Export-oriented small and medium apparel factories manufacturing knitwear and sweaters with imported yarn or a combination of imported yarn will get additional cash incentives at the rate of 4%.
The incentive will only be applicable for industries ensuring at least 30% of local value addition.
However, entities already receiving duty drawback or customs bond facilities will not be considered for the cash incentives.
The Bangladesh Bank foreign exchange policy department on Tuesday issued a circular in this regard.
Earlier, the additional cash incentive was only applicable for small and medium factories manufacturing these clothing items with local yarn.
For instance, exports of $100 with 30% local value addition will get $1.2 cash incentive.
A garment factory gets up to 12% cash incentive and 1 % special incentive against export proceeds.
The additional cash incentive against small and medium clothing factories will be applicable against products which were shipped in the last fiscal year 2019-2020.
To get the additional incentive, the export-oriented small and medium factories have been asked to file applications along with required documents within 45 days from the issuance of the BB circular.