Export policy support extended till 30 Jun
The decision was made as the pandemic situation has not improved in export destinations
The policy support aimed at recovering export earnings and facilitating import payments will be effective for another three months, until 30 June.
The benefit, first extended last year to cope with the Covid-19 impacts, was set to expire on 31 March. But the authorities decided to extend it as the pandemic situation has not improved in export destinations.
Exporters think the move, announced by the Foreign Exchange Policy Department of the Bangladesh Bank in a circular on Sunday, will make it easier to tackle the pandemic effects.
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An exporter is obliged to bring in the export income within 120 days after export. But the facility was extended to 210 days last year due to Covid-19. The authorities also decided to keep the facility effective till 31 March this year.
For imports, there is an obligation to pay within 180 days. But if the supplier agrees, payments can be made within 360 days. The validity of this facility given last year has also been extended till 30 June.
For importing export-related products using the Export Development Fund, the loan facility was extended from three months to six months. This facility will continue till 30 June as well.
Mohammad Hatem, vice-president of Bangladesh Knitwear Manufacturers and Exporters Association, said the export sector would benefit from the extension of all these facilities.
He told The Business Standard many buyers are unable to pay on time because of Covid-19. "We also face problems when paying import costs."
Hatem said extending the facilities would make international transactions much easier and exporters would not face additional hassles.
He hopes the Covid-19 situation would improve in Europe and the US by June.
"If the situation does not improve, the benefits may need to be extended again considering the reality."
