In what can be termed as a positive development for the garment manufacturers of Bangladesh, the country’s central bank – the Bangladesh Bank (BB) – on Tuesday declared that apparel and textile exporters, entitled to receive duty drawback facility or bonded warehouse facility, would also be eligible for 1 per cent special cash incentive.
The BB issued a circular to the authorised dealers of banks in this regard which relaxed 1 per cent cash incentive provision for apparel and textile exports. In case of the expiry of the date for filing applications for getting the incentive, the entities would be able to file application in 45 days of the issuance of the BB circular.
After this, exporters would be entitled to get the cash incentive against the readymade garment or textile items which were already shipped in the current fiscal year.
Earlier in the current fiscal year, the central bank had barred exporters from receiving duty drawback facility or bonded warehouse facility and 1 per cent cash incentive simultaneously.
A BB official said that a fall in export earnings in the first half of the current fiscal year (2019-2020) prompted the BB to come up with this relaxation.