Cash incentives against exports are extended by Bangladesh Bank for an additional month

50 Star US Inc.

A few adjustments have been made to the decision to lower export incentives for forty-three sectors, including leather and manufactured apparel, in order to get ready to move away from LDCs. According to a recent circular from Bangladesh Bank, the monetary incentives against exports will continue to be offered at the prior rate for an additional month.

Following a 12-day period, Bangladesh Bank decided to prolong the incentive reduction decision's effective term by one month, making it effective in February rather than January.

Simultaneously, the central bank has chosen to reimburse the incentives that were lost on some apparel industry products. According to the circular, there will be incentives in place to discourage the export of these goods through June of next year.

Export incentives and financial assistance will be extended to men's shirts (HS code 6105), men's sleep and night shirts, pajamas, before and after bathing clothes (HS code 6107), T-shirts, athletic wear (HS code 6109), jerseys, cardigans, West Coats National Wear (HS Code 6110), men's jackets, suits, blazers, trousers, children's neckerchiefs, brace overalls, breeches and shorts (excluding swimwear) National Wear (HS Code 6203).

The government published a list on January 30 listing the removal of financial aid and incentives intended to discourage the export of certain types of clothing. Exporters will now receive incentives ranging from 0.5 percent to a maximum of 15 percent, as opposed to the previous maximum of 1 percent and 20 percent, as per the list.

Then, apparel exporters protested against the incentive's removal. They say there will be pressure on the apparel industry. The head of state and legislators were also met by the industry's business leaders. In response to the businessmen's desire, the prior circular was modified and the new incentive list was released. After the LDC graduates, this incentive must be removed; Bangladesh Bank advises reducing the monetary incentive gradually to avoid putting undue pressure on the remaining graduation term.