New export policy looks to boost trade with neighbours

The export policy for 2015-18 has put thrust on trade with Nepal, Bhutan and the seven sister states of India under the sub-regional cooperation.

The commerce ministry has already finalised the draft of the policy and it will soon be sent for the prime minister's approval.

“We have emphasised the increase in trade with India, Nepal and Bhutan in our new policy,” said Hedayetullah Al Mamoon, senior secretary of the commerce ministry.

The policy is just the beginning of a gainful relationship with the three neighbouring countries, he said, adding that connectivity for transportation of goods has already been created.

The commerce ministry updates the export policy every three years and the tenure of the current one ended in June.

The new policy will come into effect in October but until then the old one will prevail.

In the draft policy, information technology, medicine, light engineering goods, shipbuilding industry have been identified as emerging sectors.

Subsequently, it called for tax, loan and infrastructure facilities, like gas and electricity connection on a priority basis, for the sectors.

For the first time, tourism, architecture, engineering and consultancy services will be brought under the export policy and various privileges will be extended for the providers. 

In the proposed policy, a provision has been made for exporters to ship goods worth up to $70,000 per shipment without opening a letter of credit account. In the existing policy, the ceiling is $60,000.

In case of pharmaceuticals, 10 percent of the LC value or a maximum of $15,000 can be exported without opening an account.

In the proposed export policy, the value of samples to be sent has been increased. Except medicines, exportable items worth $10,000 can be sent as samples instead of the existing $7,000.

In case of garments, samples worth $15,000 can be sent. The exporters can send gifts worth $2,000, up from the current $1,000.

The proposed policy has recommended tax and loan facilities for the shrimp and fish export sectors. In case of shrimp exports, steps will be taken to give the exporters loan as working capital from banks at 9 percent interest.

Besides, initiative would be taken to rehabilitate the sick but running shrimp and fish processing firms. The farms would have their duty and VAT withdrawn such that they can increase their productions. Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said the new export policy must concentrate on higher export growth as the country has a higher target.

The government should strengthen the commercial wings abroad for higher export growth.

The association also demanded stronger diplomacy for more exports to new destinations, reduction in tariffs and higher unit prices.

“Exports are much more related with customs -- we want easier customs procedures for higher export.”