‘Panel to break incentive stalemate of non-bonded RMG exporters’

A high-powered committee will be formed by Sunday to resolve the issues of paying cash incentive to the non-bonded garment exporters, Commerce Minister Tipu Munshi said today.

The minister shared the information with The Daily Star after a meeting with the leaders of Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association and officials of the National Board of Revenue at the minister's secretariat office in Dhaka.

Salman F Rahman, adviser to the prime minister on private industries and investment, was also present at the meeting.

"We all agreed to form the committee and to resolve the stalemate through discussion," Munshi said.

The move came as the National Board of Revenue early this week had requested the Bangladesh Bank to order banks to refrain from opening back-to-back letters of credit for factories that do not have bonded warehouse licences.

The NBR's call has stoked concerns of increased working capital cost among 500 export-oriented factories.

Still, NBR officials say the agency is open to granting the licence to factories so that they enjoy the benefit while buying raw materials for exports from both domestic and international markets.