FEPD Circular No. 29: Export subsidy against export of locally produced paper & paper-products

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. FEPD Circular No. 29 Date: ---------------------- November 24, 2016

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

Context of providing subsidy against export of locally produced paper and paper products.

Attention is drawn to all concerned regarding the subject matter mentioned above, that the government has decided to provide subsidy against the export of locally produced paper and paper 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 following guidelines are outlined below for approved dealer banks to follow regarding the payment of subsidy:

2. Recipient of Subsidy and Amount Entitled: In the case of export of paper and paper products produced in own factories, the manufacturer-exporter will be entitled to a subsidy at the rate of 10% on the net FOB value. However, it is to be noted that no duty drawback facility will be availed for any process of producing paper and paper products. Furthermore, this facility will not be applicable to establishments located in EPZ areas that have received customs bond facilities against the export of paper and paper products.

3. Deadline for Submission of Application for Export Subsidy: (a) The aforementioned subsidy will be paid according to the DUS Rules against the expenses incurred for handling, inspection, processing of exported goods, and domestic and international transportation and freight charges. (b) Exporters may submit application forms in Form-K at the approved dealer bank branch for export subsidy against returned export proceeds under export letters of credit/contracts or documents prepared for subsequent exports under documentary collections. For exports under export letters of credit/contracts with advance payment of export price through TT, the approved dealer bank branch must ensure the authenticity/reliability of the foreign buyer, correctness of price, and genuine export from Bangladesh based on the TT advice and other documents. Advance payment of price through TT must be made directly through banking channels (excluding exchange houses) by the exporter or importer, and the TT advice must mention information related to the import. In all cases, the application for subsidy must be submitted to the respective approved dealer bank branch within 180 days from the date of assessment of export price (repatriation of export price) in the respective bank's Nostro account abroad. (c) Documents required for export, such as Bill of Lading/Air Waybill as proof of shipment, Commercial Invoice, Packing List, Bill of Exporter issued by Customs authorities (along with the 2nd page of the Bill of Exporter), etc., must be submitted.

Page - 2

(d) The approved dealer bank will initially verify that the documents, certificates, and proofs mentioned in various sections of the export subsidy application form are complete and attached with the application. A certificate must be submitted along with the subsidy application according to the attached table (Form-K) from the Bangladesh Paper Mills Association. 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 found during initial verification, the approved dealer bank branch will inform the applicant institution in writing within 03 (three) working days of receiving the application.
(e) To ensure consistency between the production capacity of the applicant institution and the export mentioned in the application, additional explanations/documents may be required from the applicant, and information/certificates collected from the bank branch's own records or other bank branches regarding export and repatriation of export price may be attached. After the application form is complete and fully received, the approved dealer will determine the amount payable. This process will be completed by following the instructions in the designated section of the application form sequentially.
(f) Each application must be audited by an appointed external audit firm to ensure the correctness of the amount payable according to the subsidy application. After conducting the audit, the claim for the amount payable for export subsidy must be sent to the Accounts and Budgeting Department of the Head Office of Bangladesh Bank via Form-G through the Head Office of the approved dealer bank. The statement of amounts paid in favor of the applicant institution in respect of subsidies released from Bangladesh Bank must be submitted to the Foreign Exchange Policy Department of the Head Office of Bangladesh Bank via Form-D through the Head Office of the bank within the second week of the following month.
(g) In each case, along with the approval of subsidy payment, a seal indicating the amount of subsidy paid and the signature of the authorized officer must be placed on the export price repatriation certificate (according to Guidelines for Foreign Exchange Transaction-2009, Volume-1, Appendix-5/23), Bill of Lading/Air Waybill as proof of shipment, Commercial Invoice, Packing List, and Bill of Exporter certified by Customs authorities, at a place easily visible, so that there is no scope for misuse of those documents. The approved dealer bank branch must take special care not to issue PRS (Payment Release Slip) multiple times for the same export for the same facility. Additionally, the approved dealer bank must ensure that the export price of the respective exporter has not remained unrepatriated according to the instructions of FEPD Circular-31, dated December 27, 2001, by checking the Bangladesh Bank Online Exporter Monitoring System.
(h) All documents related to the determination of subsidy payment must be preserved at the branch for at least 03 (three) years from the date of payment for examination by the Bangladesh Bank's inspection/government commercial audit department.
(i) If any ambiguity arises regarding export or information is needed, the respective bank and audit firm will consult the Export Promotion Bureau, TSCB Building, 1 Kawran Bazar, Dhaka.

04. Punitive Measures for Illegal Payment of Subsidy: (a) If subsidy is paid illegally, the paid amount will be recovered by adjusting the account of the paying bank kept with Bangladesh Bank. (b) Appropriate punitive measures will be taken against the bank officials/staff involved in the committed violation. (c) If any official of the Exporters Association is involved in the committed violation or assists in the violation by providing false information, appropriate punitive measures will be taken against the Exporters Association/official.

5. Process of Payment of Amount for Subsidy: The amount will be provided in favor of the respective bank against the submitted application for subsidy from the fund released against the government budget allocation.

All concerned are requested to be informed about this matter.

Yours faithfully,

Attachment: As per description.

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

---

(See Section 03(b) of FEPD Circular No. 29/2016) Form - 'K' Application for Subsidy against Export of Paper and Paper Products

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

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

(c) Source, Quantity and Value of Local Procurement of Goods Used in Producing Exported Goods:

Name and Address of Supplier	Quantity	Value
1	2	3

(Certificate from Bangladesh Paper Mills Association regarding description, value, and source of exported goods must be submitted.)

(d) Imported Materials Used in Producing Exported Goods:

Name and Address of Supplier	Name and Quantity of Goods	LC/Back-to-Back LC/Documentary Collection Number, Date	Value
1	2	3	4

(Must submit a legible certified copy of the LC in column 3. Declaration of the exporter must be submitted 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.)

(e) 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 Price and Date of Repatriation (in Foreign Currency)
1	2	3	4	5	6	7

(Must submit legible certified copies of Commercial Invoice, Packing List, Bill of Lading/Air Waybill as proof of shipment, Bill of Exporter issued by Customs authorities (along with the 2nd page of the Bill of Exporter), etc., and export price repatriation certificate.)

(f) Amount Applied for Subsidy:

Repatriated Export Price	Amount of Ship Hire (if applicable)	Commission, Insurance etc. Payable in Foreign Currency (if any)	Net FOB Export Price	1-(2+3)	Entitled Subsidy	10/100
1	2	3	4	5	6	7

(Must submit a legible certified copy of the freight surcharge containing the mention of ship hire, if applicable.)

I hereby declare that I have applied for subsidy against the export of paper and paper products produced 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 of subsidy taken or part thereof will be recovered from me/us and/or from my/our bank account.

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

(g) To be filled by the Subsidy Granting Bank Branch:

Repatriated Export Price (in Foreign Currency)	Total Deduction for Commission, Insurance and Ship Hire in Foreign Currency (if applicable)	Net FOB Export Price (1-2)	Amount of Payable Subsidy (in Taka): 10/100 of 3	Amount of Subsidy --------------- Taka (in words: -----------------)	Date of Payment: -------------------- Signature, Name and Designation of Authorized Bank Officer for Subsidy Approval (On the date of export price repatriation, the ODI site purchase price of the respective foreign currency)
1	2	3	4	5	6

---

(See Section 04(a) of FEPD Circular No. 29/2016) Form - 'K' Certificate of Certification Issued by Bangladesh Paper Mills Association Certificate of Certification for Receiving Export Subsidy against Export of Paper and Paper Products

1. Name, ERC Number and Address of Applicant:
2. Export Letter of 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 Local Materials for Producing Exported Paper and Paper Products (Name and Address of Supplier): Quantity: Value:
7. Source of Imported Materials for Producing Exported Paper and Paper Products (Name and Address of Supplier): Quantity: Value:
8. Description of Exported Goods: Quantity: Value:
9. Date of Shipment: Destination Port:
10. EXPI Number: Value: 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 certify that the information mentioned in the above sections is correct and reliable, and we have procured materials from the sources mentioned in serial numbers 6 and 7 above for the export of paper and paper products produced in our own factory. The authenticity/reliability of the purchase order of the foreign buyer/importer has also been ensured.

Signature and Date of Exporter

It is verified that the above declaration of the exporter is correct. The declared export price mentioned in serial number 8 is found to be 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 export subsidy on the repatriated export price (net FOB price).

Signature, Date and Seal of Two Appropriate Officials of Bangladesh Paper Mills Association

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

---

(See Section 04(c) of FEPD Circular No. 29/2016) Form - 'G' Claim Proposal for Amount Payable for Export Subsidy in the Export of Paper and Paper Products according to FEPD Circular No. 29/2016

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

Name and Address of Subsidy Applicant Institution	Date of Application Receipt by Branch	Amount Applied For	Amount of Claim Payable	Description of Goods	Date of Shipment and Destination	EXPI Number	Total Repatriated Export Price (Foreign Currency)	Net FOB Value (Foreign Currency)	Date of Value Repatriation
1	2	3	4	5	6	7	8	9	10

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

---

(See Section 04(c) of FEPD Circular No. 29/2016) Form - 'D' Statement of Account for Amount Paid for Export Subsidy in the Export of Paper and Paper Products according to FEPD Circular No. 29/2016 for the Month of......... of the Year.........

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

Name and Address of Subsidy Applicant Institution	Description of Export Related Information	Paid Subsidy (Taka)	Date of Payment	Pending Applications Received at Branch	Description of Goods	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	11
--------	-----------------------------

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