Export-oriented enterprises in seven industrial parks under the cottage industry corporation should enjoy duty-free imports of raw materials, a core group has suggested.
The industrial estates in Rajshahi, Pabna, Sirajgonj, Kustia, Tangail, Narshingdi and Comilla under the Bangladesh Small and Cottage Industries Corporation (BSCIC) should be declared bonded areas, which the group says can attract local and foreign investment.
The government in November 2013, headed by vice-chairman of EPB had formed a 12-member core group to make suggestions and way forward for the country's textile sector to speed up export activities.
The members of the committee are representatives from the central bank, National Board of Revenue (NBR), Bangladesh Foreign Trade Institute (BFTI), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Terri-towel and Lilen Manufacturers and Exporters Association, Bangladesh Specialised Textile Mills and Power Loom Industries Association, BGMEA, BKMEA, BTMA and Export Promotion Bureau (EPB).
"Our textiles sector is facing different types of difficulties after Rana Plaza collapse and Tazrin incidence, which forced us to rethink the facilities given to the exporting sectors," vice chairman of EPB, Suvashis Bose told the FE.
"After brain-storming with both the government and the private sector, we've finalised a 27-point suggestions for helping the exporters move forward," he added.
"If the recommendations are implemented in phases, we believe most of the difficulties of exporters will be solved and export earning of the country will increase in the coming years," Mr Bose added.
He said declaration of bonded area of the seven industrial estates under BSCIC would help attract investors.
Mr Bose said the suggestions have been sent to the commerce ministry for approval and further action.
One suggestion of the core group is raising special fund to train manpower of textiles and other export-oriented industries.
Providing duty-free facility and soft loan to the entrepreneurs in importing and installing of central effluent treatment plants (CETP) in different industrial zones to meet the buyers' demand are other recommendations.
The committee also suggested the government waive value- added tax (VAT) for export-oriented factories against usage of gas, water and electricity, expenditure against building factory, CSR activities, courier services security services and legal adviser's charges.
Providing 2.0 per cent special incentives to exporters doing production outside the EPZs against their exports, facilitating exporters to buy yarn from the mills through pay order instead of existing back to back LC and scrapping the provisions registration for in-bond and ex-bond in collection of raw-materials against export are among the recommendations.
Exporters have hailed the suggestions made by the core group and urged the government to implement all the points as soon as possible.
"Local exporters are facing different types of hurdles after the deadliest incidents, which have made us less-competitive in the international market. The government should implement the core group suggestions soon as possible to help boost exports," president of BGMEA Md. Atiqul Islam told the FE.
If the government trains up manpower in the textiles sector, it will help exporters offset the challenges of skilled workforce shortage and wage hike.
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