Export Processing Zones (EPZs) are export oriented industrial enclaves which provide the

infrastructures, the facilities, administrative and support services for a wide variety of enterprises.

Bangladesh’s highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ

developments and other valuable real estate developments around the country. 

 

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

objective of an EPZ is to provide special areas where potential investors would find a congenial

investment climate, and location free from cumbersome procedures. Businesses from 32

countrieshave so far invested in the existing zones.

 

There are currently eight zones with others due to open in the next few years.

EPZ-Adamjee EPZ-Chittagong EPZ-ComillaEPZ-Dhaka EPZ-Ishwardi EPZ-KarnaphuliEPZ-Mongla EPZ-Uttara

If you are interested in setting up your business in an EPZ, the Board of Investment will be pleased

to advise you and introduce you to BEPZA.

More information: BEPZA

Incentives & Facilities

Fiscal Incentives

 

1. 10 years tax holiday for the Industries to be established before 1st January, 2012 and Industries

to set up after 31st December, 2011 tax holiday period will be:

 

Tax exemption period Rate of tax exemptionFirst 02 years (1st and 2nd Year) 100%Next 02 years (3rd and 4th Year) 50%Next 01 years (5th Year) 25%

2. Duty free import of construction materials

3. Duty free import of machineries, office equipment & spare parts etc.

4. Duty free import and export of raw materials and finished goods

5. Relief from double taxation

6. Exemption from divident tax

7. GSP facility available

8. Accelerated depreciation on machinery or plant allowed

9. Remittance of royalty, technical and consultancy fees allowed

10. Duty & quota free access to EU, Canada, Norway, Australia etc.

Non – Fiscal Incentives

1. 100% foreign ownership permissible

2. Enjoy MFN (most favored nation) status

3. No ceiling on foreign and local investment

4. Full repatriation of capital & dividend

5. Foreign Currency loan from abroad under direct automatic route

6. Non-resident Foreign Currency Deposit (NFCD) Account permitted

7. Operation of FC account by 'B' and 'C' type Industries allowed.

Facilities

1. No UD, IRC, ERC and renewal of Bond license

2. Work permits issued by BEPZA

3. Secured and protected bonded area

4. Off-Shore banking available

5. Import on Documentary Acceptance (DA) basic allowed

6. 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 procedure

12. Sub-contracting with export oriented Industries inside and outside EPZ allowed

13. Relocation of foreign industries allowed

14. Accords Residentship and Cityzenship

15. One Window same day service and simplified procedure.

 

Year-wise Investment in EPZ

 

YearCurren

tCumulativ

e

2006-07152.37

1,132.26

2007-08302.19

1,434.45

2008-09148.03

1,582.47

2009-10 211.99

1804.46

2010-11 313.23

2117.69

2011-12 ( March,12)

264.68

2382.38

Growth (2010-2011) 41%

Source: BEPZA

Overview of EPZName of EPZ

No. of industries Investment (m US$)

Export (m US$)

Employment

Manufacturing

Under implementation

Chittagong 161 15 801.86 12,384.12 1,55,121

Dhaka 98 06 738.41 10,259.24 78,985

Comilla 26 18 122.33 497.18 9,040

Mongla 06 06 2.66 65.09 152

Uttara 08 04 10.19 5.68 4,023

Ishwardi 08 11 31.09 27.08 4,407

Adamjee 21 27 110.98 143.35 14,163

karnaphuli 23 27 118.34 166.97 16,501

Total 351 114 1,935.86 23,548.71 282,392

Source:Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance

FDI Magazine's rankings

FDI Magazine of The Financial Times in March 2010 conducted a competition entitled “Global

Ranking Competition of Economics Zones” based on the following nine categories of ranking:

Best Overall Global Special Economic Zone

Best Economic Potential

Best Cost Effectiveness

Best Facilities

Best Transportation Link

Best Incentives

Best Promotion

Best Airport

Best Port

In the competition out of 700 Economic Zones globally 200 participated in the competition. All the

zones were evaluated on a 10 point scale on the basis of some set criteria. Among the top 10 of the

two categories Chittagong Export Processing Zone, Bangladesh scored 3rd position in the “Best

Cost Effectiveness” and also 4th position in the “Best Economic Potential” for 2010-2011

WEDNESDAY, DECEMBER 5, 2012

About BEPZA - Bangladesh Export Processing Zone Authority

BEPZA, The meaning is Bangladesh Export Processing Authority. In order to

stimulate rapid economic growth of the country, particularly through Industrialization,

the government has adopted an 'Open Door Policy' to attract foreign investor to make

investment in 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. According to the authority of

BEPZA - The primary objectives of an EPZ (Export Processing Zone) is to provide

special areas where potential investors would find a congenial investment climate,

free from cumbersome procedures which is very helpful for the Investors.

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 and Non-Fiscal incentives

EPZ attracts Foreign and Local investment

The main Objective of the BEPZA:

Promotion of Foreign (FDI) and Local investment

Diversification of Export

Dev. of backward & forward linkages

Generation of Employment and up gradation of their skills

Transfer of Technology

Development of management

Type: There are three type of Investment according to BEPZA:

Type A - 100% Foreign Ownership 205 (58%)

Type B - Joint Venture 49 (14%)

Type C - 100% Local Venture 98 (28%)