Regulatory Alerts2024-06-30
Added · Updated
FEPD Circular No. 12: Export Subsidy/Cash Incentive for the financial year 2024-2025
The document establishes the applicable export subsidy and cash incentive rates for various exported products for the period from April 1, 2024, to June 30, 2025. It supersedes FEPD Circular No. 05 dated February 12, 2024, and all other related circulars, while keeping existing instructions for other matters unchanged. The circular specifies incentive percentages ranging from 0.30% to 10.00% across 43 distinct categories, including textiles, jute products, leather, pharmaceuticals, and IT services.
Export Policy Division Bangladesh Bank Head Office Dhaka. www.bb.org.bd
FEPD Circular No. 12 Date: -------------------
To, The Chief Executive/Chief Operating Officers All Scheduled Banks operating in Bangladesh
Dear Sir,
Export Subsidy/Cash Incentive for the financial year 2024-25.
In order to encourage the export sector of the country, the Government has announced an export subsidy/cash incentive of up to 10% on exports. Under this circular, the rate of export subsidy/cash incentive for exported products in the shipbuilding and repair sector during the period from 01 April 2024 to 30 June 2025 will be as per the table attached herewith (Appendix-A).
The period for granting export subsidy/cash incentive under this circular shall be subject to the terms and conditions of FEPD Circular No. 05, dated February 12, 2024. All other instructions regarding other matters under all FEPD Circulars shall remain unchanged. Necessary instructions will be issued to implement the relevant matters.
Yours faithfully,
(Serajul Haque) Director (FEPD) Phone No: 9530123
Ashar 16, 1431 June 30, 2024
Ref: Appendix-A (2 pages)
Appendix-A
Ref: FEPD Circular No. 12/2024
Applicable Export Subsidy Rates for Various Sectors in the Shipbuilding and Repair Sector for the Period from 01 April 2024 to 30 June 2025
| S.No | Name of Sector | Rate (%) |
|---|---|---|
| 1. | Cash Incentive in lieu of Duty Drawback and DWU for Export of Readymade Garments | 1.50 |
| 2. | Special Incentive for Exporters of Readymade Garments exceeding 1.50% | 0.50 |
| 3. | Special Incentive for Export of All Types and Sizes of Cotton Yarn and Cotton Fabric in the Cotton Textile Sector | 3.00 |
| 4. | Market Development Assistance (MDA) for Low Price/Low Market (Textile) (Excluding America/Canada/EU/UK) | 2.00 |
| 5. | Special Cash Incentive for Export of Cotton Textile Sector | 0.30 |
| 6. | Export Subsidy for Jute Products Export Sector:<br>a) Diversified Jute product<br>b) Jute Goods (Hessian, Sacking and Sacks)<br>c) Jute Matting (Yarn and Matting Line)<br>(At least 50% of the quantity of diversified jute products mentioned in the Jute Act, 2017 must be used)<br>10.00<br>5.00<br>3.00 | |
| 7. | Export Subsidy for Leather Products Export Sector (Silting limit remains unchanged) | 10.00 |
| 8. | Export Subsidy for Handmade Products (Shagola, Khadi, Coconut/Coir Husk, Tree Leaves/Bark, Gomuti Silk - Cotton Cloth etc.) Export Sector | 6.00 |
| 9. | Export Subsidy in lieu of Export of Bone, Horn, Hoof and Rags (Excluding Bone) | 6.00 |
| 10. | Export Subsidy for Frozen Fish and Frozen Shrimp Export Sector:<br>a) Frozen Fish Export Ice Consumption Rate<br>Up to 20%<br>Above 20% to 30%<br>Above 30% to 40%<br>Above 40%<br>b) Frozen Shrimp Export Ice Consumption Rate<br>Up to 20%<br>Above 20% to 30%<br>Above 30% to 40%<br>Above 40% | 8.00<br>7.00<br>6.00<br>4.00<br>3.50<br>2.50<br>2.00<br>1.50 |
| 11. | Export Subsidy for Horticulture (Vegetables/Fruits) and Spices (Essence) Export Sector | 10.00 |
| 12. | Export Subsidy for Agro Export Sector | 10.00 |
| 13. | Export Subsidy for Handicrafts Export Sector | 10.00 |
| 14. | Export Subsidy for 100% Halal Meat and 100% Halal Meat Products Export Sector | 10.00 |
| 15. | Export Subsidy in lieu of Export of Crust and Finished Leather produced in factories located within Savar Leather City and factories located outside Savar under the Leather Industry Project:<br>a) Crust Leather<br>b) Finished Leather | 6.00<br>6.00 |
| 16. | a) Export Subsidy in lieu of Export of Top Jute Twine<br>b) Export Subsidy in lieu of Export of Jute Fiber produced from Top Jute Twine | 6.00<br>6.00 |
Continued Page-02
| S.No | Name of Sector | Rate % |
|---|---|---|
| 17. | Export Subsidy in lieu of Export of Shipbuilding | 6.00 |
| 18. | Export Subsidy in lieu of Export of Carbon and Charcoal produced from Jute Stick | 8.00 |
| 19. | Export Subsidy in lieu of Export of Seeds of Pulses and Vegetables | 8.00 |
| 20. | Export Subsidy in lieu of Export of Fench | 8.00 |
| 21. | Export Subsidy in lieu of Export of Spices | 6.00 |
| 22. | Export Subsidy in Export of Domestic Produced Paper and Paper Products | 6.00 |
| 23. | Export Subsidy in lieu of Export of Agar and Attar | 8.00 |
| 24. | Export Subsidy in lieu of Export of Active Pharmaceuticals Ingredients (API) | 5.00 |
| 25. | Export Subsidy in lieu of Export of Batteries (HS code: 8507.10 and 8507.20) | 10.00 |
| 26. | Export Subsidy in lieu of Export of Synthetic and Artificial Fiber Yarn and Thread | 8.00 |
| 27. | a) Export Subsidy in lieu of Export of Software, ITES (Information Technology Enabled Services) and Hardware from Bangladesh<br>b) Export Subsidy for Export of Software, ITES and Services | 6.00<br>2.50 |
| 28. | Export Subsidy in lieu of Export of Pharmaceutical Products (Medicinal/Surgical Instruments and Appliances included) | 6.00 |
| 29. | Export Subsidy in lieu of Export of Smart Cycles | 6.00 |
| 30. | Export Subsidy in lieu of Export of Photovoltaic Modules | 6.00 |
| 31. | Export Subsidy in lieu of Export of Jewelry and Jewelry Products | 6.00 |
| 32. | Export Subsidy in lieu of Export of Ceramic Products | 6.00 |
| 33. | Export Subsidy in lieu of Export of Toys | 7.00 |
| 34. | Export Subsidy in lieu of Export of Cucumber and Pumpkin (Frozen, Softgel and Live) | 6.00 |
| 35. | Export Subsidy in lieu of Export of Galvanized Sheet/Coils (Coated with zinc, Coated with Aluminium and Zinc and Color Coated) | 6.00 |
| 36. | Export Subsidy in lieu of Export of Chemical Products (Dye, Hydrochloric Acid) | 5.00 |
| 37. | Export Subsidy in Export of Consumer Electronics, Electronic Components and Kitchen Appliances | 6.00 |
| 38. | Export Subsidy in Export of Rice | 3.00 |
| 39. | Export Subsidy in lieu of Export of Domestic Produced Tea | 2.00 |
| 40. | Export Subsidy in lieu of Export of Domestic Produced MS Steel Products | 2.00 |
| 41. | Export Subsidy in lieu of Export of Domestic Produced Bicycles and its Parts | 3.00 |
| 42. | Export Subsidy in lieu of Export of Domestic Produced Semiconductor Chips | 3.00 |
| 43. | Export Subsidy for Export of Specialized Oils (Mustard, Sunflower and High Tech Cooking) and Oil Cakes under the following categories of FEPD Circular No. 34/2021:<br>1) Export of Cotton Textile Sector (Excluding Special Cash Incentive for Export of Cotton Textile Sector) under sub-clause (a) of clause 1 of FEPD Circular No. 01, dated January 07, 2020<br>2) Export of Horticulture Products under Type-A and Type-B of sub-clause (b) of clause 1<br>3) Export of Other Products under sub-clause (a) of clause 1 of FEPD Circular No. 01, dated January 07, 2020 and sub-clause (c) of clause 1 | 2.00<br>2.00<br>0.30 |