Incentives For Exporters

Incentives for exporters Collected by macs http://animalspic.blogspot.com

To promote the export business, Government has declared some incentives for exporter. Following are the main incentives declared by the ministry of commerce. 1.

Retention Quota: Exporters are allowed to keep 40% of their export proceeds to their F.C. account. It is 7.5% in case of export against which import is higher, proportionately.

2.

Investment period: Normally export fiancé, as working capital is allowed for 180 days. Now it has been extended up to 270 days for frozen foods. Tea & Leather.

3.

Credit card: Exporters are allowed to get credit cares for business tour.

4.

Investment facility: Commercial banks may fiancé for export, up to 90% of FOB value of the export L/C

5.

No compensation: Commercial banks will not impose compensation on overdue sight export bill under irrevocable export L/C.

6.

Tax at source: Exporters are allowed to pay only 0.25% tax on the export value at source.

7.

Duty draw back: Those exporters, who are not availing bonded ware house facility, are entitled to get duty draw back facility. They will pay the duty to the custom authority at the time of importing the raw materials and after realization of the export proceeds, they will apply for draw back the duty paid earlier. Authority will pay back the duty.

8.

Bonded ware house facility: 100% export oriented industries are allowed to import duty free goods for ultimate export. The goods to be stored at the bonded ware house.

9.

Duty free capital machinery: 100% export oriented industries outside EPZ are also allowed to import capital machineries free of duty.

10. Cash

incentives: Deemed exporters are allowed 25% cash

incentive by Bangladesh Bank. 11. Stock

lot disposal: Rejected Garments & Leather may be sold

to local marked paying 20% duty on the imported raw materials. 12. Freight

rebate: Bangladesh Biman charging freight at a

reduced rate for fruit & vegetable export.