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.