A delegate of Bangladesh Indenting Agents’ Association (BIAA) under the leadership of Adv. Rafiqul Islam Masum, President met hon’ble Commerce Minister Mr. Tipu Munshi, MP on February 05, 2019 at 12 noon in the Secretariat of the Commerce Ministry. At the outset, BIAA President expressed his gratitude to the Commerce Ministry for the time demanding decision of awarding Export Registration Certificate (ERC) to the indentors, the members of BIAA.
Mr. Masum informed the meeting that although Indentors are now exporters, the Registration and Renewal Fees for ERC (Indenting Services) are unlike other exporting sectors of the country. He requested the Ministry to kindly look into the issue and take required changes in the upcoming Import Policy Order 2018-2021.
The BIAA leaders informed the Minister with concern that still VAT on Indenting Commission is being deducted @ 15% which is also contradictory since no VAT is supposed to be applicable for exporting sectors. Due to VAT issue, indenting business can’t flourish in the country at a significant rate as it was expected after achieving Export Registration Certificate issued by CCI&E under the Ministry of Commerce.
The BIAA delegates also said that most of the Proforma Invoice issuers don’t require any Trade License, TIN, VAT Registration, Bank Account etc on the other hand indentors have to comply with existing rules and laws in force. Due to allowing Proforma Invoice, low quality machineries and raw materials are imported which in turn, impede the economic growth of the country and at the same time government is losing huge foreign currency.
BIAA President informed the Minister that recently at the 11th Meeting of the Private Sector Development Policy Co-ordination Meeting held at Prime Minister’s Office, the issue of Proforma Invoice came at the Agenda-5, whereas several recommendations were made by BUILD and BIAA for making the PI issuers accountable and being compliant with. He handed over the resolution of the meeting for kind consideration and necessary action of the Ministry.
Hon’ble Minister opined that due to PI issuers, indenting business has been facing challenges for not ensuring level playing field that encourages uneven competition. He concurred with the demands of BIAA and assured his cooperation in the aforesaid issues.
BIAA Sr. Vice President Md. Nuruzzaman, Vice President A K M Azad, Directors of the Board Md. Abdullah Al Mahmood, Mohammad Amirul Islam, Bahalul Mansur, Md. Rashed Khan and BIAA advisor Md. Azharul Islam, Secretary in Charge, Md. Ashiquzzaman and Senior Assistant Secretary Asoke Kumar Biswas were present in the meeting.