EPZ in Bangladesh | Facilities and Incentives for Investors

Types of Investors: Classification of the local and foreign Investors in all the EPZs (Export Processing Zone) of Bangladesh are as per the policy of BEPZA are:

• Type A: 100 percent foreign owned including Bangladesh nationals ordinarily resident abroad
• Type B: Joint venture between Foreign and Bangladeshi resident entrepreneurs
• Type C: 100 percent Bangladesh entrepreneurs resident in Bangladesh

Facilities and Incentives:

The authority provides various facilities and incentives for the investors in the EPZs. Below are some details of the list of Incentives & Facilities for the investors:

Fiscal Incentives:

• Duty free import of construction materials
• Duty free import of machinery, office equipment & spare parts etc
• Duty free import and export of raw materials and finished goods
• Relief from double taxation
• Exemption from dividend tax
• GSP facility available
• Accelerated depreciation on machinery or plant allowed
• Remittance of royalty, technical and consultancy fees allowed
• Duty & quota free access to EU, Canada, Norway, Australia etc
• 10 years tax holiday for the Industries to be established before 1st January, 2012

Duration and rate of tax exemption for Mongla, Ishwardi & Uttara EPZ for the industries set up after January 01, 2012 is as follows:

• First 03 years (1st, 2nd and 3rd year): 100 percent
• Next 03 years (4th, 5th and 6th year): 50 percent
• Next 01 year (7th year): 25 percent

Duration and rate of tax exemption for Chittagong, Dhaka, Comilla, Adamjee & Karnaphuli EPZ for the industries set up after January 01, 2012:

• First 02 years (1st and 2nd year): 100 percent
• Next 02 years (3rd and 4th year): 50 percent
• Next 01 year (5th year): 25 percent

Non-Fiscal Incentives:

• 100% foreign ownership permissible
• Enjoy MFN (most favored nation) status
• Foreign Currency loan from abroad under direct automatic route
• Full repatriation of capital & dividend
• No ceiling on foreign and local investment
• Non-resident Foreign Currency Deposit (NFCD) Account permitted
• Operation of FC account by 'B' and 'C' type Industries allowed

Facilities:

• 10% sale to DTA (Domestic Tariff Area)
• Accords Resident-ship and Citizenship
• Back to Back L/C
• Customs clearance at factory site
• Import and Export on CM basis allowed
• Import from DTA (Domestic Tariff Area)
• Import on Documentary Acceptance (DA) basic allowed
• No UD, IRC, ERC and renewal of Bond license
• Off-Shore banking available
• One Window same day service and simplified procedure
• Relocation of foreign industries allowed
• Secured and protected bonded area
• Simplified sanction procedure
• Sub-contracting with export oriented Industries inside and outside EPZ allowed
• Work permits issued by BEPZA

Infrastructure:

• Basic Infrastructure: Water, Electricity and Gas
• Fully serviced plots available
• Factory building available on rental basis
• Enclave for workers Dormitory & Day Care Centre
• Warehouse / Godown available

Support Services:

• Business: Courier, Post office, Bank, C&F Agent, Shipping Agent, MTO etc.
• Administrative: Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc.
• Others: Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.

Off-Shore Banking Units:

Foreign investors do not have the opportunity of availing credit facilities from the Different Financial Institutions (DFI) of Bangladesh. In order to cater the need of financial support off-shore Banking facilities is being provided to the foreign owned / Joint venture unit in the EPZ’s of Bangladesh. Presently Foreign Banks in Bangladesh have licentiates for doing off-shore banking:

• Citi N.A. Bank Ltd.
• Commercial Bank of Ceylon
• Dutch-Bangla Bank Ltd.
• HSBC Ltd.
• Standard Charter Bank Ltd.
• State Bank of India
• Woori Bank Ltd.

Apart from that local bank of Bangladesh also provide off-shore banking like:

• AB Bank Limited
• Bank Asia Ltd.
• BRAC Bank Ltd.
• Dhaka Bank Ltd.
• Eastern Bank Ltd. (EBL).
• IFIC Bank Limited
• Islami Bank Bangladesh Ltd.
• Jamuna Bank Ltd.
• Mercantile Bank Ltd.
• Mutual Trust Bank Ltd.
• National Bank Ltd.
• National Credit and Commerce (NCC) Bank Ltd.
• One Bank Ltd.
• Prime Bank Ltd.
• Pubali Bank Ltd.
• Shahjalal Islami Bank Ltd.
• South-East Bank Ltd.
• Standard Bank Ltd.
• The City Bank Ltd.
• The Premier Bank Ltd.
• Trust Bank Limited
• United Commercial Bank Ltd.

More local banks in the pipe-line to get off-shore Banking license from the central bank of Bangladesh. For more information’s please visit the official website of BEPZA.

Thanks,

Related:
Government Owned Economic Zones List from BEZA

Private Economic Zone list of Bangladesh

BEPZA |About Bangladesh Export Processing Zone Authority

About Adamjee Export Processing Zone | AEPZ

About Chattagram / Chittagong EPZ (CEPZ)

List of Investor in CEPZ

About Cumilla Export Processing Zone

About Dhaka Export Processing Zone | DEPZ

List of Investors in Dhaka EPZ

About Ishwardi Export Processing Zone | IEPZ

About Karnafuli EPZ, Chittagong

BEPZA Economic Zone in Mirsarai
Uttara EPZ in Nilphamari district
About Korean EPZ in Anowara Chittagong
Economic Zone for Tannery Industry in Chattogram