Tech-aided handicraft exports to get 10% cash incentives

Exporters of products made using technology from hogla leaves, straw, sugarcane, coconut husk, tree leaves or shells, and scrap fabrics will enjoy 10% cash incentives, the government announced on Thursday.

Previously, this incentive was only available to exporters of handmade products made from these materials.

Modern technology can be used in producing goods from the materials as per the national industrial policy to be eligible for cash assistance, according to a circular issued by the Foreign Exchange Policy Department (FEPD) of the central bank. 

However, the technology cannot be fully automated, meaning there must be direct involvement of labour in the use of technology, the circular noted.

Meanwhile, cash assistance will also be available in diversified jute products export, made either by hand or using machines.

Besides, export products eligible for cash assistance must be produced using jute worth more than 50% of its selling price. In other words, if the price of any product is Tk100, then jute worth more than Tk50 must be used in it.

"With the advent of modern technology, these handmade products are now being produced in machines as well. But there was a complication with the word 'handmade' in the cash assistance policy," a central bank official told The Business Standard.

 "The matter was clarified in the latest circular. From now on, cash assistance will be available against the export of these products produced by hand as well as machines," he said.

Currently, 20% cash assistance is provided in export of diversified jute products. The rate is 7% and 12% for jute yarns and finished jute products respectively.

The government determines the rate of cash assistance and the list of eligible products for such incentives every financial year.