The customs authority has allowed fully export-oriented leather and footwear exporters to enjoy the bonded-warehouse facility for their multiple production units under a company, obtaining one bond licence.
Production units located in different areas, owned by a company or under single ownership, would be considered as parts of the main company that obtained a bonded-warehouse licence, customs officials said.
Those multiple units would be considered eligible for enjoying existing bond facility of the main company as its continuation or extension, they added.
In a circular, dated December 15, 2021, the Customs Wing of the National Board of Revenue (NBR) amended the existing continuation or extension bond order, issued on July 10, 2008.
Officials said the circular has been issued following demands of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and the Bangladesh Tannery Association (BTA).
Talking to the FE, Md Moshiur Rahman Mondal, second secretary of the customs export and bond wing, said the facility has been offered in a bid to facilitate export diversification of the country.
"Already, apparel exporters are enjoying the benefit and availing the bonded warehouse facility under one licence for multiple production units."
The NBR has offered the same facility for leather and footwear exporters too, he added.
Md Saiful Islam, the LFMEAB President and also the newly-elected President of the Metropolitan Chamber of Commerce and Industry (MCCI), hailed the NBR's circular to facilitate the country's export diversification.
"This initiative will help to fulfil the government's eighth five-year plan target to achieve 25 per cent of the export earnings from diversified products by 2025," he added.
Meanwhile, the customs authority also relaxed the existing condition for ready-made garment exporters to avail bonded warehouse facility in a bid to facilitate foreign investors.
The NBR found that a number of export-oriented industries were facing problems, as they could not export their products within the bonding period of 24 months.
To resolve the complexities, the customs wing issued another circular, dated December 16, 2021, allowing the exporters to avail an extended bonding period on case-to-case basis upon approval of the commissioner concerned.
Many of the exporters could not export products using the raw materials although their quality remained unchanged after expiry of bonding period.
"For the sake of (increasing) foreign currency and export earning, the customs can consider extension of bonding period under certain conditions," the circular said.
The conditions include: unchanged qualitative standard of products, capacity to export products using raw materials, updated audit and its renewal.
Export-oriented industries, enjoying bonded warehouse facilities, including those located in the EPZs, economic zones and high-tech park areas have to submit applications to the bond customs commissioner concerned or other commissioners to extend bonding tenure of their imported raw materials.
The NBR can consider case-to-case approval on recommendation of the commissioner following application of the export-oriented industries.
Talking to the FE, a senior customs official said some foreign investors faced problems to use raw materials to manufacture export products, as their bonding period expired although product quality was unchanged.
The Chittagong bond commissionarate sought guidelines of the NBR to resolve the complexities.
Bonding period varies from industry to industry, which is 24 months for special bonded warehouses and direct and deemed exporters. The commissioner concerned reserves the power to extend the bonding period for a maximum of six months.
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