Regulatory Alerts2025-11-12
Added
FEPD Circular No. 46: Special Export Subsidy to RMG Sector
The document extends the special cash subsidy for ready-made garment exports to sub-contracted products, provided the exporter owns an active factory and complies with the 2019 Sub-contracting Guidelines and 2024 Direct Export-Oriented Garment Industry Rules. Trading entities not involved in production are explicitly excluded from this benefit. These instructions apply to goods shipped from the date of the circular's issuance.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. 46.00.0000.046.01.001.25-164 FEPD Circular No. 46 Date: 27 Kartik, 1432 November 12, 2025
To: All Approved Dealer Banks Head Office/Principal Office.
Dear Sirs,
Special Cash Assistance for Export in the Garment Sector.
Your attention is invited to FEPD Circular No. 01, dated January 07, 2020, on the subject above.
- In accordance with the instructions of FEPD Circular No. 01, dated January 07, 2020, the manufacturing-exporter entity receives cash assistance on the net FOB value for the export of finished garments/garment products produced in its own factory. It is informed here by government decision that the following percentage export incentive/cash assistance will be applicable to products produced and exported through the sub-contracting process under the said facility, to the same extent as the principal garment manufacturing entity:
a) The manufacturing-exporter will be eligible for cash assistance on the net FOB value for the export of finished garments/garment products produced through the sub-contracting process by an entity/company that has its own active factory; b) In the case of the sub-contracting process, the "Sub-contracting Guidelines in the Garment Industry-2019" and the "Direct Export-Oriented Garment Industry (Temporary Import under Warehouse System, Warehouse Management and Procedure) Rules, 2024" must be followed; c) Trading entities/companies not involved in production will not be eligible for this facility.
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The said instructions will be effective for goods shipped from the date of issuance of this circular.
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All other instructions contained in the FEPD Circulars/Circular Letters issued regarding special cash assistance for export in the garment sector will remain unchanged.
This is circulated for the information of all concerned.
Yours faithfully,
(Md. Harun-Or-Rashid) Director (FEPD) Phone: 9530123