In a recent move, the Bangladesh Government has decided to provide cash incentives at the rate of 4 per cent to all the export-oriented small and medium apparel factories manufacturing sweater and knitwear using imported yarn.
This policy support from the Government is aimed at helping the export-oriented garment manufacturing units that fall under the small and medium enterprise (SME) category to improve their competitiveness during this time of the coronavirus pandemic.
However, to avail the same, garment manufacturers would have to ensure at least 30 per cent of local value addition.
The country’s central bank, the Bangladesh Bank’s foreign exchange policy department, recently issued a circular in this direction.
The cash incentive, however, will not be applicable for those that are receiving customs bond facility or duty drawback already.
To avail this cash incentive, which will be applicable against products shipped in the last fiscal year 2019-2020 as well, the Bangladesh Bank has asked small and medium factories to file application within 45 days from the day of issuance of the circular along with all the necessary documents.
Factories with up to US $ 5 million from exports are considered SMEs in the garment sector.
