Bangladesh extends export sops to sub-contracted garment-textile firms

The benefit will apply at the same rate and under the same terms as those afforded to the main readymade garment manufacturer, a circular from the central bank said.

The new directive is effective immediately for products that are shipped or vessel-loaded from the date the current circular was issued.

Bangladesh Bank recently allowed export incentives or cash assistance for garment and textile firms whose products are manufactured and exported through sub-contractors.
The benefit will apply at the same rate and under the same terms as those afforded to the main manufacturer.
The directive is effective immediately for products that are shipped or vessel-loaded from the date the circular was issued.

Cash assistance earlier was generally offered to producer-exporter entities based on the net free on board (FOB) value of readymade garments or textile goods produced within their own factories.

Subcontractor companies must adhere to specific conditions to avail of these benefits. They must possess their own operational factory, according to domestic media reports.

Sub-contracting processes must strictly follow two specific regulatory documents—the sub-contracting guideline for the readymade garment industry introduced in 2019 and the rules for direct export-oriented garment establishments (temporary import under warehouse system, warehouse management and procedures) introduced in 2024.

Fibre2Fashion News Desk (DS)