Exporting goods from Bangladesh offers a tremendous opportunity for businesses to expand their market reach and increase revenues. However, to engage in export activities legally, obtaining an Export Registration Certificate (ERC) is a mandatory requirement. This article provides a comprehensive guide on what an ERC is, its importance, the eligibility criteria, and the step-by-step process to obtain it.

What is an Export Registration Certificate (ERC)?

An Export Registration Certificate (ERC) is an official document issued by the Office of the Chief Controller of Imports and Exports (CCI&E) under the Ministry of Commerce in Bangladesh. This certificate authorizes a business entity to export goods from Bangladesh to international markets. Without an ERC, businesses are prohibited from carrying out export activities.

Importance of the ERC

1. Legal Requirement: An ERC is a legal prerequisite for any business intending to export goods from Bangladesh. It ensures that the export activities comply with national and international trade regulations.

2. Facilitation of Trade: Holding an ERC simplifies the process of customs clearance and documentation, facilitating smoother export operations.

3. Access to Export Benefits: Registered exporters can avail themselves of various government incentives, subsidies, and support schemes aimed at promoting exports.

4. Market Expansion: With an ERC, businesses can explore and access international markets, thereby expanding their customer base and increasing profitability.

Eligibility Criteria

To be eligible for an ERC, an applicant must fulfill the following criteria:

1. Registered Business: The applicant must be a legally registered entity in Bangladesh, such as a sole proprietorship, partnership, limited company, or cooperative society.

2. Trade License: The business must possess a valid trade license issued by the relevant municipal authority.

3. TIN Certificate: The applicant must have a Taxpayer Identification Number (TIN) certificate.

4. VAT Registration: The business must be registered for Value Added Tax (VAT) with the National Board of Revenue (NBR).

Required Documents

To apply for an ERC, the following documents are typically required:

1. Application Form: Duly filled and signed ERC application form.

2. Trade License: A copy of the valid trade license.

3. TIN Certificate: A copy of the TIN certificate.

4. VAT Registration: A copy of the VAT registration certificate.

5. Bank Solvency Certificate: A certificate from the applicant’s bank confirming the financial solvency of the business.

6. Photographs: Recent passport-sized photographs of the business owner or authorized signatories.

7. Memorandum of Association: For limited companies, a copy of the Memorandum of Association and Articles of Association.

8. Partnership Deed: For partnerships, a copy of the partnership deed.

Application Process

1. Preparation: Gather all the required documents and ensure they are up-to-date and accurate.

2. Submission: Submit the completed application form along with the required documents to the Office of the Chief Controller of Imports and Exports (CCI&E) or the relevant regional office.

3. Payment of Fees: Pay the prescribed application fee. The fee structure is available on the CCI&E website or at their offices.

4. Verification: The CCI&E will verify the submitted documents and may conduct an inspection if deemed necessary.

5. Approval: Upon successful verification, the ERC will be issued. The applicant will be notified, and the certificate can be collected from the CCI&E office or delivered by mail.

Renewal of ERC

An ERC is typically valid for a specific period, after which it needs to be renewed. The renewal process involves submitting a renewal application along with updated documents and payment of the renewal fee. It is important to renew the ERC on time to avoid any disruption in export activities.

Conclusion

Obtaining an Export Registration Certificate (ERC) is a crucial step for any business in Bangladesh looking to venture into international markets. The process, while straightforward, requires careful preparation and adherence to the regulatory requirements. By securing an ERC, businesses can not only comply with legal mandates but also leverage numerous benefits that facilitate smooth and profitable export operations.