Exporters of the readymade garment (RMG) accessories and leather and leather products sector can apply to Bangladesh Bank’s Discount Committee for more than a 5% discount against exports. Recently, Bangladesh Bank informed about this decision of the government in a circular.
It has been said that entrepreneurs must apply to the government’s ‘Discount Committee’ through Bangladesh Bank to get this benefit. Till now only RMG exporters have been availing of this facility.
Exporters said that many times it is seen that even after the export of goods, domestic exporters have to discount the price of the goods according to the previous export agreement to meet the demand of the importer or in changing circumstances. This exemption is known as ‘rebate’ facility in the export trade.
Although, Bangladesh Garments Accessories & Packaging. Manufacturers & Exporters Association (BGAPMEA) President Moazzem Hossain Moti expressed that the accessories and packaging industry serves the local RMG industry rather than direct export. Meaning, Bangladesh Bank’s discount will only benefit exporters.
“We export around $800 million in accessories and packaging products. And our rest of the goods go to the local apparel industry. Thus this benefit will have little effect,” said Moazzem Hossain Moti.
Necessary documents should be submitted along with the application. ‘Discount Committee’ will scrutinize the application. According to the decision of the committee, entrepreneurs can give discounts.
Bangladesh Bank in another circular said that based on the emerging situation, ‘discount’ benefits will be taken for the ready-made garment sector.
Traders of the concerned sector welcomed the decision. According to them, exporters will get an easy solution to this issue if export price repatriation is not possible due to logical reasons.
