Apparel exporters in Bangladesh will get cumulative cash incentives up to 12 per cent. An exporter gets up to three types of cash incentives, out of four, against apparel exports. Apparel exporters get four per cent cash incentive as an alternative to duty bonds and duty drawbacks, four per cent for apparel product exports for small and medium industries, four per cent for exports of new textile and garment products and expanding export of textile items to new markets, markets other than the United States, Canada and the European Union, and two per cent cash incentives for exports of apparel products to the EU market in addition to the four per cent cash incentive. Earlier, there was a limit of 10 per cent incentives, even if the cumulative incentive was 12 per cent.

In September 2018, Bangladesh announced cash incentives in favor of exporters of 35 products, including apparel, for the current fiscal year of 2018-19. Cash incentives were introduced to the non-traditional market back in 2010, which were five per cent at that time. Owing to duty-free access and cash incentives, garment owners have now started exploring new destinations and markets. China, the world’s largest apparel supplier, now allows duty-free access to over 5000 Bangladesh products, which eventually has enhanced the export growth of the apparel sector.