Diversified jute products that are produced by hand or machine using 50 per cent jute will get export incentives as announced by the government. But finished jute items and jute yarn will not get this incentive facility, said a Bangladesh Bank circular on Thursday.
Jute hessian, sugarcane/coconut coir, leaves of trees and garment waste will get cash incentive for export if these items are produced using modern equipment and direct involvement of workers. The exporters must have registration from proper authorities and certificate from respective association approved by the commerce ministry, the circular said.
At present, the diversified jute products enjoyed 20 per cent cash incentive while the incentive for jute hessian, sugarcane/coconut coir, leaves of trees and garment waste is 12 per cent.
According to the use of hand in the production process as well as modern technology can be used if necessary. Direct use of manual labor in the use of modern technology in manufacturing activities must have involvement in this regards.
Sponsoring authority in favor of the use of machinery and manual labor must be registered and the instruction in question will be applicable in case of shipping from the date of issuance of the circular.
In all cases, the subsidy applicant must have an updated license under the Jute Act, 2017.
Other circulars applicable to export subsidy against export of jute goods are unchanged as usual, according to the central Bank circular.
