FEPD Circular No. 12: Cash subsidy against export of Jute products

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Chaitra 24, 1422 FEP Circular No. 12 Date: ------------------ April 07, 2016

To, All Approved Dealers for Foreign Exchange Transactions.

Dear Sirs,

Regarding Cash Subsidy against Export of Jute Products Produced in Government and Private Jute Mills.

Reference is invited to FEP Circular No. 11 dated November 16, 1998, issued on the subject cited above, and to all subsequent FEP Circulars/Letters issued regarding Cash Subsidy against Export of Jute Products.

2. In accordance with the instructions of Clause 14(k) of FEP Circular No. 08 dated July 13, 2015, a cash subsidy at the rate of 10% shall be provided against the export of diversified jute products (containing at least 75% jute). It is clarified that the 10% cash subsidy for the export of other diversified jute products, excluding Hessian, Sacking, SBC, and Jute Yarn, shall be applicable subject to the following percentages:

(a) The rate of jute value used in the export earnings (Net FOB) must be more than 75%. (b) The application for cash subsidy against the export of diversified jute products must be submitted in accordance with Form-K. (c) The use of jute exceeding 75% value in diversified jute products must be supported by a certificate of verification from the Bangladesh Jute Mills Association (BJMA) / Bangladesh Jute Spinners Association (BJSA) (Annexure-B). However, in the case of receiving cash subsidy against advance repatriation of export value through TT, there is no need to resubmit the certificate of verification from BJMA/BJSA in accordance with FEP Circular No. 12 dated July 17, 2011. (d) Approved dealer branches must submit the necessary documents along with the pending application for decision, in light of the current instructions for cash subsidy against the export of diversified jute products. Additionally, applications for cash subsidy against the export of diversified jute products that were not submitted to the bank branch within the specified time can be submitted within 30 days of the issuance of this circular.

3. The applicable instructions of all relevant FEP Circulars/Letters regarding the payment of subsidy against the export of jute products shall remain unchanged.

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

Yours faithfully,

Enclosures: As per text.

(Md. Zakir Hossain Chowdhury) Deputy General Manager Phone: 9530250

(See Clause 02(b) of FEP Circular No. 12/2016) Annexure - K Application for Cash Subsidy against Export of Diversified Jute Products by Government and Private Jute Mills.

(a) Name and Address of the Applicant Jute Mill: ----------------------------------------------- Export Registration Certificate Number: --------------------------------------------------------

(b) Export Letter of Credit/Contract Number, Date and Value --------------------------------------------- (Must submit a legible certified copy)

(c) Source, Quantity and Value of Jute Used in Producing Exported Products: Name and Address of Supplier Quantity Value 1 2 3 (Must submit a certificate from BJMA/BJSA regarding the description of exported products, value, materials used in production, and source.)

(d) Details of Export Shipment: Description of Product Quantity Name and Address of Importer Invoice Value (in Foreign Currency) Date of Shipment EXIM Number Export Value Repatriated (in Foreign Currency) and Date of Repatriation 1 2 3 4 5 6 7 (Must submit legible certified copies of Commercial Invoice, Packing List, Bill of Lading/Air Way Bill, etc., and Export Value Repatriation Certificate.)

(e) Amount of Cash Subsidy Applied:

1. Repatriated Export Value
2. Amount of Ship Hire (if applicable)
3. Commission, Insurance, etc. payable in Foreign Currency (if any)
4. Net FOB Export Value (1-(2+3))
5. Cash Subsidy * 4 * --- / 100 1 2 3 4 5 (Must submit a certified copy of the Freight Surcharge containing the mention of ship hire, if applicable.)

• Applicable rate of cash subsidy

Hereby, it is declared that an application is made for cash subsidy against the export of diversified jute products produced by using more than 75% jute value in our own jute mill. All information/declarations provided in this application are complete and correct. If any error/false information/fraud/forgery is discovered subsequently, the entire amount or part thereof of the subsidy received shall be recovered from me/us and/or from our bank account.

Date: --------------------- ---------------------------------- Owner/Authorized Signatory of the Jute Mill

(f) To be filled by the Subsidy Paying Bank Branch: Description of Export Product Total Repatriated Export Value Amount of Ship Hire (if applicable) Commission, Insurance, etc. payable in Foreign Currency (if any) Net FOB Export Value (2-(3+4)) Value of Jute Used in Producing Export Product (Column 3 of Clause c) Percentage of Jute Value Used in Export Earnings (6/5)*100 Amount of Cash Subsidy Payable (in Taka): * 5 * --- (On the date of export value repatriation, 100 of the relevant Foreign Currency ODI Buy Rate) 1 2 3 4 5 6 9 10

• Applicable rate of cash subsidy

Amount of Fixed Cash Assistance --------------- Taka (In words: ---------------------------------). Date of Payment: --------------------

Authorized Bank Officer's Signature, Name and Designation for Approval of Fixed Cash Assistance

Annexure - X Certificate of Verification Issued by Bangladesh Jute Mills Association / Bangladesh Jute Spinners Association Certificate of Verification for Receiving Cash Subsidy against Export of Diversified Jute Products Produced in Jute Mills.

1. Name and Address of Applicant Jute Mill:
2. Number of Export Letter of Credit/Contract: Date: Value:
3. Name and Address of Foreign Buyer:
4. Name and Address of Foreign Buyer's Bank:
5. (a) Invoice Number: Date: (b) Quantity of Products Mentioned in Invoice: Value:
6. (a) Quantity of Jute Used in Export Product: Value: (b) Source (Name and Address of Supplier): (c) Percentage of Jute Value Used in Export Earnings (Net FOB):
7. Description of Export Product: Quantity: Value:
8. Date of Shipment: Destination Port:
9. EXIM Number: Value: Date:
10. Total Repatriated Export Value (in Foreign Currency): Net FOB Export Value (in Foreign Currency):
11. Certificate Number of Repatriated Export Value: Date:

Signature and Date of Exporter

Hereby, it is verified that the details mentioned in the above clauses are correct and reliable for the application for cash subsidy against the export of diversified jute products produced by using more than 75% jute value in our own jute mill. The authenticity/reliability of the purchase order of the foreign buyer/importer has also been ensured.

Signature and Date of Exporter

It has been verified that the above declarations of the exporter are correct; diversified jute products produced by using more than 75% jute value have been exported as declared. The declared export value has been found reasonable and consistent with existing international market prices, and the authenticity/reliability of the foreign buyer has been ensured. It is recommended to pay cash subsidy on the repatriated export value (Net FOB Value).

Suitable Two Officers' Signatures, Date and Seal of Bangladesh Jute Mills Association / Bangladesh Jute Spinners Association

[This certificate shall be considered void if any rubbing, cutting, or correction is made.]