JETRO for lifting TT remittance limitation for import trade

The Japan External Trade Organization has laid focus on lifting the limitation on Telegraphic Transfer (TT) remittance for import trade to attract more Japanese investment in Bangladesh.

The organisation observed that the limitation was hindering import for increasing trade and investment in the united states.

To the end, deputy secretary of the commerce ministry Mohammad Monir Hossain Hawlader said that the government was taking into consideration the issue positively and necessary steps had already been used the draft Import Policy for 2021-2024 to make the TT remittance process for importing easier.

Speaking with BSS, JETRO country representative Yuji Ando said that Bangladesh was among the major destinations for Japanese entrepreneurs plus they were investing in different fields, including ready-made garments (RMG), textiles, IT and infrastructure, by firmly taking advantage of competitive recruiting and the huge domestic market available in the country.

‘The number of Japanese companies operating in Bangladesh has increased around four times in a decade. A total of 321 Japanese organizations are currently running their businesses in the united states which was 83 this year 2010,’ he mentioned.

He informed that lots of Japanese entrepreneurs were expanding their businesses in various fields, including electric and consumer products, of the country.

He said that although the flow of Japanese investment was now slow because of the ongoing Covid-19 outbreak, he hoped that investment would upsurge in a major way as the Bangladesh government was implementing different projects, like the Japan Economic Zone at Araihazar upazila in Narayanganj.

He said that lots of Japanese infrastructure development companies were coming to Bangladesh to just work at japan Official Development Assistance (ODA) projects, including Matarbari Deep Sea Port.

Japanese entrepreneurs are also showing their interest to invest in the country’s manufacturing, fast-moving consumer goods (FMCG), infrastructure development and tech and digital based startup companies, he added.

He said that japan organizations were also investing in different projects beneath the Public Private Partnership (PPP) method.

However, Yuji Ando mentioned that many challenges still existed for Japanese and other foreign companies in Bangladesh, citing examples of infrastructure and taxation.

For attracting more Japanese investors, japan trade diplomat said that Bangladesh would have to remove the bottlenecks of investment and improve its position in the simple doing business index.

He urged the authorities concerned to improve the forex regulations for ensuring smooth foreign remittance by branch office and foreign loans for working capital from parent’s company.

He laid emphasis on lifting the limitation for royalties or technical assistance remittance and for Telegraphic Transfer (TT) remittance for import trade.

He urged the federal government to make sure smooth services in tax and VAT systems and also to make the registration process easy.

He said that TT remittance for import trade was the international standard and the procedure can play a essential role to improve investment in the united states.

He informed that the government was now allowing $2,00,000 yearly to be imported through using TT remittance.

He mentioned that import through letter of credit (LC) is going for a huge time while import through TT remittance was time saving and easier.

Ando mentioned that Japan have been significantly adding to Bangladesh’s socio-economic development since its independence with the trading relationship getting more powerful and productive daily.

To attract more Japanese investment, it is very important that Bangladesh prioritizes issues such as for example corporate governance and a far more investment friendly environment, he opined.