Regulatory Alerts2022-05-09
Added
FEPD Circular No. 08: Local value addition requirement for export incentive/cash subsidy in RMG/textile sector
The document mandates that a minimum local value addition of 20% applies to export incentives or cash subsidies provided to the textile sector for the fiscal year 2021-2022. This directive is effective from the date of issuance for pending applications related to shipped export consignments and any future applications. All other relevant instructions in existing Foreign Exchange Circulars regarding these incentives remain unchanged.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. FEPD Circular No. 08 Date: ----------------- To: All Approved Dealers of Foreign Exchange Transactions.
Dear Sir,
Reference is drawn to the instruction issued in Section 7 of Foreign Exchange Circular No. 29 dated September 20, 2021, regarding the value addition rate, and it is informed that, in accordance with the government's decision, the minimum local value addition of 20% shall apply for the provision of export incentives/cash subsidies in the textile sector at the existing rate during the current fiscal year 2021-2022.
- The aforementioned instruction shall be applicable from the date of issuance of this circular for pending applications submitted against shipped export consignments in the fiscal year 2021-2022, as well as for applications submitted thereafter.
All other relevant instructions in all Foreign Exchange Circulars/Circular Letters concerning the provision of export incentives/cash subsidies in the textile sector shall remain unchanged. All concerned parties are requested to be informed about this matter.
Yours faithfully,
(Kazi Rafiqul Hasan) Managing Director Phone: 9530123
May 09, 2022 Baishakh 26, 1429