Export Processing Zones (EPZs) are export oriented industrial enclaves which provide the infrastructures, the facilities,

administrative and support services for a wide variety of enterprises. Bangladeshs highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments around the country.

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, and location free from cumbersome procedures. Businesses from 32 countrieshave so far invested in the existing zones.

There are currently eight zones with others due to open in the next few years. EPZ-Adamjee EPZ-Dhaka EPZ-Mongla EPZ-Chittagong EPZ-Ishwardi EPZ-Uttara EPZ-Comilla EPZ-Karnaphuli

If you are interested in setting up your business in an EPZ, the Board of Investment will be pleased to advise you and introduce you to BEPZA.

More information: BEPZA

Incentives & Facilities

Fiscal Incentives

1. 10 years tax holiday for the Industries to be established before 1 st January, 2012 and Industries to set up after 31st December, 2011 tax holiday period will be:

Tax exemption period Rate of tax exemption st nd First 02 years (1 and 2 Year) 100% Next 02 years (3rd and 4th Year) 50% Next 01 years (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 divident 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 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. Bank of 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 Residentship and Cityzenship 15. One Window same day service and simplified procedure.

Year-wise Investment in EPZ

Year 2006-07 2007-08 2008-09 2009-10 2010-11 Current 152.37 302.19 148.03 211.99 313.23 Cumulative 1,132.26 1,434.45 1,582.47 1804.46 2117.69 2382.38 41%

2011-12 ( March,12) 264.68 Growth (2010-2011)

Source: BEPZA

Overview of EPZ
Name of EPZ No. of industries Manufacturing Chittagong Dhaka Comilla Mongla Uttara Ishwardi Adamjee karnaphuli Total 161 98 26 06 08 08 21 23 351 Under implementation 15 06 18 06 04 11 27 27 114 Investment (m US$) Export (m US$) Employment

801.86 738.41 122.33 2.66 10.19 31.09 110.98 118.34 1,935.86

12,384.12 10,259.24 497.18 65.09 5.68 27.08 143.35 166.97 23,548.71

1,55,121 78,985 9,040 152 4,023 4,407 14,163 16,501 282,392

Source:Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance

FDI Magazine's rankings

FDI Magazine of The Financial Times in March 2010 conducted a competition entitled Global Ranking Competition of Economics Zones based on the following nine categories of ranking:

Best Overall Global Special Economic Zone Best Economic Potential Best Cost Effectiveness Best Facilities Best Transportation Link Best Incentives Best Promotion Best Airport Best Port

In the competition out of 700 Economic Zones globally 200 participated in the competition. All the zones were evaluated on a 10 point scale on the basis of some set criteria. Among the top 10 of the two categories Chittagong Export Processing Zone, Bangladesh scored 3rd position in the Best Cost Effectiveness and also 4th position in the Best Economic Potential for 2010-2011

WEDNESDAY, DECEMBER 5, 2012

About BEPZA - Bangladesh Export Processing Zone Authority

BEPZA, The meaning is Bangladesh Export Processing Authority. In order to stimulate rapid economic growth of the country, particularly through Industrialization, the government has adopted an 'Open Door Policy' to attract foreign investor to make investment in 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. According to the authority of BEPZA - The primary objectives of an EPZ (Export Processing Zone) is to provide special areas where potential investors would find a congenial investment climate,

free from cumbersome procedures which is very helpful for the Investors.

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 BLDG in custom bonded area. Infrastructural facilities Administrative facilities Fiscal and Non-Fiscal incentives EPZ attracts Foreign and Local investment

The main Objective of the BEPZA:

Promotion of Foreign (FDI) and Local investment Diversification of Export Dev. of backward & forward linkages Generation of Employment and up gradation of their skills Transfer of Technology Development of management

Type: There are three type of Investment according to BEPZA:

Type A - 100% Foreign Ownership 205 (58%) Type B - Joint Venture 49 (14%) Type C - 100% Local Venture 98 (28%)