BTTC recommends 10pc cash incentive – The Financial Express

Credit: Original article can be found here

A government body has recommended providing 10 per cent cash incentive on the export of home and kitchen appliances (non-electric) with an eye to enhancing the export growth and competitiveness of the sector.

Bangladesh Trade and Tariff Commission (BTTC), which works under the commerce ministry, has put forward the recommendation to the ministry.

“We have received a set of suggestions from the BTTC about kitchenware. We will send the recommendations to the authorities concerned after reviewing,” a senior official said.

Currently, consumer electronics or electric home and kitchen appliances enjoy a 10 per cent cash incentive against export earnings.

According to the article 27.6 under The Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) of the World Trade Organization (WTO), “Export competitiveness in a product exists if a developing country Member’s exports of that product have reached a share of at least 3.25 per cent in world trade of that product for two consecutive calendar years.”

Bangladesh is not a competitive country for the export of different kitchenware (non-electric). Bangladesh’s position in world export trade of such goods was only 0.01 per cent, 0.02 per cent, 0.03 per cent and 0.03 per cent, respectively, in 2018, 2019, 2020 and 2021.

The light engineering sector has been given a priority sector in the current Export Policy-2021-24.

The country exported such products worth US$ 17.09 million in the fiscal year (FY) of 2021-22.

The export growth of the sector was 123 per cent, 46 per cent and 34 per cent in the FY 2019-20, 2020-21 and 2021-22 respectively.

Meanwhile, the kitchenware items are being exported to the UAE, Canada, Bhutan, Australia, Djibouti, Fiji, France, UK, USA, India, Sri Lanka, New Zealand, the Philippines, Thailand, Taiwan, etc.

The volume of average value addition of the non-electric kitchenware products is 33-34 per cent, according to BTTC.

The main raw material for producing the goods is aluminium. Besides, polypropylenes, stainless steel and glass are also used to produce the items. The raw materials are imported from different countries, including China, India and Singapore.

Local producers have to pay higher duties and taxes on the import of raw materials of the products.

The government imposes 31 per cent to 89 per cent total tax incidence on the import of the raw materials, said a BTTC source.

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