In a recent move, the central bank of Bangladesh – the Bangladesh Bank (BB) – has clarified that the small and medium enterprises in the readymade garment sector of the country, which fail to export goods in a fiscal year, will not be eligible for cash incentives in the next fiscal year.

This the BB clarified in a circular issued recently.

As per the central bank’s laid down rules, an apparel entity, not owned by any large industry and having export volume worth up to US $ 5 million in a particular fiscal year, would be considered as small and medium apparel industry.

The small and medium enterprises in the apparel industries (including knit, woven and sweater) enjoy 4 per cent additional cash incentives, while a garment manufacturing unit gets up to 12 per cent cash incentive and 1 per cent special incentive against export proceeds.