In a meeting on October 19, the National Board of Revenue discussed the extension of the license period.
The National Board of Revenue (NBR) is going to extend the bond license period of exporters by one year to three years instead of the existing two years.
According to the minutes, the Board of Revenue discussed the license extension in a meeting on October 19.
The officials of the customs department feel that this step will help some business for the entrepreneurs.
According to sources, to get the benefit of the bond license period of three years, there should be at least two years of audit during the said period and at least one year of exports during that period.
However, the NBR has not yet approved the demand to audit the institutions covered by the bond facility after two years instead of every year.
Therefore, traders feel that if the decision is taken to extend the bond facility with this condition, it will not bring any benefit to the exporters.
Mohammad Hatim, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told The Business Standard, “Our demand was to audit every two years instead of every year because it causes harassment and extra cost. But instead of doing that, only Bond Extending the license period will not reduce the harassment.”
Besides, he thinks that the condition of exporting during the three-year license period is also unreasonable.
He said, “If for some reason someone fails to export, then what will happen? Will the license be cancelled? If that happens, then if someone wants to export in the fourth year, then they will have to get a license again. That means– again ‘expenses’.” Subject.”
“These are all money-grabbing schemes,” he said.
However, according to NBR sources, extension of lien renewal period may increase the number of non-compliant institutions and there is risk of revenue risk.
Exporters get the opportunity to import goods under duty-free facility and store them in designated warehouses for export. The condition is that the product should be manufactured and exported using the raw materials brought under tax benefits. This is known as bonded warehouse facility or bond facility.
Some industrial sectors including country-made garments are getting this benefit. However, there are complaints that there are major irregularities in this regard due to the lack of supervision and raw materials or finished products brought in duty-free facilities are being sold in the local market, as a result of which the local industrialists are facing unequal competition.