Saturday, July 8, 2017

What are the Privileges Enjoyed by the RMG Sector?

Answer


Duty drawback scheme: The RMG sector benefits from a duty drawback scheme for raw materials whereby import duties paid on these materials are reimbursed to the importer upon execution of an export order;

Bonded warehouse: Raw materials for garments manufacturing may be imported without duty payments. It is kept in Bonded Warehouse under control of custom authority.

Reduced corporate income tax;

Cash incentives: The government operates a Cash Compensation Scheme (CCS) through which domestic suppliers to export-oriented RMG units receive a cash payment equivalent to 10 percent of the value added of exported garments.

Tax Free Import of Capital Machinery for 100% export oriented RMG industry.

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