Non-issuing ERCs take toll on SAAD Musa Industrial Park

CHITTAGONG, Sept 17: Hundred per cent export-oriented industries of a major industrial group in Chittagong have been denied Export Registration Certificate (ERC) for the last 40 months on the plea that the local controller office of Imports and Exports is not authorised to issue more-than-one ERC for different industries of a single export house.
The result is the company could not export produce of its four new textile and spinning industries located in its exclusive industrial park at Anwara opposite Chittagong Port since 2011.  
Controller of Imports and Exports in Chittagong division regretted to issue export registration certificates for the said industries arguing that only the Chief Controller of Imports and Exports in Dhaka is authorised to issue ERC for more than one industry of a group of industries.
The management of the SAAD Musa Industrial Park at Anwara applied for ERC for its 100 per cent export-oriented four textile and spinning industries on June 19, 2011 to the Chittagong Divisional Controller of Imports and Exports at Agrabad in the city accompanied with all relevant documents.
The industries located in the SAAD Musa Industrial Park are Mahmud Sajid Cotton Mills Ltd, Samiya Samira Cotton Mills Ltd, Rokeya Spinning Mills Ltd and Sultan Habiba Fabrics Mills Ltd.
In its latest letter written to the Divisional Controller office on June 8, 2014, the management said that its indemnity bond submitted to the Chittagong Custom House (CCH) in June 2011 also remains stuck up with the CCH as the company could not submit the Bank PRC (performance registration certificate) to Customs Authority until this day.
 "We brought the machinery for the said industries in 2011 through submission of Indemnity Bond to the CCH for three years on conditions that we would submit necessary documents or Bank PRC in favour of our export performance. Since submission of the application of ERC for our industries we have contacted several times but the authority concerned did not give any concrete answer," a senior official said quoting his latest letter submitted on June 8, 2014.
The matter was conveyed to its trade body, Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) which also wrote to the Controller of Imports and Exports in Chittagong on June 11, 2014.
In its letter, Secretary of CMCCI M Salimullah said that the export sector is one of the top priority sectors of the country and the government has been facilitating and giving incentives in different ways to boost up the export. But the policy adopted by the office of the Chief Controller of Imports and Exports and its local divisional office goes against the government policy.  
In reply to the letter of the CMCCI, Assistant Controller of Imports and Exports Chittagong office Md Khurshid Alam said as per Exporters, Importers, Indentors (Registration) Order 1981 only one company will be issued registration certificate with the same shareholders of more-than-one limited companies.
 "But as per Clause 17 of the Order there is an exception to that provision. The Chief Controller of Imports and Exports can only issue ERC (Export Registration Certificate) for more-than-one export industries of the same company," he said suggesting the company concerned to communicate with its head office in Dhaka.