| Commodity |
1997-98 |
1998-99 |
1999-2000 |
2000-2001 |
2001-2002 |
| Readymade
Garments |
2500
|
2756 |
3010 |
3280
|
3590 |
| Jute goods
|
307 |
312
|
314 |
317 |
319 |
| Leather |
205 |
225 |
240 |
280 |
330 |
| Frozen
food |
320
|
350 |
380 |
400 |
420 |
| Knitwear
|
983 |
1178
|
1412
|
1687 |
2010 |
| Raw Jute
|
125 |
132 |
140 |
150 |
160 |
| Tea |
40 |
42 |
48 |
50 |
55 |
| Chemicals |
94 |
98 |
100 |
102 |
102 |
| Petroleum
products |
10 |
10 |
10 |
10 |
10 |
| Engineering products |
18 |
21 |
23 |
25 |
28 |
| Agricultural products |
32 |
35
|
37 |
40
|
42 |
| Handicrafts |
8 |
9 |
9 |
10 |
10 |
| Others |
378 |
462 |
617
|
824 |
1024 |
| Total: |
5020 |
5630 |
6340 |
7175 |
8100 |
| |
|
|
|
|
|
| * Rate of Exchange : US $ 1.00 =
Taka 45.00 |
EPZ
Introduction
In
order to stimulate rapid economic growth of the country,
particularly through industrialization, the government has
adopted an 'Open Door Policy' to attract foreign investment to
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.
The primary objective of an EPZ is
to provide special areas where potential investors would find
a congenial investment climate, free from cumbersome
procedures. Two EPZs, one in Chittagong and the other near
Dhaka are now operational.
Following information is
provided to the potential investors for investment is EPZs of
Bangladesh.
Eligible investors
100% foreign owned including Bangladesh nationals
ordinarily resident abroad (Type-A).Joint venture between
foreign and Bangladesh entrepreneurs resident in
Bangladesh(Type-B) 100% Bangladesh entrepreneurs resident in
Bangladesh (Type-C).
Mode of Investment
Investment in convertible foreign currencies by
foreign investors. Option to establish public/private Ltd
companies or sole proprietorship/partnership
concerns.
Investment Guarantee
Foreign Private Investment (Promotion and
Projection) Act 1980 secures all foreign investment in
Bangladesh. OPIC"s (Overseas Private Investment Corporation,
USA) insurance and finance programs operable. Security and
safeguards available under Multi-national Investment Guarantee
Agency (MIGA) of which Bangladesh is a member. Arbitration
facility of the International Center for the Settlement of
Investment Dispute (ICSID) available.
Tele-communications
Telex, Fax and International Dialing Services
connected through satellite system available.
Communications
Adequate sea, rail, road and air communications
services available.
ONE WINDOW SAME DAY
SERVICE AND SIMPLIFIED PROCEDURE
BEPZA
sanctions projects generally within one week.
issues required Import/Export Permits.
issues required
Work Permits for foreign nationals working in EPZ enterprises.
provides required infrastructure facilities in EPZs.
offers 'One Window Same Day Service' to investors in
EPZs.
PRODUCTION
ORIENTED LABOR LAWS
Law forbids formation of any
labor union in EPZs.
BEPZA is vested with responsibility
to administer labor matters for all enterprises in
EPZs.
Minimum Wages
(Monthly)
Apprentices/Trainee US $22,00
Unskilled US $38.00
Semi-skilled US $45.00
Skilled
US $63.00
Other benefits include
Conveyance Allowance, House Rent, Medical Allowance and
Festival Bonus.
Working Hours
48 hours a week in a
factory.
40 hours a week in an office.
5 working days
a week.
Employees leave
10 days
Casual leave
17 days Annual leave
FACILITIES AND INCENTIVES
FACILITIES
a. Land and
factory building are available on rental basis.
b.
Electricity, water, gas and telecommunications are provided by
the zones.
c. Import and export permits are issued by EPZ
within 24 hours.
d. Work permits are issued by BEPZA.
e. EPZ is a secured and protected area.
f.
Recreational facilities are available.
g Availability of
food, stuff and beverage on payment of nominal tax
foreigners working in EPZs.
h. Potential investors are
required to deal only with BEPZA for investment and
all
other operational purposes..
INCENTIVES
Fiscal
Tax Exemption
a. Tax holiday for 10 years
b. Exemption of
income tax on interest on borrowed capital.
c. Relief from
double taxation subject to bilateral agreement.
d.
Complete exemption from dividend tax for tax holiday period
for foreign
nationals.
e. Exemption of income tax on
salaries of foreign technicians for 3 years subject
to
certain conditions.
Duty Free Import and
Export
a. Duty free import of machinery's,
equipment and raw materials.
b. Duty free import of three
motor vehicles for use of the enterprises in EPZs
under
certain conditions.
c. Duty free import of materials for
construction of factory buildings in the zones.
d. Duty
free export of goods produced in the
zones.
Non-Fiscal
I.
Investment
a. All foreign investment secured by
law.
b. No ceiling on extent of foreign investment.
c.
Full repatriation of profit and capital permissible.
d.
Repatriation of investment including capital gains, if any,
permissible.
e. Remittances allowed in following cases:
f. All post tax profit and dividend on foreign
Capital.
Savings from earnings, retirement benefits,
personal assets of individual on
retirement/termination of
services.
Approved royalties and technical fees.
No permission required for expansion of the project or
product diversification.
II. Project financing
and banking
a. Off-shore banking facilities
available.
b. Local and international banking facilities
also wide-open.
III. Import
a.
Freedom from national import policy restrictions.
b.
Import of raw materials also allowed on Documentary Acceptance
(DA) basis.
c. Advantage of opening back to back LC for
certain types of industries for
import or raw
materials.
d. Import of goods from the domestic tariff area
permissible.
IV. Project Implementation
a. Re-location of existing industries from one
zone to another within the country permissible.
V.
Operation
a. Sub-contracting within EPZ allowed.
b.
Inter-zone and intra-zone export permitted
c. All customs
formalities done at the gate site of the respective factory
building within the zone.
d. Permission for
import/export given in the same day.
e. Repairing and
maintenance's of machinery's and capital equipment
from
domestic tariff area allowed.
VI.
Employment
a. Liberal employment of foreign
technicians/experts allowed.
b. Foreigners employed in the
zones enjoy equal rights similar to those of
Bangladesh
nationals.
c. Law forbids formation of any labor union in
the zones. Strike within the
zones prohibited.
VII. Support Services
Customs
office, Post Office, Medical center, Fire station, Police
station.
DHAKA EXPORT PROCESSING ZONE
Location : Savar
35 kms
from Dhaka city center
25 kms from Zia International
Airport, Dhaka
Zone Area : 58 hectares
(142 acres)
Land
Total number of plots
: 100
Size of each plot : 2000 M2
Tariff : US $
1.50/M2/year
Standard Factory Building
Space : 72,000 M2 in 16 blocks
Tariff : US $
2.00/M2/month
Warehouse
Space : 2,300 M2
Tariff : US $ 2.00/M2/month
Utility Services
Water supply : CEPZ gets water from Chittagong
WASA
Storage Capacity : 45,20,000 litters/day
Tariff :
Tk. 13.56 per M3
Power Supply : 11 kV, 3 phase, 50 cycles
Tariff : Tk. 2.86 per kWh (Industrial use)
Gas supply
: 1,36,000 M3/day or 5,667 M3/hour
Tariff : Tk 3.64 per M3
(Industrial use)
CHITTAGONG EXPORT PROCESSING
ZONE
Location : 2.40 kms from
Chittagong Sea Port
5.63 kms from the main business center
of Chittagong
7.24 kms from the Chittagong International
Airport
Zone Area : 255 hectares (630
acres)
Land
Total number of plots
(planned): 430
Size of each port : 2044 M2
Tariff : US
$ 1.50/M2/year
Standard Factory Building
Space : 39,000 M2 in 16 blocks
Tariff : US $
2.00/M2/month
Utility Services
Water supply : DEPZ gets water from its own water
supply system
Tariff : Tk. 13.56 per M3
Power Supply :
11 kV, 3 phase, 50 cycles
Tariff : Tk. 2.70 per kWh
(Industrial use)
Gas supply : DEPZ gets gas from the Titas
Gas Field
Tariff : Tk 3.64 per M3 (Industrial
use)
