Bangladesh Bank (BB) has allowed subsidy against telegraphic transfer (TT) of the export value of light engineering products.
Export documents are prepared for subsidy after export of product according to the letter of credit (LC), document at the next stage of exporting goods or products. The subsidy will also apply to the receiving of export value through TT.The central bank foreign exchange policy department on Tuesday sent instructions in this regard to the Concerned Authorized Dealer (AD) banks.
In case of export against LC conditional on repatriation of advance export value through TT, Concerned Authorized Dealer (AD) bank’s foreign exchange branches can pay the subsidy after conforming the reliability of foreign buyers, the accuracy of price the products, and other related documents.
The instruction asked to be sure of the authenticity and source of buyers’ order and definite business relation for advance payment through TT.
The instruction will be effective from March 10 this year for subsidy associated with exports in the light engineering sector.
There are currently around 40,000 small scale light engineering enterprises in the country, producing 10,000 types of items. The government provides cash incentive facilities to exporters of value-added light engineering products.