6 years ago

Bangladesh Bank relaxes incentive terms for new RMG market exploration

FE file photo used for representation.
FE file photo used for representation.

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Apparel exporters are now entitled to get the new market exploration assistance even if they bring export proceeds from any third country as the central bank Thursday relaxed the regulations on the cash incentive.

Earlier, they had to bring the export proceeds from the country where they sent the goods to be eligible for enjoying the cash incentive of 3.0 per cent for exploring new markets - other than the traditional ones of the United States, Canada and the European Union.

The condition has been relaxed as the exporters were facing difficulties in realising the incentive in case of orders by the global retailers for a market having their presence, which is considered a new market for Bangladesh.

But, the buyer had to pay for the imports from the country where their headquarters are located - be it USA or EU, said a senior official of Bangladesh Bank (BB). As a result, the exporters had to face difficulty in getting the incentive.

However, the business relationship between the exporters and importers will have to be ensured properly, according to a notification issued by the BB.

"We've relaxed the regulations to facilitate exports by apparel and clothing sector particularly to the new markets," said the official.

It is expected to help the exporters improve their competitiveness in the global market, he said. "We've issued the circular in line with an advice by the Ministry of Finance."

Earlier, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged Finance Minister AMA Muhith to relax the conditions of the incentive.

Abdus Salam Murshedy, president of Bangladesh Exporters Association (BEA), welcomed the BB's latest move, saying that it would help encourage exporters to explore new markets.

The central bank rightly amended the regulations considering the new global era, said Mr. Murshedy, also managing director of Envoy Group.

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