance payment. In such cases, the exporter will be required to submit only the EXP Form and the Shipping Bill. In addition, export of all commodities including vegetables and electronic goods shall be allowed without L.C. and on the basis of advance encashment or on consignment basis. In order that such exports can be effected smoothly, genuine exporters will be allowed, for a minimum period of one year, to export their goods on the basis of contract, purchase order or advance payment, besides export L.C.
Import without L/C is permissible in cases of import of capital machinery essential raw materials for export-oriented industries, and perishable goods for eventual re-exportation, irrespective of value ceiling.
21. Relaxation of provisions for import of raw materials through back-to-back L.C. for export- oriented industries.