Home ›› 13 Nov 2022 ›› Front
The Bangladesh Small and Cottage Industries Corporation (BSCIC) is now offering a number of key facilities – including bonded warehouses and banking services – to small and medium enterprises located in industrial parks and cities, in a bid to boost commerce and employment.
On November 1, the Bangladesh Small and Cottage Industries Corporation (BSCIC) Act, 2022 was passed in the parliament, and a gazette notification in this regard was published the same day, bringing such facilities to the BSCIC industrial zones.
Industries Minister Nurul Majid Mahmud Humayun, in a statement on November 1 said, “This act will play a positive role in the socio-economic development of Bangladesh by creating more employment opportunities and improving the productivity of industries.”
The bonded warehousing facilities were incorporated into the act with the consent of BSCIC and the National Board of Revenue (NBR), read the gazette.
BSCIC can offer small and medium enterprises bonded facilities in terms of customs reserve, sales tax, purchase duty, excise duty, import licence, permit fee or any other charges on any goods, including raw materials imported to the industrial parks or cities.
Apart from this, the same facilities will be given in respect of duty or any other charge on any goods exported from the industrial park or city or used in the country.
In case a permit is required for the import of machinery, parts, raw materials and packaging materials of an enterprise, the company shall apply to the BSCIC.
Under the Section 21 of the act, BSCIC will allow banking activities inside any industrial park or city under its jurisdiction, subject to the approval of the Bangladesh Bank.
Regarding setting up warehouses, the act states BSCIC may, with the permission of the government, establish, maintain and operate public warehouses for the import of raw materials, packaging materials, and semi-processed goods in industrial parks, if necessary.
The act also states that the BSCIC can appoint developers to establish industrial parks. The government can appoint developers to establish industrial parks in partnership with one or more government agencies, authorities or institutions in partnership with other countries.
BSCIC can suspend or cancel the permit of a developer at any time, provided the developer is unable to perform the duties and responsibilities assigned to him, does not perform them properly, or violates the conditions of the work.
The corporation can provide financial incentives and assistance to enterprises set up in industrial parks.
These enterprises will receive financial incentives and assistance similar to those stated in Bangladesh Export Processing Zones Authority Act-1980, Bangladesh Private Export Processing Zones Authority Act-1996, and Bangladesh Economic Zones Act-2010.
Similarly, BSCIC can provide special incentives by publishing gazettes to industrial establishments located outside the industrial park, and exporting goods similar to those exported by the industrial establishments located in the industrial parks.
Harsher penalties introduced
According to the new act, there is provision for two years of jail and a fine worth Tk 50,000 for providing false information to borrow money from the BSCIC. The fine was Tk 20,000 previously.
Aside from this, in case of damage or removal of boundary walls, stilts, land, structures and infrastructure and in case of obstruction or damage to the work of the developer, the provision for six months of jail or a fine of Tk 1,00,000 or both penalties have been introduced in the act.
The penalties are the same in case of illegal occupation of the corporation’s land, construction of structures, cutting of trees and forceful occupation.
If the allotted plot in the industrial park is illegally transferred or rented or used for any purpose other than industry, there is a provision for one year of imprisonment or a fine of Tk 50,000 or both.
After the plot recipient is penalized, the corporation can take possession of the plot and re-allot it. Mobile courts can try the crimes described in the act.
Moreover, if the property of the BSCIC is damaged, the court may issue an order in response to an application for compensation. The court can even help collect fines.
A corporation fund
A fund will be created in the name of the BSCIC. Financial grants from Bangladesh and foreign governments and individuals, or development aid organisations with prior approval will be the source of this fund.
Grants from local individuals, organisations or authorities, loans taken by the corporation, fees, and money received from legitimate sources will be deposited in the fund as well.
From the reserve fund, with the approval of the BSCIC board, loans can be granted to cottage, micro, small, and medium industries and handicrafts entrepreneurs. Besides, the necessary expenses of the corporation can be spent from the fund.
