BB allows export incentives for sub-contracted garment exports with conditions
Trading firms or companies not directly involved in RMG production, however, will not qualify for these incentives
The Bangladesh Bank has announced that export incentives or cash incentives will now be available for garments and textile goods produced under sub-contracting arrangements, subject to manufacturer-exporters having their own active production units.
Following a government decision, the central bank issued a circular in this regard on Wednesday (12 November), stating that manufacturer-exporters can claim cash incentives based on the net FOB (freight on board) value of readymade garments or textile goods produced through sub-contracting. However, they must have their own active manufacturing units.
The circular emphasised that the provisions of the Sub-Contracting Guidelines for the Readymade Garment Industry, 2019 and the Regulations for Direct Export-Oriented Garment Industries (Temporary Import under Warehouse System, Warehouse Operation and Procedures), 2024 must be strictly followed.
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Trading firms or companies not directly involved in production, however, will not qualify for these incentives.
Industry insiders said the decision is expected to help Bangladeshi exporters benefit from the USA's first sales framework, facilitating smoother export operations and boosting competitiveness.
