Bangladesh Bank (BB) has issued comprehensive export incentive rates for 43 sectors effective from July 1 through December 31-2025 signaling the government's determination to boost exports across diverse industries.
The central bank's Foreign Exchange Policy Department released circular number 28 on July 10, 2025, establishing cash assistance rates ranging from 0.30 percent to 10 percent for various export categories.
The textile sector receives the most substantial support with multiple incentive tiers designed to accelerate export growth. Export-oriented textile manufacturers will receive 1.50 percent cash assistance as an alternative to existing duty drawback and bond facilities, while Euro zone textile exporters gain an additional 0.50 percent on top of the standard 1.50 percent rate.
Small and medium enterprises in the textile and apparel sector, including knit, woven, and sweater products, qualify for 3.00 percent assistance. New product and market expansion initiatives command premium rates of 2.00 percent for textile exports to America, Canada, EU, and UK markets beyond existing destinations.
Leather and leather goods exports maintain their 0.30 percent incentive rate, reflecting the sector's established export performance. Jute and jute products emerge as major beneficiaries with differentiated rates based on value addition levels.
Diversified jute products receive the highest 10.00 percent incentive rate, while final jute goods including hessian, sacking, and CBC products earn 5.00 percent assistance. Jute yarn and twine exports qualify for 3.00 percent incentives, with the stipulation that products must contain at least 50 percent jute fiber by value according to Jute Act 2017 definitions.
Agricultural and processed food exports receive substantial backing with 10.00 percent rates for leather goods, agricultural products including fresh and processed items, potatoes, light engineering products, and 100 percent halal meat and processed meat products.
The frozen fish sector operates on a tiered system where shrimp exports receive rates from 4.00 to 8.00 percent based on value addition percentages, while other frozen fish products earn 1.50 to 3.50 percent depending on processing levels.
Traditional export sectors maintain steady support with ceramic products, razors and razor blades, plastic goods, and locally produced paper products receiving 6.00 percent assistance. Pharmaceutical exports of Active Pharmaceutical Ingredients attract 5.00 percent incentives, while accumulator batteries earn 10.00 percent rates under specific HS codes.
Technology and modern manufacturing sectors receive targeted support with software, ITES, and hardware exports earning 6.00 percent rates, while individual freelancer remittances for software and ITES services qualify for 2.50 percent assistance. Pharmaceutical instruments, motor cycles, photovoltaic modules, and consumer electronics each to receive 6.00 percent incentives.
Chemical sector exports including chlorine and hydrochloric acid receive 5.00 percent assistance, while domestically produced tea, MS steel products, bicycles, and cement sheets earn 2.00 to 3.00 percent rates. Special economic zones including EPZ, IEPZ, and Hi-Tech Parks receive differentiated rates from 0.30 to 2.00 percent based on establishment types and product categories.
The circular mandates external audit verification for all export incentive applications during the specified period, referencing previous guidelines from FE circular 10 dated July 8, 2024. All relevant conditions and directives from related FE circulars remain applicable for incentive disbursement, ensuring compliance with established procedures.
Manufacturing units in leather industries located outside Savar industrial areas receive 6.00 percent incentives for both crust and finished leather exports, while pet bottle flakes and derived polyester staple fiber products earn similar rates.
Ship exports command 6.00 percent assistance, reflecting the government's emphasis on expanding non-traditional export sectors.
The comprehensive incentive structure demonstrates Bangladesh's strategic approach to export diversification while maintaining support for established sectors.
These rates apply specifically to shipments made between July 1 and December 31, 2025, providing clear guidance for exporters planning their operations during this crucial period.
The initiative reinforces Bangladesh's commitment to achieving higher export earnings through targeted financial support across its manufacturing base.
