(a) General Conditions Applicable to Type A Industries

                 1.  Total investment cost of the project, including the cost of construction, must be financed by the entrepreneurs' own foreign exchange resources.

                2. The raw materials and the entire working capital requirement must be financed out of remittances received in convertible foreign currencies or export proceeds of the enterprise, including payment of rental, rates and taxes, wages and salaries, transportation and local materials, and repairs and maintenance.

                3. The entire products of the enterprise must be exported outside Bangladesh. However, the Government allows, under exceptional circumstances, sales in Bangladesh of any product manufactured in the zone. Such sales are payable in foreign exchange and subject to observance of other formalities, including payment of duties and taxes, if any, as applicable to imports.

                4. The industries must declare to Bangladesh Bank the f.o.b. value of the goods exported out of Bangladesh immediately after the actual shipment of the goods has been effected; the export proceeds, when realized, are allowed to be retained on convertible foreign currency accounts.

                5. No import duty, sales tax, octroi or other tax is levied on the import of capital machinery, instruments and equipment including replacements thereof, spare parts, raw materials, packaging materials, construction equipment and materials for use in EPZs.

                6. Bangladesh goods or raw materials sold against foreign exchange for use or processing in EPZs are treated as exports from Bangladesh and are subject to the usual export formalities including payment of export duty, if any such exports are eligible for export incentives as specified at that time.

                7. There is no excise duty on goods produced in EPZs and no export duty is levied on the export of such goods.

                8. The income, profits and gains of any industrial undertaking set up in a zone must be exempted from income tax payable under the Income Tax Act for a period of 10 years beginning with the month in which the commercial production of the undertaking is commenced without any condition of reinvestment. A rebate of 50 per cent of the income tax attributable to export sales of the undertaking is allowed after the expiry of 10 years.

                9. The undertaking company's office must be registered as a foreign company under the Companies Act.

                10. A foreign technician employed in a zone who is neither a citizen of taxable territories nor a resident in taxable territories in any of the four years immediately preceding the year of arrivel in taxable territories, is exempted from the payment of income tax on salaries for a period not exceeding three years from the date of arrival in the taxable territories provided that such salary is exempted from income tax in the country of domicile of the technician.

                11. The enterprise must submit its audited and certified annual statement of accounts to Bangladesh Bank and the registrar of joint stock companies.