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Duty Drawback to Boast Export

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Submitted By ashik151085
Words 1820
Pages 8
Using duty drawback to boost exports
Published : Sunday, 14 July 2013

Ferdaus Ara Begum

Growth of the private sector is triggered by a host of stimulating factors. Starting from the demand for goods that fuels expansion of industry, policies and incentives created by regulators to influence entrepreneurial decisions to produce more of some goods and less of others - all are with the common objective of job creation, income growth and greater economic prosperity.

Bangladesh, being a small economy, must look to export markets for rapid industrial development, and the country is well known for its fast growth in export trade over the last two decades. About 1.3 million (since 1972) exporters comprising small, medium and large-scale entrepreneurs have been contributing directly and indirectly to the growth further. And one of the key incentives provided by the government to exporters is duty drawback. To enable exports to flourish, the government has put in motion private sector-friendly policies and a number of supportive inducements. Exporters, among others, are allowed bonded warehouse facilities, cash incentive, and duty exemption and duty drawback facilities to make them profitable and remain competitive in export markets.

Duty drawback refers to refund of duties and indirect taxes paid for inputs and utilities for exports. Import duties, VAT, supplementary duties and other duties paid on imported raw materials can be drawn back by firms under the duty drawback facility. The drawback facility is provided to exporters and deemed exporters of goods and services who import inputs or raw materials for the purpose of exportation only, after local value addition. But, only those who are not already enjoying bonded warehouse and cash incentive facilities are given this incentive. Firms may also get drawback on the fuel consumed at the stage of production.

The duty

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