RMG EXPORTS TO NEW MARKETS

Govt relaxes rules for giving cash incentives to garment makers

Staff Correspondent | Published: 00:33, Jan 21,2018 | Updated: 01:16, Jan 21,2018

 
 

A file photo shows a worker sewing clothes at a readymade garment factory in Dhaka. The government has decided to ease the condition for getting new market exploration assistance for the readymade garment exporters by allowing them to repatriate their export earnings from any country. — New Age photo

The government has decided to ease the condition for getting new market exploration assistance for the readymade garment exporters by allowing them to repatriate their export earnings from any country.
Recently, the finance ministry has decided to withdraw the Bangladesh Bank FE Circular 22/2011 to that effect.
Leaders of the Bangladesh Garment Manufacturers and Exporters Association said members of the trade body have been facing problem in receiving cash incentive against their exports to new markets as the section (D) of the FE Circular 22/2011 stipulates that the repatriation of export earnings should be from the country to which the products have been exported for getting the incentive.
According to BGMEA sources, Bangladesh Bank will issue a circular soon in this regard as the finance division has agreed on a draft circular that proposes allowing cash incentive against RMG exports to new markets whether the exporter repatriates earnings from the country to which goods were exported or from any other country.
In mid-2017, the BGMEA informed finance minister AMA Muhith about the condition imposed in the BB circular for getting cash incentive against exports to new markets.
Despite imposition of the condition, the exporters were not deprived of getting cash incentive against their exports to new markets, government officials said.
Keeping in mind any future disadvantage, the trade body requested the government to make change in the circular so that the continuation of the facility does not break.
After receiving the BGMEA request, the finance minister suggested Bangladesh Bank bringing change in the circular saying that products entered into the global market from various parts of the world and the central office of the buying or selling house might not situated in the country in which products were exported.
In response, the central bank prepared the draft circular. 

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