Committee to resolve incentive issue for non-bonded RMG exporters

The commerce ministry has said a high profile committee will be formed to decide the next course of action to resolve the cash incentive issue for non-bonded garment exporters in the country.

The announcement came after the ministry and the National Board of Revenue (NBR) reached a consensus to suspend a recent circular that called for cancelling cash incentives for non-bonded warehouse garment exporters.

The decision came following a meeting, presided by Commerce Minister Tipu Munshi, on Thursday, also attended by high officials of the ministry, NBR, Bangladesh Bank and leaders from Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)

“We recommended suspending the circular and the NBR will take the step in this regard as the authority. This is a temporary measure to tackle the crisis,” the Commerce Minister told The Business Post.

Salman F Rahman, private industry and investment advisor to the prime minister, also joined the meeting.

“The dispute originated from a misunderstanding between the NBR and apparel exporters and it will be resolved through negotiation, added the minister.

To find a solution, a high-profile committee, led by the commerce secretary, will be formed with representatives from Bangladesh Bank, NBR, BGMEA and BKMEA by Sunday, he confirmed.

We are hopeful that a permanent solution will come from this committee, he added.

“NBR has issued the circular from a misunderstanding about the business process of non-bonded warehouse factories. The NBR agreed to suspend it,” BKMEA President Selim Osman said.