Duty-Free Import for Export Industries Without Warehouse License
This notification grants a facility to industrial enterprises in the sectors mentioned in Schedule-1 (তফসিল-১), which do not hold a Warehouse License, to import raw materials or components for the purpose of producing goods for export without payment of the total import duty, regulatory duty, Value Added Tax (VAT), advance tax, and supplementary duty, if any. Instead of payment, an equivalent value Bank Guarantee must be submitted.
Applicable Industrial Sectors (Schedule-1)
The facility is available to the following industrial sectors:
• Furniture
• Electronics
• Food Processing
• Light Engineering
• Steel Products
• Plastic Products
• Leather Products
• Ready-Made Garments
Mandatory Conditions for Import (শর্তাবলি)
Key conditions for availing this facility include:
• The industrial enterprise must have a purchase/sale contract, Letter of Credit (LC), or Advance TT from a foreign buyer or institution.
• The local lien bank, included in the Integrated VAT Administration System (iVAS), must endorse the purchase/sale contract.
• An unconditional and continuous Bank Guarantee from the lien bank, equivalent to the total applicable duties and taxes on the imported consignment, must be submitted to the Customs House or Station.
• The minimum value addition for the exported product must be 30% (thirty percent).
• The enterprise must be an Industrial IRC holder (Industrial consumer IRC issued by the Chief Controller of Imports and Exports) and a VAT compliant manufacturer.
• The enterprise must submit the Input-Output Coefficient (উপকরণ-উৎপাদ সহগ), including the necessary raw materials and a reasonable wastage amount, to the Commissioner of Customs, Excise, and VAT Commissionerate before importing raw materials.
• Raw materials for domestic consumption and exportable goods cannot be imported together in the same LC or consignment.
• Imported raw materials and exportable goods must be separately stored and registered in a ledger (Appendix-3) to be easily identified and verifiable by officials.
Export and Bank Guarantee Conditions
• The maximum time limit for exporting the finished product is 9 (nine) months. The relevant Commissioner may grant an extension of up to 3 (three) months for a logical reason upon application.
• The Bank Guarantee will be encashed if:
o The enterprise fails to produce and export the goods within the specified time limit.
o The foreign currency (forex) is not repatriated.
o The export order is cancelled or the enterprise is unable to export, and the Commissioner is notified in writing.
Non-Importable Goods (Schedule-2)
The following products are not importable under this notification:
• MS Rod or Bar, Angle, and MS Wire
• Pre-fabricated Building
• All types of Cement
• All types of Cable
• Paint
• All types of fuel oil, including Lube Oil
• All types of Office Equipment and Furniture
• Air Conditioner
• Household Goods (গৃহস্থালী সামগ্রী)
• Particle Board