Bangladesh Bank (BB) has authorised export incentives and cash assistance for garments and textile products manufactured and exported through sub-contracting arrangements.
According to a circular issued on Wednesday, the central bank stated that, under the new regulatory framework, production and exports carried out through sub-contracting would now qualify for export incentives or cash assistance. It said the benefit would apply at the same rate and under the same terms as those available to primary ready-made garment manufacturers.
Previously, cash assistance was generally provided to producer-exporters based on the Net FOB value of ready-made garments or textile goods produced within their own factories.
To qualify for the newly extended benefits, producer-exporter companies involved in sub-contracting must meet specific conditions. As outlined in the circular, the company must operate its own factory, and will be eligible for cash assistance on the Net FOB value of ready-made garments or textile goods produced through sub-contracting.
All sub-contracting activities must also comply with two 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.
The circular further clarified that trading firms or companies not engaged in production would not be eligible for the extended facility. The directive takes immediate effect for products shipped or vessel-loaded from the date of issuance.
Bharat Tex Special Report 2026 
