In a span of four years, the government has set a target of $80 billion for export earnings
The government has prioritized exports once again, with the new Export Policy for 2021-24, which identified 14 sectors to boost foreign-currency receipts.
The Commerce Ministry issued a gazette notification in this regard on Sunday.
The policy contains in its core navigating upcoming post-graduation challenges, the fourth industrial revolution, research and development activities and coping with the Covid-induced blow to exporting sectors.
In a span of four years, the government has set a target of $80 billion for export earnings.
The priority sectors having untapped export potential include apparel having the highest value addition, denim, man-made fibre, garment accessories, pharmaceuticals, plastic products, shoes (both leather and synthetic), jute and agro-products, light engineering, shipbuilding and ocean- going trawler building, furniture, home textiles and home decor, luggage, active pharmaceutical ingredients and reagent.
Exporters would be able to deposit a certain amount of their export earnings into their foreign-currency account under a retention quota. Bangladesh Bank would determine the amount from time to time, said the policy statement.
As per the new export policy, exporters can borrow up to 90% of the amount stated in the irrevocable letter of credit or confirmed contract.
The commercial banks would deal with the issue with due priority as per instructions of the Bangladesh Bank, it also said.
For new industries, value addition should be at least 30% for getting export incentives.
The National Board of Revenue (NBR) would consider offering a bonded-warehouse facility to the partial exporting sector on a fast-track basis under the Customs Act 1969.
For research and development activity, the government can offer policy support allowing a certain part as expenditure of annual turnover of the exporting company.
Leather-sector exporters would get financial support from the export-readiness fund.
The export policy emphasizes building the capacity of the trade regime of Bangladesh through establishing connectivity and partnership with other countries.
The cabinet in January last approved the new export policy, which has made some time-bound action plans and implementation strategies for export diversification, fund support and simplification.
