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Part One: Global Country Presentation 1 of 70 Traders’ Manual for Least Developed Countries: BANGLADESH ______A

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Part One: Global Country Presentation 1 of 70 Traders’ Manual for Least Developed Countries: BANGLADESH ______A ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC TRADERS’ MANUAL FOR LEAST DEVELOPED COUNTRIES BANGLADESH UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC TRADERS’ MANUAL FOR LEAST DEVELOPED COUNTRIES BANGLADESH UNITED NATIONS New York, 2004 ESCAP WORKS TOWARDS REDUCING POVERTY AND MANAGING GLOBALIZATION ST/ESCAP/2331 The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firm names and commercial products does not imply the endorsement of the United Nations. ii PREFACE In today’s world, characterized by increasing economic integration and globalization, transparency and access to trade rules and procedures is becoming more important, particularly for the small and medium-sized enterprises in the least developed countries. It is important that information on Asian and Pacific least developed countries, concerning their market potential, trade regimes, import procedures and other trade-related issues, be available. The Economic and Social Commission for Asia and the Pacific (ESCAP) has been addressing this need on a priority basis and disseminating information through its trade information service network, TISNET, and in publications and handbooks for the past two decades. The ESCAP series of traders’ manuals for Asian and Pacific countries has been acknowledged as a very useful source of information. In this context, ESCAP has concentrated its efforts on publishing and updating the traders’ manuals for the least developed countries of the ESCAP region. In order to reach a greater audience through the Internet, this publication will be available only in electronic version. This will allow more freedom for regular updates in due course. This first online edition provides updated information on the business and investment climate in Bangladesh. The ESCAP secretariat has received information and support from various agencies in Bangladesh for which it is very grateful. The secretariat wishes to acknowledge, with appreciation, the cooperation received from the Ministry of Commerce, the Office of the Controller of Imports and Exports, the Export Promotion Bureau, the Metropolitan Chamber of Commerce and Industry, the Federation of Bangladesh Chambers of Commerce and Industry, the Dhaka Chamber of Commerce and Industry and the Board of Investment. We hope that this edition will be useful to both exporters and importers of Bangladesh merchandise, as well as to investors. iii Map No. 3711 Rev. 2 UNITED NATIONS Department of Peacekeeping Operations January 2004 Cartographic Section iv CONTENTS Page PREFACE ........................................................................................................................... iii LIST OF ABBREVIATIONS .......................................................................................... vii Part One GLOBAL COUNTRY PRESENTATION......................... 1 Chapter I. BASIC COUNTRY DATA ..................................................................................... 1 II. MACROECONOMIC CLIMATE .........................................................................4 Part Two SELLING TO BANGLADESH.......................................... 9 I. IMPORT POLICY, REGULATIONS AND PROCEDURES ............................ 9 II. TARIFF SCHEDULE - CUSTOMS .................................................................... 12 III. FOREIGN EXCHANGE REGIME .................................................................... 14 IV. DOCUMENTS ....................................................................................................... 15 V. MARKETING AND DISTRIBUTION ............................................................... 17 VI. GOVERNMENT PROCUREMENT AND STATE TRADING ORGANIZATIONS .............................................................................................. 18 VII. PRINCIPAL IMPORT ITEMS ........................................................................... 19 Part Three BUYING FROM BANGLADESH ................................... 21 I. EXPORT POLICY, REGULATIONS AND PROCEDURES .......................... 21 II. EXPORT CHARGES ............................................................................................ 25 III. SETTLEMENT OF BILLS, LETTERS OF CREDIT ...................................... 25 IV. DOCUMENTS, INCLUDING INSURANCE ..................................................... 26 V. EXPORT INCENTIVE SCHEMES..................................................................... 26 VI. PRINCIPAL EXPORT ITEMS............................................................................ 29 Part Four INVESTING IN BANGLADESH.................................. 31 I. FOREIGN INVESTMENT POLICY AND REGULATIONS .......................... 31 II. INVESTMENT PROCEDURES .......................................................................... 33 III. INVESTMENT INCENTIVES............................................................................. 34 IV. TAXATION............................................................................................................ 38 V. FOREIGN EXCHANGE....................................................................................... 39 VI. LABOUR ISSUES.................................................................................................. 40 VII. DISPUTE SETTLEMENT.................................................................................... 42 VIII. CAPITAL MARKET............................................................................................. 43 IX. PROTECTION OF PROPERTY RIGHTS......................................................... 44 v Page Part Five EXPORT PROCESSING ZONES IN BANGLADESH................... 47 I. SETTING-UP FIRMS IN EPZ............................................................................. 47 II. GUIDELINES TO PREPARE INVESTMENT PROPOSALS FOR EPZ....... 49 III. INCENTIVES OFFERED IN EPZ ...................................................................... 50 IV. CUSTOMS REGULATIONS FOR EPZ............................................................. 51 V. EXPORTS FROM EPZ......................................................................................... 52 VI. IMPORTS TO EPZ ............................................................................................... 53 VII. LABOUR ISSUES IN EPZ ................................................................................... 54 Part Six TIPS FOR VISITORS TO BANGLADESH ......................... 55 I. GETTING THERE................................................................................................ 55 II. VISAS AND PASSPORTS.................................................................................... 55 III. CURRENCY........................................................................................................... 56 IV. EMBASSIES AND CONSULATES..................................................................... 56 V. OTHER RELEVANT LINKS .............................................................................. 57 ANNEXES I. List of goods banned for import ...............................................................................58 II. List of goods restricted for import ............................................................................60 III. List of imports exempted from import licence fee....................................................67 IV. List of goods prohibited for export ...........................................................................68 V. List of goods restricted for export.............................................................................69 VI. Terms of intellectual property rights protection in Bangladesh................................69 VII. List of permitted import items for EPZ industries....................................................70 vi LIST OF ABBREVIATIONS ADB Asian Development Bank ASEAN Association of Southeast Asian Nations BEPZA Bangladesh Export Processing Zones Authority BGMEA Bangladesh Garment Manufacturers and Exporters Association BIMST-EC Bangladesh, -India, -Myanmar, -Sri Lanka-Thailand Economic Cooperation BOI Board of Investment BSCIC Bangladesh Small and Cottage Industries Corporation BSTI Bangladesh Standards and Testing Institution CCI&E Chief Controller of Imports and Exports c.i.f. cost, insurance, freight CSE Chittagong Stock Exchange DCCI Dhaka Chamber of Commerce and Industry DSE Dhaka Stock Exchange DTA domestic tariff area ECG export credit guarantee ELVIS electronic visa information system EPZ export processing zone ERC export registration certificate EU European Union FAO Food and Agriculture Organization of the United Nations FBCCI Federation of Bangladesh Chambers of Commerce and Industry FDI foreign direct investment FICCI Foreign Investors’ Chamber of Commerce and Industry f.o.b. full on board GDP gross domestic product GIR General Index Register GSP generalized system of preferences GSTP Global System of Trade Preferences among Developing Countries HS Harmonized Commodity Description and Coding System IBRD International Bank for Reconstruction and Development ICAO International Civil Aviation Organization ICB Investment Corporation of Bangladesh ICCB International Chamber of Commerce-Bangladesh ICSID International Centre for Settlement of
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