Export Proceeds Through Tt
RMG makers to get 5pc cash incentive
Bangladesh Bank on Wednesday said that apparel makers would get five per cent cash incentive against their export proceeds if sent through an electronic system known as telegraphic transfer. The products which will enjoy the government cash incentive from now on are woven, knitwear and terri-towels. To this end, the BB issued a circular to the authorised dealer branches of all scheduled banks asking them to ensure the accuracy and reliability of the information on the foreign buyers along with the correctness of the exported products and their prices before providing the cash incentive.
The exporters have to include the conditions of the advanced payment through the TT with the letters of credit or agreement letters.
Besides, the exporters who will wish to get the incentive have to collect certificates from their associations concerned about the accurate price and quantity of the exported products.
The advanced payment through the TT will have to settle through the banking channel between the exporters and the importers.
This type of settlement will not be allowed through the exchange house, the BB circular said.
The reference source of the import will have to be attached with the TT message.
The exporters usually open local back-to-back LCs to produce export products and they settle the import payment after getting the export earnings, the BB said.
From now on, such type of local back-to-back LCs will not be needed as the exporters will be able to get advanced payment through the TT from the foreign buyers, the circular said.
The AD branches will have to include names of the exporters, who will purchase the materials by the TT payment, with the local back-to-back LCs, it said.
A BB official said that the central bank had taken the decision following direction given by the finance ministry.
The ministry’s monitoring cell issued a circular on January 2 in this regard.
-With New Age input
