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2012-07-04

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FEPD Circular No. 06: Export subsidy/cash incentive for the financial year 2012-2013

The document establishes export subsidies and cash incentives for specific goods exported between July 1, 2012, and June 30, 2013. It mandates a 5% cash incentive for domestic garment exports, 15%-20% for hand-made products from jute and similar materials, 20% for agricultural and agro-processed products, and 10% for light engineering goods. Additional incentives include 15% for bone meal, 20% for liquid gas exports in the Ishwardi EPZ, 20% for 100% halal meat, 10% for frozen shrimp and fish, 15% for leather goods, 5% for ship exports, 2% for new garment markets, 5% for small and medium garment industries, 20% for potato exports, 10% for PET bottle-flakes, and 10% for jute goods. All existing FEPD circulars regarding these subsidies remain unchanged.

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Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Bangladesh Bank Website: www.bb.org.bd Ashar 20, 1419 FEP Circular No.- 06 Date: ----------------- July 04, 2012

To All Approved Dealers of Foreign Exchange Transactions.

Dear Sirs,

Regarding the provision of export subsidy/cash incentive against exports for the fiscal year 2012-2013.

With the aim of encouraging the country's export trade, the government has decided to provide export subsidy/cash incentive for certain products in the export sector in the current fiscal year 2012-2013, as in previous years. In light of this decision, the following goods shipped during the period from July 01, 2012, to June 30, 2013, will be paid export subsidy/cash incentive at the rates mentioned alongside each item against their export.

Name of the ProductApplicable Rate
  1. Cash incentive as an alternative to duty bond and duty draw-back in the export-oriented domestic garment sector | 5%
  2. Cash incentive in the export sector for hand-made products made from hogs, straw, sugarcane bagasse, etc. | 15%-20%
  3. Export subsidy in the export sector for agricultural products (vegetables/fruits) and processed (agro-processing) agricultural products | 20%
  4. Cash incentive in the bone meal export sector | 15%
  5. Subsidy in the light engineering products export sector | 10%
  6. Subsidy in the liquid gas export sector to attract agriculture-based industrial investment in Ishwardi EPZ | 20%
  7. Subsidy in the 100% halal meat export sector | 20%
  8. Cash incentive in the frozen shrimp and other fish export sector | 10%
  9. Cash incentive in the leather goods export sector | 15%
  10. Export subsidy against ship exports | 5%
  11. New product/new market (garment sector) expansion assistance (excluding America/Canada/EU) | 2%
  12. Additional benefit for small and medium industries in the garment sector (existing rules) | 5%
  13. Cash incentive in the potato export sector | 20%
  14. Export subsidy against PET bottle-flakes exports | 10%
  15. Cash subsidy in the jute goods export sector | 10%

All summaries of FEP Circulars/Circular Letters regarding export subsidy/cash incentive will remain unchanged as usual.

Yours faithfully,

(Mohammad Golam Haider) Deputy General Manager Phone: 9530092

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