FEPD Circular No. 01: Export subsidy against export of Polyester Staple Fiber (PSF)

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka-1000
Ref. No. FEPD/Circular/2019/01

To All Approved Dealer Banks

Dear Sir,

Regarding the provision of subsidy against the export of Polyester Staple Fiber (PSF) produced from PET bottle-flakes.

Reference is invited to FEPD Circular No. 22, dated 22 November 2009, and FEPD Circular No. 26, dated 10 September 2018, specifically Clause 15(b), concerning the payment of subsidy against the export of PET bottle-flakes/PET bottle-flakes from which Polyester Staple Fiber (PSF) is produced.

2. In accordance with the government's decision, the necessary amendments to the application form in FEPD Circular No. 22, dated 22 November 2009, for applying for subsidy against the export of Polyester Staple Fiber produced from PET bottle-flakes, have been added as Form 'C' attached herewith. Furthermore, in addition to the application for subsidy against the export of the aforementioned goods, a certificate from the 'Export Promotion Bureau' must be submitted in accordance with Form 'B' attached by the 'Bangladesh PET Flakes Manufacturers and Exporters Association'. However, the prescribed application form and the instructions of FEPD Circular No. 09, dated 17 May 2010, regarding the submission of the Association's certificate for subsidy against the export of PET bottle-flakes, shall remain in force as before.

3. The instructions regarding the application form and the certificate of verification shall come into effect for applications for subsidy submitted after the date of issuance of this circular, along with pending applications for subsidy at commercial banks or audit firms. In case of changes to the submitted application form, the conditions stated in the changed form must be complied with.

It is requested to inform all concerned parties regarding this matter.

Yours faithfully,

Attachment: As per description.

(Md. Harun-Or-Rashid)
Deputy General Manager
Phone: 9530625

19 Poush 1425
Date: --------------------
02 January 2019

(Note: See Clause 02 of FEPD Circular No. 01/2019)

Form 'C'
Application for Export Subsidy against the Export of Polyester Staple Fiber (PSF) Produced from PET Bottle-Flakes

(a) Name and Address of the Applicant Institution: ---------------------------------- Export Registration Certificate (ERC) Number: -----------------------------------------------

(b) Export Letter of Credit/Contract Number, Date and Value: ------------------------------------- (A legible certified copy must be submitted)

(c) Local sourcing, quantity and value of materials used in the production of exported goods:
Name and Address of Supplier | Quantity | Value | Payment Method 1 | 2 | 3 | 4

(The certificate of verification from the 'Export Promotion Bureau' regarding the description, value, and sourcing of the exported goods must be submitted. Necessary documents regarding the payment method must be submitted in support.)

(d) Details of Export Shipment:
Description of Goods | Quantity | Name of Importer's Country | Invoice Value (Foreign Currency) | Date of Shipment | EXPI Number | Refunded Export Value and Date of Refund (Foreign Currency) 1 | 2 | 3 | 4 | 5 | 6 | 7

[A complete set of legible certified copies of the Commercial Invoice, Packing List, and Bill of Lading/Air Waybill issued and verified by the transport authority as proof of shipment, Bill of Exporter (issued and examined by the Customs Authority and, if applicable, verified by the transport authority), etc., and the certificate of refund of export value must be submitted.]

(e) Amount of Subsidy Applied:
Refunded Export Value | Amount of Ship Hire (if applicable) | Commission, Insurance etc. payable in Foreign Currency (if any) | Net FOB Export Value (1-(2+3)) | Amount of Subsidy Payable (4 x 10%) 1 | 2 | 3 | 4 | 5

(A certified copy of the Freight Surcharge containing the mention of ship hire must be submitted, if applicable)

I hereby declare that an application for subsidy against the export of Polyester Staple Fiber (PSF) produced from PET bottle-flakes in our own factory has been made. All information/declarations provided in this application are complete and correct. If any false/false information/fraud/forgery is discovered later, the entire or part of the subsidy received shall be recovered from me/us and/or from my/our bank account.

Date: --------------------- ---------------------------------- Signature and Designation of the Owner/Authorized Officer of the Applicant Institution.

(f) To be filled by the Subsidy Granting Bank Branch:
Refunded Export Value | Amount of Ship Hire (if applicable) | Commission, Insurance etc. payable in Foreign Currency (if any) | Net FOB Export Value (1-(2+3)) | Amount of Subsidy Payable (Taka) (4 x 10% x 10% x 10%) 1 | 2 | 3 | 4 | 5

Amount of Subsidy --------------- Taka (In words: -----------------).
Date of Payment: --------------------

---

Signature, Name and Designation of the Authorized Bank Officer for Subsidy Approval (The ODI Site Purchase Price of the relevant Foreign Currency on the date of refund of export value)

(Note: See Clause 02 of FEPD Circular No. 01/2019)

Form 'B'
Certificate of Verification Issued by the Export Promotion Bureau Certificate of Verification for Receipt of Export Subsidy against the Export of Polyester Staple Fiber (PSF) Produced from PET Bottle-Flakes

1. Name, ERC Number and Address of the Applicant:
2. Export Letter of Credit/Contract Number: Date: Value:
3. Name and Address of the Foreign Buyer:
4. Name and Address of the Foreign Buyer's Bank:
5. (a) Invoice Number: Date:
   (b) Quantity and Value of Goods Stated in the Invoice:
6. Source of Local Materials Used in the Production of Exported Goods (Name and Address of Supplier):
   Quantity: Value:
7. Description of Exported Goods: Quantity: Value:
8. Date of Shipment: Destination Port:
9. EXPI Number: Value: Date:
10. Total Refunded Export Value (Foreign Currency): Net FOB Export Value (Foreign Currency):
11. Certificate Number of Refunded Export Value: Date:

Signature and Date of Exporter

Hereby it is verified that the information stated in the above paragraphs is correct and authentic for the purpose of applying for export subsidy against the export of Polyester Staple Fiber (PSF) produced from PET bottle-flakes in our own factory through the sourcing of materials mentioned in serial number 6 above. The authenticity/reliability of the purchase order of the foreign buyer/importer has also been ensured.

Signature and Date of Exporter

It has been found that the declared export value mentioned in serial number 7 is consistent with the actual and prevailing international market price, and the authenticity/reliability of the foreign buyer has also been ensured. It is recommended to pay the export subsidy on the refunded export value (Net FOB Value).

Signature, Date and Seal of Two Suitable Officers of the Export Promotion Bureau

[This certificate shall be considered void if any erasure, cutting, tearing, or alteration is made.]