The apex garment manufacturers body in Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is for special export incentives for foreign and domestic joint venture entities that are located in the country’s Export Processing Zones or EPZs.
According to media reports, BGMEA President Dr Rubana Huq has reportedly written a letter in this direction to Commerce Minister Tipu Munshi seeking 1% special incentives for 100% foreign as well as joint venture (between domestic and foreign entities) companies. The traders’ body has reportedly underlined that owing to the fallouts of the coronavirus pandemic, type A and B companies which export garments to the USA and Canada, including the EU, and located at EPZs and Economic Zones (EZs) need 1% special cash assistance.
It may be mentioned here that there are three types of factories housed in the EPZs – type A, type B and type C. Type A are those that are 100% foreign-owned, as well as owned by non-resident Bangladeshis, type B factories are those set up under a joint venture between overseas and Bangladeshi entrepreneurs and type C consists of 100% Bangladeshi-owned enterprises.According to reports, type C factories are getting 1% cash incentive for exports to the EU, USA and Canada from the fiscal year 2019-20, which is in addition to the benefits.
