Export Processing Zone of Bangladesh and Its Advantages

Export Processing Zone of Bangladesh and its advantages:

Export Processing Zone (EPZ) is a form of Free Trade Zones within which goods can be imported, manufactured or re-exported at a reduced duty fee almost free from initial custom authority intervention. Duties are only applicable to goods when they move to consumers within the zone located country.

BEPZA: Bangladesh Export Processing Zone Authority (BEPZA) is currently responsible for supervising the functions of the eight EPZs in the country located in Dhaka, Chittagong, Narayanganj, Comilla, Pabna, Bagerhat and Nilphamari. Acting as agents of the Government of Bangladesh, the BEPZA also oversees the management activities of the enterprises located in the zones.

Objective: The objective of such an initiative is clear and simple- to attract both foreign and local investors to promote industrialization in Bangladesh so that the economic growth of the country receives a constant boost. So far, the initiative has been able to keep up with its objectives. Examples of consistency can be seen mostly in the Ready Made Garment (RMG) sector.

Besides RMG, EPZ has also been able to attract big brands in the technology sector to manufacture camera lenses for KONIKA, FUJI, NIKON, OLYMPUS among other brands, mobile parts for SONY and even automobile parts for brands like NISSAN and Mitsubishi.

Investors from 35 countries of the world have so far invested in the Bangladesh EPZs which include clients from UK, USA, China, Germany, India, Malaysia, Australia and more.

Advantages of EPZ: Advantages of EPZ start from ground towards the investing industries and spread far and wide with its social and economic impact on the entire nation.

Investors’ Advantages:

First, we will have a look at the direct advantages the industries enjoy within these zones:

1. Reduction of custom duties- tax exemption, duty free import/ export.

2. Infrastructure facilities- land and factory buildings, utilities, security, recreational facilities.

3. Ban on labor unions in EPZ by law

4. 5 year tax holidays for new factories

5. Project financing and banking

6. Support services and other incentives from government including Export/ Import permits, Customs office, Police Stations, Fire Station, Medical Center and Post Office.

These advantages help industries in reducing their overall costs of production by