Regulatory Alerts2026-07-05
Added · Updated
FEPD-1 Circular No. 17: Export Subsidy/Cash Incentive for the financial year 2026-2027
Bangladesh Bank's Foreign Exchange Policy Department-1 has issued Circular No. 17, outlining the applicable rates for export incentives and cash assistance across 43 sectors for the financial year 2026-2027. These incentives apply to goods shipped between July 01, 2026, and June 30, 2027, with specific rates detailed in the attached Appendix-K. The circular also mandates that all applications for these incentives must undergo external audits and confirms that all existing FEPD circular instructions and conditions remain in effect.
Foreign Exchange Policy Department-1 Bangladesh Bank Head Office Dhaka. www.bb.org.bd FEPD-1 Circular No. 17 Date: 21 Ashar 1433 05 July 2026
To all Authorized Dealer Banks' Head Offices/Principal Offices
Provision of Export Incentive/Cash Assistance against exports in the financial year 2026-2027.
Dear Sirs,
To encourage the country's export trade, the government currently provides export incentives/cash assistance against exports in 43 sectors. In this context, for goods shipped from July 01, 2026, to June 30, 2027, the rates of export incentives/cash assistance in the existing sectors will be applicable as per the attached schedule (Appendix-K).
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Applications submitted for export incentives/cash assistance must be audited from time to time by external audit firms in accordance with the instructions of circulars/circular letters issued by Bangladesh Bank.
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All instructions of FEPD circulars/circular letters, including applicable conditions for providing export incentives/cash assistance, will remain effective as usual. All concerned parties are instructed to be informed of the matter.
Yours faithfully,
Attachment: Appendix-K (2 pages) (Md. Harun-Ar-Rashid) Director (FEPD-1) Phone No. : 9530123
Appendix-K Source: Refer to FEPD-1 Circular No. 17/2026 Applicable rates of export incentives in various sectors for goods shipped from July 01, 2026 to June 30, 2027
| Serial | Sector Name | Rate (%) |
|---|---|---|
| 1. | Alternative cash assistance in lieu of duty bond and duty draw-back in the export-oriented domestic textile sector | 1.50 |
| 2. | Additional special assistance for textile exporters in the Euro region beyond the existing 1.50% | 0.50 |
| 3. | Additional benefits for all small and medium industries included in the export-oriented ready-made garment sector (knit, woven and sweater) | 3.00 |
| 4. | New product/new market (textile sector) expansion assistance (excluding America/Canada/EU/UK) | 2.00 |
| 5. | Special cash assistance in the ready-made garment sector | 0.30 |
| 6. | Export incentive for jute products export sector: | |
| A) Diversified Jute Product | 10.00 | |
| B) Jute final products (hessian, sacking and CBC) | 5.00 | |
| C) Jute yarn (yarn and twine) | 3.00 | |
| (As per the definition of diversified jute products mentioned in the Jute Act, 2017, there must be a minimum of 50% value-added jute content) | ||
| 7. | Export incentive for leather products export sector (ceiling limit will remain as before) | 10.00 |
| 8. | Export incentive for handmade products (hogla, straw, sugarcane/coconut fiber, tree leaves/bark, garment waste fabric etc.) export sector | 6.00 |
| 9. | Export incentive against export of cattle and buffalo intestines, tripe, horns and sinews (excluding bones) | 6.00 |
| 10. | Export incentive for frozen shrimp and other fish export sector: | |
| A) Rate of ice glazing in frozen shrimp export | ||
| Up to 20% | 8.00 | |
| Above 20% to 30% | 7.00 | |
| Above 30% to 40% | 6.00 | |
| Above 40% | 4.00 | |
| B) Rate of ice glazing in frozen other fish export | ||
| Up to 20% | 3.50 | |
| Above 20% to 30% | 2.50 | |
| Above 30% to 40% | 2.00 | |
| Above 40% | 1.50 | |
| 11. | Export incentive for agricultural products (vegetables/fruits) and processed (agro-processing) agricultural products export sector | 10.00 |
| 12. | Export incentive for potato export sector | 10.00 |
| 13. | Export incentive for light engineering products export sector | 10.00 |
| 14. | Export incentive for 100% halal meat and 100% halal processed meat products export sector | 10.00 |
| 15. | Export incentive against export of crust and finished leather produced in factories located in Savar Leather Industrial City and factories located outside Savar with their own ETP | |
| A) Crust leather | 6.00 | |
| B) Finished leather | 6.00 | |
| 16. | A) Export incentive against export of PET bottle-flakes | 6.00 |
| B) Export incentive against export of polyester staple fiber produced from PET bottle-flakes | 6.00 | |
| 17. | Export incentive against export of ships | 6.00 |
| 18. | Export incentive against export of carbon and jute particle board produced from jute sticks | 8.00 |
| 19. | Export incentive against export of grain and vegetable seeds | 8.00 |
Continued Page-02
Source: Refer to FEPD-1 Circular No. 17/2026 -02-
| Serial | Sector Name | Rate (%) |
|---|---|---|
| 20. | Export incentive against export of furniture | 8.00 |
| 21. | Export incentive against export of plastic products | 6.00 |
| 22. | Export incentive for export of domestically produced paper and paper products | 6.00 |
| 23. | Export incentive against export of Agar and Attar | 8.00 |
| 24. | Export incentive against export of Active Pharmaceuticals Ingredients (API) | 5.00 |
| 25. | Export incentive against export of Accumulator Battery (HS code: 8507.10 and 8507.20) | 10.00 |
| 26. | A) Export incentive against export of footwear and bags made from a mixture of synthetic and fabrics (if duty bond/duty draw-back facility is not availed on the raw materials used in export) | 8.00 |
| B) Export incentive if duty bond/duty draw-back facility is availed on the raw materials used in the export of footwear and bags made from a mixture of synthetic and fabrics (FEPD Circular No. 29, dated July 24, 2025) | 2.00 | |
| 27. | A) Export incentive against export of software, ITES (Information Technology Enabled Services) and hardware from Bangladesh | 6.00 |
| B) Export incentive for individual freelancers against export of software, ITES services | 2.50 | |
| 28. | Export incentive against export of pharmaceutical products (including medical/surgical instruments and appliances) | 6.00 |
| 29. | Export incentive against export of motorcycles | 6.00 |
| 30. | Export incentive against export of Photovoltaic Module | 6.00 |
| 31. | Export incentive against export of razors and razor blades | 6.00 |
| 32. | Export incentive against export of ceramic products | 6.00 |
| 33. | Export incentive against export of caps | 7.00 |
| 34. | Export incentive against export of crabs and mud crabs (frozen, soft-shell and live) | 6.00 |
| 35. | Export incentive against export of Galvanized Sheet/Coils (Coated with zinc, Coated with Aluminium and Zinc and Color Coated) | 6.00 |
| 36. | Export incentive against export of chemical products (Chlorine, Hydrochloric Acid) | 5.00 |
| 37. | Export incentive for export of Consumer Electronics, Electrical Home and Kitchen Appliance products | 6.00 |
| 38. | Export incentive for export of rice | 3.00 |
| 39. | Export incentive against export of domestically produced tea | 2.00 |
| 40. | Export incentive against export of domestically produced MS Steel Products | 2.00 |
| 41. | Export incentive against export of domestically produced bicycles and their parts | 3.00 |
| 42. | Export incentive against export of domestically produced cement sheets | 3.00 |
| 43. | Export subsidy in favor of establishments located in specialized zones (BEZA, BEPZA and Hi-Tech Park): | |
| Of FEPD Circular No. 34/2021 | ||
| 1) Export subsidy payable under the relevant circular as per sub-paragraph (A) of the first paragraph (excluding special cash assistance in the ready-made garment sector payable under FEPD Circular No. 01, dated January 07, 2020) | 2.00 | |
| 2) Export subsidy against export of processed agricultural products by Type-A and Type-B establishments under sub-paragraph (B) of the first paragraph | 2.00 | |
| 3) Special cash assistance in the ready-made garment sector under FEPD Circular No. 01, dated January 07, 2020, as per sub-paragraph (A) of the first paragraph, and export subsidy against export of other products by all categorized establishments as per sub-paragraph (C) | 0.30 |