Customs & Trade
Export Incentives Overview
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Visit the source page for more details: https://bangladeshcustoms.gov.bd/trade_info/preferential_center_ex
Executive Summary
Bangladesh offers a multi-layered export incentive regime designed to offset infrastructural disadvantages and keep the country's export-oriented sectors competitive in global markets. The principal mechanisms include cash incentives (ranging from 1% to 20% of FOB value depending on the product sector), duty drawbacks on imported inputs used in export production, bonded warehouse facilities that allow import of raw materials without upfront duty payment, back-to-back letter of credit facilities for subcontracting exporters, and the Export Development Fund (EDF) which provides working capital at concessional rates. Additional support comes through the Export Promotion Bureau's market development assistance, the Bangladesh Export Guarantee Company's credit insurance, and the Green Channel facility for priority exporters. Newer incentives include the Export Subsidy on diversification into non-traditional markets and the Cash Incentive on local procurement of raw materials. This page consolidates every active incentive scheme, links to the underlying statutory orders, and provides the circulars that operationalise each scheme.
Key Points
- Cash incentive: 1%–20% of FOB value, sector-specific, claimed quarterly via designated banks
- Duty drawback: refund of customs duty paid on imported inputs used in export production (Form DBKS)
- Bonded warehouse: import raw materials without upfront duty, audit-based reconciliation
- Back-to-back LC: subcontracting exporters can open LCs using master export LC as collateral
- Export Development Fund (EDF): USD-denominated working capital at LIBOR+1.5% (or equivalent)
- Export Subsidy (Diversification): additional 4% on exports to 28 non-traditional markets
- Local procurement incentive: 5% cash incentive on locally-sourced raw materials for export production
- Green Channel: faster customs clearance for verified AEO (Authorised Economic Operator) exporters
- Bangladesh Export Guarantee Company: credit insurance covering up to 90% of buyer default
- Market Development Assistance: cost-sharing for international fairs, trade missions, brand registration
Full Details
Comprehensive overview of all export incentives available to Bangladeshi exporters including cash incentives, duty drawbacks, bonded warehouse facilities, and back-to-back LC facilities.