Government Publication
Cash Incentive Policy for Exporters 2024
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Executive Summary
The Cash Incentive Policy for Exporters 2024, operationalised via Bangladesh Bank Circular EF-3 dated 4 September 2024, consolidates all cash incentive rates applicable for FY2024-25. The policy covers 35 product categories with incentive rates ranging from 1% to 20% of FOB value. The highest rate (20%) applies to exports of locally-manufactured bicycles and bicycle parts, while the lowest (1%) applies to exports of jute yarn. New additions in 2024 include: 10% on processed agricultural foods (HS 02-22), 8% on light engineering products including hand tools and simple machinery, 5% on exports to 28 designated non-traditional markets (including Australia, New Zealand, Brazil, South Africa, and 24 African LDCs), and 5% on local procurement of raw materials used in export production. Claim procedure requires quarterly submission of EE-2 return to the exporter's bank, supported by EXP forms, customs-verified B/L copies, and bank realization certificates. Payment is made within 60 days of claim submission via cross-currency settlement.
Key Points
- Effective FY2024-25 (Bangladesh Bank Circular EF-3, 4-Sep-2024)
- 35 product categories with 1%-20% incentive rates
- Highest: 20% on locally-manufactured bicycles and parts
- Lowest: 1% on jute yarn
- NEW 2024: 10% on processed agricultural foods
- NEW 2024: 8% on light engineering products
- NEW 2024: 5% on exports to 28 non-traditional markets
- NEW 2024: 5% on local procurement of raw materials for export production
- Claim: quarterly EE-2 return via designated bank
- Documents: EXP forms, B/L copies, bank realization certificates
- Payment: within 60 days of claim submission
Full Details
Government cash incentive rates for different export sectors. RMG, jute, leather, agro-processing receive different incentive percentages.