Import tariffs: Bangladesh import policy order 2006-2009 places control on the imports of a number of goods. The import of a number of products is the sole reserve of nominated government trading organisations. The import regime consists of: a prohibited list; restricted list; freely importable goods (imports falling outside the above lists can be imported either freely or by meeting specified requirements).
All other permitted imports require a LCA (Letter of Credit Authorisation) form to be completed: these allow registered importers to import under letter of credit without the need of an import licence; importers must lodge a 10 % -100 % (depending on the business relationship with banker) cash margin against covering letters of credit; import transactions are controlled by regulations specified on the Bangladesh Import Policy Order issued by the Chief Controller of Imports and Exports, Ministry of Commerce; foreign exchange is governed by the Bangladeshi.
There is a short list of prohibited goods, which includes the majority of second-hand goods. Penalty for the smuggling of illegal narcotics is strict.
Some engineering goods must comply with established technical norms and require an inspection certificate issued by a recognised organisation.
Import duties: In Bangladesh, there has been a reduction of duties in recent years. The peak rate of basic import duty has fallen from 350 % to 30 % since the 1990s. The other applicable charges for opening letter of credit are: advance income tax – 3 %; development surcharge, charged on the majority of imports – 3.5 %; value-added tax – between 5 and 15 %; supplementary duty ranges from 10 % to 60 % is also applicable on luxury goods.
Customs duties levied on all imported goods except generator, IT equipment, raw cotton, textile machinery, different types of machinery used in irrigation and agriculture, animal feed used by the poultry sector, and a number of drugs and medical equipment.
Duty rates include: general input items: 7.5-15 %; basic raw materials: 7.5-25 %; intermediate and finished product: 25-30 %.
On items classified as "uxury", such as cigarettes, perfume etc, a supplementary duty is levied. Excise duties have been abolished on all articles except manually prepared cigarettes, bank accounts, and textiles. Food and medicine used in the poultry and dairy industries, raw cotton and textile machinery are exempt from VAT.
Visitors may bring about A $ 6500 without declaring it. Up to 200 cigarettes may be brought into the country and a max of 1 litre of alcoholic beverages.
Samples in reasonable quantity can be carried here during travel and no tax is required. Duty is applicable on samples if sent by courier.
Necessary documentation: commercial invoice; pro-forma invoice; bill of lading (airway bill); packing list; certificate of origin.
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