circulars

BB allows export incentive for sub-contracted garment exports

Written by The Banking Post


Bangladesh Bank has issued a circular on November 12, 2025, following a government decision, stating that export incentives/cash assistance shall be applicable to garments and textile goods produced and exported under sub-contracting arrangements, subject to specific conditions.

According to the circular, manufacturer-exporters will be eligible for cash incentives on the net FOB value of readymade garments or textile goods produced through sub-contracting by enterprises or companies having their own active manufacturing units. In such cases, the provisions of 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” need to be duly followed.

However, trading firms or companies not directly involved in production will not be eligible for this benefit, the circular added.

As per business insiders, the government decision will facilitate export to USA under their first sales framework.


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