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This is the best time to invest in Bangladesh

Bangladesh Export Processing Zone Authority - BEPZA - Featured

Bangladesh is an economical growing country and its increasing rapidly. Past few years Bangladesh plays a vital role to producing Ready Made Garments (RMG) industry and earn a lot of foreign currency. With huge number of population this industry can select their man power so easily with paying minimum wages. This is how Bangladesh is the popular global brand who can produce low cost garments in Asia.

Bangladesh Export Processing Zone Authority – BEPZA

BEPZA: Bangladesh Export Processing Zone Authority provide too many facilities to invest in Bangladesh. Those opportunity could easiest to accept by any investor across the globe. Here are few of those opportunity proposed by Bangladesh export processing zone authority.

Investment guarantee

  • 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.

 

Fiscal Incentives

  • 10 years tax holiday for the Industries to be established before 1stJanuary, 2012 and Duration and rate of tax exemption for Mongla, Ishwardi & Uttara EPZ for the industries set up after January 01, 2012
Duration of Tax Exemption Rate of Tax Exemption
First 03 years (1st , 2nd  and 3rd  year) 100%
Next 03 years (4th , 5th and 6th  year) 50%
Next 01 year (7th year) 25%

Duration and rate of tax exemption for Chittagong, Dhaka, Comilla, Adamjee,& Karnaphuli EPZ for the industries set up after January 01, 2012:

Duration of Tax Exemption Rate of Tax Exemption
First 02 years (1st  and 2nd year) 100%
Next 02 years (3rd and 4th year) 50%
Next 01 year (5th year) 25%

 

  • Duty free import of construction materials
  • Duty free import of machineries, office equipment & spare parts etc.
  • Duty free import and export of raw materials and finished goods
  • Relief from double taxation
  • Exemption from dividend tax
  • GSP facility available
  • Accelerated depreciation on machinery or plant allowed
  • Remittance of royalty, technical and consultancy fees allowed
  • Duty & quota free access to EU, Canada, Norway, Australia, etc

Non – Fiscal Incentives

  • 100% foreign ownership permissible
  • Enjoy MFN (most favored nation) status
  • No ceiling on foreign and local investment
  • Full repatriation of capital & dividend
  • Foreign Currency loan from abroad under direct automatic route
  • Non-resident Foreign Currency Deposit (NFCD) Account permitted
  • Operation of FC account by ‘B’ and ‘C’ type Industries allowed.

Facilities

  • No UD, IRC, ERC and renewal of Bond license
  • Work permits issued by BEPZA
  • Secured and protected bonded area
  • Off-Shore banking available
  • Import on Documentary Acceptance (DA) basic allowed
  • Back to Back L/C
  • Import and Export on CM basis allowed
  • Import from DTA (Domestic Tariff Area)
  • 10% sale to DTA (Domestic Tariff Area)
  • Customs clearance at factory site
  • Simplified sanction procedure
  • Sub-contracting with export oriented Industries inside and outside EPZ allowed
  • Relocation of foreign industries allowed
  • Accords Resident-ship and Citizenship
  • One Window same day service and simplified procedure.

 

Minimum wage structure-2013 are as follows:

  •   Apprentice-US$ 56.00
  •   Helper-US$ 70.00
  •   Jr. Operator-US$ 80.50
  •   Operator-US$ 85.75
  •   Sr. Operator-US$ 91.00
  •   High Skilled-US$ 140.00

The gross wage has been calculated as Basic wage + House rent 40% on Basic + Medical allowance Tk. 560 (Fixed). In addition of the above gross wage, Food or Food allowance and Transport or Transport allowance shall be provided by the enterprises.

 

 

Source
http://www.bepza.gov.bd

 

 

Md Mustak Ahmed: He is Editor-in-Chief of Textile Student Blog, researcher and article writer on textile technology. He is managing director of Bornomala Foundation, Magura, Bangladesh.