The government has reduced the service charge for the registered exporters system of the European Union as readymade garment exporters termed the fee illogical.

In a recent meeting, the Export Promotion Bureau reduced the rate of service charges for verification of documents under the REX 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 VAT or Tk 30 on the service charge.

The government agency in a circular issued on November 16 said that the 140th board meeting of EPB, as the competent authority of the government and to perform its duty properly, 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 as EPB requested all exporters to pay the fee and submit the related documents against each consignment after REX registration.

The Bangladesh Knitwear Manufacturers and Exporters Association, however, still remains opposed to the charge and terms it illogical.

BKMEA first vice-president Mohammad Hatem said that EPB could not charge Tk 250 against each export consignment as the exporters would have to bear all the liabilities of GSP certificate issuance.

He said that EPB should reduce the charge to Tk 50-100 for software maintenance and preservation of documents.