News Flash

DHAKA, Nov 13, 2025 (BSS) – Bangladesh Bank (BB) has allowed export incentives or cash assistance for the garments and textiles those products manufactured and exported through sub-contracting process.
“Under the new regulatory environment, production and export carried out through sub-contracting will now be eligible for the export incentive or cash assistance.
Crucially, this benefit will be applicable at the same rate and under the same terms as those afforded to the main ready-made garment manufacturer,” said a BB circular issued on Wednesday.
Previously, cash assistance was generally provided to producer-exporter entities based on the Net FOB value of ready-made garments or textile goods produced within their own factories.
To qualify for these benefits, producer-exporter companies engaging in sub-contracting must adhere to specific conditions.
As per the circular, the firm or company must possess its own operational factory. The producer-exporter company will be eligible for cash assistance on the Net FOB value when exporting ready-made garments or textile goods produced via the sub-contracting process.
Sub-contracting processes must strictly follow two specific regulatory documents- the Sub-Contracting Guideline for the Readymade Garment Industry – 2019 and the Rules for Direct Export-Oriented Garment Establishments (Temporary Import under Warehouse System, Warehouse Management, and Procedures) 2024.
It is specified that trading firms or companies not involved in production are not eligible for this extended facility.
The new directive is effective immediately for products that are shipped or vessel-loaded from the date the current circular was issued.