Value addition criteria eased for apparel export subsidy
The government has eased the local value addition criteria for textile and garment makers to claim export subsidy.
The apparel manufacturers will now get export subsidy for 20 per cent value addition, which was earlier set at 30 per cent, according to a circular issued by Bangladesh Bank today.
Local value addition means the enhancement of the value of the unit price of the imported goods made at the factory.
It is calculated by deducting the import cost of materials from the net export price of the products.
So as per the latest circular, the apparel exporters will now get 4 per cent cash incentive for 20 per cent value addition.
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