Several companies, including BSRM, have sought duty-free imports of raw materials against bank guarantee, aiming to boost export growth, an official at the commerce ministry said.
BSRM chairman Alihussain Akberali has recently written to the ministry, seeking required steps on the issue.
The official also said that two more companies also sought the same facility last November. The ministry is now working on the issue.
Mr Akberali mentioned in the letter, "We've recently commissioned the first-ever steel wire rods-making plant in Bangladesh."
However, the BSRM has requested Commerce Adviser Sheikh Bashir Uddin to instruct the National Board of Revenue (NBR) to allow it to import such raw materials against bank guarantee, the letter reads.
Such facility can also be given to other highly compliant and tax-paying companies like the BSRM. With such facilities, there will be a large increase in exports, Mr Akberali claimed in the letter.
The letter also reads that an importer will require a maximum bank guarantee limit for Tk 150 million for
such duty, VAT etc. on import of 5,000 tonnes of billets.
"Such bank guarantee can be for a smaller amount also if we import lesser quantity of billets."
If any importer fails to export the required quantity of finished goods minus wastage within six months, the customs can impose a penalty of 7.0 per cent on the entire amount of the bank guarantee.
Currently, the ready-made garments (RMG) sector is enjoying such facility.
The BSRM chairman has suggested that the government should give the benefit to steel-manufacturing factories like RMG.
rezamumu@gmail.com
Steelmakers seek duty-free import of raw materials
FE Report | Published: January 21, 2025 23:16:54
Steelmakers seek duty-free import of raw materials
Share if you like