BB has increased the export limit required for SMEs

Bangladesh Bank has increased the export limit required to avail 4 percent cash incentives for small and medium enterprises (SMEs) that export ready-made garments.

Prior to this, SME exporters could avail 4 percent cash incentive on exports worth less than $3.5 million. The ceiling has now been raised to exports worth less than $5 million. 

The central bank issued a circular in this regard on Sunday to all dealer banks permitted to trade in foreign currencies.

In order to encourage exports, the government used to offer cash incentives for only 35 categories of products. In the current fiscal year, consumer electronics and electrical home and kitchen appliances have also been added to this list.

Exporters can avail 10 percent cash incentive if they export products that fall into these two new categories, meaning, if they export goods worth Tk100, they will receive Tk10 as a cash incentive.

Depending on the product, exporters get 2 percent, 4 percent, 10 percent and 20 percent cash incentive. 

According to the circular, state-owned factories in economic zones and high tech parks can get 4% cash incentives after 30% value addition. To verify the export of certain products, the customs department will have to provide certificates.  

For repayment of cash incentives and export incentives, the exporters association has to issue a certificate. For those exporters who do not have an association, certificates have to be issued by the Export Promotion Bureau.