Regulatory Alerts2013-07-07
Added · Updated
FEPD Circular No. 12: Export subsidy/Cash incentive for the financial year 2013-2014
The document establishes export subsidies and cash incentives for specific goods exported between July 1, 2013, and June 30, 2014. It mandates a 5.00% cash incentive for domestic garment exports, rates between 15.00% and 20.00% for hand-made products, a 20.00% export subsidy for agricultural products, and specific rates for eggs, light engineering, halal meat, frozen shrimp, leather, ships, new markets, SMEs, potatoes, PET bottles, and jute products. The circular also clarifies that frozen shrimp exports are exclusively covered under cash incentives per previous directives, while all other existing terms and conditions remain unchanged.
Foreign Exchange Policy Department Bank of Bangladesh Head Office Dhaka. Ref. No. FEPD Circular No. 12 Date: ------------------- July 07, 2013
To All Approved Dealers of Foreign Exchange Transactions,
Subject: Provision of Export Subsidy/Cash Incentive against exports for the financial year 2013-2014.
In order to encourage the export trade of the country, the government has decided to provide export subsidy/cash incentive for certain products in the current financial year 2013-2014, similar to previous years. In light of this decision, export subsidy/cash incentive will be paid at the rates specified below against the export of the following goods shipped during the period from July 01, 2013, to June 30, 2014:
| Name of Product | Applicable Rate |
|---|---|
| 1) Cash incentive as an alternative to Bond and Duty Draw-back in the export-oriented domestic garment sector | 5.00% |
| 2) Cash incentive in the export sector of hand-made products made from jute, cane, sugarcane bagasse, etc. | 15.00%-20.00% |
| 3) Export subsidy in the export sector of agricultural products (vegetables/fruits) and processed (agro-processing) agricultural products | 20.00% |
| 4) Cash incentive in the egg powder export sector | 15.00% |
| 5) Subsidy in the light engineering products export sector | 10.00% |
| 6) Subsidy in the 100% Halal meat export sector | 20.00% |
| 7) Cash incentive in frozen shrimp exports | 7.50% |
| 8) Cash incentive in the leather goods export sector | 15.00% |
| 9) Export subsidy against ship exports | 5.00% |
| 10) New product/new market (garment sector) expansion assistance (excluding USA/Canada/EU) | 2.00% |
| 11) Additional benefit for small and medium industries in the garment sector (existing rules) | 5.00% |
| 12) Cash incentive in the potato export sector | 20.00% |
| 13) Export subsidy against PET bottle-flake exports | 10.00% |
| 14) Cash subsidy in the jute goods export sector:<br>a) Jute finished goods (excluding jute yarn)<br>b) Jute yarn | 10.00%<br>7.50% |
It is noted that, according to serial number 7 above, a cash incentive at the rate of 7.50% will be applicable against frozen shrimp exports in the current financial year. Therefore, in accordance with the instructions of FEPD Circular No. 23, dated December 12, 2002, and other FEPD Circulars/letters issued in this regard, only frozen shrimp exports will be covered under cash incentive.
All other relevant terms and conditions regarding the provision of export subsidy/cash incentive as per all FEPD Circulars/Circular Letters will remain unchanged as usual.
All concerned are requested to take note of this.
Yours faithfully,
(Md. Zahurul Haque) Deputy General Manager Phone: 9512604
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