Haque Specialized Group's News

All export-oriented industries can release their products sent back by the buyers and re-export those without paying duty-taxes on certain conditions. The exporters have to follow six-point dos issued by the National Board of Revenue (NBR), including re-export of the returned products within six months of their release. Exporters who do not enjoy bonded-warehouse facility have to pay duty and taxes on temporary admission of returned products. With the issuance of the recent order, dated March 16, by customs (export and bond) division, all of the exporters will be able to release the returned products and re-export those without needing to pay duties and taxes. However, they have to give unconditional and sustained bank guarantee, equivalent to customs duty (except Advance Income Tax), prior to the release of the products.   Exporters have to complete the re-export of returned products within six months of their release. In case of failure in re-export within the given timeframe customs authority will encash the submitted bank guarantee for collecting due duty-taxes and take punitive action as per law. For re-export, the returned products should go through intensive and 100 per cent physical examination under direct supervision of at least an assistant commissioner-level officer to verify volume, weight and description of the product consignments. Exporters have to submit no-objection certificate obtained from the office of the chief controller of import and export, Bangladesh Bank (BB), copies of export order having validity of shipment or new (attested by the lien bank) to the customs authority at the time of re-export and release of products. Customs officials said 100 per cent export-oriented industries are enjoying bonded-warehouse facility and they can release-re-export products smoothly. There are a number of entrepreneurs who both export their products and sell on the local market. They do not enjoy bonded- warehouse facility. When their products are sent back buyers, they have to pay customs duty as per law at the time of release of the products. Officials said the customs law has the provision to check duty-evasion through sale of the returned products on the local market. But, the volume of rebounded products, especially in readymade garment sector, has been increasing gradually, causing concern among local general exporters over what they call tricky customs law. doulot_akter@yahoo.com....

Published at: 2017-03-28 00:00:05

Local apparel makers and labour leaders in their separate meetings with the visiting delegation of European Parliament (EP) urged its members to take steps for continuing Bangladesh's GSP benefit in the EU markets, meeting sources said. They made the appeal to the delegation in the wake of the European Commission's warning of temporary withdrawal of Bangladesh's generalized system of preferences (GSP) facilities over 'serious labour rights violation' in the country's ready-made garment (RMG) sector. The four-member team of Members of European Parliament (MEPs) comprised Arne Lietz, S & D Co-rapporteur on Garment Report, Linda McAvan, EP Chair of Development Committee, Nobert Neuser, S & D Development Coordinator, and Agnes Jongerius, S & D INTA. During the first day of the delegation's three-day visit, the members held meetings with International Labour Organization (ILO) officials, labour activists, and leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the capital. The delegation, however, stressed on same standards of law in factories in the Export Processing Zones (EPZs) and outside the zones along with amending Bangladesh Labour Act to ensure freedom of association and collective bargaining. In the meetings both the labour leaders and factory owners said they would work together with EU to improve the standards of labour rights in the country. The meetings also discussed issued like restructuring the minimum wages board for RMG workers, removing inequalities between public and private sectors regarding maternity leave, and withdrawal of cases filed against the workers of Ashulia factories who demanded wage hike. "We welcomed the delegation for monitoring labour rights situation in Bangladesh. We urged them to continue Bangladesh's GSP and also ensure transparency in RMG supply chain," Nazma Akter, president of Bangladesh Combined Garment Workers Federation, told the FE after their meeting. The factory owners, however, opposed the proposal for withdrawal of 30 per cent workers' representation for trade union registration. They said they would not agree with the proposal, even if their units get shut, one of the BGMEA leaders told the FE. "There is an urgent need of sustaining the business, not only for us, but for the sake of the country and the 4.4 million workers employed in the sector," BGMEA President Siddiqur Rahman said at a press briefing, held in the city after their meeting. Terming the delegation a 'fact-finding mission', Mr Arne Lietz at the briefing said, "We have to ensure the same standards, otherwise its does not make sense to build up standards on one side. It is all about the citizens, who should have the same rights. They should have equal rights in all fields - in trade union, education and gender equality." munni_fe@yahoo.com....

Published at: 2017-03-28 00:00:05

Tanners and trade union leaders have expressed concern over 'motivated and baseless' campaign against Bangladesh's emerging leather industry by a section of international media. They felt that such unsubstantiated campaign would cause great damage to the image of the country's $1.0 billion export sector. The industry insiders, referring to a recent international wire service report on the Bangladesh leather industry, said the 'baseless' report has been circulated at a time when major players in the sector have already relocated their units to a well-planned and state-of-the-art industrial estate in the suburb of capital Dhaka from the polluted Hazaribagh area. Small ones are taking time to shift the production facilities due to their limited capacity.  But the small tanneries have also started the process, they added, contesting the content of the report in question. The news agency recently released the report on the basis of its interaction with a US-based non-profit organisation.   While talking to the FE, Bangladesh's leather industry people termed the report 'baseless and motivated' and said the report has been prepared to tarnish the image of the country's flourishing leather and footwear industry. The report has not been prepared taking into consideration some major changes that have already been brought about by the government as well as the industry stakeholders to make the sector up to the mark, industry insiders and labour leaders said.    "Major factories have already been relocated to Savar tannery estate, others will shift in next few months. So, Hazaribagh has already lost its relevance," Bangladesh Tanners Association (BTA) president Md. Shaheen Ahmed told the FE Monday. "Moreover, there is not a single child worker in Hazaribagh now", he said emphatically. He further said many of the country's footwear and leather factories are well-compliant as they are running business in accordance with the country's relevant laws, rules and regulations. "It's a government announced thrust sector having huge potentials," he added.    The BTA president said the sector has been growing at a decent pace in the recent years. The ill-motivated report will hit the growth. The export earnings of leather and leather goods crossed US$ 1.0 billion for the third consecutive year in fiscal 2015-16, according to data from the Export Promotion Bureau. In 2015-16, Bangladesh exported leather and leather goods worth US$ 1.16 billion while it was US$ 1.13 billion in 2014-15 and US$ 1.12 billion in 2013-14. The sector makes second highest contribution to national exports, following readymade garments. "I do not think Hazaribagh tanneries employ any child labour. I have never found a child labour in the factories there," secretary general of Bangladesh Institute of Labour Studies (BILS) Dr Wajedul Islam Khan said. He, however, admitted that the Hazaribagh area and the Buriganga River became polluted due to effluent produced by the tannery factories. "The government and environmentalists have long been pursuing the relocation of tanneries. Now the process is almost complete … larger factories have already relocated, and others are doing so," Mr Khan said.   Echoing Mr Khan's opinion, general secretary of the Tannery Workers' Union Abdul Maleque said there was no child labour in Hazaribagh. He said some of the factories are well-organised and up to the mark. They can be compared with the best factories even in the developed countries.   In 2014, famous Forbes magazine had published an exclusive report on Apex -- one of the country's leading footwear manufacturers. It narrated the Apex factory like this: "The complex includes, among much else, an effluent treatment plant, a purification plant for drinking water, a medical clinic and a day nursery. Workers, I'm told, get an average monthly wage of $100, which is higher than the $75 mean in the garments sector. In addition, they are covered for medical and life insurance, and get bonuses twice a year plus a share of profits." Contacted, Abdul Qayum, a former project director of Savar tannery estate, said some 70 tanneries have already relocated to Savar Tannery Estate. "The relocated factories include the larger ones having substantial export earnings," he said, adding that the smaller ones will shift their units within next month. bdsmile@gmail.com....

Published at: 2017-03-28 00:00:04

Police arrested two alleged drug pedlars along with 65 litres of liquor from Nidanpur in Beanibazar upazila of Sylhet district on Monday. Tipped off, police conducted a drive in the evening and arrested Nazrul Islam, 18, and Ainul Islam, 18, residents of Borolekha upazila, with the liquor, said Chandan Kumar Chakrabarty, officer-in-charge of Beanibazar Police Station. They also seized a CNG-run auto-rickshaw carrying them. A case has been filed, according to UNB.....

Published at: 2017-03-28 00:00:04

High-value cheque transactions with Bangladesh's banking system have increased significantly, driven by big turnovers of corporate bodies, sources said. Such banking bonanza, from economic point of view, reflects a growing momentum in the economy. The number of such hefty cheque transactions, valued Tk 0.5 million and above, marked nearly a twofold increase in five years to 1.9 million in the last fiscal year. It was over 1.0 million in fiscal year 2012. The amount of money also soared significantly to Tk 10.83 trillion in 2016 fiscal, from Tk 4.64 trillion in 2012 fiscal, according to latest official statistics available with the central bank of the country. People at the corporate bodies told the FE that the sales of their goods and services had grown much along with payments to the suppliers. Bangladesh's aggregate consumption constitutes over 80 per cent.   They said there are many private organisations in the country which deal with more than US$1.0 billion worth of turnover a year by selling their goods. Such commodity players are Chittagong-based Abul Khair Group, Square Group and City Group. Top executives at the commercial banks see it as an outcome of increased economic activities led by private sector. Apparently such big deals by the biggies bear risks of fraud and other unethical practices, but the banking tops said there is now less danger as the electronic transactions are safer. The high-value withdrawals are cleared in a day--and that's why these are called high-value cheques. A cheque for less than Tk 0.5 million is termed regular cheque in banking parlance, which takes an additional one day to complete process. Anis A. Khan, managing director and CEO at the privately owned Mutual Trust Bank, told the FE: "It is a reflection of increased economic activities in the economy." Bangladesh's economy has been expanding at over 6.0 per cent in recent years. The country's service and industry sectors contribute to the economy around 85 per cent. The banker observed that sales volumes of many commodity players are so high that usually hike such type of high transactions. Mr Khan, also chairman of the Association of Bankers, Bangladesh, a group of CEOs and high-ups working at the private banks, said many people now purchase furniture and other household utilities that many times exceed the Tk 0.5-million threshold. Nurul Amin, managing director and CEO at Meghna Bank, another private commercial bank, said such big transactions help raise the velocity of money, which refers to how fast money passes from one holder to the next. He said the main feature of a high-value cheque is that it can be cleared in a day and parties in whose favour it is cleared get money within baking hours. "Many prefer high-value cheque for this quick service." He mentioned that for checking black money or undisclosed money the Bangladesh Bank has specific guidelines on the matter. Also, cash receipts of high-value transactions beyond Tk 1.0-million thresholds need to be reported to the Bangladesh Bank, thus maintaining a transparency in transactions. Under the guidelines, he further noted, cash receipts, purchase of shares, mutual funds, immovable property, and term deposits on Tk 1.0 million and above ought to be reported to the central bank. On the other hand, people at the corporate houses said their transactions have surged manifold for different reasons, including payment for utilities and suppliers, as well as salaries to the employees. Golam Mostafa, chairman at Deshbandhu Group, told the FE that they pay more than Tk 10 million for gas consumption, let alone the electricity bills. "Our business deals are now much higher than before," Mr Mostafa said. He said dealers belonging to his group deposit money from different parts of the country and most of them cross the threshold marked for high-value cheques. However, now the country is in full operation of automated cheque-processing systems (BACPS) that makes transaction quick and easy. Its 'Live Operation' started on 7th October 2010 in the Dhaka Clearing House area. BACPS uses cheque-imaging and truncation (CIT) technology for electronic presentment and payment of paper instruments. However, in fiscal year (FY) 2015, the number of high-value cheques stood at 1.7 million, 1.4 in FY 14, 1.3 in FY 13 and 1.08 in FY 2012. jasimharoon@yahoo.com....

Published at: 2017-03-28 00:00:04