Bond Facility Expansion Planned to Boost Bangladesh’s Export Sectors

Finance and Planning Adviser Amir Khasru Mahmud Chowdhury has said that the initiatives introduced by late President Ziaur Rahman played a pivotal role in the development of Bangladesh’s export-oriented industries.

Presenting the proposed national budget for FY2026-27 in Parliament on Thursday, the adviser noted that Ziaur Rahman was the first to introduce the customs bonded warehouse system and back-to-back Letter of Credit (LC) facilities for the ready-made garment (RMG) sector, enabling duty-free import of raw materials.

He said that while the bonded warehouse system significantly contributed to the growth of the garment industry, many other promising export-oriented sectors were unable to fully benefit from the facility due to various limitations.

To address this issue, the government has proposed revisions to existing bond regulations, allowing all export-oriented industries to import raw materials and export finished products under bonded facilities.

As part of efforts to improve the ease of doing business, the government has also proposed removing the requirement for annual bond audits for 100 percent export-oriented garment factories.

Additionally, the validity period of general bonds for fully export-oriented leather goods, footwear, towels, linens, and home textile industries has been proposed to be extended from one year to three years, similar to the RMG sector.

The government believes these measures will strengthen export competitiveness, attract new investments, support export diversification, and enhance foreign exchange earnings for the country.