All export-oriented sectors to get bond facility like RMG

The government has proposed a number of policy relaxation measures, including the extension of customs bond facilities to all export-oriented industries, as part of a move to diversify the country’s exports beyond the ready-made garment (RMG) sector.

Finance Minister Amir Khosru Mahmud Chowdhury made the proposals in the national budget for the fiscal year 2026-27 (FY27), placed in Parliament on Thursday.

In his budget speech, the finance minister said the RMG sector is now recognised as one of the key pillars of Bangladesh’s exports and the overall economy, accounting for nearly 82% of the country’s export earnings.

Recalling the journey to this achievement, Amir Khosru said the late President Ziaur Rahman first introduced customs bond facilities and the back-to-back letter of credit (L/C) system for duty-free import of raw materials in the RMG sector.

The finance minister said the government has now undertaken initiatives to reduce excessive dependence on a single sector.

As part of the diversification initiative, the government proposed extending the validity of general bonds from one year to three years for 100% export-oriented leather goods and footwear manufacturers, as well as towel, linen and home textile producers.

The budget also proposed waiving the requirement for annual bond audits for 100 per cent export-oriented compliant garment factories to facilitate ease of doing business.

Additionally, the diversification move includes removing the existing limit on one-time raw material stocks in bonded warehouses, as well as reducing the 48-hour timeframe to 24 hours for obtaining Utilisation Permission (UP) prior to shipment by bonded enterprises.

Amir Khosru said the initiatives would promote Bangladeshi handicrafts, home décor items, jute products, natural cosmetics, toys and baby products in international markets.

He said export-oriented companies such as food processing, light engineering, furniture, electronics, steel products, plastic goods and leather products would now be able to import raw materials and intermediate goods against bank guarantees and under duty-free customs bonded arrangements.

The minister also noted that opportunities would be provided for all promising export-oriented sectors – including agricultural products, light engineering, pharmaceuticals, electronics, gold and diamonds – to import goods under customs bonded facilities or against bank guarantees on a duty-free basis.

Speaking to Daily Sun, Engr M Abu Taher, former chairman of the Bangladesh Tanners Association (BTA) and the Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association (BFLLFEA), appreciated the government’s proposal to extend customs bond facilities to all export-oriented industries.

“Thanks to the move, our exports will increase significantly, including leather goods,” he said.

However, he called for the establishment of a central bonded warehouse, given the large volume of imported chemicals. “To reduce production costs and increase global competitiveness, a central bonded warehouse will play a crucial role,” he said.

Appreciating the extension of general bonds to three years, Abu Taher, who is also chairman of Fortuna Group of Industries, said the annual renewal of general bonds was a difficult and complex process. The extension would benefit businessmen, he added.

According to the Export Promotion Bureau (EPB), the country’s overall export earnings stood at $48.28 billion in FY25. Of this, the RMG sector contributed $39.35 billion, accounting for 81.49 per cent of total exports in the period.