Bangladesh's new export policy attaches highest priority to 14 sectors
The government makes the new Export Policy 2021-24 effective with the highest priority attached to 14 sectors to boost much-needed foreign-currency earnings.
With effect from March 23, 2022, the policy contains in its core navigating upcoming post-graduation challenges, fourth industrial revolution, research and development activities and coping with the covid-induced blow to exporting sectors.
The Ministry of Commerce (MoC) made the policy public Sunday through issuing a gazette notification.
In the new policy, the government sets sights high on annualized export earnings at US$ 80 billion in 2021- 2024 term.
The priority sectors having untapped export potential include apparel having highest value addition, denim, man-made fibre, garment accessories, pharmaceuticals, plastic products, shoes (both leather and synthetic), jute and agro-products, light engineering, shipbuilding and ocean- going trawler building, furniture, home textiles and home decor, luggage, active pharmaceutical ingredients and reagent.
"Exporters would be able to deposit a certain amount of their export earnings into their foreign-currency account under retention quota. Bangladesh Bank would determine the amount time to time," says the policy statement.
As per the new export policy, exporters can borrow up to 90 per cent of the amount stated in the irrecoverable letter of credit or confirmed contract.
"The commercial banks would deal with the issue with due priority as per instructions of the Bangladesh Bank," it says.
For new industry, value addition should be at least 30 per cent for getting export incentives.
The National Board of Revenue (NBR) would consider offering bonded-warehouse facility to the partial exporting sector on fast-track basis under the Customs Act 1969.
For research and development activity, the government can offer policy support allowing a certain part as expenditure of annual turnover of the exporting company.
Leather-sector exporters would get financial support from export-readiness fund.
The export policy lays emphasis on building capacity of trade regime of Bangladesh through establishing connectivity and partnership with other countries.
The cabinet in January last approved the new export policy, which has made some time-bound action plans and implementation strategies for export diversification, fund support and simplification.
DOULOT AKTER MALA (2022, 27 March). Bangladesh's new export policy attaches highest priority to 14 sectors. The Financial Express. https://thefinancialexpress.com.bd/trade/bangladeshs-new-export-policy-attaches-highest-priority-to-14-sectors-1648435929