Regulatory Alerts2026-07-12
Added · Updated
FEPD-1 Circular No. 19: Export Subsidy/Cash Incentive for the financial year 2026-2027
Bangladesh Bank's Foreign Exchange Policy Department-1 has increased the cash incentive for the export-oriented domestic textile sector from 1.50% to 5.00%. This enhanced benefit applies to goods shipped between July 01, 2026, and June 30, 2027. Exporters, including members of BGMEA/BKMEA/other associations, must submit proof of collecting raw materials (yarn/fabric) from domestic sources to receive this incentive, while existing relevant FEP circulars remain unchanged.
Foreign Exchange Policy Department-1 Bangladesh Bank Head Office Dhaka. www.bb.org.bd FEPD-1 Circular No. 19 Date: Ashar 28, 1433 July 12, 2026
To All Authorized Dealer Banks Head Office/Principal Office.
Provision of Export Subsidy/Cash Incentive against exports in the financial year 2026-2027.
Dear Sirs, Your attention is drawn to FEPD-1 Circular No. 17, dated July 05, 2026, regarding the subject mentioned in the heading.
02| In Appendix-K, Serial-1 of the above-mentioned circular, an alternative cash incentive of 1.50% is fixed for export-oriented domestic textile sector in lieu of duty bond and duty drawback. As per government decision, the existing cash incentive in the discussed sector has been increased from 1.50% to 5.00%. In this case, exporters (members of BGMEA/BKMEA/other associations) must submit proof of collecting raw materials (yarn/fabric) from domestic sources before receiving the incentive. In the case of collecting yarn/fabric, the applicable instructions of FEP Circular No. 07, dated June 03, 2003, and FEP Circular No. 09, dated March 05, 2001, along with all other relevant circulars/circular letters, shall remain unchanged as usual.
03| The increased benefit will be applicable for goods shipped from July 01, 2026, to June 30, 2027.
All concerned parties are instructed to be informed of the matter.
Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD-1) Phone No.: 9530123