Export Processing Zone (EPZ) in Bangladesh:
Government has establish Export Processing Zones (EPZs) to attract foreign investment in Bangladesh. At present there are 8 EPZs in Bangladesh. Government has establish EPZs mainly to provide special areas to the potential investors where they would find a congenial investment climate.
- Bangladesh Export Processing Zones Authority (BEPZA)
Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the Bangladesh Government to promote, attract and facilitate foreign investment in the EPZs. Besides that BEPZA is the controlling Authority of the EPZs. BEPZA performs inspection & supervision of the compliances of the enterprises related to social & environmental issues, safety & security at work place in order to maintain harmonious labour-management & industrial relations in EPZs.
- How To Apply
Firstly the investor have to collect the Prescribed Project Proposal Form from BEPZA on payment of BDT 3000.00 (Three Thousand). Thereafter have to submit the Project Proposal Form along with the required documents and fees mentioned in the project proposal form. The filled up Project Proposal Form have to submit to the Executive Chairman of BEPZA.
- Who Can Apply
The following categories of investors can apply:
- 100% foreign owned including Bangladesh nationals ordinarily resident abroad.
- Join venture between foreign and Bangladesh entrepreneurs resident in Bangladesh.
- 100% Bangladesh entrepreneurs resident in Bangladesh.
In EPZs an Investor can enjoy the following facilities:
- No UD, IRC, ERC and renewal of Bond license
- Work permits issued by BEPZA
- Secured and protected bonded area
- Off-Shore banking available
- Import on Documentary Acceptance (DA) basic allowed
- Back to Back L/C
- Import and Export on CM basis allowed
- Import from DTA (Domestic Tariff Area)
- 10% sale to DTA (Domestic Tariff Area)
- Customs clearance at factory site
- Simplified sanction procedure
- Sub-contracting with export oriented Industries inside and outside EPZ allowed
- Relocation of foreign industries allowed
- Accords Resident-ship and Citizenship
- One Window same day service and simplified procedure.
- Fiscal Incentives
- 10 years tax holiday for the Industries to be established before 1st January, 2012 and tax exemption for Mongla, Ishwardi & Uttara EPZ for the industries set up after January 01, 2012
- Duty free import of construction materials
- Duty free import of machineries, 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
- Non-Fiscal Incentives
- 100% foreign ownership permissible
- Enjoy MFN (most favored nation) status
- No ceiling on foreign and local investment
- Full repatriation of capital & dividend
- Foreign Currency loan from abroad under direct automatic route
- Non-resident Foreign Currency Deposit (NFCD) Account permitted
- Operation of FC account by ‘B’ and ‘C’ type Industries allowed.
- Infrastructure Facilities
- Basic Infrastructure : Electricity, Water, &Gas
- Fully serviced plots available
- Factory building available on rental basis
- Enclave for workers Dormitory & Day Care Centre
- warehouse / Godown available
- Support Services
- Bank, Courier, Post office, C&F Agent, Shipping Agent, MTO etc.
- Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc.
- Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.
- Mode of Investment
Bangladesh adopted pragmatic strategy in order to attract more Foreign Direct Investment (FDI) by strictly maintaining win-win policy.
- Investment Guarantee
Foreign Private Investment (Promotion and Protection) Act, 1980 secures all foreign investment in Bangladesh. OPIC’s (Overseas Investment Corporation, USA) insurance and finance programmes operable. Security and safeguards available under Multilateral Investment Guarantee Agency (MIGA) of which Bangladesh is a member. Arbitration facility of the International Center for the Settlement of Investment Dispute (ICSID) available.