bepza
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About BEPZA In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objectives of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. Objective Promotion of foreign (FDI) & local investment Diversifiaction of export Dev. OF backward & forward linkages Generation of employment Transfer of technology Upgradation of skill Development of management About EPZ An export processing zone (EPZ) is defined as a territorial or economic enclave in which goods may be imported and manufactured and reshipped with a reduction in duties / and/or minimal intervention by custom officials (World Bank 1999). EPZ Provides: Plots/factory BLDG in custom bonded area Infrastructural facilities Administrative facilities Fiscal & non-fiscal incentives EPZ attracts : foreign & local investment Type: A - 100% foreign ownership 205 (58%) B - joint venture 49 (14%) C - 100% local venture 98 (28%)
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Transcript of bepza
About BEPZA
In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objectives of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures.
Objective
Promotion of foreign (FDI) & local investment Diversifiaction of export Dev. OF backward & forward linkages Generation of employment Transfer of technology Upgradation of skill Development of management
About EPZ
An export processing zone (EPZ) is defined as a territorial or economic enclave in which goods may be imported and manufactured and reshipped with a reduction in duties / and/or minimal intervention by custom officials (World Bank 1999). EPZ Provides:
Plots/factory BLDG in custom bonded area Infrastructural facilities Administrative facilities Fiscal & non-fiscal incentives EPZ attracts : foreign & local investment
Type:
A - 100% foreign ownership 205 (58%) B - joint venture 49 (14%) C - 100% local venture 98 (28%)
Bangladeshi EPZ's at a glance
1. EPZ-Chittagong
2. EPZ-Dhaka
3. EPZ-Mongla
4. EPZ-Ishwardi
5. EPZ-Comilla 6. EPZ-Uttara
7. EPZ-Adamjee
8. EPZ-Karnaphuli
View EPZ's location in map>>
List of Countries so far Invested
1. Australia
2. Bangladesh
3. Belgium
4. BR. Virgin Is.
5. Canada
6. China
7. Denmark
8. France
9. Germany
10. India
11. Indonesia
12. Ireland
13. Italy
14. Japan
15. Kuwait
16. Malaysia
17. Marshal Island
18. Mauritius
19. Nepal
20. Netherland
21. Pakistan
22. Panama
23 Portugal
24. S. Korea
25. Singapore
26. Sri Lanka
27. Sweden
28. Switzerland
29. Taiwan
30. Thailand
31. Turkey
32. U.A.E.
33. U.K
34. U.S.A
35. Ukraine
BEPZA - Official (Executive Office)
Employee name Designation Phone (Office) E-mail address
Major General A T M Shahidul Islam, ndu, psc
Executive Chairman 9670530 [email protected]
Md. Moyjuddin Ahmed Member (Investment Promotion) 8650058 [email protected]
Abu Reza Khan Member (Engineering) 8650068 [email protected]
A K M Mahbubur Rahman Member (Finance) 8650062 [email protected]
Md. Shawkat Nabi Secretary 8650064 [email protected]
GM ( Security) 9671911 A Z M Azizur Rahman GM (Investment Promotion) 8650061 [email protected]
Kazi Abdul Aziz Chief Accounts and Finance Officer
8650065 [email protected]
Md. Shah Alam Sarkar Chief Engineer 8650069 [email protected]
A Z M Azizur Rahman GM (MIS)-Add. Charge 8650061 [email protected]
A Z M Azizur Rahman GM (Public Relation)-Add. Charge
8650061 [email protected]
Abdus Shukur Miah GM (Audit) 8628132 Md. Nurul Haque GM (Enterprise Service)-In Charge 8650073 [email protected]
S. S. Kibria GM (Maintenance) 8620282 [email protected]
Md. Shariful Islam PS to Chairman 9671417, 01715145706
Indicative List of Industries
Textile Agro-based Industries Chemicals Backward and forward linkage Industries Electrical Equipment and Components Electronic Products
Software Optical Goods Garments and Garments Accessories Woven and Knitted Fabrics Engineering Products Leather Products and Foot-Wear Toys Medical and Biological Instruments Pharmaceutical Products Plastic Moulded products Industries based on new uses of Jute Cutting/Polishing of Precious and Semi Precious stones Household Fittings and Equipment Head-Wear Jewellery Horological Instruments Scientific Measuring Instruments Aircraft Instruments Laboratory Ware Printing and Publishing Printing and Copying Equipment & Accessories Do-it-yourself Tools and Equipment Musical instruments
NB: This list is not exhaustive, only indicative.
Related Organization
Prime Minister's Office Board of Investment National Board of Revenue Bangladesh Bank Ministry of Commerce Ministry of Home Affairs Export Promotion Bureau Register of Joint Stock Company Chittagong Port Mongla Port Hazrat Shahjalal (R) Airport, Dhaka Shah Amanat Airport, Chittagong Pan Pacific Hotel Sonargoan Ltd., Dhaka. Janata Bank Limited
Name of The EPZs Land
(US$/SQM/YEAR)
Readymade Factory Building Space(US$/SQM/MONTH)
Chittagong, Dhaka, Comilla, Adamjee, Karnaphuli 2.20 2.75 Mongla, Ishwardi, Uttara 1.00 1.25 # 01 Square Meter= 10.76 Square Feet #
Why Invest in Bangladesh EPZ?
1. LAW & ORDER SITUATION 2. INFRASTRUCTURE FACILITIES 3. REDUCTION OF LEAD TIME 4. COST OF DOING BUSINESS 5. FRIENDLY POLICY OF GOVT 6. INCENTIVES 7. WIN – WIN VENTURES 8. SUCCESS STORY
9. SIGNATORY OF MIGA (Multilateral Investment Guarantee Agency) 10. SIGNATORY OF ICSID (International Centre for Settlement of Investment
Dispute) 11. MEMBER OF WIPO (World Intellectual Property Organization) 12. MEMBER OF OPIC (Overseas Private Investment Corporation) 13. ASIA'S LOW COST PRODUCTION BASE
Year Wise Export
Click on a link bellow to view the details of the corresponding EPZ.
Chittagong EPZ
YEAR EXPORT IN (MILLION US$)
Chittagong EPZ
CURRENT CUMULATIVE
1983-84 0.16 0.16
1984-85 4.45 4.61
1985-86 7.59 12.21
1986-87 15.27 27.47
1987-88 13.93 41.40
1988-89 16.08 57.48
1989-90 34.21 91.69
1990-91 47.99 139.67
1991-92 76.99 216.67
1992-93 127.05 343.71
1993-94 140.35 484.07
1994-95 186.98 671.05
1995-96 263.80 934.84
1996-97 343.31 1278.15
1997-98 450.41 1728.15
1998-99 452.12 2180.68
1999-00 526.09 2706.77
2000-01 620.36 3327.13
2001-02 608.70 3935.83
2002-03 641.28 4577.11
2003-04 679.01 5256.11
2004-05 772.39 6028.50
2005-06 873.03 6901.53
2006-07 971.54 7873.07
2007-08 1117.17 8990.24
2008-09 1188.15 10178.38
2009-10 1333.53 11511.91
2010-11 (March, 2011) 1161.95 12673.86
Year Wise Export
Click on a link bellow to view the details of the corresponding EPZ.
Chittagong EPZYEAR EXPORT IN (MILLION US$)
Chittagong EPZ
CURRENT CUMULATIVE
1983-84 0.16 0.16
1984-85 4.45 4.61
1985-86 7.59 12.21
1986-87 15.27 27.47
1987-88 13.93 41.40
1988-89 16.08 57.48
1989-90 34.21 91.69
1990-91 47.99 139.67
1991-92 76.99 216.67
1992-93 127.05 343.71
1993-94 140.35 484.07
1994-95 186.98 671.05
1995-96 263.80 934.84
1996-97 343.31 1278.15
1997-98 450.41 1728.15
1998-99 452.12 2180.68
1999-00 526.09 2706.77
2000-01 620.36 3327.13
2001-02 608.70 3935.83
2002-03 641.28 4577.11
2003-04 679.01 5256.11
2004-05 772.39 6028.50
2005-06 873.03 6901.53
2006-07 971.54 7873.07
2007-08 1117.17 8990.24
2008-09 1188.15 10178.38
2009-10 1333.53 11511.91
2010-11 (March, 2011) 1161.95 12673.86
Dhaka EPZ
YEAR EXPORT IN (MILLION US$)
Dhaka EPZ
CURRENT CUMULATIVE
1983-84 - -
1984-85 - -
1985-86 - -
1986-87 - -
1987-88 - -
1988-89 - -
1989-90 - -
1990-91 - -
1991-92 - -
1992-93 - -
1993-94 5.26 5.26
1994-95 41.28 46.53
1995-96 73.22 119.75
1996-97 119.45 239.21
1997-98 185.64 424.85
1998-99 259.57 684.42
1999-00 364.73 1049.14
2000-01 447.51 1496.66
2001-02 466.76 1963.42
2002-03 554.79 2518.21
2003-04 667.60 3185.81
2004-05 757.73 3943.53
2005-06 918.30 4861.83
2006-07 1033.03 5894.86
2007-08 1146.50 7041.37
2008-09 1190.36 8231.73
2009-10 1216.49 9448.22
2010-11 (March, 2011) 1088.29 10536.50
Year Wise Investment
Click on a link bellow to view the details of the corresponding EPZ.
Chittagong EPZ
YEAR INVESTMENT (MILLION US$)
Chittagong EPZ
CURRENT CUMULATIVE
1983-84 0.87 0.87
1984-85 1.60 2.47
1985-86 3.60 6.07
1986-87 6.63 12.71
1987-88 1.79 14.50
1988-89 2.72 17.22
1989-90 8.58 25.80
1990-91 22.05 47.85
1991-92 23.66 71.51
1992-93 22.05 93.56
1993-94 29.18 122.74
1994-95 27.67 150.41
1995-96 16.13 166.54
1996-97 22.89 189.42
1997-98 42.59 232.02
1998-99 36.11 268.12
1999-00 15.18 283.30
2000-01 24.30 307.61
2001-02 22.37 329.98
2002-03 42.14 372.12
2003-04 55.43 427.55
2004-05 45.31 472.86
2005-06 35.95 508.82
2006-07 32.62 541.44
2007-08 126.46 667.90
2008-09 47.22 715.12
2009-10 57.52 772.64
2010-11 (March, 2011) 38.39 811.03
Exchange Control Regulations
> Operation of Export Processing Zone in Bangladesh
> Extension of credit facilities to industries
> Extension of credit/remittance facilities to type-B industries
> Deposit of export earnings in FC account of type-A & B industries
> Deposit of export earnings in FC account of type-B industries
> Deposit of Export Earning in FC Account of Type-C Industries
> Operation of FC account by type-B and type-C garments industries
> Operation of FC account by type-B and C industries
> Encashment of foreign exchange by the industrial units
> Payment of Bills in FC by Type A & B Enterprises
> Issuance and endorsement of bill of export consignments of type-A
> Non-resident FC deposit account
> Extension of facilities of non-resident FC deposit account
> Application of Interest on FC Acc. of non resident persons
> Establishment of banking units in EPZs
> Establishment of off-shore banking units in EPZs
> Simplified Exchange Control Regulations On Certain Issues
> Remittance of royalty, Training and consultancy fees etc.
Brand Products made in Bangladesh EPZs
NIKE, REEBOK, LAFUMA, H & M (SWEDEN),GAP, BROUKS, J.C. PENNY, WALMART, KMART, OSPIG (GERMANY), MOTHER CARE (UK), LEE, WRANGLER, DOCKERS, NBA, TOMMY HILFIGER, ADIDAS, FALCON(USA), EDIE BAUYER, EAGLE, RELEIGH (UK), EMMILEE, FREE SPIRIL (UK), MILES (GERMANY), AMERICAN EAGLE, HI-TECH (UK), PHILLIP-MAURICE (UK), WINS MORE, DECATHLON.
LL CAMERA LENS (IO PARTS) KONIKA, MINOLTA,
NIKON, FUJI, OLYMPUS.
GOLF SHAFTS ABU GARCIAMOBILE PARTS SONY AUTOMOBILE PARTS NISSAN, MITSUBISHI, HINO.
Classification of Investors
Type - A100% foreign owned including Bangladesh nationals ordinarily resident abroad.
Type - B Join venture between foreign and Bangladesh entrepreneurs resident in Bangladesh.
Type - C100% Bangladesh entrepreneurs resident in Bangladesh.
Incentives & Facilities
Fiscal Incentives
1. 10 years tax holiday2. Duty free import of construction materials3. Duty free import of machineries, office equipment & spare parts etc.4. Duty free import and export of raw materials and finished goods5. Relief from double taxation6. Exemption from divident tax7. GSP facility available8. Accelerated depreciation on machinery or plant allowed9. Remittance of royalty, technical and consultancy fees allowed10. Duty & quota free access to EU, Canada, Norway, Australia etc.
Non – Fiscal Incentives
1. 100% foreign ownership permissible2. Enjoy MFN (most favored nation) status 3. No ceiling on foreign and local investment4. Full repatriation of capital & dividend5. Foreign Currency loan from abroad under direct automatic route6. Non-resident Foreign Currency Deposit (NFCD) Account permitted7. Operation of FC account by 'B' and 'C' type Industries allowed.
Facilities 1. No UD, IRC, ERC and renewal of Bond license2. Work permits issued by BEPZA3. Secured and protected bonded area4. Off-Shore banking available5. Import on Documentary Acceptance (DA) basic allowed6. Bank of Back L/C
7. Import and Export on CM basis allowed 8. Import from DTA (Domestic Tariff Area)9. 10% sale to DTA (Domestic Tariff Area)10. Customs clearance at factory site 11. Simplified sanction procedure12. Sub-contracting with export oriented Industries inside and outside EPZ
allowed13. Relocation of foreign industries allowed14. Accords Residentship and Cityzenship15. One Window same day service and simplified procedure.
Infrastructure & Support Services
Infrastructure
Basic Infrastructure : Electricity, Water, &GasFully serviced plots availableFactory building available on rental basis Enclave for workers Dormitory & Day Care Centrewarehouse / Godown available
Support Services
Business : Bank, Courier, Post office, C&F Agent, Shipping Agent, MTO etc.
Administrative : Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc.
Others : Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.
Investment Guarrantee
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.
Labour Issues
Ensure the congenial production climate.
Establish the franchise of the workers.
BEPZA Instruction No. 1 & 2
The parliament passed the EPZ Workers Association and Industrial Relations Act
2004(Ammended up to October 2010).
Re-Fixation of minimum wages and benefits for the workers of the enterprises of EPZs
Counsellors monthly compliance report.
The parliament passed the EPZ Workers Association and Industrial Relations Act
2004(Ammended up to October 2010).
Competitive wages in respect of semi skilled, skilled and high skilled.
The average monthly wages has been practiced as follow: Unskilled US$ 30.00-38.00 Semi-skilled US$ 45.00 Skilled US$ 58.00-60.00
Other benefits include Conveyance Allowance, House Rent, Medical Allowance,
Maternity Benefit, Festival Bonus, Provident Fund and Overtime.
Considering the production cost investor are being deemed to be satisfied with the overall productivity of the labours.
Mode of Investment
Bangladesh adopted pragmatic strategy in order to attract more Foreign Direct
Investment (FDI) by strictly maintaining win-win policy.
Maintain open door policy through active negotiation in the process of globalization
to achieve due targeted share from the overseas potential investment surplus
market.
Dynamics of Foreign Direct Investment (FDI) should be reasonably proactive to fill the
resource gap, foreign exchange gap, efficiency gap and technical and management
know how gap.
Off - Shore Banking Units
Foreign investors do not have the opportunity of availing credit facilities from the
Different Financial Institutions (DFI) of Bangladesh.
In order to cater the need of financial support off-shore Banking facilities is being
provided to the foreign owned/ Join Venture unit in the EPZ’s of Bangladesh.
Presently Foreign Banks in Bangladesh have licentiated for doing off-shore banking like:
1. Standard Charter Bank Ltd.2. HSBC Ltd.3. Woori Bank Ltd.4. Citi N.A. Bank Ltd.
5. Commercial Bank of Ceylon.
6. Dutch-Bangla Bank Ltd.
7. State Bank of India
Apart from that local bank of Bangladesh also provide off-shore banking like:
1. Prime Bank Ltd.2. Dhaka Bank Ltd.3. South-East Bank Ltd.4. National Bank Ltd.5. Estern Bank Ltd. (EBL).
6. Bank Asia Ltd.
7. Shahjalal Bank Ltd.
8. The City Bank Ltd.
9. The Premier Bank Ltd.
10. IFIC Bank Limited
11. BRAC Bank Ltd.
12. AB Bank Limited
13. Mutual Trust Bank Ltd.
14. Jamuna Bank Ltd.
15. One Bank Ltd.
16. Pubali Bank Ltd.
17. Standard Bank Ltd.
18. National Credit and Commerce Bank Ltd.
19. Islami Bank Bangladesh Ltd.
20. Trust Bank Limited
21. Mercantile Bank Ltd.
22. United Commercial Bank Ltd.
More local Bank in the pipe-line to have off-shore Banking license from Bangladesh
Bank (Central Bank).
Schedule of standard charges are being practiced among the off-shore Banking units of DFI (Different Financial Institutions) of Bangladesh.
Chittagong Export Processing Zone
Location : Shouth Halishahar. 3.10 kms from the sea port, 5.50 kms from the main business center, 7.21 kms from the Chittagong International Airport.
Profile Of Zone : Zone area : 183.37 hectares (453 acres) Number of industrial plots : 454Size of each plot : 2000 sqm.Tariff : US $ 2.20 / sqm / year.Space of Standard Factory Building : 60912.77 sqm.Tariff : US $ 2.75 / sqm / month.Space of Warehouse : 2667.79 sqm.Tariff : US $ 2.75 / sqm / month.
Utility Services : Water Supply: From Chittagong WASA.Storage Capacity 7.26 million liters / day.Tariff : Tk. 19.40 / cu-m.Gas Supply: From Bakhrabad Gas System Ltd.Tariff : Tk. 5.76 / cu-m.Power Supply : 11 kv, 3 phase, 50 cycles / sec.Tariff : Tk. 4.18 / kwh.(Utilities will be charged at the current rate of US $)
Contact Person : General Manager Email: [email protected]
Contract Address : Chittagong Export Processing Zone , South Halishahar, Chittagong Phone : +880 31 741446, +880 31 740919 Fax : +880 31 740031
Dhaka Export Processing Zone
Location : Savar. 35 kms from Dhaka city centre, 25 kms from Hazrat Shahjalal (R) Airport. 304 Kms from Chittagong Sea Port.
Profile Of Zone : Zone area : 143.84 hectares (346.51 acres)Number of industrial plots : 388Size of each plot : 2000 sqm.Tariff : US $ 2.20 /sqm /year.Space of Standard Factory Building : 79843.19 sqm.Tariff : US $ 2.75 /sqm /month.Space of Warehouse : 2356 sqm.Tariff : US $ 2.75 /sqm /month.
Utility Services : Supply: Own water supply system.Tariff : Tk. 18.47 / cu-m.Gas Supply: From Titas Gas Transmission & Distribution Co. Ltd.Tariff : Tk. 5.76 / cu-m.Power Supply : 11 kv, 3 phase, 50 cycles / sec.Tariff : Tk. 4.18 / kwh.(Utilities will be charged at the current rate of US $)
Contact Person : General Manager
Contract Address :Dhaka Export Processing Zone , Ganakbari, Savar, Dhaka Phone : +880 2 7789002, +880 2 7789411 Fax : +880 2 7789003
Karnaphuli Export Processing Zone
Location : North Potenga and Halishahar, within 6 Kms from Chittagong Port,10 kms from main business center of Chittagong, 12 kms from Shah Amanat International Airport, Chittagong.
Profile Of Zone :
Zone area : 108.64 hectares (268.32 acres)Number of industrial plots : 260 (100 in first phase)Size of each plot : 2000 sqm.Tariff : US $ 2.20 / sqm / year.Space of Standard Factory Building : 59278.82 sqm.
Tariff US $ 2.75 /sqm /month.
Utility Services : Water Supply : From Chittogong WASA & through Own water treatment plant.Tariff : Tk. 18.47 / cu-m.Gas Supply : From Bakhrabad Gas System Ltd.Tariff : Tk. 5.76 / cu-m.Power Supply : 11 kv, 3 phase, 50 cycles / sec.Tariff : Tk. 4.18 / kwh.(Utilities will be charged at the current rate of US $)
Contact Person : Project Director
Contract Address : Karnaphuli Export Processing Zone , Karnaphuli, Chittagong Phone : +880 31 801069 Fax : +880 31 801069
