The National Board of Revenue (NBR) has allowed partial export-oriented industrial enterprises to import raw materials duty-free against bank guarantee under a move to help expand the country's export trade.
To this effect, the revenue authorities issued a notification on Monday.
Enterprises that cannot obtain bonded -- warehouse licences, despite fulfilling the conditions of the existing bond -- management system, are permitted to import raw materials/products without paying customs duties and taxes.
To avail such duty-waiver facility, the importing enterprise will require to submit a bank guarantee equivalent to the amount of customs duties and taxes assessed by the customs authority on the imported goods.
By allowing the duty-free import of goods even without having a bond licence, the NBR expects that export-oriented enterprises would be able to maximise their production capacity and diversify exportable products, thus helping expand the country's export trade.
Chairman of Pran-RFL Group Ahsan Khan terms it 'a milestone' for local exporters who are supplying goods both for local market and abroad.
"I can compare it with that day, years ago, when the government introduced a bonded -- warehouse facility for 100-percent export-oriented industries," he says, suggesting more focus on the country's competitiveness on the international market.
Bangladesh's much-desired export diversification will get a boost as many new sectors would be encouraged to eye the export markets offering competitive prices, he adds.
Masud Khan, Chairman of Unilever Consumer Care, also hails the NBR move to simplify import of raw material through allowing duty-free import.
"It was a crying need to manage the working capital of manufacturers," he told the Financial Express.
Though there was evidence of abuse of bonded warehouse facilities earlier, shutting down the door is not an option to thwart abuse of any facility, he observes.
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