Bangladesh Export Processing Zones Authority (BEPZA)

Bangladesh Export Processing Zones (EPZs) are designed for foreign direct investment in a wide range of areas in Bangladesh. There are eight Export Processing Zones situated at suitable locations in different parts of the country.

          Bangladesh allows foreign investment in EPZs in convertible foreign currencies with the option of establishing public or private limited companies, or sole proprietorship or partnership undertakings. Industries allowed to be established in EPZs are classified as follows:

Type A: 100 per cent foreign-owned firms, including investment by Bangladeshi nationals ordinarily resident abroad.

Type B: Joint venture projects between foreign and Bangladeshi entrepreneurs resident in Bangladesh.

Type C: 100 per cent Bangladeshi entrepreneurs resident in Bangladesh.

Incentives offered in Export Processing Zones by the BEPZA are:

Fiscal incentives

                  Tax holiday for 10 years;

                  Exemption of income tax on interest on borrowed capital;

                  Relief from double taxation subject to bilateral agreements;

                  Complete exemption from dividend tax for three years subject to certain  conditions;   

                  Exemption of income tax on salaries of foreign technicians for three years subject to certain conditions;

                  Duty-free import of machinery, equipment and raw materials;

                  Duty-free import of three motor vehicles under certain conditions;

                  Duty-free import of materials for constructing factory buildings; and

                  Duty-free export of goods produced in the zones.

Non-fiscal incentives

                  Project expansion and product diversification without permission;

                  Off-shore, local and international banking facilities;

                  Freedom from national import policy restrictions;

                  Expeditious import of raw materials on a documentary acceptance basis;

                  Import of goods from the domestic tariff area (DTA);

                  Option to sell 10 per cent of output to DTA under certain conditions;

                  Option to relocate existing industries from abroad;

                  Option to relocate from one zone to another;

                  Option to subcontract within the zone;

                  Inter-zone export and intra-zone export;

                  Customs formalities carried out at enterprise site;

                  Liberal allowance of expatriate employment (technicians/experts);

                  No unions or strikes are allowed;

                  Equal rights with Bangladeshi nationals for foreign employees.

Facilities

               Secured and protected industrial area;

               Land and factory buildings for rent;

               Electricity, telecommunication, gas and water facilities;

               Export and import permits issued in one day;

               Work permits for foreign nationals;

               Recreational facilities for foreign nationals;

               Only one authority (BEPZA) to deal with for all operational purposes

Export Processing Zones provide excellent investment promotion and protection package which has been enshrined in the Foreign Private Investment (Promotion and Protection) Act 1980. The facilities and incentives enjoyed by foreign direct investment in EPZs across Bangladesh are stipulated in the set of regulations and circulars as given below:

I.          Circular on Capital Investment Issues

II.         Customs Regulations

III.        Foreign Exchange Regulations

IV.        Income Tax Regulations

There are about 255 units of industries under foreign direct investments operating in 20 sectors in 8 EPZs across Bangladesh. A list of foreign enterprises in EPZs of Bangladesh is given in clickable tabular form.

Contact: BEPZA