FEPD Circular No. 26: Cash Incentive Against Export of Carbon Produced from Jute Stalk

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ashwin 06, 1423 FEPD Circular No. 26 Date: --------------------- September 21, 2016 To All Approved Dealers of Foreign Exchange Transactions.

Dear Sir,

Regarding the provision of export incentive against the export of Carbon produced from Jute Stalk.

The attention of all concerned is invited to the subject cited above. It is informed that the Government has decided to provide an incentive against the export of Carbon produced from Jute Stalk within the country to encourage the country's export trade. This facility will be applicable for goods shipped from July 1, 2016. The following instructions are given below regarding the payment of incentives by the Approved Dealer Banks:

2. Recipient Party and Amount of Incentive: In the case of exporting Carbon produced in own factories from locally collected jute stalk produced in Bangladesh, the manufacturer-exporter will be entitled to an incentive at the rate of 20% on the Net FOB value.

3. Deadline for Submission of Export Incentive Application: (a) The said incentive will be paid according to the DUS (Documentary Usage System) rules against the expenses incurred for handling, inspection, processing of exported goods, and domestic and international transportation and freight charges. (b) Exporters can submit application forms in Form-C at the Approved Dealer Bank branch against the repatriation of export proceeds prepared after the export under the Export Credit/Contract or through Documentary Collection. In the case of exports against Export Credit/Contract with the condition of advance repatriation of export price through TT, the Approved Dealer Bank branch must ensure the authenticity/reliability of the foreign buyer, correctness of price, and actual export from Bangladesh based on the TT cancellation statement and other documents regarding advance price repatriation through TT. Advance price payment through TT must be made directly through banking channels (excluding Exchange Houses) by the Export Order Issuer or Importer, and the TT cancellation statement must mention information related to the import. In all cases, the incentive application must be submitted to the respective Approved Dealer Bank branch within 180 days from the date of assessment of the export price (repatriation of export price) in the respective bank's Nostro account abroad. (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 Customs Authorities (including the 2nd page of the Bill of Exporter) etc. must be submitted.

4. Receipt, Examination, and Payment Decision of Application by Approved Dealer Bank Branch: (a) The Approved Dealer Bank will ensure in the initial examination that all documents, certificates, and vouchers mentioned in various sections of the Export Incentive Application Form are attached with the application in complete and full form. A certificate according to the attached schedule (Form-B) from the Export Promotion Bureau must be submitted with the incentive application. The respective bank branch will also ensure the authenticity of the documents processed by the bank branch and the accuracy of the information mentioned therein. If any discrepancy/incompleteness is observed in the initial examination, the Approved Dealer Bank branch will inform the applying institution in writing within 03 (three) working days of receiving the application.

-2- (b) To ensure consistency between the production capacity of the applying institution and the export mentioned in the application, the Approved Dealer will determine the payable amount after the application form is completed and fully received by attaching additional explanations/information from the exporter and information/certificates collected from the bank branch's own records and other bank branches where applicable. This process must be completed by following the instructions in the section designated for use by the Approved Dealer Bank branch in the respective application form sequentially. (c) Each application must be inspected by an appointed external audit firm regarding the correctness of the amount to be paid according to the incentive application. After conducting the inspection program, the claim for payment of the export incentive amount must be sent to the Accounts and Budgeting Department of the Head Office of Bangladesh Bank through the Head Office of the Approved Dealer Bank in Form-D. The statement of amount paid in favor of the applying institution in respect of the incentive released by Bangladesh Bank must be submitted to the Foreign Exchange Inspection Department 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) Along with the approval of incentive payment in each case, the Export Proceeds Repatriation Certificate (according to Appendix-5/23 of Guidelines for Foreign Exchange Transaction-2009, Volume-1), Bill of Lading/Air Waybill as proof of shipment, Commercial Invoice, Packing List, and the Bill of Exporter certified by Customs Authorities must be stamped with the amount of incentive paid at an easily visible location and signed by the authorized officer who approved the payment, so that there is no scope for misuse of those documents. The Approved Dealer Bank branch must take special care not to issue PRF (Payment Request Form) multiple times for the same export for the same facility. Additionally, the Approved Dealer Bank must ensure that the export proceeds of the respective exporter have not remained unrepatriated according to the instructions of FEPD Circular-31, dated December 27, 2001, from the Bangladesh Bank Online Exporter Monitoring System. (e) All documents related to the decision of incentive payment must be preserved at the branch for at least 03 (three) years from the date of payment for inspection by the Bangladesh Bank Inspection/Government Commercial Audit Department. (f) If any ambiguity arises regarding export or information is needed, the respective bank and Audit Firm will consult the Export Promotion Bureau, TSC Building, 1 Karwan Bazar.

5. Penal Measures for Unauthorized Payment of Incentive: (a) If incentive is paid illegally, the paid amount will be recovered by deducting it from the account of the paying bank kept with Bangladesh Bank. (b) Appropriate penal measures may be taken against the bank officials/employees involved in the violation of rules.

6. Process of Payment of Amount for Incentive: The amount will be provided in favor of the respective bank against the submitted application for incentive from the fund released against the Government Budget allocation.

All concerned parties are requested to be informed about the matter.

Yours faithfully,

Attachment: As per description.

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

(See Paragraph 03(b) of FEPD Circular No. 26/2016) Form-'C' Application for Incentive Against Export of Carbon Produced from Jute Stalk

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

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

(c) Source, Quantity and Value of Materials Used in Producing Exported Goods: Name and Address of Supplier Quantity Value 1 2 3 (A certificate from the Export Promotion Bureau regarding the description, value, and source of the exported goods must be submitted.)

(d) Details of Export Shipment: Description of Goods Quantity Name of Importer's Country Invoice Value (In Foreign Currency) Date of Shipment EXPI Number Repatriated Export Value and Date of Repatriation in Foreign Currency 1 2 3 4 5 6 7 (Certified legible copies of Commercial Invoice, Packing List, Bill of Lading/Air Waybill as proof of shipment, Bill of Exporter issued by Customs Authorities (including the 2nd page of the Bill of Exporter) etc. and Export Proceeds Repatriation Certificate must be submitted)

(e) Amount Applied for Incentive: Repatriated Export Value Amount of Ship Hire (if applicable) Commission, Insurance etc. payable in Foreign Currency (if any) Net FOB Export Value 1-(2+3) Receivable Incentive 20% of 4 ------- 100 1 2 3 4 5 (Certified copy of Freight Surcharge mentioning ship hire, if applicable, must be submitted)

I hereby declare that an application for incentive is made against the export of Carbon produced from locally collected jute stalk in our own factory. All information/declarations provided in this application are complete and correct. If any error/false information/fraud/forgery is discovered later, the entire amount or part thereof of the incentive received will be recovered from me/us and/or from my/our bank account.

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

(f) To be filled by the Incentive Providing Bank Branch: Repatriated Export Value (In Foreign Currency) Total Deduction for Commission, Insurance and Ship Hire in Foreign Currency (if applicable) 1-2 Net FOB Export Value Amount of Incentive Payable (in Taka) 20% of 3 ------- 100 1 2 3 4 Amount of Incentive --------------- Taka (In Words: -----------------). Date of Payment: --------------------

Signature, Name and Designation of the Bank Officer Authorized to Approve Incentive (At the date of repatriation of export price Respective Foreign Currency ODI Site Purchase Price)

(See Paragraph 04(a) of FEPD Circular No. 26/2016) Form - 'B' Certificate of Approval Issued by Export Promotion Bureau Certificate of Approval for Receiving Export Incentive Against Export of Carbon Produced from Jute Stalk

1. Name, ERC Number and Address of Applicant:
2. Export Credit/Contract Number: 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 Goods Mentioned in Invoice: Value:
6. Source of Collection of Jute Stalk Used in Producing 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 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 declared that the information mentioned in the above paragraphs is correct and reliable for the purpose of receiving export incentive against the export of Carbon produced from locally collected jute stalk in our own factory through the source 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 verified that the above declaration of the exporter is correct. The declared export value mentioned in serial number 7 has been found reasonable and consistent with the current domestic market price, and the authenticity/reliability of the foreign buyer has also been ensured. It is recommended to pay the export incentive on the repatriated export value (Net FOB value).

Signature, Date and Seal of Two Suitable Officials of the Export Promotion Bureau [If any rubbing, cutting or correction is made, this certificate will be considered void.]

(See Paragraph 4(g), FEPD Circular No.-26/2016) Form-'D' According to FEPD Circular No. 26/2016 Claim Proposal for Payment of Export Incentive in the Sector of Export of Carbon Produced from Jute Stalk

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

Name and Address of the Incentive Applying Institution Export Related Information Date of Receipt of Application by Branch Amount of Application Amount of Claim Payable Description of Goods Date of Shipment and Destination EXPI Number Total Repatriated Export Value (In Foreign Currency) Net FOB Value (In Foreign Currency) Date of Value Repatriation 1 2 3 4 5 6 6 7 8 9 Official Seal Signature, Date, Name and Designation of Authorized Bank Officer

(See Paragraph 04(g), FEPD Circular No. 26/2016) Form-'E' According to FEPD Circular No. 26/2016 Statement of Paid Amount for Export Incentive in the Sector of Export of Carbon Produced from Jute Stalk for the Month of......... of the Year.........

Name of Approved Dealer Bank Branch:.........................................................................

Name and Address of the Incentive Applying Institution Export Related Information Paid Cash Assistance (Taka) Date of Payment Pending Applications at Branch Description of Goods Date of Shipment and Destination EXPI Number Total Repatriated Export Value (In Foreign Currency) Net FOB Value (In 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 Officer