Bangladesh apparel exporters will now get cash incentives and subsidies from the government on exports with a 20 percent local value addition as the Bangladesh Bank recently announced lowering the threshold for value addition from 30 percent. Local value addition is calculated by deducting the import cost of materials used in production from the net free on board (FOB) export price. Exporters now receive 4 percent alternative cash assistance instead of customs bond and duty drawback in the export-oriented apparel sector.
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