The small- and medium-sized clothing factories with zero export earnings in the previous fiscal year will not be eligible for the additional four percent cash incentive this year, said the Bangladesh Bank.
The central bank on Wednesday issued a circular in this regard.
The SME exporters whose export volume is below $5 million are currently enjoying the incentive as per a central bank directive issued in September 2019.
But the banks were confused about implementing the instruction as the minimum earning limit was not set.
Earlier, an export-oriented garment factory with up to $3.5m in export earnings was considered a SME.
Apparel exporters currently enjoy a four percent cash incentive against their exports to new destinations beyond the European Union, the US and Canada, four percent for export items produced from local fabrics, and two percent for exports to the euro zone markets.
On January 7 this year, the government made all readymade garment exporters eligible for the additional one percent cash incentive after lifting the previously imposed restriction.