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BGMEA seeks 2% more cash incentive on exports to Sweden, Poland

BTJ Desk Report
BGMEA seeks 2% more cash incentive on exports to Sweden, Poland

Local apparel manufacturers have demanded an additional 2% cash incentive on the export of RMG products to Sweden and Poland as such export is being deprived of the facility.

Currently, RMG exporters enjoy 4% cash incentives if they export goods to non-traditional markets, excluding the EU, the UK, Canada, and the US, sources said.

Besides, they enjoy existing additional cash incentives for shipments to the countries under the EU block.

But, the apparel exporters to Sweden and Poland are not getting such special benefits unlike the exporters to other EU countries, they added.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently requested the government to take steps, so that the exporters to these two countries receive the incentive.

The government should take measures to provide the facility to the RMG exporters to Sweden and Poland, like the other EU countries, for the sake of the survival of the sector in the current competitive world, said a BGMEA document.

Currently, RMG export is facing difficulties due to the Russia-Ukraine war and its impact is now visible, it mentioned.

Prices of raw materials in the sector have increased due to higher inflation in different countries, including the US and the UK, it added.

Currently, the EU region is considered the major market for local RMG items.

Bangladesh’s apparel exports to the EU increased by 16.61% to $11.50 billion during the first half (July-December) period of the current FY23 compared to $9.87 billion during the same period of the previous fiscal FY22.


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