FAQ , Investment Incentives, Privileges and Facilities

• Inputs imported by export-oriented industries are exempted from duty via duty drawback facility or exempt from duty and other import taxes altogether through the bonded warehouse (BWH) facility. • Alternatively, exporters may receive cashback (of 10-15% of FOB value) as a method of offsetting input tariffs, if they use neither duty drawback nor BWH. • Duty drawback refunds duties/ taxes paid on imported inputs (used in the export processing) to exporters. Eligible exporters (manufacturers exporting over 80% of their production, located within and outside EPZs) can claim drawback by filing their cases to the Duty Exemption and Drawback Office under NBR. • BWH is licensed by NBR for deposit and storage of imported goods/ inputs subject to renewal in every two years. Eligible exporters can import required materials and process them without paying import duty/ VAT. • BWH in Bangladesh basically consists of the following two categories: i) Special bonded warehouse: applicable to export-oriented readymade garment industries, which include woven garments, knitwear, and sweater manufacturing industries, ii) General bonded warehouse: applied to other export-oriented industries. • As per the Customs Act, 1969, the National Board of Revenue (NBR)/ the Customs Bond Commissionerate regulates bonded warehouses. To avail BWH facility, the applicants shall apply to the authority with following documents: - Application in accordance with the prescribed format, - BIDA (and other authorities or zones) registration certificate, - TIN and certified copy of wealth statement issued by Income Tax Department (IT-10B) for all directors/ owners, - Trade license, - Fire license, - Value Added Tax (VAT) registration certificate (with Business Identification Number: BIN), - Recommendation by concerned trade body (if applicable), - Name, designation, present and permanent address, signature, and photo (on non-judicial stamp of value BDT 300.00 of owners/ directors, duly notarized by the competent authority and be attested by the lien bank), - Boiler certificate (if applicable), - Original copy of Memorandum and Article of Association and Certificate of Incorporation issued by RJSC&F, - Purchase document for machinery (invoice, Bills of Entry for import, and VAT invoice for local purchase), - Deed of land/ space ownership, or duly notarized rental deed (if rented), - Affidavit to follow the law, rules, and procedures on non-judicial stamp of value BDT 300.00 by managing director/proprietor/ sole partner (duly notarized by the competent authority), - Certificate from lien bank that demonstrate financial affordability to submit general bond - Treasury receipt for deposited license fee (BDT 10,000).