The National Board of Revenue (NBR) has extended the bond licence period from two years to three years for export-oriented industries set up in Export Processing Zones (EPZs) in a bid to facilitate exporters and manufacturers as well as ease of doing business.
To this end, NBR issued a Statutory Regulatory Order (SRO) recently.
“With an aim to fulfill the purpose of Section 13 of the Customs Act, 1969 (Act IV of 1969), rule 7 of the Bonded Warehouse Licensing Rules, 2008 will be replaced in this way that the licence period will be for 3 years since issuing the licence for direct export-oriented industries in EPZs,” it said.
In other case, the rule remains the same as per the previous rule. It means that the licences for the companies other than EPZ ones will be applicable for two years, as per the SRO.
Besides, the licensees will have to complete the audit of the institution concerned every year, according to the rule.
Earlier, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the revenue board to extend the bond licence renewal period from two years to three years.
In a recent letter sent to the revenue board, BGMEA president Faruque Hassan made the request aiming to maintain the capacity and the growth of readymade garment export-trade, facilitate business and reduce the cost of doing business. He also called for issuing necessary orders to this end.
The BGMEA president in the letter said, “The export-oriented garment industry is currently under various pressures both locally and internationally. Russia-Ukraine war has affected the global economy seriously, posing a new challenge to our apparel industry.”
“The government is also providing policy support for the export growth and capacity building of the apparel sector,” he added.
“Aligning with policy support, the Ministry of Commerce has already extended the renewal period of Import Registration Certificate (IRC) and Export Registration Certificate (ERC) from one year to five years for the ease of doing business. As a result, the time and the cost of exporters have been reduced,” the letter reads.
“For resolving the ongoing crisis and ensuring the survival of exporters in the global competitive market, nowadays it would be appropriate to extend the bond licence renewal period to three years instead of two years,” it added.
The letter mentions that as per the relevant statutory regulatory order (SRO), now bonded warehouse licence has to be renewed after two years.
In many cases, exporters cannot renew the bond licences in the stipulated time due to various problems relating to their business. So, the factories face fines and suffer financially which affect export costs and reduce the industry’s capacity.