FEPD Circular No. 14: Cash incentive against export of Plastic products

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka.
Ref. No. FEPD Circular No. 14 Date: ------------------- Chaitra 28, 1422 April 11, 2016

To All Approved Dealers of Foreign Exchange Transactions.
Dear Sirs,

Regarding the provision of export incentives against the export of plastic products.

With reference to the subject matter, it is brought to the attention of all concerned that the Government has decided to provide incentives against the export of plastic products to encourage the country's export trade. This facility will be applicable for goods shipped from the date of issuance of this circular. The instructions to be followed by authorized dealer banks regarding the payment of incentives are described in the following paragraphs:

2. Recipient of Incentive and Extent of Entitlement: In the case of exporting plastic products produced in own factories, the manufacturer-exporter shall be entitled to an incentive at the rate of 10% on the Net FOB Value. However, it is stated that no Duty Drawback facility for the production of plastic products can be availed. Furthermore, this facility will not be applicable for establishments that have received Customs Bond facilities against the export of plastic products and for institutions located in EPZ areas.

3. Deadline for Submission of Export Incentive Application:
   (a) The aforementioned incentive shall be payable according to the DTDO rules against the expenses incurred for handling, quality improvement, processing of exported goods, and domestic and international transportation and freight charges. (b) Exporters may submit application forms in Form-C to the authorized dealer bank branch for export incentives against export proceeds repatriated through documents prepared after the export under export credit letters/contracts or through documentary collection. For exports where advance export prices are repatriated via TT (Telegraphic Transfer) under export credit letters/contracts, the authorized dealer bank branch must ensure the authenticity/reliability of the foreign buyer, correctness of the price, and the fact of actual export from Bangladesh based on the TT advice and other documents. Payment of advance prices via TT must be made directly through banking channels (excluding exchange houses) by the exporter issuing the export order or the importer, and the import-related information must be mentioned in the TT advice. In all cases, the incentive application must be submitted to the respective authorized dealer bank branch within 180 days from the date of assessment of export value (repatriation of export proceeds). (c) Necessary documents for export such as Bill of Lading/Air Waybill as proof of shipment, Commercial Invoice, Packing List, Bill of Exporter issued by the Customs Authority (Form EX-1 along with page 2) etc. must be submitted.

4. Receipt, Examination, and Settlement of Payment of Applications by Authorized Dealer Bank Branches:
   (a) The authorized dealer bank must ensure in the initial examination that all documents, certificates, and attestations mentioned in various paragraphs of the export incentive application form are attached in complete and full form. A certificate must be submitted along with the incentive application form according to the table (Form-B) attached from the Bangladesh Plastic Products Manufacturers and Exporters Association. The respective bank branch must also ensure the authenticity of documents processed by the bank branch and the accuracy of the information mentioned therein. If any error/incompleteness is observed during the initial examination, the authorized dealer bank branch must inform the applying institution in writing within 03 (three) working days of receiving the application.

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(b) To ensure consistency between the production capacity of the applying institution and the exports mentioned in the application form, additional explanations/documents may be required from the applicant. After obtaining the application form in complete and full form by adding relevant documents collected from the bank branch's own records or other bank branches regarding exports and repatriation of export proceeds, the authorized dealer will determine the amount payable. This process will be completed by following the instructions provided in the section reserved for use by the authorized dealer bank branch in the relevant application form sequentially. (c) Each application must be audited by an external audit firm appointed to ensure the correctness of the amount payable according to the incentive application. After completing the audit program, the claim for the amount payable as export incentive must be forwarded to the Accounts and Budgeting Division of the Head Office of Bangladesh Bank in Form-D through the Head Office of the authorized dealer bank. Based on the cash assistance released by Bangladesh Bank, the statement of amounts paid in favor of the applying institution must be submitted to the Foreign Exchange Inspection Division of the Head Office of Bangladesh Bank through the Head Office of the bank in Form-E within the second week of the following month. (d) In every case, simultaneously with the approval of incentive payment, the seal of the paid incentive amount and the signature of the authorized official approving the payment must be affixed on the Repatriation Certificate of Export Proceeds (according to Appendix-5/23), Bill of Lading/Air Waybill as proof of shipment, Commercial Invoice, Packing List, and Bill of Exporter certified by the Customs Authority, in a place easily visible, so that there is no scope for misuse of these documents. The authorized dealer bank branch must take special care that the same facility is not issued multiple times under the same export for the same benefit. Additionally, the authorized dealer bank must ensure that the export proceeds of the respective exporter have not remained unrepatriated according to the instructions of FE Circular-31 dated December 27, 2001, by checking the Bangladesh Bank Online Exporter Monitoring System. (e) All documents related to the settlement of incentive payment must be preserved at the branch for at least 03 (three) years from the date of payment for inspection by the inspectors of Bangladesh Bank or the Government Commercial Audit Division. (f) In case of any ambiguity regarding exports or need for information collection, the respective bank and audit firm shall seek advice from the Export Promotion Bureau, TCB Building, 1 Kawran Bazar.

5. Punitive Measures for Irregular Payment of Incentives:
   (a) If incentives are paid irregularly, the paid amount will be recovered by closing the account of the paying bank maintained with Bangladesh Bank.
   (b) Appropriate punitive measures will be taken against bank officials/staff involved in the irregularity committed.
   (c) If any official of the Exporters Association is associated with the irregularity committed or cooperates in the irregularity by providing false information, appropriate punitive measures can be taken against the Exporters Association/official.

6. Process of Payment of Amount for Incentives: The amount will be provided to the respective bank against applications submitted for incentives from funds released against government budget allocation.

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

Yours faithfully,

Enclosure: As per description.

(Md. Zakir Hossain Chowdhury)
Deputy Managing Director
Phone: 9530250

(Form-'C')
(See Paragraph 03(b) of FE Circular No. 14/2016) Application for Incentives Against Export of Plastic Products

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

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

(c) Source, Quantity and Price of Local Procurement of Goods Used in Producing Exported Products:
Supplier's Name and Address Quantity Price
1 2 3
(Certificate from Bangladesh Plastic Products Manufacturers and Exporters Association regarding description, price and source of exported products must be submitted.)

(d) Imported Materials Used in Producing Exported Products:
Supplier's Name and Address Name and Quantity of Product LC/Back-to-Back LC/ Documentary Collection Number, Date Price 1 2 3 4 (A legible certified copy of the LC in column 3 must be submitted. A declaration by the exporter stating that Customs Bond facility was not enjoyed for materials used in the production process/Duty Drawback facility was not availed and will not be applied for in the future must be submitted.)

(e) Details of Export Shipment:
Description of Product Quantity Name of Importer's Country Invoice Price (in Foreign Currency) Date of Shipment EXPI Number Total Repatriated Export Price and Date of Repatriation (in Foreign Currency) 1 2 3 4 5 6 7 (Legible certified copies of Commercial Invoice, Packing List, Bill of Lading/Air Waybill as proof of shipment, Bill of Exporter issued by Customs Authority (Form EX-1 along with page 2) etc., and Repatriation Certificate of Export Proceeds must be submitted)

(f) Amount Applied for Incentive:
Amount of Ship Freight (if applicable) Commission, Insurance etc. Payable in Foreign Currency (if any) Net FOB Export Price 1-(2+3) Payable Incentive 10 ------- 100 1 2 3 4 5 (Certified copy of Freight Certificate mentioning ship freight, if applicable, must be submitted)

Hereby it is declared that an application is made for incentives against the export of plastic products produced in our own factory. All information/declarations given in this application form are complete and correct. If any wrong/false information/fraud/forgery is discovered later, the entire amount of incentives taken or part thereof can be recovered from me/us and/or from my/our bank account.

Date: --------------------- ---------------------------------- Signature and Designation of Owner/Authorized Official of Applying Institution.

(g) To be filled by the Incentive Providing Bank Branch:
Repatriated Export Price (in Foreign Currency) Total Deduction for Commission, Insurance and Ship Freight Payable in Foreign Currency (if applicable) Net FOB Export Price 1-2 Amount of Payable Incentive (in Taka):
10 -------
100
1 2 3 4
Incentive Amount --------------- Taka (In words: -----------------).
Date of Payment: --------------------

---

Signature, Name and Designation of Bank Official Authorized to Approve Incentive (Rate of OD Site Purchase of Relevant Foreign Currency on the Date of Repatriation of Export Proceeds)

(Form - 'B')
(See Paragraph 04(a), FE Circular No. 14/2016) Certificate of Attestation Issued by Bangladesh Plastic Products Manufacturers and Exporters Association

Certificate of Attestation for Receiving Export Incentives Against Export of Plastic Products

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

Signature and Date of Exporter

Hereby it is certified that the statements mentioned in the above paragraphs are correct and true for receiving export incentives against the export of plastic products produced in our own factory by collecting materials from the sources mentioned in serial numbers 6 and 7 above. It is also ensured regarding the authenticity/reliability of the purchase order of the foreign buyer/importer.

Signature and Date of Exporter

Upon verification, it is found that the declaration mentioned in serial number 8 above is correct. The declared export price mentioned in serial number 8 is found reasonable and consistent with existing international market prices, and the authenticity/reliability of the foreign buyer has been ensured. Recommendation is made for payment of export incentives on the repatriated export price (Net FOB Value).

Signatures, Date and Seal of Two Suitable Officials of Bangladesh Plastic Products Manufacturers and Exporters Association

[If any rubbing, cutting, tearing or correction is made, this certificate will be considered void.]

(Form-'G')
(See Paragraph 4(g), FE Circular No.-14/2016)
According to FE Circular No. 14/2016
Claim Proposal for Amount Payable as Export Incentive in the Export of Plastic Products

.............................................. Bank, Head Office, Dhaka.

Name and Address of Incentive Applying Institution | Information Regarding Export | Date of Receipt of Application by Branch | Amount Applied For | Claim Amount Payable | Description of Product | Date of Shipment and Destination | EXPI Number | Total Repatriated Export Price (Foreign Currency) | Net FOB Value (Foreign Currency) | Date of Price Repatriation 1 | 2 | 3 | 4 | 5 | 6 | 6 | 7 | 8 | 9

Official Seal Signature, Date, Name and Designation of Authorized Bank Official

(Form-'E')
(See Paragraph 04(g), FE Circular No. 14/2016) According to FE Circular No. 14/2016
Statement of Paid Account for Amount Payable as Export Incentive in the Export of Plastic Products for the Month..........of Year.........

Name of Authorized Dealer Bank Branch:............................................................................

Name and Address of Incentive Applying Institution | Information Regarding Export | Paid Incentive (Taka) | Date of Payment | Unsettled Applications Received at Branch | Description of Product | Date of Shipment and Destination | EXPI Number | Total Repatriated Export Price (Foreign Currency) | Net FOB Value (Foreign Currency) | Number | Claimed Amount (Taka) 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 -------- -----------------------------

Official Seal Signature, Name, Designation and Date of Authorized Official