Apparels manufactured with imported yarn to get cash incentive on value addition

Sunbd Desk || Published: 2020-08-26 00:44:11 || Updated: 2020-08-26 00:44:11

Export-oriented small and medium apparel factories manufacturing knitwear, woven and sweaters using imported yarn or a combination of imported yarn would get additional cash incentive at the rate of 4%.

The incentive would only be applicable for those industries which would ensure at least 30% local value addition.

Besides, the incentive would be given on the value that would be added by the export-oriented apparel industries manufacturing knitwear, woven and sweater.

However, the entities which has received duty draw back or customs bond facility would not be considered for the cash incentive.

Bangladesh Bank’s foreign exchange policy department on Tuesday issued a circular in this regard.

Earlier, the additional cash incentive was only application for those entities small and medium factories which were manufacturing these clothing items with local yarn.

As per the circular, the value of the products which were imported under duty draw back or customs bonded facility and other imported products would be excluded from the net freight on board value for the calculation of the additional cash incentive.

For instance, against the export of $100 with 30% local value addition would get $1.2 cash incentive.

A garment factory gets up to 12% cash incentives and 1 % special incentive against export proceeds.

The additional cash incentives against the small and medium clothing factories would be applicable against the products which were shipped in the last fiscal year 2019-2020.

To get the additional incentive, the export-oriented small and medium factories were asked to file applications along with required documents in 45 days of the issuance of the BB circular.

The cash incentives for the 37 sectors which were announced last year would be remain valid.

  •  
  •  
  •  
  •  
  •  
  •  
  •  
your script