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-VAT
at 15% of duty paid value $ 2,371.50
--advance income tax 2.5% of assessable value $ 255
--license fee 2.5% on assessable value $ 255
--total duties and taxes $ 8,491.50
Our
$ 10,000 vehicle's landed cost is therefore $ 18,691.50.
Import
Licenses
Import
licenses are not required for any imported items except those on the
restricted list. However, importers need to use Letter of Credit
Authorization (LCA) forms to import goods.
Export
Controls
The
following items are banned for export:
--all
imported goods in their original or unprocessed form
--petroleum
and petroleum products except naphtha, furnace oil and bitumen
--oil
seeds and edible oils except kapok seeds
--jute
seeds and sunn-hemp seeds
--wheat
--gur
and khandseri sugar
--animals,
animal skins and wildlife covered by the Bangladesh Wildlife
Preservation Order, 1973
--arms
and ammunition, explosives, and ingredients thereof
--fissionable
materials
--raw
and wet blue leather
--rare
items of archaeological interest
--human
skeletons
--pulses
--eggs
and poultry
--prawns
and shrimp, except frozen and processed
--feature
films not certified by the Bangladesh Film Censorship Board as fit for
export
--onions
--rice
bran (except de-oiled rice bran)
--shrimp
of count 71/90 and sizes below for sea water and 61/70 and sizes below
for fresh water, excluding two varieties (Harina and Chaka)
--bamboo
and cane in whole form and wood log
--frogs
of all species (live or dead) and frog legs
--human
blood
--chemical
weapons
In
addition, the following items are restricted for export,requiring
Ministry of Commerce permission on a case-by-case basis: molasses,
de-oiled rice bran, wheat bran and urea fertilizer.
Quality
control licenses issued by the Bangladesh Standards and Testing
Institute are required to export the following items:
cane
molasses, shrimp and prawns (except frozen deveined or cooked), oil
cake, wet batteries and dry battery cells, electric fans and other
select electric appliances, biscuits, and PVC electric cables. An
inspection certificate is required for exports of raw jute. All plants
and plant materials for export must be inspected and certified that they
are free of insects or disease.
Import/Export
Documentation
Unless
otherwise specified, all imports transacted through a bank require a
Letter of Credit Authorization (LCA) Form. Obtaining an LCA is not
onerous, and many of the documents required for submission by importers
can be kept on file with their banks. At present, there is no lack of
foreign currency for import transactions. However, as a safety cushion
against currency fluctuation, banks prefer to source foreign currency
for L/Cs over $ 500,000 from the central bank. Typically, 1-2 days is
required to obtain registration from the central bank. Unless otherwise
specified, all imports must be made by opening an Irrevocable letter of
credit. Import against an LCA may be made without opening an L/C in the
following areas:
--import
of books, journals, magazines, and periodicals on sight draft of
issuance bill basis;
--import
of any permissible item for an amount not exceeding $5,000 only during
each local fiscal year against remittances made from Bangladesh;
--imports
under commodity aid, grant or such other loan for which there are
specified procurement procedures for import of goods without an L/C;
--imports
of "International Chemical References" through bank drafts by
recognized pharmaceutical (allopathic) firms on the approval of the
Director, Drug Administration, for the purpose of quality control of
their products.
Importers
must submit to their nominated banks the following documents along with
the LCA:
--L/C
application form duly signed by the importer;
--indents
for goods issued by indentor or a proforma invoice obtained from the
foreign supplier;
--insurance
cover note.
Foreign
firms are allowed to import permissible commercial items against prior
permission from the Chief Controller of Import and Export and need to
provide following documents:
--photocopy
of the valid Import Registration Certificate;
--photocopies
of invoices, bill of lading, and import permit duly certified by the
bank;
--original
or copy General Index Register (GIR) certificate from Income Tax
Authority;
--certified
copy of the last income tax assessment order; and
--name
and description of each item to be imported with quantity and
approximate C&F value.
Public
sector importers also need to provide the following documentation:
--attested
photocopy of allocation letter issued by the allocating authority in
favor of the concerned public sector agency specifying the source,
amount, purpose, validity, and the terms and conditions;
--attested
photocopy of sub-allocation letter, if any, issued in favor of the
importing agency or unit;
--attested
photocopy of sanction letter from the administrative ministry or
authority where applicable; and
--a
declaration by the authorized officer of the importing agency indicating
the amount of utilized/unutilized government funds and that imported raw
materials will not be sold.
Private
sector importers need to furnish the following additional documents:
--valid
membership certificate from the registered local chamber of commerce and
industry or any trade association, established on an all-Bangladesh
basis, representing any special trade or business;
--proof
of payment of renewal fees for the Import Registration Certificate (IRC)
for the concerned fiscal year;
--copy
of a "TIN Certificate" issued by the tax authority. The TIN
(Tax Identification No.) Certificate is a new requirement aimed at
ensuring collection of income tax, VAT and other revenues from
importers.
--a
declaration, in triplicate, that the importer has paid income tax or
submitted an income tax return for the preceding year; and
--any
such documents as may be required by import policy order or public
notice, or instruction issued by the Chief Controller of Imports and
Exports.
In
the following case, neither an LCA nor the opening of an L/C will be
necessary, but an import permit (IP) or clearance permit (CP) will have
to be obtained by the importer:
--import
of books, magazines, journals, periodicals and scientific and laboratory
equipment against surrender of UNESCO coupons;
--imports
under pay-as-you-earn scheme for a limited number of cars, fishing
vessels, cargo or passenger vessels, and new machinery on the basis of
clearance from the Bangladesh Bank;
--import
of items by passengers coming from abroad in excess of the permissible
limits as per permitted allowance; and
--import
of free samples, advertising materials, and gift items above prescribed
ceilings.
Temporary
Entry
Agents
and representatives of foreign manufacturers are allowed to import
machinery and equipment from their principals for purposes of
demonstration or exhibition, subject to the following conditions:
--the
goods brought into Bangladesh will be re-exported within a period of one
year;
--the
importer shall execute a bond and furnish a bank guarantee or
understanding or a legal instrument to the satisfaction of Customs at
the time of clearance indicating that the goods will be re-exported in a
timely manner; and
--if
the goods include any banned or restricted items, prior permission is
required from the Chief Controller of Imports and Exports.
Equipment
or machinery imported on a temporary basis is exempt from duty if the
importer obtains an import/export permit.
Labeling,
Marking Requirements
Imported
goods (including their containers) must not bear any words or
inscriptions of a religious connotation, the use or disposal of which
may injure the religious feelings and beliefs of any class of the
citizens of Bangladesh. In addition, imported goods should not bear any
obscene pictures, writing, inscription, or visible representation.
Milk
food can be imported in cans and in bulk. The container must indicate
the ingredients in Bangla as well as the manufacturing and expiration
dates (in Bangla or English). A measuring spoon must be supplied in all
containers of baby food. Non-fat dried milk is importable only in
airtight containers, with the date of manufacture and expiration noted
in Bangla or English. Pesticide containers must be able to withst and
"handling by sea," indicate the chemical contents, and meet
other specifications.
Prohibited
Imports
Bangladesh's
Import Policy Order 1995-97 places controls on some imports. Items
banned from import include:
--maps,
charts and geographical globes which indicate the territory of
Bangladesh but do not do so in accordance with the maps published by the
Bangladesh Government's Department of Survey;
--horror
comics, obscene and subversive literature;
--printed
material, posters, video tapes, etc. containing matters likely to
outrage the religious feelings and beliefs of any class of the citizens
of Bangladesh;
--unless
otherwise specified, old, second-hand and reconditioned goods;
--unless
otherwise specified, all kinds of waste; and
--goods
bearing pictures or writing which is obscene or of a religious
connotation which may injure the religious feelings of any class of
Bangladesh citizens.
Other
items completely banned are: live pigs, pig and poultry fat, poppy seeds
and dried posto dana, grass, opium, tendu leaves, lard, lard and tallow
oil, solid or semi-solid palm oil, raw sugar, un-denatured ethyl alcohol
(80% or higher) and other spirits denatured of any strength, wine,
artificial mustard oil, selected petroleum products, woven fabrics of
silk or silk waste, pig hair, some kinds of cloth, selected
insecticides, ylon and polyethylene ropes, fishing nets (gillnets), used
or new rags, vessels more than 15 years old, motorbikes more than three
years old, and single phase electricity meters.
In
addition, the import of goods from Israel and the import of goods of
Israeli origin are prohibited, as is the shipment of goods on Israeli
flag vessels. All types of imports are also banned from Serbia and
Montenegro.
Standards
Quality
standards are set and monitored by the Bangladesh Standards and Testing
Institute. Bangladesh also recognizes and accepts goods bearing
certification from standard institutions of other countries. Standards
for pharmaceuticals are controlled by the Department of Drugs
Administration under the Ministry of Health and Family Welfare. The
Bangladesh Atomic Energy Commission tests all imported food items to
ensure that the prescribed standard for radioactivity is maintained.
Free Trade
Zones/Warehouses
Bangladesh
has two Export Processing Zones (EPZ's), one in Chittagong and one in
Savar (near Dhaka). The EPZ's offer tax breaks, a relatively secure
power source, the duty-free import of capital machinery, warehouse
facilities, and other benefits to 100% export-oriented industries.
Chittagong port has 116,375 square meters of covered warehouse space,
with a capacity to hold 50,000 metric tons. The port also has a
warehouse for hazardous cargoes (102 metric tons) and for cold storage
(500 tons).
Mongla
port near Khulna (southwest Bangladesh) also has warehouse facilities.
For industries outside the EPZ's, the National Board of Revenue provides
bonded warehouse facilities to 100% export oriented industries or to
industries whose raw materials/components are mainly imported.
Production within bonded areas is free of import duties, with a minimum
of customs formalities. Privately-owned and operated EPZ's are now legal
though none is in operation; Korean investors have been planning one in
Chittagong for the last two years but have faced implementation and
other hurdles.
Special
Import Provisions
Bangladesh
has encouraged counter-trade for many years as a means to promote
exports while conserving foreign exchange. Barter trade in commodities
used to carried out with countries in Central and Eastern Europe,
Central Asia, China, and North Korea, but during FY96 barter trade was
discontinued with Bulgaria, China, the Czech Republic, Hungary and North
Korea. Bangladesh also allows special trading arrangements through the
Trading Corporation of Bangladesh.
Membership
in Free Trade Arrangements
Bangladesh
is a member of the South Asia Preferential Trade Agreement (SAPTA) under
the umbrella of the South Asia Association for Regional Cooperation (SAARC).
COMMERCIAL
POLICIES
Exchange
Controls:
Importers
must obtain a letter of credit authorization form to be allocated
foreign exchange. Repatriation of capital, profits, benefits and assets
are guaranteed. Transfers may take an extended period of time since they
must be approved by the Bangladesh Bank.
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General Section
