Getting Migration Governance Right

Photo of Sheikh HasinaThe Embassy of Bangladesh in Paris is proud to share with you an article titled " Getting Migration Governance Right", authored by H.E. Sheikh Hasina, Hon'ble Prime Minister of Bangladesh. In her article, Hon'ble Prime Minister has called upon the international community to give a closer look at the issue of migration, one of the most serious challenges facing the world today. The article has been published in the Project Syndicate, a prestigious forum that provides original, high-quality commentaries to a global audience by featuring exclusive contributions by prominent political leaders, policymakers, scholars, business leaders, and civic activists from around the world.Link: Getting Migration Governance Right

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 countries have so far invested in the existing zones. 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

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

Name 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

Incentives & Facilities in EPZ

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 exemption

First 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, Administration and Services

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 Citizenship

15. One Window same day service and simplified procedure

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