BB hands over export certification authority to banks to ease business
Friday, 22 May 2009
FHM Humayan Kabir
The central bank has handed over its authority to issue export "proceed realisation certificate" to commercial banks, making it easier for the exporters to avail bond, cash incentives and duty exemption facilities quickly.
The export PRC is a document where detailed information on shipment of goods including its quantity, freight and prices are reflected. On behalf of the exporters, banks ask the Bangladesh Bank to issue the certificate against any shipment of local goods.
The central bank issued an order Thursday saying the authorised dealers --- mainly the country's 50 odd commercial banks --- would now be able to issue the PRCs to the exporters from July 01 next.
The BB will no longer issue the PRCs against direct exports and deemed exports, the order issued by the BB's foreign exchange policy department said.
"Handing over the authority to issue the PRCs to the authorised banks will greatly save time for the exporters. Due to lack of adequate manpower it takes more than a month for the BB to issue these certificates," a senior BB official said.
"The commercial banks will need a fraction of the time to issue these certificates," he said, adding that it would simplify business regime in the country.
The PRC is usually used when an exporter needs to renew his bond licence and to avail the government-offered duty exemption, duty drawback and cash incentives facilities.
Exporters have long complained that they need to spend a good amount of their valuable time to receive the certificate from the central bank, as the BB's process of issuing the PRCs are 'complex'.
Anwar-ul-Alam Chowdhury (Parvez), a top garment exporter and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the BB's order would reduce cost of doing business for the exporters significantly.
"Sometimes the BB even takes two months to issue an export PRC. Commercial banks won't take that long. It will reduce both time and costs for the exporters," he told the FE.
"Since the bank knows everything about exporters' shipment of products, values and payment, so I think it will be very easy for the banks to issue the certificate in less than a week's time," Pervez said.
The central bank has handed over its authority to issue export "proceed realisation certificate" to commercial banks, making it easier for the exporters to avail bond, cash incentives and duty exemption facilities quickly.
The export PRC is a document where detailed information on shipment of goods including its quantity, freight and prices are reflected. On behalf of the exporters, banks ask the Bangladesh Bank to issue the certificate against any shipment of local goods.
The central bank issued an order Thursday saying the authorised dealers --- mainly the country's 50 odd commercial banks --- would now be able to issue the PRCs to the exporters from July 01 next.
The BB will no longer issue the PRCs against direct exports and deemed exports, the order issued by the BB's foreign exchange policy department said.
"Handing over the authority to issue the PRCs to the authorised banks will greatly save time for the exporters. Due to lack of adequate manpower it takes more than a month for the BB to issue these certificates," a senior BB official said.
"The commercial banks will need a fraction of the time to issue these certificates," he said, adding that it would simplify business regime in the country.
The PRC is usually used when an exporter needs to renew his bond licence and to avail the government-offered duty exemption, duty drawback and cash incentives facilities.
Exporters have long complained that they need to spend a good amount of their valuable time to receive the certificate from the central bank, as the BB's process of issuing the PRCs are 'complex'.
Anwar-ul-Alam Chowdhury (Parvez), a top garment exporter and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the BB's order would reduce cost of doing business for the exporters significantly.
"Sometimes the BB even takes two months to issue an export PRC. Commercial banks won't take that long. It will reduce both time and costs for the exporters," he told the FE.
"Since the bank knows everything about exporters' shipment of products, values and payment, so I think it will be very easy for the banks to issue the certificate in less than a week's time," Pervez said.