- NBR exempted bonded exporters from paying VAT on locally sourced goods and services for export production, treating such sourcing as deemed exports
- The policy aims to reduce production costs by 15% and remove procedural hurdles for ready-made garment exporters to boost global competitiveness
- Industry expects the move to increase local sourcing from 25% to 50% and encourage new entrepreneurs to enter the accessories business
- BGMEA has 1,852 member factories with 342 being non-bonded, and the RMG sector earns about $42 billion annually
- The circular requires goods to be supplied against local back-to-back LCs and exporters must have bonded or specially bonded warehouses
Source: en.bd-pratidin.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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