FEPD Circular Letter No. 06: Export incentive against export in CMT basis in RMG/Textile sector

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. FEPD Circular Letter No. 06 Date: -----------------

Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir,

Regarding the provision of export incentive/cash assistance for exports in the CMT (Cut, Make, Trim) system in the garment sector.

Attention is drawn to your previous FEPD Circular Letter No. 07, dated July 23, 2023, on the subject cited above.

2. In order to provide further clarification on the aforementioned FEPD Circular Letter in accordance with government decisions, the following instructions are hereby issued:

(a) In determining the net FOB value of the exported goods mentioned in clause 2(b) of the cited circular, the customs-assessed value (Customs Appraised Value) of imported materials on a non-cost basis must be added to the returned CMT value [in accordance with clause 02(a) of FEPD Circular Letter No. 07/2023]. Since the CMT value includes the value of materials collected under the back-to-back method or any other method used for export, the aforementioned value will not be added when determining the net FOB value.

(b) In the case of the formula mentioned in clause 2(g) of the cited circular, if the CMT value includes the value of materials collected locally under a local back-to-back LC or any other method, the value of such materials will not be added to the CMT value. Furthermore, in this case, if the CMT value includes the value of foreign materials collected through a back-to-back LC or any other method, such value must be deducted from the CMT value. Consequently, the local value addition rate will be as follows:

[CMT Value * - Value of foreign materials collected under back-to-back LC/any other method within the CMT value (if any)]

• [In accordance with clause 02(a) of FEPD Circular Letter No. 07/2023]

Other applicable instructions of the circular concerning export incentives/cash assistance in the garment sector will remain unchanged. Instructions are given to inform all concerned parties of the aforementioned instructions.

Yours faithfully,

(Md. Sarowar Hossain) Director (FEPD) Phone: 9530123 May 12, 2024 29 Shawon, 1431

Determined Net FOB Value of Exported Goods [In accordance with 2(a) cited above] FOB Value [In accordance with 2(a) cited above] B 100