Cash aid without ERC for IT, ITES exporters soon

The government has decided to provide cash assistance very soon without the Export Registration Certificate (ERC) to the exporters of software, information technology-enabled services (ITES) and hardware.

Bangladesh Bank (BB) will issue a circular in this regard soon, according to a letter from the Foreign Exchange Policy Department (FEPD).

It is known that the necessary instructions regarding providing subsidies against the export of software, ITES and hardware are stated in FE Circular No. 3/2018. As per the circular, there are instructions to mention the ERC number along with the required information in the subsidy application form. The ERC number will not be required once the new rules come into effect.

The government currently provides a 10 per cent subsidy against software, ITES and hardware exports and a 4 per cent subsidy for individual freelancers against software and ITES exports.

The FEPD letter, signed by FEPD Director Md Sarwar Hossain, said that a meeting regarding the necessity of the ERC number for software, ITES and hardware exports was held on November 8 last year.

According to the meeting minutes, it decided that instructions may be issued from the Office of the Chief Controller of Imports and Exports saying there is no need to issue the ERC number in the case of the export of services in non-physical form. The chief controller’s office has issued instructions in this regard.