RMG exporters are bound to pay more than the official fees to get essential permits: CPD
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A recent study by the Centre for Policy Dialogue (CPD) reveals that Bangladeshi apparel exporters often face exorbitant fees, up to 650% higher than official rates, for essential permits and license renewals due to “undocumented payments”. Data from a business corporation cited in the study shows significant disparities: 644% higher for boiler licenses, 261% higher for bond licenses, and 114% higher for fire licenses. Additionally, factory establishment licenses incurred an extra 36%, trade licenses 16%, and export/import registration certificates 12%. Presenting these findings, CPD’s research director, Khondaker Golam Moazzem, highlighted how these unofficial fees create financial strain and operational unpredictability.
A survey among entrepreneurs revealed widespread corruption concerns across all business sectors, with large companies, medium-sized enterprises, and small/micro enterprises reporting corruption as a major issue. Moazzem also noted anecdotal evidence suggesting permit costs can exceed official fees by Tk 50,000 to Tk 1,00,000, with additional renewal expenses ranging from Tk 500 to several thousand. The seminar, titled “Business Related Barriers and Possible Way Out,” jointly organized by FBCCI, CPD, and GIZ Bangladesh, aimed to address these challenges.
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