Dhaka, Bangladesh (BBN)– Bangladesh’s apparel exporters are now entitled to get the new market exploration assistance even if they bring export proceeds from any third country.
The Bangladesh Bank (BB), the country’s central bank, has relaxed the regulations on the cash incentive allowing the exporters to receive the incentive against their exports to new markets whether the exporter repatriates earnings from the country to which goods were exported or from any other country.
However, the business relationship between the exporters and importers will have to be ensured properly, according to a notification issued by the central bank on Thursday.
Earlier, they had to bring the export proceeds from the country where they sent the goods to be eligible for enjoying the cash incentive of 3.0 per cent for exploring new markets – other than the traditional ones of the United States, Canada and the European Union.
The condition has been relaxed as the exporters were facing difficulties in realising the incentive in case of orders by the global retailers for a market having their presence, which is considered a new market for Bangladesh.
But, the buyer had to pay for the imports from the country where their headquarters are located – be it USA or EU, according to a BB official. As a result, the exporters had to face difficulty in getting the incentive.
“The central bank has relaxed the regulations to facilitate exports by apparel and clothing sector particularly to the new markets,” said the central bank.
He also said the BB has issued the circular in line with an advice by the Ministry of Finance.
Earlier, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged Finance Minister AMA Muhith to relax the conditions of the incentive.