Bangladesh RMG exporters demand inclusion of FCR as proof of export
Image collected
Readymade garment exporters have requested the Bangladesh Bank to simply accept the ‘Forwarder Cargo Receipt’ as proof export for paying out cash incentives together with the Bill of Lading.
The RMG exporters at a gathering with the BB claimed that that they had didn't realise cash incentives against their exports as the central bank was no more accepting FCRs as proof export but major global brands now favored to issue FCRs, that they claimed were equal to BLs.
The leaders of the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Producers and Exporters Association held a gathering in this regard with BB deputy governor Ahmed Jamal at the central lender in the administrative centre on February 27.
As per the prevailing rules for receiving cash incentive, exporters need to submit the Costs of Lading issued by the purchasers as the proof export but many global buyers are actually issuing FCRs rather than BLs, the exporters said.
Although the rules explained that the BLs needed to be submitted as the proof export for acquiring cash incentive, the BB had accepted the FCRs to pay the incentive until just lately when it started out observing the rules more strictly, they said.
According to the exporters, many of the big international clients issued FCRs rather than BLs and even though the central bank was aware of the problem, it possessed tightened its monitoring because of objections placed by some audit companies.
‘It is an extremely simple subject. BL and FCR will be the ditto with different names and the exporters happen to be facing pointless hassles,’ Mohammad Hatem, 1st vice-president of BKMEA, said on Saturday.
He said that the exporters have been getting the funds incentives against the FCR until a good few months back when the BB stopped accepting the FCRs due to observations created by a handful of audit businesses as the FCR was not mentioned found in the BB rules.
‘We requested the Bangladesh Lender to include the FCR in the existing rules for receiving dollars incentives on RMG exports as the big global makes prefer to concern FCR,’ Hatem said.
According to the BKMEA vice-president, the Bangladesh Lender experienced agreed with the exporters about the problem and it had made a decision to send an email in this regard to the finance ministry.
‘If the BB gets a positive response from the finance ministry, it could issue a circular to include the FCR in its guidelines for spending cash incentive on exports,’ Hatem said.
He likewise said if the federal government did not are the FCR, disbursement of practically 1 third of the full total incentives will stay stuck.
Source: https://www.newagebd.net
Previous Story
- Quality, compliance factors raise Bangladesh exports to US:...
- No economy should count on one commodity
- Apparel exporters should learn frm Bangladesh, Vietnam to...
- Concerns grow over exports as coronavirus hits global...
- Bangladesh becomes major customer of Canadian crops
- Bangla Tariff Commission fears grave effect on China...
- Bangladesh-India export-import through Benapole remains halted
- Black cardamom investors ask government to facilitate exports