Recently, the Banking Regulations and Policy Department of Bangladesh Bank issued a new circular that outlines revised rules for obtaining cash assistance when exporting frozen crabs and Cuchia fish (mud or swamp eel). Under the new directive, exporters are required to submit a certificate from the Bangladesh “Frozen Foods Exporters Association” (BFFEA) instead of the previous requirement for a certificate from the “Bangladesh Live and Chilled Food Exporters Association” (BLCFEA) to be eligible for subsidies.
The new directive is aimed at streamlining the process of obtaining cash incentives for exporting frozen crabs and frozen soft shell crab. Previously, the certification from BLCFEA was required for an extended period of time. However, with the latest circular, the certification from BFFEA has now become mandatory for obtaining subsidies.
Though the condition of submitting the BLCFEA certificate along with the subsidy application for the export of live eel fish and crabs remains unchanged. This directive will be effective immediately for products shipped on or after April 25th.
Despite the new rules, the government of Bangladesh will continue to provide cash incentives ranging from 1 to 20 percent for the export of 43 types of products, including crabs and eel. The cash incentives are aimed at promoting and increasing the country’s exports of seafood products. It is important to note that Bangladesh has been exporting live crabs to China and Southeast Asia, as well as soft shell crabs to European countries like the Netherlands, Germany, Belgium, Spain and France sometime after 2014.
According to the Export Promotion Bureau (EPB), the first crab worth two thousand dollars was exported from Bangladesh in 1977. Since then, exports of crabs have been increasing. However, despite the increase, exports from Bangladesh are still not significant compared to other countries.
In conclusion, the new directive issued by the Bangladesh Bank will make it easier for exporters to obtain cash assistance for exporting frozen crabs and soft shell crab. With the change in the certification requirement, the government aims to streamline the process and encourage more companies to export seafood products.
