BSSPMA seeks bond facility to boost exports

Bangladesh Stainless Steel Pipe Manufacturers Association (BSSPMA) has urged the government to provide customs bond facilities for them to diversify their export-oriented products.

The manufacturers say that Vietnam, Bangladesh’s key competitor country, implemented the customs bond facilities against bank guarantee a long time ago and that has allowed them to widely diversify their exports.

The association has recently sent a letter to Finance Minister AHM Mustafa Kamal to consider the matter to boost the country’s export volume.

According to the letter, signed by BSSPMA President Md Islam Uddin, it has become very important to provide this facility as part of the export development strategy for this sector with much potential.

Currently, some 750 products are exported from Bangladesh under the HS Code four digits level. A total of 659 products are dependent on imported raw materials, except the textile industry ones, read the letter.

Talking to The Business Post, BSSPMA Vice President Saifur Rahman said, “The garment sector is enjoying the bond facilities because it is 100 per cent export-oriented. Garment exporters can import raw materials duty-free.

“We want the same facilities because we supply our products to both local and international markets.”

He explained, “Currently, we pay 37 per cent duty for importing raw materials, which creates a challenge for us to keep up with our competitors. If we get a 30 per cent bond facility, our export volume will significantly go up.”

Saifur also said, “The bond facility against bank guarantee is required for partial export capabilities of local industries. However, our sector will expand and more jobs will also be created if the demand is met.”

“The National Board of Revenue (NBR) has been asked to actively consider providing bond facility against 100 per cent bank guarantee in the Export Policy 2021-2024 for export-oriented sectors and the partial export sector with more potential.

“NBR needs to implement it. As NBR operates under the Finance Ministry, we wrote to the minister to get the facility as soon as possible,” he added.