Inception date: 01 Jul 2009 | Removal date: 01 Jul 2010

Import tariff

On 11 June 2009, the Prime Minister of Bangladesh presented the 2009-10 budget. The major provisions that will have implications on international trade and investment are as follows:

  • Export subsidies given to the sectors worst affected by the recession have been increased by 2.5%. Furthermore, the procedures to obtain the subsidies has been simplified.
  • The official lending rate for loans used for imports and investment in certain sectors has been reduced to 12-13%.
  • The time limit for bank loan repayments have been extended for all manufactures and exporters.
  • The size of the Export Development Fund increased from USD 1 million to USD 1.5 million.
  • A subsidy on imports of urea and non-urea fertilizer has been introduced to protect farmers from a price hike for these products on world markets.
  • The import duty on basic raw materials was reduced from 7% to 5%.
  • The VAT on imports of raw materials to produce pesticides was withdrawn.
  • A 5% regulatory duty on imports of certain luxury items has been introduced.
  • The regulatory duty on imports of luxury vehicles was increased.
  • An exemption from supplementary duty on imports of hybrid cars was introduced.
  • The import of taxicabs were restricted to a minimum 1500 CC capacity and of at least 10 vehicles in each order. Further, the customs duty has been capped at 20% and all other duties have been waived.
  • An 25% ad-valorem duty on mobile phone sets replaces the fixed Taka 300/set duty. Furthermore, such imports are exempt from VAT and supplementary duties.
  • Solar panel imports were exempted from customs duty; energy saving lamps exempted from customs duty of 7% and VAT.
  • The 7% import duty on ocean-going vessels of over 3000 metric tons capacity was withdrawn.
  • A 5% import duty on newsprint was introduce, while the VAT on imports of paper pulp was withdrawn.
  • All books (other than text books) received a reduced import duty of 5%, down from 12%.
  • A regulatory duty of 5% was imposed on milk imports to protect the local industry.
  • A Supplementary Duty (SD) of 20% was imposed on particle board, hard board, medium density fibre board, plywood, leather goods, mosquito coil, imitation jewelry and corrugated carton imports,
  • The SD was increased from 20% to 45% for imports of footwear, ceramic tiles, tableware, sanitary ware, and other ceramic items.
  • The SD was increased from 20% to 60% on air-conditioners and luxury light fittings.
  • The SD was increased from 60% to 100% on biscuits.
  • The SD on refrigerators was increased from 20% to 30%.
  • The SD of 20% on bulk imports of milk based food preparation was withdrawn.
  • An SD of 45% was imposed onAC parts.
  • The customs duty was reduced from 25% to 15% and the SD withdrawn for imports of Dioctyl Orthophthalates of pharmaceutical grade.
  • The import duty on sulphur, titanium based pigments, compound plasticizer used in rubber industries was reduced from 12% to 5%, and on unfinished raw materials to produce brake lining of asbestos from 25% to 12%.
  • The import duty on taps, cocks, valves of diameter less than one inch increased from 3% to 25%.
  • The import duty on lid cap and zylenes increased from 7% to 12%.
  • The 15% VAT on manganese ore imports was withdrawn.
  • The import duty on sports outfits for shooting sports was increased from 12% to 25%.
  • The specific duty on Petroleum bitumen in drums was increased from Taka 3500 per metric ton to Taka 4000.

Additional tariff lines affected that are not a part of the budget speech but included in later documents have been included directly and are referenced in the sources linked.