Incentive is a form of cash subsidy provided to the export oriented industries under certain rules and regulations. The incentive is provided to the domestic textile, garment, jute, lather, fish, frozen foods and other non-traditional items.

Incentive is given as a percentage of the FOB value of Exported goods. The goods are to be manufactured in Bangladesh and has to strictly follow the Rules of Origin (ROO) in respect of inputs to the manufactured, processed or reprocessed goods.

Sometimes It takes a long time for exporters to receive cash incentive from the concern disbursing authority. Banks, at this stage usually finance the exporters against incentives receivable at a concessional rate of interest. In such cases, all the relative shipping documents are negotiated through the financing bank and all the claims for incentives are routed through the bank for registering the claims with the relevant departments or agencies. To ensure that the claims are payable directly to the bank, a declaration by the exporter authorizing payment to the bank is required to be registered with the concerned department or agency.