Bangladesh Bank has expanded the scope of export incentives to include readymade garment products manufactured and exported under sub-contracting arrangements, in addition to those produced directly by manufacturing exporters.
The central bank issued a circular on Wednesday following a recent government decision to widen the benefit.
Until now, only garment and textile manufacturers exporting products made in their own factories were eligible for cash assistance based on the net Free on Board (FOB) value of exports.
Under the new directive, exporters will also receive the same rate of incentive for goods produced and exported through approved sub-contracting arrangements.
It means that when a licensed garment manufacturer assigns part of its production to another factory with active manufacturing units, the exported goods will qualify for cash assistance in the same way as the main producer鈥檚 own output.
However, the facility will not be available to trading firms or companies without their own production capacity.
The circular specifies that exporters must comply with the Sub-Contracting Guidelines for the Readymade Garment Industry, 2019 and the Regulations for Direct Export-Oriented Garment Industries (Temporary Import under Warehouse System, Warehouse Operation and Procedures), 2024 to qualify for the incentive.
BB officials said that the move will help garment exporters benefit under the United States鈥� first sale framework, which recognises transactions involving intermediate sellers in global supply chains.
The new provision takes effect immediately and applies to all relevant export shipments from the date of issuance.