Conditions eased for export incentives

Staff Correspondent

18 June, 2021 12:00 AM printer

The government has eased conditions of incentive for different export items of handicrafts and diversified jute products in a bid to boost exports.

The foreign exchange policy department (FEPD) of Bangladesh Bank issued a circular in this regard on Thursday.

The BB directive stated that modern technology can be used along with human hands in making handicrafts.

In this case, the physical labour of humans has to be included in operating technology or machineries. 

To be eligible for export incentives, the institution has to be approved by the sponsoring authority on the use of human physical labour along with the machineries or manufacturing technology, said Md. Shaidul Islam, General Manager of FEPD.  The government has been providing 10 percent incentive for exporting various handicraft items, made from hogla, straw, sugarcane, coconut husk, tree leaves, shells, garment’s fabrics and such other raw materials.

Other directives on export incentive issued by the central bank will remain unchanged.

Bangladesh Bank on Thursday also issued another directive on subsidy against the export of diversified jute products.

 According to the directive, the products produced by jute mixed with other materials except jute-made yarn and twine can also get subsidy. But in this case, more than 50 percent of product value has to be made from jute fiber to be eligible for export subsidy.

Currently, the diversified jute products have been getting 20 percent incentive on exports.