Deferred payment allowed for 4 yrs for RMG machinery import

Manufacturers of readymade garments (RMG) have been allowed the opportunity of taking three years more to make their deferred payment on import of capital machinery with prior approval from the central bank, officials have said.

The Bangladesh Bank recently assured the apparel-makers of relaxing the existing provisions of settling their deferred payment on letter of credit (L/C) within a year following growing demand from the apex body of the garment sector.

Following verbal assurance, the BGMEA has already issued a notification asking its member-factories to apply to the Board of Investment (BOI) prior to seeking permission from the central bank.

"The central bank has assured us of considering our long-standing demand of making L/C payment against the import of capital machinery under deferred arrangement in four years," Md Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE.

But the interested manufacturers would have to apply to the Foreign Exchange Investment Department (FIED) of the central bank, he added.

Earlier, an apparel-maker had to apply to the BOI for making such payment within one year and a half, he said. Now they could seize the opportunity of making deferred payment on import of capital machinery for four years.

Terming the move as good, he said it would encourage the manufacturers to make more investment and go for BMRE (balancing, modernisation, renovation and expansion).

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