Regulatory Alerts2026-07-05
Added · Updated
FEPD-1 Circular No. 17: Export Subsidy/Cash Incentive for the financial year 2026-2027
The document establishes export subsidy and cash incentive rates for 43 sectors for shipped goods from July 1, 2026, to June 30, 2027. Incentives range from 0.30% to 10.00%, with specific rates assigned to sectors such as garments, jute, leather, frozen fish, and IT/ITES services. The circular mandates that applications be verified according to existing Bangladesh Bank circulars and that all current Foreign Exchange (FE) circular instructions remain in force.
FOREIGN EXCHANGE POLICY DEPARTMENT-1 BANGLADESH BANK HEAD OFFICE DHAKA.
Ref. No. FEPD-1 Circular No. 17 Date: 21 Asharh 1433 05 July 2026
To All Approved Dealer Banks Head Office / Principal Office
Export Promotion/Cash Incentive against Export for the Financial Year 2026-2027.
Dear Sir,
In order to encourage the export trade of the country, the government is currently providing export promotion/cash incentive against exports in 43 sectors. In this context, the rate of export promotion/cash incentive for the existing sectors for shipped goods from 01 July 2026 to 30 June 2027 will be applicable as per the attached table (Appendix-A).
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The submitted applications for export promotion/cash incentive shall be verified by Bangladesh Bank from time to time in accordance with the instructions issued in circulars/circular letters.
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All instructions of the applicable Foreign Exchange (FE) circulars/circular letters with conditions shall remain in force in the matter of providing export promotion/cash incentive. Instructions are given to inform all concerned parties about this matter.
Yours faithfully,
Enclosure: Appendix-A (2 pages)
(Md. Harun-Or-Rashid) Director (FEPD-1) Phone Number: 9530123
Appendix-A Ref: FEPD-1 Circular No. 17/2026
Rate of Export Promotion Applicable in Various Sectors for Shipped Goods from 01 July 2026 to 30 June 2027
| S.No | Sector Name | Rate (%) |
|---|---|---|
| 1. | Export-oriented Domestic Garment Sector: Cash Incentive in lieu of Bond and Duty Draw-back | 1.50 |
| 2. | Additional Special Assistance for Garment Exporters in the Euro Area over the existing 1.50% | 0.50 |
| 3. | Additional Benefit for all Small and Medium Industries included in the Export-oriented Ready-Made Garment (RMG) Sector (Knit, Woven and Sweater) | 3.00 |
| 4. | New Product/New Market (Garment Sector) Expansion Assistance (Excluding USA/Canada/EU/UK) | 2.00 |
| 5. | Special Cash Incentive in the RMG Sector | 0.30 |
| 6. | Export Promotion in the Jute Products Export Sector:<br>a) Processed Jute Products (Processed Jute Goods)<br>b) Jute Finished Products (Hessian, Sacking and SBC)<br>c) Jute Yarn and Twine<br>(As per the definition of Processed Jute Products in the Jute Act, 2017, a minimum of 50% value of jute must be used) | 10.00<br>5.00<br>3.00 |
| 7. | Export Promotion in the Leather Products Export Sector (Ceiling limit will remain as before) | 10.00 |
| 8. | Export Promotion in the Handicrafts Export Sector (Hogla, Khad, Sugarcane/Coconut Husk, Tree Leaves/Peel, Garments' waste cloth, etc.) | 6.00 |
| 9. | Export Promotion against the export of Buffalo Horns, Hooves, Hides (excluding Bones) | 6.00 |
| 10. | Export Promotion in the Frozen Shrimp and Other Fish Export Sector:<br>a) Frozen Shrimp Export with Ice Coating:<br>Up to 20%<br>Over 20%: Up to 30%<br>Over 30%: Up to 40%<br>Over 40%<br>b) Frozen Other Fish Export with Ice Coating:<br>Up to 20%<br>Over 20%: Up to 30%<br>Over 30%: Up to 40%<br>Over 40% | 8.00<br>7.00<br>6.00<br>4.00<br>3.50<br>2.50<br>2.00<br>1.50 |
| 11. | Export Promotion in the Agricultural Products (Vegetables/Fruits) and Processed (Agro-processing) Agricultural Products Export Sector | 10.00 |
| 12. | Export Promotion in the Potato Export Sector | 10.00 |
| 13. | Export Promotion in the Light Engineering Products Export Sector | 10.00 |
| 14. | Export Promotion in the 100% Halal Meat and 100% Halal Processed Meat Products Export Sector | 10.00 |
| 15. | Export Promotion against the export of Crust and Finished Leather produced in factories located in Savar Leather Industrial City and factories having their own Brick Kiln located outside Savar:<br>a) Crust (Crust) Leather<br>b) Finished Leather | 6.00<br>6.00 |
| 16. | a) Export Promotion against the export of PET Bottle-Flakes<br>b) Export Promotion against the export of Polyester Staple Fiber produced from PET Bottle-Flakes | 6.00<br>6.00 |
| 17. | Export Promotion against the export of Ships | 6.00 |
| 18. | Export Promotion against the export of Board and Jutecor Board produced from Jute Stick | 8.00 |
| 19. | Export Promotion against the export of Seeds of Cereals and Vegetables | 8.00 |
| 20. | Export Promotion against the export of Furniture | 8.00 |
| 21. | Export Promotion against the export of Plastic Products | 6.00 |
| 22. | Export Promotion against the export of Paper and Paper Products produced in the country | 6.00 |
| 23. | Export Promotion against the export of Incense and Attar | 8.00 |
| 24. | Export Promotion against the export of Organic and Inorganic Fertilizers (OICF) | 5.00 |
| 25. | Export Promotion against the export of Accumulator Batteries (HS Code: 8507.10 and 8507.20) | 10.00 |
| 26. | a) Export Promotion against the export of Footwear and Bags made of Synthetic and Fabric Mix (If Bond/Duty-Draw-back facility on materials used for export is not availed)<br>b) Export Promotion against the export of Footwear and Bags made of Synthetic and Fabric Mix (If Bond/Duty-Draw-back facility on materials used for export is availed) (FE Circular No. 29, dated July 24, 2025) | 8.00<br>2.00 |
| 27. | a) Export Promotion against the export of Software, ITES (Information Technology Enabled Services) and Hardware from Bangladesh<br>b) Export Promotion for Freelancers against the export of Software, ITES Services | 6.00<br>2.50 |
| 28. | Export Promotion against the export of Pharmaceuticals Products (Medical/Surgical and Diagnostic) | 6.00 |
| 29. | Export Promotion against the export of Motorcycles | 6.00 |
| 30. | Export Promotion against the export of Surgical Instruments | 6.00 |
| 31. | Export Promotion against the export of Razors and Razor Blades | 6.00 |
| 32. | Export Promotion against the export of Ceramic Products | 6.00 |
| 33. | Export Promotion against the export of Caps | 7.00 |
| 34. | Export Promotion against the export of Crabs and Prawns (Frozen, Softshell and Live) | 6.00 |
| 35. | Export Promotion against the export of Dried Fish/Dried Meat (Dried Fish, Dried Meat, Dried Fish and Dried Meat) | 6.00 |
| 36. | Export Promotion against the export of Chemical Products (Chlorine, Hydrochloric Acid) | 5.00 |
| 37. | Export Promotion against the export of Consumer Electronics, Electric Home and Kitchen Appliances | 6.00 |
| 38. | Export Promotion against the export of Rice | 3.00 |
| 39. | Export Promotion against the export of Tea produced in the country | 2.00 |
| 40. | Export Promotion against the export of Jute Products produced in the country | 2.00 |
| 41. | Export Promotion against the export of Bicycles and their parts produced in the country | 3.00 |
| 42. | Export Promotion against the export of Cement Seats produced in the country | 3.00 |
| 43. | Export Subsidy in favor of institutions located in Special Zones (Bepza, BEPZA and Hi-Tech Park) in accordance with FE Circular No. 34/2021:<br>1) Export Subsidy payable under the relevant circular as per sub-paragraph (a) of the first paragraph of FE Circular No. 01, dated January 07, 2020 (excluding Special Cash Incentive in the RMG Sector)<br>2) Export Subsidy against the export of Processed Agricultural Products by Type-A and Type-B institutions under sub-paragraph (b) of the first paragraph<br>3) Export Subsidy against the export of Special Cash Incentive in the RMG Sector under sub-paragraph (a) of the first paragraph of FE Circular No. 01, dated January 07, 2020 and other products of all categories of institutions under sub-paragraph (c) | 2.00<br>2.00<br>0.30 |
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