Bangladesh's RMG exporters to get export subsidy on 20% value addition

11 May 22 1 min read

Bangladesh apparel exporters will now get cash incentives and subsidies from the government on exports with a 20 per cent local value addition as the Bangladesh Bank recently announced lowering the threshold for value addition from 30 per cent. Local value addition is calculated by deducting the import cost of materials used in production from the net free on board (FOB) export price.

Exporters now receive 4 per cent alternative cash assistance instead of customs bond and duty drawback in the export-oriented apparel sector.

According to a Bangladesh Bank circular, the new rate has been fixed as per a decision of the government. Incentive applications against shipped export shipments, which have not yet been resolved in the current fiscal, will also come under the new guidelines.

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