Sub-contractors will also get export benefits for international work orders: Cenbank
The sub-contractor and the main contractor will, however, have to open a letter of credit (LC) between each other in foreign currency.
The goods and services any sub-contractor or agent provides to the main Bangladeshi contractor for an international work order will also be considered as exports, the Bangladesh Bank said in a circular issued today (22 April).
As a result, the sub-contractor will also be applicable for export benefits. The sub-contractor and the main contractor will, however, have to open a letter of credit (LC) between each other in foreign currency.
The Bangladesh Bank circular comes in response to a letter by the National Board of Revenue (NBR) which drew attention to this matter to the managing directors of all scheduled banks.
The NBR issued an explanatory letter on 13 November 2022 giving such benefits to all Bangladeshi contractors, but they did not send a copy of the letter to the central bank. Because of this, the central bank did not issue any circular at the time.
The NBR sent the letter to the central bank on 18 February.
Accordingly, the central bank has issued the circular and informed all the scheduled banks.