Garment accessories makers for removal of bank guarantee
Monday, 21 June 2010
FE Report
Garment accessories makers Sunday demanded withdrawal of mandatory 100 per cent bank guarantee condition during imports of plastic raw materials to facilitate the country's exports.
Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) made the demand at a press conference in the city.
BCCAMEA president Rafez Alam Chowdhury, vice-presidents Abdul Quader Khan and Mir Mahmud Ali and vice-president (finance) Nazem Uddin Chowdhury spoke on the occasion.
The importers are required to obtain bank guarantee before unloading imported raw materials at the ports if they cannot have their consignments marked with the writing 'import under bond, not for resale' - a system many importers see as complicated and not conducive to the million dollars backward linkage industry.
The accessories makers said the export items are losing competitiveness due to the rule as they have to pay commission, interest and sometimes collateral to obtain bank guarantee, which ultimately increases the cost of the products.
The association said most of the BCCAMEA members are small and medium enterprises and it is very difficult for them to release raw-materials through 100 per cent bank guarantee.
"Obtaining bank guarantee is expensive and ensuring collateral is not always possible," Rafez Alam Chowdhury told reporters.
The association also urged the government to withdraw 15 per cent value added tax (VAT) imposed on rented house used by the wholly export-oriented packaging and garments accessories factories.
It said the government should maintain the existing rate of tax levied at source for the export-oriented industries instead of increasing it by 300 per cent as proposed in the budget for the fiscal year 2010-2011.
The accessories makers also urged the government to withdraw the mandatory rule for printing 'import under bond, not for re-sale' in all the packages while importing raw materials.
The government has made it mandatory to mark the bags containing plastic raw materials with the inscription of 'imported under bond, not for sale' in red applying the punching method.
The association also urged the government to allocate them fund from the state-sponsored stimulus package, which has been earmarked to help the export-oriented industries stave off effects of the global meltdown.
Garment accessories makers Sunday demanded withdrawal of mandatory 100 per cent bank guarantee condition during imports of plastic raw materials to facilitate the country's exports.
Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) made the demand at a press conference in the city.
BCCAMEA president Rafez Alam Chowdhury, vice-presidents Abdul Quader Khan and Mir Mahmud Ali and vice-president (finance) Nazem Uddin Chowdhury spoke on the occasion.
The importers are required to obtain bank guarantee before unloading imported raw materials at the ports if they cannot have their consignments marked with the writing 'import under bond, not for resale' - a system many importers see as complicated and not conducive to the million dollars backward linkage industry.
The accessories makers said the export items are losing competitiveness due to the rule as they have to pay commission, interest and sometimes collateral to obtain bank guarantee, which ultimately increases the cost of the products.
The association said most of the BCCAMEA members are small and medium enterprises and it is very difficult for them to release raw-materials through 100 per cent bank guarantee.
"Obtaining bank guarantee is expensive and ensuring collateral is not always possible," Rafez Alam Chowdhury told reporters.
The association also urged the government to withdraw 15 per cent value added tax (VAT) imposed on rented house used by the wholly export-oriented packaging and garments accessories factories.
It said the government should maintain the existing rate of tax levied at source for the export-oriented industries instead of increasing it by 300 per cent as proposed in the budget for the fiscal year 2010-2011.
The accessories makers also urged the government to withdraw the mandatory rule for printing 'import under bond, not for re-sale' in all the packages while importing raw materials.
The government has made it mandatory to mark the bags containing plastic raw materials with the inscription of 'imported under bond, not for sale' in red applying the punching method.
The association also urged the government to allocate them fund from the state-sponsored stimulus package, which has been earmarked to help the export-oriented industries stave off effects of the global meltdown.