An Act for the establishment of the Bangladesh Export Processing Zones Authority. Whereas it is expedient to make provision for the establishment of the Bangladesh Export Processing Zones Authority for creation, development, operation, management and control of Export Processing Zones and for matters connected therewith.

It is hereby enacted as follows:
1. Short title and commencement:
A. This Act may be called the Bangladesh Export Processing Zones Authority Act, 1980.
B. It shall come into force on such date I as the Government may, by notification in the official Gazette,appoint.

2. Definitions:
In this Act, unless there is anything repugnant in the subject or context,-
"Authority" means the Bangladesh Export Processing Zones Authority established undersection3-1
"Board" means the Board of Governors of the Authority;
"Executive Board" means the Executive Board of the Authority;
"Executive Chairman'' means the Executive Chairman of the Board;
"Prescribed" means prescribed by rules made under this Act; and
"Zone" means a place or places to be specified by the Government under section I 0 as an Export Processing Zone for the purposes of setting up export-oriented industries.

3. Establishment of the Authority:
A. As soon as may be after the commencement of this Ac the Government shall, by notification in the official Gazette, established an Authority to be called the Bangladesh Export Processing Zones Authority for carrying out the purposes of this Act.
B. The Authority shall be a body corporate having perpetual succession and a common seal, with power to acquire, held and dispose of property, both movable and immovable,and shall by the said name sue and be sued.
 

['This Act has come into force on the 14" April, 1981, vide notification no. SRO 113-L/81, dated 13-4-1981, published in the Bangladesh Gazette, Extra, dated 13-4-1981, page 781.
'Subsituted by ordinance No. Lll of 199 6, s. 2, for section 2. 15,h
'Tbe Bangladesh Export Processing Zones Authority was established on the April, 1991, ide
Notification No. SRO 11-L/81, dated 15-4-1981, published in the Bangladesh Gazette,
Extra. dated 15-4-1991, page 783.]

3A. General direction:
A. The General direction and administration of the affairs of the Authority shall vest in the Executive Board which may, subject to sub-section (2), exercise all powers and do all acts and things as may be exercised or done by the Authority.
B. The Executive Board, in discharging its functions, shall act in accordance with the guidance, order and instructions given by the Board of Governors of the Authority from time to time.

4.Head office, etc. :
A. The Head Office of the Authority shall be located at Chittagong.
B. The Authority may establish its offices and branches at such places as it may deem fit.

4A. Objects of the Authority:
The objects of the Authority shall be -
A. to foster and generate economic development of Bangladesh by encouraging-and promoting foreign investments in a zone;
B. to diversify the sources of foreign exchange earnings by increasing export of Bangladesh through a zone;
C. to encourage and foster the establishment and development of industries and commercial enterprises in a zone in order to widen and strengthen the economic base of Bangladesh;
D. to generate productive employment opportunity and to upgrade labour and management skills through acquisition of advanced technology.

5. Board of Governors:
There shall be a Board of Governors of the Authority which shall subject to provision of sub-section (3), consist of the following members namely;
A. Chairman;
B. Minister-in-Charge of the Ministries or Divisions dealing with industries, commerce, finance, planning,foreign affairs, energy and ports and shipping, ex-officio;
C. Governor, Bangladesh Bank, ex-officio;
D. Secretaries of the Ministries or Divisions dealing with industries, commerce, finance, planning, foreign affairs, energy, ports and shipping and internal resources, ex-officio;
E. Chairman of the Executive Board, who shall also be the Secretary of the Board, ex-officio; (2) The 5 [Prime Minister], or a member, who is a Minister nominated by the 5 [Prime Minister], shall be the Chairman of the Board.

[1 Section 3A was inserted by Ordinance No.Lll of 1986, s.3.
2Section 4A was inserted by Ordinance NO.XLIX of 1984, s.2.
3The semi-colon was substituted for the full-stop at the end of clause (b) and thereafter new clauses (c) and (d) were added by Ordinance No. Lll of 1986 s.4.
4 Substituted, ibid, s.5, for sections 5 and 6.
5 The words "Nme Minister" were substituted for the word "Presidenf'by Act. XXX of 1992, s. 2.
7(3) The Government may, by notification in the official Gazette, include in the Board any person or exclude from the Board any member with approval of the Prime Minister.]

5A. Functions of the Board:
1. The Board-
A. Shall formulate the policies for operation and management of the Authority and zones;
B. Shall review, from time to time, the activities and performance of the Executive Board and the zones;
C. May give orders or issue instructions which are deemed appropriate for the purpose of efficient management of the affairs of the authority and the zones.

2. The policies formulated, orders given and instructions issued by the Board shall be deemed to be the policies formulated, orders given and instructions issued by the government and shall be followed accordingly; and they shall not require any formal approval of any Ministry or Division dealing with the matters for their implementation.

5B. Executive Board:
1. There shall be an Executive Board of the Authority consisting of a Chairman and three other members.
2. The Chairman of the Executive Board shall be called the Executive Chairman and he shall be the Chief Executive Officer of the Authority.
3. The Executive Chairman and other members of the Executive Board shall be appointed by the Government and shall hold office on such terms and conditions as the Government may determine.
4. If a vacancy occurs in the office of the Executive Chairman or if the Executive Chairman is unable to discharge the functions of his office on account of his absence, illness or any other cause, the Government shall make such arrangement for discharging the functions of the Executive Chairman as it may consider expedient.
5. No act or proceeding of the Executive Board shall be invalid or be called in question merely on the ground of any vacancy in, or any defect in the constitution of the Executive Board.

6.Meetings:
1. Same as provided in this section, the Board of Governors and the Executive Board shall regulate the procedure for their meetings.
2. All meetings of the Board of Governors shall be convened by the Secretary of the Board in consultation with its Chairman and shall be held at such times and places as may be determined by him.
 

[6 The words comma number and bracket "shall subject to provisions of sub-section (3), consist" were substituted for the words "shall consist" by Act XXII of 1994, s.2.
7Sub-section (3) was inserted by Act XXI I of 1994 s. 2.]

3. All meetings of the Executive Board shall be convened by the Executive Chairman and shall be held at such times and places as may be determined by him.
4. All meetings of the Board of Governors shall be presided over by its Chairman and, in his absence, by a member of the Board who is a Minister, authorised by the Chairman.
5. All meetings of the Executive Board shall be presided over by its Chairman.

6A. Consultative Committee:
1. 2 [The Executive Board shall, in the discharge of its functions, be aided] and advised by a Consultative Committee which shall consist of the following members:
A. One member to be nominated by the Internal Resources Division from among its officers;
B. One member to be nominated by the Ministry of Industries from among its officers-
C. One member to be nominated by the Ministry of Commerce from among its officers;
D. One member to be nominated by the Export Promotion Bureau from among its officers;
E. One member to be nominated by the Finance Division from among senior bankers;
F. One member to be nominated by the Ministry of Industries from among ' prominent industrialists;
G. One member to be nominated by the Government from among industrialists of each zone;
H. Director General, Department of Industries, or his nominee-,
I. Division Chief (Industries), Planning Commission;
J. Commissioner of the Division in which a zone is situated or his nominee;
K. Chair-man of the Water Supply and Sewerage Authority within the area of which a zone is situated;
L. Chairman of Chittagong Port Authority or Port of Chalna Authority to be nominated by the Government;
M. Chairman of the body, by whatever name called, responsible for the development or improvement of the urban area within which a zone is situated-,
 

['Section 6A was inserted by Ordinance No. XLIX of 1984. s.5.
'Substituted by Ordinance No. Lll of 1986, s. 7(a), for "The Authority shall in the dicharge
of its functions, be aided',]

N. Chairman, Bangladesh Small and Cottage Industries Corporation;
O. One member to be nominated by the Federation of Bangladesh Chamber of Commerce and Industry;
P. Four members to be nominated by the Federation of Bangladesh Chamber of Commerce and Industries, one from among Presidents of Chamber of Commerce and Industry of each Division;
Q. One member to be nominated by the Authority from among the owners or shareholders of the enterprises set up in a zone;
R. One officer of the Authority to be nominated by it who shall also be the Secretary of the Consultative Committee; and
S. Such other members as may be nominated by the Government.

2. The '[Executive Chairman] shall ex-officio be the Chairman of the Consultative Committee.

3. The meetings of the Consultative Committee shall be convened by its Chairman and shall be held at such times and places as may be deten-nined by him.

4. All meetings of the Consultative Committee shall be presided over by 3[itS Chairman] or, in his absence, by a member of the [Executive Board authorised by him.]

5. To constitute a quorum at a meeting of the Consultative Committee not less than one-third of the total number of its members shall be present.

6B. Post Sanction Clearance Committee:
1. There shall be a committee to be called the Post Sanction Clearance Committee.

2. The committee shall be consist of the following members, namely:
A. Executive Chain-nan, ex-officio, who shall be its Chairman-,
B. Controller of Capital Issues, ex-officio-I
C. Registrar of Joint Stock Companies, ex-officio;
D. General Manager, Exchange Control Department, Bangladesh Bank, exofficio;
E. An officer of the Authority to be nominated by it, who shall also be the Secretary of the Committee.

3. The Committee shall assist the Executive Board in matters of registration of companies, capital issues and foreign exchange transactions in respect of, and in all other matters connected with the operational needs of, sanctioned industries in a zone.

[Substitued by Ordinance No. LIT of 1986, s. 7(b), for "Chairman qfthe Authority".
Substitued, ibid., s. 7(c), for sub-section(3). 'Substitued, ibid., s. 7(d)(i), for "the Chairman
'Substitued, ibid., s. 7(d)(ii), for "Authority Authorised by him in this behalf'. 'Section 6B was inserted, ibid., s. 8.]

4. Same as provided in this sections, the Committee shall regulate the procedure of its meetings;
Provided that the Committee shall meet at least once in a month.

5. The meetings of the Committee shall be convened by its Secretary and shall be presided over by its Chairman.

7. The functions of the Authority:
The Functions of the Authority shall be-
A. to take possession of land to be acquired or requisitioned by the Government for the purpose of creation and development of a zone;
B. to allot land and building spaces in a zone to investors on sale, lease or on rent and to allow them to mortgage the allotted lands for raising loan from financial institutions or commercial banks;
C. to provide infrastructure facilities, including building, utilities and ware houses;
D. to process application for setting up industries within a zone and accord sanction in accordance with the guidelines given by the Government from time to time; ties in accordance with customs
E. to provide customs bonded facilities in materials for regulations for importation into a zone of building construction purposes and packaging materials, raw materials and intermediate goods for the purpose of processing for exports;
F. to allow import of raw-materials or semi-processed or other goods required for use in the zone processed or other goods to be specified by the '[Board] in such manner as may be prescribed;
G. to assist in transportation of imported raw-materials and intermediate goods in bonded conditions and export of finished products;
H. to provide necessary banking facilities within the zone in consultation with the Bangladesh Bank;
I. to establish liaison with the port, municipal and other authorities to make arrangement for transportation of imported raw-materials and intermediate goods on bonded condition and for export of finished products;
J. to sanction employment of foreign nationals in accordance with the guidelines given by the Government from time to time, to posts for which local expertise is not available for efficient running of the industries in a zone;
 

[subject to the approval of the Government, to enter into any contract or agreement of any kind for the purposes of this Ordinance;]
[Substitued by Ordinance No. Lll of 1986, s. 9(a), for clause (b).
Substitued by Ordinance No. XLIX of 1994, s. 6(a), for clause(d).
Substitued by Ordinance No. Lil of 1986, s. 9(b), for"Govemment".]

K. to do such other act sand thing sas may be necessary to be done connection with, or conductive to, the performance of the aforesaid function.

7A. Establishment, etc., of warehouses:
Notwithstanding anything contained in this Act, the Authority may, if the Government so directs, set up, maintain and manage public warehouses at any place in Bangladesh to provide customs bonded facilities in accordance with customs regulations for importation into Bangladesh of raw materials, packaging materials, semi-processed goods and accessories required for export oriented industries.]

8.Fund:
1. There shall be a fund of the Authority to which shall be credited-
A. grants and loans from the Government;
B. loans from such other sources as the Government may approve;
C. proceeds from the land allotted for setting up of industries in the zone;
D. rental of buildings leased out to the industries set up in the zone;
E. fees and service-charges, if any, received for services rendered;
F. any other sums not specified accruing to or due to the Authority from other source.

2. The fund of the authority shall be used to meet expenditure in connection with the functions of the authority under its Act.

9. Power to borrow:
The Authority may borrow money for carrying out the purposes of this Act.

10. Power to create zone:
The government may, by notification in the official Gazette, declare any place or places to be specified in the notification to be an Export Processing Zone for the purposes of this Act.

11. Acquisition of land for a zone:
Where any land or any interest in any land is required by the Authority for any of its purposes under this Act that land or the interest therein may be acquired by the Government under *Land Acquisition Act, 1894 (I of 1894), for the Authority and the land or interest therein so acquired shall be deemed to be required for a public purpose.
 

['Clause) was inserted by ordinance No. XLIX of 1984, s. 6(b).
Section 7A was inserted by ordinance No. Xill 1985, s.2.
'The commas and words, "with the prior approval of the Government," were omitted by ordinance No. XLIX of 1984. s.
'Section I IA was inserted by ordinance No. XLIX 1984, s.8.
*Read the Acquisition and Requisition of Immovable Property Ordinance. 1982(Ord. No, 11 of 1982).]

11A.Power to exempt zones from operation of certain laws:
The Government may, by notification in the official Gazette, exempt a Zone from the operation of all or any of the provisions of all or any of the following enactments or, direct that any such enactment or any provision thereof shall, in its application to a zone, be subject to such modifications or amendments as may be specified therein, namely:
A. The Stamp Act, 1899 (11 of 1899)-
B. The Companies Act, 1913 (VII o@ 1913);
C. The Excises and Salt Act, 1944 (I of 1944);
D. The Foreign Exchange Regulation Act, 1947 (VII of 1947);
E. The Employment of Labour (Standing Orders) Act 1965 (VIII of 1965);
F. The Industrial Relations Ordinance, 1969 (XXIII of 1969);
G. The Land Development Tax Ordinance, 1976 (XLII of 1976);
H. The Income-Tax Ordinance, 1984 (XXXVI of 1984)
I. The Municipality Taxation Act, 1881 (Ben. Act IX of 188I),
J. The Explosives Act, 1884 (IV of 1884);
K. The Electricity Act, 191 0 (IX of 191 0);
L. The Boilers Act, 1923 (V of 1923)-
M. The Building Construction Act, 1952 (E.B. Act 11 of 1953);
N. The Fire Service Ordinance, 1959 (E.P. Ordinance XVII of 1959);
O. The Factories Act, 1965 (E.P. Act IV of 1965);
P. The Chittagong Municipal Corporation Ordinance, 1982 (XXV of 1982).

11B. Committees:
In addition to the committees constituted under this ordinance, the Board of Governors or the Executive Board may, from time to time, appoint such other Committee or Committees as may be necessary to assist them in the discharge of their ftinctions.

11C. Inclusion in, or exclusion from committees:
Notwithstanding anything contained in this Act, the Government may, by order in writing, include in, or exclude from, the Consultative Committee or the Post Sanction Clearance Committee under section 6A and 6B respectively or any other Committee appointed under section I I B with the approval of the Prime Minister.
 

[The semicolon was substituted for the full-stop at the end of entry (h) and thereafter the entries (i), 6), (k), (1), (m), (n), (o) and (p) were added by Ordinance No. LTI of 1 986. s. 10. 'Section I I B was inserted, ibid., s. I 1.
Substituted ibid., s. 12, for "Government".
4Section I I c was inserted by Act XXIT of 1994. s. 3.]

12.Permission for setting up industry in the zone, etc.:
1. A person desiring to set up an industry in a zone shall make an application to the Authority in the prescribed form for permission in that behalf

2. The Authority or any person authorised by in this behalf shall, on receipt of an application made under sub-secfion (1), process it in accordance with the principle to be laid down by the [Board] in this behalf and shall, if it is satisfied that the applicant ftilf'fls the requirements for setting up an industry in the zone, grant him a permission in the prescribed form.

13.Allotment of land, etc., in a zone:
The Authority may, subject to such ten-ns and condifions as it may determine, allot or lease out on rental basis or otherwise; land and building spaces in a zone to a person who has been granted permission under secfion 12 to set up an industry in that zone.

14.Permission to banks to operate in a zone:
The Authority may, with the approval of the Bangladesh Bank, permit banks, foreign and local, to operate in a zone and to have as their constituents persons not resident in Bangladesh and to accept deposits on current account or otherwise from such persons.

15.Bonded facilities, etc.:
Notwithstanding anything contrary contained in any other law for the time being in force, there shall no@ subject to such rules as may be prescribed, be leviable-
A. On any goods, including raw-materials, imported into a zone any customs duty, sales tax, octroi or excise duty or import licence or permit fee or any other charges;
B. On any goods exported from a zone any duty or any other charges.

16.Types of industries to be set up in a zone, etc.:
The Authority may, with the previous approval in writing of the Government, determine, from time to time, the type or types of industries tc) be set up in a zone.

17.Budget:
The Authority shall, by such date in each year as may be fixed by the Government, submit to the Government for approval a budget, in such form as the Government may specify, for each financial year, showing the estimated receipt and expenditure during that financial year.

18.Audit and accounts:
1. The accounts of the Authority shall be maintained in such manner and form as may be prescribed by the Government.

2. Without prejudice to the provision of the Comptroller and Auditor General (Additional Functions) Act, 1974 (XXIV of 1974), the accounts of the Authority shall be audited by an Auditor, being a Chartered Accountant within the meaning of the Bangladesh Chartered Accountants Order, 1973 (P.O.No. 2 of 1973), who shall be appointed by the Authority, with the prior approval of the Government, on such remuneration to be aid by the Authority as the Government may fix.

[Substituted by Ordinance No. XLIX of 1984, s.9. for section 14.]

3. The Auditor appointed under sub-section (2) shall examine the annual balance-sheet of the Authority together with the accounts and vouchers relating thereto and shall have a list delivered to him of all books kept by the Authority; and shall at all reasonable times have access to the books, accounts and other documents of the Authority, and may in relation to such accounts examine any member or officer of the Authority.

4. The Auditor shall report to the Government on the accounts examined by him and in his report state whether, in his opinion, the books of accounts have been properly maintained and they exhibit the true picture of the Authority's affairs, and in case he has called for any explanation or infonnafion from the Authority, whether it has been given and whether it is satisfactory.

5. The Government, may at any time, issue direction to the Auditors requiring them to report to it upon the adequacy of measures taken by the Authority for the protection of the interest of the Government and of the creditors of the Authority or upon the sufficiency of the procedure in auditing the accounts of the Authority, and may, at any time, enlarge or extend the scope of the audit or direct that a different procedure in audit be adopted or that any other examination be made by the Auditors if in its opinion the public interest so requires.

19.Submission of reports, etc.:
1. The Authority shall submit to the Govemmen, as soon as possible after the end of every financial year, a report on the conduct of its affairs for that year.

2. The Authority shall submit to the Government at such times and at such intervals as the Government may specify-
A. such returns, accounts, statements, estimates and statistics as may be required by the Government;
B. information and comments asked for by the Government on any specific subject;
C. copies ofdocuments required by the Government for examination or for any other purpose.

20.Appointment of officers, etc.:
The Authority may appoint such officers and other employees and engage such consultants, advisers, auditors, and contractors as it may consider necessary for the efficient performance of its ftinctions of such terms and conditions as it may deem fit.

21. Government directions, etc.:
[Omitted by Ordinance No. LII of 1986,s. 1 3.]

22. Power to make rules:
The Government may, by notification in the official gazette, make rules for carrying out the purposes of this Act.

23.Power to make regulations:
The Authority may, with the approval of the Government, make regulations, not inconsistent with the provisions of this Act and the rules made thereunder, to provide for all matters not required to be provided for by rules and for which provision is necessary or expedient for carrying out the purposes of this Act.

24. Removal of difficulties:
If any difficulty arises in giving effect to the provisions of this Ordinance, the Government may, by order, do anything which appears to it to be necessary for the purpose of removing the difficulty.

['Section 24 was added by Ordinance No. Lll of 1986, s. 14.]