Government monetary incentives and subsidies on exports with a 20 per cent value addition are now available to apparel exporters in the country.
Bangladesh Bank has cut the value addition barrier from 30 per cent, according to a notice issued by the Foreign Exchange Policy Department (FEPD) of the central bank on April 9.
By subtracting the import cost of materials used in production from the net FOB (free on board) export price, local value addition is computed. Currently, exporters enjoy 4 percent alternative cash assistance instead of customs bond and duty drawback in the export-oriented apparel sector.
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