NBR extends bond licence validity to 3 years

The National Board of Revenue (NBR) has extended the validity period of bond licences for exporters to three years from two years.

The NBR issued a statutory regulatory order (SRO) in this regard on 18 January, which was published on its website today (30 January).

To get the benefit of the three-year validity period of bond licences, businesses must have at least two years of audits and at least one year of exports during the period. 

Exporters believe that the extension of the facility will not bring any benefits to them due to the said conditions. 

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Business Standard, "Currently, we do not face any hassle for licence renewal as all members sent the papers to the association and the association send it to customs bond commissionerate accordingly." 

"We urged relief from the yearly audit, however, that issue was not addressed. So ultimately this order of time extension of licence renewal will not reduce our hassle," he added. 

Importers can avail the duty-free facility by importing goods and storing them in a designated warehouse, provided that they manufacture goods for export using raw materials brought in under the tax facility. This is known as the bonded warehouse facility or bond facility.

Some industries in the country, including the garment sector, are benefiting from this facility. However, there are complaints that in some cases, there are significant inconsistencies in the implementation of the regulations, and goods imported under the duty-free facility are being sold in the local market. This has led to concerns among local manufacturers who are competing with those who use the same locally made goods but without paying taxes.