The Bangladesh Bank on Sunday issued a set of instructions to the authorised banks over disbursement of 20 per cent cash incentive against the export of pharmaceutical products.
BB also cautioned dealer banks not to repeat any cash incentive and warned officials of punitive measures if any misuse or irregularly were found.
Earlier in August 2017 BB announced that 27 products of active pharmaceutical exporters would get cash incentives against their export during the year 2017-2018.
The authorised dealers were asked to follow the BB instruction in disbursing the incentives.
The BB circular, among others, said that the cash incentives facility would only be provided against the products which are already shipped for export.
The incentive would be given against the freight on board prices, while export would not be entitled for incentives if the entity is located at economic zones and export processing zones, it added.
Local value addition of 20 per cent would be a must for being entitled of the incentive, while no entity would get duty draw-back or bonded warehouse facility and cash incentive at once.
Authorised dealers would be responsible for initial scrutiny of all the documents that would be provided along with the exporters’ incentive form.
The cash subsidy form must contain certificates required by the Bangladesh API and the Intermediaries Manufacturers Association.
If banks found any inconsistency in the subsidy application, the applicant must be informed about such inconsistency in three days.
Besides, the authorised banks would have to assess the subsidy application by external auditor to ensure accuracy and then the applications should be forwarded to the central bank for approval.
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