Inception date: 01 Jul 2011 | Removal date: 30 Jun 2012

Import tariff

Effective 1 July 2011, the Bangladeshi budget has the following provisions that will have implications on international trade and investment:

  • Tax holiday proposed for industries in the Export Processing Zones
  • 0% import duty maintained on rice, pulse, wheat, sugar, edible oil, onion, fertilizer, seeds, life saving medicine and cotton (ADD)
  • Reduced regulatory duty (RD) at 5% for commodities with highest customs duty continued, in order to protect the local industry
  • Supplementary Duty (SD) on import of motor cycles increased from 30% to 45%, 5% RD on knocked down motorcycles withdrawn
  • Several proposals to reduce import and regulatory duty to produce LPG cylinders locally
  • All duty and taxes withdrawn in excess of 3% on chemicals required to run Effluent Treatment Plant (ETP)
  • Import duty on text books increased from 5% to 12%
  • SD on imported furniture increased from 20% to 30%, 5% RD withdrawn from particle board and MDF board imports
  • Depreciation benefit for imported old vehicles restricted to vehicles less than 3 years old, as opposed to 4 years
  •  20% SD imposed on glass tubes, increase in SD on imported toilet and facial tissue from 20% to 30%, 25% export duty imposed on cotton waste, import duty reduced from 25% to 12% on LED lamp and T5 tube light, SD withdrawn on T5 tube light, 60% SD withdrawn and import duty reduced from 25% to 12% on solar lamps
  • 5% import duty and 15% VAT on leucocytes filter withdrawn, 20% SD withdrawn and import duty reduced from 25% to 12% on cartridge/membrane filter used in pharmaceutical industries
  • Capital machinery benefit provided to Sandwich panel of pharmaceutical industries
  • 5% impot duty and 15% VAT withdrawn on cotton waste
  • Renewal duration of bond licenses for exporters increased from 1 to 2 years
  • 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