Export Processing Zones (EPZs) are export oriented industrial enclaves which provide the infrastructures, the facilities, administrative and support services for a wide variety of enterprises. Bangladesh’s highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments around the country.
The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, and location free from cumbersome procedures. Businesses from 32 countries have so far invested in the existing zones. If you are interested in setting up your business in an EPZ, the Board of Investment will be pleased to advise you and introduce you to BEPZA
There are currently eight zones (with others due to open in the next few years).
|
Name of EPZ |
No. of industries |
Investment (m US$) |
Export (m US$) |
Employment |
|
|
Manufacturing |
Under implementation |
||||
|
Chittagong |
161 |
15 |
801.86 |
12,384.12 |
1,55,121 |
|
Dhaka |
98 |
06 |
738.41 |
10,259.24 |
78,985 |
|
Comilla |
26 |
18 |
122.33 |
497.18 |
9,040 |
|
Mongla |
06 |
06 |
2.66 |
65.09 |
152 |
|
Uttara |
08 |
04 |
10.19 |
5.68 |
4,023 |
|
Ishwardi |
08 |
11 |
31.09 |
27.08 |
4,407 |
|
Adamjee |
21 |
27 |
110.98 |
143.35 |
14,163 |
|
Karnaphuli |
23 |
27 |
118.34 |
166.97 |
16,501 |
|
Total |
351 |
114 |
1,935.86 |
23,548.71 |
282,392 |
Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance
Incentives & Facilities in EPZ
Fiscal Incentives
1. 10 years tax holiday for the Industries to be established before 1st January, 2012 and Industries to set up after 31st December, 2011 tax holiday period will be:
|
Tax exemption period |
Rate of tax exemption |
|
First 02 years (1st and 2nd Year) |
100% |
|
Next 02 years (3rd and 4th Year) |
50% |
|
Next 01 years (5th Year) |
25% |
2. Duty free import of construction materials
3. Duty free import of machineries, office equipment & spare parts etc.
4. Duty free import and export of raw materials and finished goods
5. Relief from double taxation
6. Exemption from divident tax
7. GSP facility available
8. Accelerated depreciation on machinery or plant allowed
9. Remittance of royalty, technical and consultancy fees allowed
10. Duty & quota free access to EU, Canada, Norway, Australia etc.
Non – Fiscal Incentives
1. 100% foreign ownership permissible
2. Enjoy MFN (most favored nation) status
3. No ceiling on foreign and local investment
4. Full repatriation of capital & dividend
5. Foreign Currency loan from abroad under direct automatic route
6. Non-resident Foreign Currency Deposit (NFCD) Account permitted
7. Operation of FC account by 'B' and 'C' type Industries allowed.
Facilities, Administration and Services
1. No UD, IRC, ERC and renewal of Bond license
2. Work permits issued by BEPZA
3. Secured and protected bonded area
4. Off-Shore banking available
5. Import on Documentary Acceptance (DA) basic allowed
6. Bank of Back L/C
7. Import and Export on CM basis allowed
8. Import from DTA (Domestic Tariff Area)
9. 10% sale to DTA (Domestic Tariff Area)
10. Customs clearance at factory site
11. Simplified sanction procedure
12. Sub-contracting with export oriented Industries inside and outside EPZ allowed
13. Relocation of foreign industries allowed
14. Accords Residentship and Citizenship
15. One Window same day service and simplified procedure
If you are interested in setting up your business in an EPZ, the Board of Investment will be pleased to advise you and introduce you to BEPZA