Export Diversification Steps -- Highest Priority and Special Development Industrial Sectors

Wpfreeware 6:49 AM Export Diversification Steps

Some products sectors will be identified as “highest priority sectors” while some others will be identified as “special development sectors” depending on the level of production and supply, potential contribution to the export sector, demand in the international market and above all the capacity to contribute to the socio-economic development of the country. The government will regularly modify this list, and provide special privileges to encourage the export of these products.

Highest Priority Sectors

Highest priority sectors will refer to those sectors which have special export potentials, but such potentials could not be utilized properly due to certain constraints, and more success is attainable if adequate support is rendered to them. The sectors are:

  • 1) Agro-products and agro-processed products;
  • 2) Plastic Products;
  • 3) Footwear and leather products;
  • 4) Pharmaceutical products;
  • 5) Software and ICT products;
  • 6) Home textile;
  • 7) Ocean goingShip Building Industries;
  • 8) Furniture Industries;
  • 9) Terri Towel; and
  • 10) Tourism Industries.

Benefits and Facilities to be provided to the Highest Priority Sectors

  • Project loans at reduced interest rates on a priority basis;
  • Income Tax rebate;
  • Possible financial benefits or subsidies consistent with WTO Agreement on Agriculture, and Agreement on Subsidies and Countervailing Measures, including concessionary rates for utility services such as electricity, water and gas;
  • Providing export loans at lower interest rates and on soft terms;
  • Air transport facilities at concessionary rates ;
  • Duty draw-back/ bond facilities;
  • Facilities for setting up backward linkage industries including infrastructural development for reducing cost of production ;
  • Expansion of institutional and technical facilities to improve and control quality of products;
  • Assistance in production and marketing;
  • Assistance in exploring foreign market; and
  • Necessary initiatives to attract foreign investments.

Special Development Sectors

Product sectors which have export potentials but whose production, supply and export base are not consolidated will be included in special development sectors to strengthen their export base. The following product sectors will be included in the special development sectors:

  • (1) Light engineering products (including auto-parts and bicycles);
  • (2) Electric and electronic products;
  • (3) Jute products;
  • (4) Hand loom fabrics;
  • (5) Ceramic products;
  • (6) Frozen fish;
  • (7) Printing and packaging;
  • (8) Rubber;
  • (9) Uncut diamonds and jewelry; and
  • (10) Cosmetics and toiletries.

Benefits and Facilities to be provided to the Highest Priority Sectors

  • Project loans at comparatively low rate of interest on a priority basis;
  • Consideration for export loans on soft terms and at reduced interest rates;
  • Provides ubsidies in consistence with WTO Agreement on Agriculture, and Agreement on Subsidies and Countervailing Measures;
  • Shipment of products at reduced air fare;
  • Duty draw-back/ bond facilities;
  • Give priority in getting utility services such as electricity, gas, telephone for setting up backward linkage industries including infrastructural development to reduce production cost;
  • Expansion of technical facilities to improve the quality of products;
  • Assistance in production and marketing;
  • Assistance in exploring foreign market; and
  • Possible financial benefits for utility services such as electricity, water and gas; and
  • Necessary initiatives to attract foreign investments.

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