Banks charging importers extra to release imported items: Business leaders 

Following the opening of letters of credit (LC), importers are being charged an additional amount of Tk12 per dollar while exchanging dollar to taka in the commercial banks of the country to get their imported items released, business leaders have alleged. 

They made the allegations during a meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in the capital's Motijheel on Sunday.

Chamber President Mahbubul Alam was present at the meeting.

After the meeting, Mehdi Ali, chairman of the FBCCI standing committee on export, told The Business Standard, "In case of the import of raw materials or machinery, even if LC is opened at Tk110 [dollar rate], when we go to release the goods from the ports, the commercial banks change the conversion rate and charges us Tk120-122 [per dollar]. Some banks even charge extra money while opening LC."

He added that due to the gap of more than Tk10 per dollar, traders are losing competitiveness in the export market and the prices of products are increasing in the local market as well.

At the meeting, business leaders also expressed fear that the export sector will face losses if the incentive facilities given to export-oriented industries, including readymade garments, are stopped.

Earlier last week, Bangladesh Bank cut the bulk of cash incentives for exports, which has already raised concerns among entrepreneurs in the export sector, especially in the garment industry.

Sources said leaders of the garment and textile sector met Finance Minister Abul Hassan Mahmood Ali on Sunday and expressed their concern over the issue.

On Sunday, during the first meeting of the FBCCI standing committee on ports and shipping, the speakers called for reducing the existing complexity of import-export of goods or raw materials.

They said due to the ongoing global crisis, business operating costs in the country have increased significantly. As a result, local entrepreneurs are lagging behind in the competition in the international market. In such a situation, it is important to reduce the complexity of import-export of goods or raw materials.

Tarafder Md Ruhul Amin, chairman of the FBCCI standing committee on ports and shipping, said, "The existing problems in the import-export of products and raw materials should be solved quickly."

At the meeting, FBCCI President Mahbubul Alam said the standing committee on exports can play an important role in dealing with the current dollar crisis.