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Leather footwear exporters can now apply for over 5% discounts

Exporters can now apply to the Discount Committee of the central bank for more than 5% discounts against the export of leather footwear goods.

The Foreign Exchange Policy Department of the Bangladesh Bank issued a circular in this regard on Sunday.

The move will help exporters offset the loss of export proceeds they often incur by offering buyers discounts of more than 5% prescribed in the Guidelines for Foreign Exchange Transactions.

A senior official of the central bank told The Business Standard that all cases involving discount claims made by buyers due to document discrepancies, short shipment, conservative arrest, or quality issues concerning the shipment of readymade garments, leather, and leather goods should be forwarded to the Discount Committee of the central bank for review.

The committee will approve the discount rate considering the situation, the official said.

“Leather footwear exporters were previously unable to provide additional discounts to their foreign customers. However, the new guidelines issued by the central bank have now allowed this sector to apply for discounts of more than 5%,” added the official.

Source: The Business Standard

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