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Bangladesh reduces REX fee for RMG export to EU

Nov '20
Pic: Shutterstock
Pic: Shutterstock
Bangladesh’s Export Promotion Bureau recently reduced the service charge for the Registered Exporters System (REX) of the European Union (EU) as readymade garment exporters termed the fee illogical. The rate for verification of documents under the REX was reduced to Tk 250 from Tk 375 against each consignment of goods to be exported to the EU.

As per instructions from the EU, the government introduced a registered exporter system for the country’s exporters for shipment of goods to the European Union in July 2019 by giving registration numbers to 10 exporters.

Under the system, Bangladeshi exporters would self-certify the country of origin to avail the Generalised System of Preference facility on the EU market.

Before introducing the REX system, the commerce ministry set a service charge of Tk 375 against each consignment of export goods. The country’s apparel makers termed the charge illogical and no exporters paid the charges.

In the face of opposition from the exporters, EPB in its 140th board meeting reduced the charge and asked the exporters to pay a total of Tk 250 that included 10 per cent income tax or Tk 20 and 15 per cent value-added tax or Tk 30 on the service charge.

The government agency, in a November 16 circular, said the 140th board meeting of EPB had re-fixed the REX service charge at Tk 200 for each export consignment.

The Bangladesh Garment Manufacturers and Exporters Association on Wednesday asked all its member factories to comply with the new charge. The Bangladesh Knitwear Manufacturers and Exporters Association, however, still remains opposed to the charge and terms it illogical.

Fibre2Fashion News Desk (DS)

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