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    Bepza

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    Prottoy Dipto
    An export processing zone (EPZ) provides tax reductions and infrastructure to allow goods to be imported, manufactured, and reshipped with minimal customs involvement. EPZs in Bangladesh are operated by the Bangladesh Export Processing Zones Authority (BEPZA) to promote foreign investment through an open door policy. EPZs offer fiscal incentives like tax holidays, duty-free imports/exports, and accelerated depreciation to attract investors. They also provide non-fiscal incentives like allowing full foreign ownership and full repatriation of profits.

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    Bepza

    Uploaded by

    Prottoy Dipto
    67 views4 pages
    An export processing zone (EPZ) provides tax reductions and infrastructure to allow goods to be imported, manufactured, and reshipped with minimal customs involvement. EPZs in Bangladesh are operated by the Bangladesh Export Processing Zones Authority (BEPZA) to promote foreign investment through an open door policy. EPZs offer fiscal incentives like tax holidays, duty-free imports/exports, and accelerated depreciation to attract investors. They also provide non-fiscal incentives like allowing full foreign ownership and full repatriation of profits.

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    EPZ

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    An export processing zone (EPZ) provides tax reductions and infrastructure to allow goods to be imported, manufactured, and reshipped with minimal customs involvement. EPZs in Bangladesh are operated by the Bangladesh Export Processing Zones Authority (BEPZA) to promote foreign investment through an open door policy. EPZs offer fiscal incentives like tax holidays, duty-free imports/exports, and accelerated depreciation to attract investors. They also provide non-fiscal incentives like allowing full foreign ownership and full repatriation of profits.

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    Download as docx, pdf, or txt
    67 views4 pages

    Bepza

    Uploaded by

    Prottoy Dipto
    An export processing zone (EPZ) provides tax reductions and infrastructure to allow goods to be imported, manufactured, and reshipped with minimal customs involvement. EPZs in Bangladesh are operated by the Bangladesh Export Processing Zones Authority (BEPZA) to promote foreign investment through an open door policy. EPZs offer fiscal incentives like tax holidays, duty-free imports/exports, and accelerated depreciation to attract investors. They also provide non-fiscal incentives like allowing full foreign ownership and full repatriation of profits.

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    © All Rights Reserved
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    of 4

    EPZ

    An export processing zone (EPZ) is defined as a territorial or economic enclave in which


    goods may be imported and manufactured and reshipped with a reduction in duties /
    and/or minimal intervention by custom officials (World Bank 1999).
    EPZ Provides:

     Plots/factory buildings in custom bonded area


     Infrastructural facilities
     Administrative facilities
     Fiscal & non-fiscal incentives
     EPZ attracts : foreign & local investment

    Type:

     A - 100% foreign ownership 58%


     B - joint venture 14%
     C - 100% local venture 28%

    BEPZA

    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 BEPZA is the official organ of the government to promote,
    attract and facilitate foreign investment in the EPZs.

    Why zone?

     To provide special areas where potential investors world find a congenial investment
    climates, free from cumbersome procedures.
    Bangladesh EPZ's at a glance:

    1. Chittagong EPZ
    2. Dhaka EPZ
    3. Mongla EPZ
    4. Ishwardi EPZ
    5. Comilla EPZ
    6. Uttara EPZ
    7. Adamjee EPZ
    8. Karnaphuli EPZ

    1
    Mode of Investment
    Bangladesh adopted pragmatic strategy in order to attract more Foreign Direct Investment
    (FDI) by strictly maintaining win-win policy.
    Maintain open door policy through active negotiation in the process of globalization to
    achieve due targeted share from the overseas potential investment surplus market.

    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 programmes
    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.

    Functions of EPZ:
    a) One stop service:
     Sanction of projects generally within one week.
     Issuing of import/Export permits within that time.
     Issuing of red work permit for foreign nationals working in EPZ within one
    day.
     Providing red infrastructure facilities in EPZ.
     Offers One window same day service to inventors in EPZ.

    b) Production oriented labor law:


    Low forbids in any labor union in EPZ. BEPZA is vested with responsibility to administer labor
    matters for all enterprises in EPZ.

    C) Minimum wages (monthly)


    Apprentice/Trainee – US 22.00
    Unskilled worker -- ” 38.00
    Semi-skilled -- ” 45.00
    Skilled -- ” 63.00

    other benefits includes – convince Allowances


    Home Rent
    Medical Allowances
    Bonus.

    2
    Incentives & Facilities
    Fiscal Incentives
    1. 10 years tax holiday for the Industries to be established before 1st 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 (1st , 2nd and 3rd year) 100%
    Next 03 years (4th , 5th and 6th year) 50%
    Next 01 year (7th 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 (1st and 2nd year) 100%
    Next 02 years (3rd and 4th year) 50%
    Next 01 year (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 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
    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

    3
    6. Non-resident Foreign Currency Deposit (NFCD) Account permitted
    7. Operation of FC account by 'B' and 'C' type Industries allowed.
    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.

    Infrastructure & Support Services


    Infrastructure
    · Basic Infrastructure : Electricity, Water, &Gas
    · Fully serviced plots available
    · Factory building available on rental basis
    · Enclave for workers Dormitory & Day Care Centre
    · warehouse / Godown available
    Support Services
    · Business : Bank, Courier, Post office, C&F Agent, Shipping Agent, MTO etc.
    · Administrative : Customs Office, Police Station, In-house Security, Fire Station,
    Public Transport, Medical Centre etc.
    · Others : Restaurant, Health Club, Investors Club, Recreation Centre, School and
    College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station,
    Business Centre, Anglers Club etc.

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