Regulatory Alerts2023-07-23
Added
FEPD Circular Letter No. 07: Export incentive against export in CMT basis in RMG/Textile sector
The document clarifies that export incentives and cash assistance for readymade garments and textile exports on a Cut, Make, and Trim (CMT) basis are calculated on the net FOB value of the exported product, derived by adding the repatriated CMT value (excluding freight, commission, and insurance) to the customs-assessed value of non-no-cost imported materials and any other locally sourced materials. It mandates that the applicable local value addition threshold of 20% must be maintained for eligibility, calculated based on the combined value of locally sourced materials and the adjusted CMT value relative to the net FOB value. All other applicable instructions regarding incentives in the sector remain unchanged.
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