Facilities for Setting up Business in EPZ.
Incentives & Facilities
7.2 Fiscal Incentives:
1. 10 years tax holiday for the Industries to be established before 1 st January,
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 (1 st , 2 nd and 3 rd year) 100%
Next 03 years (4 th , 5 th and 6 th year) 50%
Next 01 year (7 th 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 (1 st and 2 nd year) 100%
Next 02 years (3 rd and 4 th year) 50%
Next 01 year (5 th 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 dividend 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.
7.3 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.
7.4 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. Back to 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 Resident-ship and Citizenship
15. One Window same day service and simplified procedure.
7.5 Infrastructure:
1. Basic Infrastructure: Electricity, Water, &Gas
2. Fully serviced plots available
3. Factory building available on rental basis
4. Enclave for workers Dormitory & Day Care Centre
5. warehouse / Go down available
7.6 Support Services:
1. Business: Bank, Courier, Post office, C&F Agent, Shipping Agent, etc.
2. Administrative: Customs Office, Police Station, In-house Security, Fire
Station, Public Transport, Medical Centre etc.
3. Others: Restaurant, Health Club, Investors Club, Recreation Centre,
School and College, Sports Complex, Exclusive Telephone Exchange,
Electricity Sub Station, Business Centre, Anglers Club etc.
7.7 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
programmed 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.
7.8 Labour Issues
Monthly Wages Structure of the EPZ Workers
Ensure the congenial production climate.
Establish the franchise of the workers.
BEPZA Instruction No. 1 & 2
Maternity Leave Circular (Revised)
The parliament passed the EPZ Workers Association and Industrial Relations
Act 2004(Amended up to October 2010).
Re-Fixation of minimum wages for the workers of the enterprises of EPZs-
2013
Counsellor’s monthly compliance report.
The minimum wage structure-2018 are as follows:
Apprentice-US$ 76.22
Helper-US$ 100.00
Jr. Operator-US$ 110.98
Operator-US$ 116.46
Sr. Operator-US$ 121.95
High Skilled-US$ 182.32
Source: www.bepza.gov.bd/investor_details/labour-issues
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.
Considering the production cost investor are being deemed to be satisfied with
the overall productivity of the labours.
7.9 Classification of Investors:
Type – A: 100% foreign owned including Bangladesh nationals ordinarily
resident abroad.
Type – B: Join venture between foreign and Bangladesh entrepreneur’s resident
in Bangladesh.
Type – C: 100% Bangladesh entrepreneurs’ resident in Bangladesh.
7.10 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 licentiate for doing off-shore
banking like:
1. Standard Chartered 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. Eastern 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.