Container use made easier for EPZ factories
The National Board of Revenue has managed to get easier for businesses in the country's export processing zones to use import-export containers, a move that will likely expedite the procedure and reduce the costs for exporters.
Until recently, factories inside EPZs had to come back empty containers to the shipping agent's depot immediately after unloading the imported goods at their premises.
And even if that they had goods ready for export, they would need to recall empty containers for loading their goods.
As the practice wastes time and increases costs, the NBR issued a standard operating procedure (SOP) for the round use of containers by companies in the EPZs to streamline the procedure.
Firms located in the eight EPZs in Bangladesh collectively registered practically one-fifth of the country's exports of $33,670 million in the fiscal year 2018-19.
According to the SOP, these businesses can now return the containers with export-oriented products after unloading their imported goods.
"This is an excellent initiative as it increases our flexibility," said Syed M Tanvir, managing director of Pacific Jeans, a leading garment exporter operating in the Chattogram EPZ.
However, factories is only going to have the ability to reap the benefit if indeed they receive shipment orders from exporters that utilize the same shipping line and freight forwarders delivering the imported goods.
"If we get the same shipping line and freight forwarders, definitely it'll benefit us," Tanvir added.
The move followed a gathering between Japanese companies and senior officials of varied specialists on November 26 last year.
The meeting participants included the senior officials of the japan embassy in Dhaka, the Economic Relations Division, the Bangladesh Investment Development Authority, the Bangladesh Export Processing Zones Authority and Bangladesh Bank, in line with the meeting minutes.
At the meeting, Japanese investors raised the problem of bringing utility to container use.
JAPAN delegation urged the NBR to allow the round usage of containers. Later, the NBR formed a panel for issuing the latest notification.
"I am excited since this move will reduce time, cost and hassle," said Ahsanul Huq Chowdhury, chairman of the Bangladesh Shipping Agents Association.
However, the success of the initiative would rely upon how exporters and importers reap the huge benefits, he added.
The initiative comes at the same time when the federal government has implemented various measures, including policy reforms, to lure foreign investors, particularly those from Japan.
In the SOP issued on November 5, the NBR attached certain conditions for businesses inside the EPZs looking to avail this benefit. The conditions include taking orders from shipping agents or freight forwarders.
EPZ-based factories are also necessary to secure approval from customs for every single consignment.
Until fiscal 2019-20, the cumulative investment by factories in the EPZs was $5,290 million-plus they collectively created 46,600 jobs, according to data from the Bangladesh Export Processing Zones Authority.
