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2014-07-03

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FEPD Circular No. 28: Export subsidy/Cash incentive for the financial year 2014-2015

The document establishes export subsidies and cash incentives for specific goods exported between July 1, 2014, and June 30, 2015. It mandates a 5.00% cash incentive for domestic garments, 15.00-20.00% for hand-made products from jute/hemp, 20.00% for agricultural products, and varying rates for eggs, light engineering, halal meat, frozen prawns, leather, ships, potatoes, PET bottles, and jute products. It also provides a 3.00% incentive for new market expansion in garments (excluding USA/Canada/EU) and a 5.00% additional benefit for small and medium enterprises in the garment sector.

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Bangladesh Bank

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Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. FEPD Circular No. 28 Date: ----------------- July 03, 2014

To All Approved Dealers of Foreign Exchange Transactions,

Dear Sir,

Regarding the provision of export subsidy/cash incentive against exports for the fiscal year 2014-2015.

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 export sector for the fiscal year 2014-2015, similar to previous years. In light of this decision, export subsidy/cash incentive shall be payable at the rates mentioned below per Taka against the export of the following products shipped during the period from July 01, 2014, to June 30, 2015:

Name of Product | Applicable Rate

  1. Cash incentive in lieu of Bond and Duty Drawback for export-oriented domestic garment sector | 5.00%
  2. Cash incentive for hand-made products exported from jute, hemp, bagasse, etc. | 15.00-20.00%
  3. Export subsidy for agricultural products (vegetables/fruits) and processed (agro-processing) agricultural products | 20.00%
  4. Cash incentive for egg powder export sector | 15.00%
  5. Subsidy for light engineering products export sector | 10.00%
  6. Export subsidy for 100% Halal meat export sector | 20.00%
  7. Cash incentive for frozen prawn export sector | 10.00%
  8. Cash incentive for leather goods export sector | 15.00%
  9. Export subsidy against ship export | 5.00%
  10. New product/new market (garment sector) expansion assistance (excluding America/Canada/EU) (Special assistance by the government for the period from January 01, 2014, to June 30, 2015, including 1%) | 3.00%
  11. Additional benefit for small and medium industries in the garment sector (existing rules) | 5.00%
  12. Cash incentive for potato export sector | 20.00%
  13. Export subsidy against PET bottle-flake export | 10.00%
  14. Cash subsidy for jute goods export sector: a) Final jute goods (excluding jute yarn) b) Jute yarn | 10.00% 7.50%

All other percentages applicable to all FEPD Circulars/circular letters regarding the provision of export subsidy/cash incentive shall remain unchanged as per usual practice.

All concerned parties are requested to take note of this.

Yours faithfully,

(Md. Zakir Hossain Chowdhury) Deputy General Manager Phone: 9530250

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