Bangladesh has been steadily expanding its special economic zone framework, and the latest customs reforms materially change how goods move in and out of designated zones.
What has changed
The customs overhaul simplifies bond licensing for zone-based manufacturers while tightening the audit trail required to support duty-free imports. In practice, the administrative burden shifts from the application stage to ongoing record-keeping.
Incentives available
- Duty-free import of capital machinery and raw materials
- Corporate tax holidays for qualifying periods
- Exemption from certain local taxes and levies
- Streamlined work permit processing for expatriate staff
The conditions attached
These incentives are conditional. Export performance obligations, local sale limits and reporting duties all carry consequences if missed. We regularly see businesses lose their bond privileges because of documentation gaps rather than any substantive breach.
Getting the structure right
The choice between a zone-based entity, a bonded warehouse arrangement and a conventional structure has long-term tax and operational consequences. It should be modelled before incorporation, not after.