You are on page 1of 23

About BEPZA

In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to 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. The primary objectives of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. Objective Promotion of foreign (FDI) & local investment Diversifiaction of export Dev. OF backward & forward linkages Generation of employment Transfer of technology Upgradation of skill Development of management

About EPZ 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 & non-fiscal incentives EPZ attracts : foreign & local investment

Type: A - 100% foreign ownership 205 (58%) B - joint venture 49 (14%) C - 100% local venture 98 (28%)

Bangladeshi EPZ's at a glance 1. EPZ-Chittagong

2. EPZ-Dhaka 3. EPZ-Mongla 4. EPZ-Ishwardi 5. EPZ-Comilla 6. EPZ-Uttara 7. EPZ-Adamjee 8. EPZ-Karnaphuli

View EPZ's location in map>>

List

of

Countries so

far Invested

1. 2. 3. 4. 5.

Australia Bangladesh Belgium BR. Virgin Is. Canada

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23 24. 25. 26. 27. 28. 29. 30.

China Denmark France Germany India Indonesia Ireland Italy Japan Kuwait Malaysia Marshal Island Mauritius Nepal Netherland Pakistan Panama Portugal S. Korea Singapore Sri Lanka Sweden Switzerland Taiwan Thailand

31. 32. 33. 34. 35.

Turkey U.A.E. U.K U.S.A Ukraine

BEPZA - Official (Executive Office)


Employee name Major General A T M Shahidul Islam, ndu, psc Md. Moyjuddin Ahmed Abu Reza Khan A K M Mahbubur Rahman Md. Shawkat Nabi A Z M Azizur Rahman Kazi Abdul Aziz Md. Shah Alam Sarkar A Z M Azizur Rahman A Z M Azizur Rahman Abdus Shukur Miah Md. Nurul Haque S. S. Kibria Md. Shariful Islam Designation Executive Chairman Member (Investment Promotion) Member (Engineering) Member (Finance) Secretary GM ( Security) Phone (Office) E-mail address 9670530
chairman@bepza.org

8650058 8650068 8650062 8650064 9671911

member-ip@bepza.org memberengg@bepza.org member-fin@bepza.org secretary@bepza.org

GM (Investment Promotion) 8650061 Chief Accounts and Finance 8650065 Officer Chief Engineer GM (MIS)-Add. Charge GM (Public Relation)-Add. Charge GM (Audit) GM (Enterprise Service)-In Charge GM (Maintenance) PS to Chairman 8650069 8650061 8650061 8628132 8650073 8620282 9671417, 01715145706

gm-ip@bepza.org cafo-fin@bepza.org ceshahalam@gmail.com info@bepza.org gm-pr@bepza.org

gm-es@bepza.org gm-m@bepza.org sharifulps@yahoo.com

Indicative List of Industries

Textile

Agro-based Industries Chemicals Backward and forward linkage Industries Electrical Equipment and Components Electronic Products Software Optical Goods Garments and Garments Accessories Woven and Knitted Fabrics Engineering Products Leather Products and Foot-Wear Toys Medical and Biological Instruments Pharmaceutical Products Plastic Moulded products Industries based on new uses of Jute Cutting/Polishing of Precious and Semi Precious stones Household Fittings and Equipment Head-Wear Jewellery Horological Instruments Scientific Measuring Instruments Aircraft Instruments Laboratory Ware Printing and Publishing Printing and Copying Equipment & Accessories Do-it-yourself Tools and Equipment Musical instruments

NB: This list is not exhaustive, only indicative.

Related Organization
Prime Minister's Office Board of Investment National Board of Revenue Bangladesh Bank Ministry of Commerce Ministry of Home Affairs Export Promotion Bureau Register of Joint Stock Company Chittagong Port Mongla Port

Hazrat Shahjalal (R) Airport, Dhaka Shah Amanat Airport, Chittagong Pan Pacific Hotel Sonargoan Ltd., Dhaka. Janata Bank Limited

Name of The EPZs Land (US$/SQM/YEAR) Readymade Factory Building Space (US$/SQM/MONTH) Chittagong, Dhaka, Comilla, Adamjee, Karnaphuli 2.20 2.75 Mongla, Ishwardi, Uttara 1.00 1.25 # 01 Square Meter= 10.76 Square Feet #

Why Invest in Bangladesh EPZ?


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

LAW & ORDER SITUATION INFRASTRUCTURE FACILITIES REDUCTION OF LEAD TIME COST OF DOING BUSINESS FRIENDLY POLICY OF GOVT INCENTIVES WIN WIN VENTURES SUCCESS STORY SIGNATORY OF MIGA (Multilateral Investment Guarantee Agency) SIGNATORY OF ICSID (International Centre for Settlement of Investment Dispute) MEMBER OF WIPO (World Intellectual Property Organization) MEMBER OF OPIC (Overseas Private Investment Corporation) ASIA'S LOW COST PRODUCTION BASE

Year Wise Export

Click on a link bellow to view the details of the corresponding EPZ.

Chittagong EPZ

YEAR

EXPORT IN (MILLION US$) Chittagong EPZ CURRENT CUMULATIVE 0.16 4.61 12.21 27.47 41.40 57.48 91.69 139.67 216.67 343.71 484.07 671.05 934.84 1278.15 1728.15 2180.68 2706.77

1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00

0.16 4.45 7.59 15.27 13.93 16.08 34.21 47.99 76.99 127.05 140.35 186.98 263.80 343.31 450.41 452.12 526.09

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)

620.36 608.70 641.28 679.01 772.39 873.03 971.54 1117.17

3327.13 3935.83 4577.11 5256.11 6028.50 6901.53 7873.07 8990.24

1188.15 1333.53 1161.95

10178.38 11511.91 12673.86

Year Wise Export

Click on a link bellow to view the details of the corresponding EPZ.

Chittagong EPZ
YEAR EXPORT IN (MILLION US$) Chittagong EPZ CURRENT 1983-84 1984-85 1985-86 0.16 4.45 7.59 CUMULATIVE 0.16 4.61 12.21

1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)

15.27 13.93 16.08 34.21 47.99 76.99 127.05 140.35 186.98 263.80 343.31 450.41 452.12 526.09 620.36 608.70 641.28 679.01 772.39 873.03 971.54 1117.17

27.47 41.40 57.48 91.69 139.67 216.67 343.71 484.07 671.05 934.84 1278.15 1728.15 2180.68 2706.77 3327.13 3935.83 4577.11 5256.11 6028.50 6901.53 7873.07 8990.24

1188.15 1333.53 1161.95

10178.38 11511.91 12673.86

Dhaka EPZ

YEAR

EXPORT IN (MILLION US$) Dhaka EPZ CURRENT CUMULATIVE 5.26 46.53 119.75 239.21 424.85 684.42 1049.14 1496.66 1963.42 2518.21

1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

5.26 41.28 73.22 119.45 185.64 259.57 364.73 447.51 466.76 554.79

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)

667.60 757.73 918.30 1033.03 1146.50

3185.81 3943.53 4861.83 5894.86 7041.37

1190.36 1216.49 1088.29

8231.73 9448.22 10536.50

Year Wise Investment

Click on a link bellow to view the details of the corresponding EPZ.

Chittagong EPZ

YEAR

INVESTMENT (MILLION US$) Chittagong EPZ CURRENT CUMULATIVE 0.87

1983-84

0.87

1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

1.60 3.60 6.63 1.79 2.72 8.58 22.05 23.66 22.05 29.18 27.67 16.13 22.89 42.59 36.11 15.18 24.30 22.37 42.14 55.43 45.31 35.95 32.62 126.46

2.47 6.07 12.71 14.50 17.22 25.80 47.85 71.51 93.56 122.74 150.41 166.54 189.42 232.02 268.12 283.30 307.61 329.98 372.12 427.55 472.86 508.82 541.44 667.90 715.12 772.64

47.22 57.52

2010-11 (March, 2011)

38.39

811.03

Exchange Control Regulations


> Operation of Export Processing Zone in Bangladesh > Extension of credit facilities to industries > Extension of credit/remittance facilities to type-B industries > Deposit of export earnings in FC account of type-A & B industries > Deposit of export earnings in FC account of type-B industries > Deposit of Export Earning in FC Account of Type-C Industries > Operation of FC account by type-B and type-C garments industries > Operation of FC account by type-B and C industries > Encashment of foreign exchange by the industrial units > Payment of Bills in FC by Type A & B Enterprises > Issuance and endorsement of bill of export consignments of type-A > Non-resident FC deposit account > Extension of facilities of non-resident FC deposit account > Application of Interest on FC Acc. of non resident persons > Establishment of banking units in EPZs > Establishment of off-shore banking units in EPZs > Simplified Exchange Control Regulations On Certain Issues

> Remittance of royalty, Training and consultancy fees etc.

Brand Products made in Bangladesh EPZs

NIKE, REEBOK, LAFUMA, H & M (SWEDEN),GAP, BROUKS, J.C. PENNY, WALMART, KMART, OSPIG (GERMANY), MOTHER CARE (UK), LEE, WRANGLER, DOCKERS, NBA, TOMMY HILFIGER, ADIDAS, FALCON(USA), EDIE BAUYER, EAGLE, RELEIGH (UK), EMMILEE, FREE SPIRIL (UK), MILES (GERMANY), AMERICAN EAGLE, HI-TECH (UK), PHILLIP-MAURICE (UK), WINS MORE, DECATHLON. LL CAMERA LENS (IO PARTS) GOLF SHAFTS MOBILE PARTS KONIKA, MINOLTA, NIKON, FUJI, OLYMPUS. ABU GARCIA SONY

AUTOMOBILE PARTS

NISSAN, MITSUBISHI, HINO.

Classification of Investors

Type - A 100% foreign owned including Bangladesh nationals ordinarily resident abroad. Type - B Join venture between foreign and Bangladesh entrepreneurs resident in Bangladesh. Type - C 100% Bangladesh entrepreneurs resident in Bangladesh.

Incentives & Facilities

Fiscal Incentives 1. 10 years tax holiday 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. 2. 3. 4. 5. 6. 7. 100% foreign ownership permissible Enjoy MFN (most favored nation) status No ceiling on foreign and local investment Full repatriation of capital & dividend Foreign Currency loan from abroad under direct automatic route Non-resident Foreign Currency Deposit (NFCD) Account permitted 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.

Infrastructure & Support Services


Infrastructure Basic Infrastructure : Electricity, Water, &Gas Fully serviced plots available Factory building available on rental basis Enclave for workers Dormitory & Day Care Centre warehouse / Godown available

Support Services Business : Bank, Courier, Post office, C&F Agent, Shipping Agent, MTO etc. Administrative : Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc. Others : Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.

Investment Guarrantee

Foreign Private Investment (Promotion and Protection) Act, 1980 secures all foreign investment in Bangladesh. OPIC's (Overseas Investment Corporation, USA) insurance and finance programmes operable. Security and safeguards available under Multilateral Investment Guarantee Agency (MIGA) of which Bangladesh is a member. Arbitration facility of the International Center for the Settlement of Investment Dispute (ICSID) available.

Labour Issues
Ensure the congenial production climate. Establish the franchise of the workers. BEPZA Instruction No. 1 & 2 The parliament passed the EPZ Workers Association and Industrial Relations Act 2004(Ammended up to October 2010). Re-Fixation of minimum wages and benefits for the workers of the enterprises of EPZs Counsellors monthly compliance report. The parliament passed the EPZ Workers Association and Industrial Relations Act 2004(Ammended up to October 2010). Competitive wages in respect of semi skilled, skilled and high skilled. The average monthly wages has been practiced as follow: Unskilled US$ 30.00-38.00 Semi-skilled US$ 45.00 Skilled US$ 58.00-60.00

Other benefits include Conveyance Allowance, House Rent, Medical Allowance, Maternity Benefit, Festival Bonus, Provident Fund and Overtime.

Considering the production cost investor are being deemed to be satisfied with the overall productivity of the labours.

Mode of Investment

Bangladesh adopted pragmatic strategy in order to attract more Foreign Direct Investment (FDI) by strictly maintaining win-win policy. Maintain open door policy through active negotiation in the process of globalization to achieve due targeted share from the overseas potential investment surplus market.

Dynamics of Foreign Direct Investment (FDI) should be reasonably proactive to fill the resource gap, foreign exchange gap, efficiency gap and technical and management know how gap.

Off - Shore Banking Units


Foreign investors do not have the opportunity of availing credit facilities from the Different Financial Institutions (DFI) of Bangladesh. In order to cater the need of financial support off-shore Banking facilities is being provided to the foreign owned/ Join Venture unit in the EPZs of Bangladesh. Presently Foreign Banks in Bangladesh have licentiated for doing off-shore banking like: 1. Standard Charter Bank Ltd. 2. HSBC Ltd. 3. Woori Bank Ltd. 4. Citi N.A. Bank Ltd. 5. 6. 7. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Commercial Bank of Ceylon. Dutch-Bangla Bank Ltd. State Bank of India Prime Bank Ltd. Dhaka Bank Ltd. South-East Bank Ltd. National Bank Ltd. Estern Bank Ltd. (EBL). Bank Asia Ltd. Shahjalal Bank Ltd. The City Bank Ltd. The Premier Bank Ltd. IFIC Bank Limited

Apart from that local bank of Bangladesh also provide off-shore banking like:

11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

BRAC Bank Ltd. AB Bank Limited Mutual Trust Bank Ltd. Jamuna Bank Ltd. One Bank Ltd. Pubali Bank Ltd. Standard Bank Ltd. National Credit and Commerce Bank Ltd. Islami Bank Bangladesh Ltd. Trust Bank Limited Mercantile Bank Ltd. United Commercial Bank Ltd.

More local Bank in the pipe-line to have off-shore Banking license from Bangladesh Bank (Central Bank). Schedule of standard charges are being practiced among the off-shore Banking units of DFI (Different Financial Institutions) of Bangladesh.

Chittagong Export Processing Zone

Location : Shouth Halishahar. 3.10 kms from the sea port, 5.50 kms from the main business center, 7.21 kms from the Chittagong International Airport.

Profile Of Zone : Zone area : 183.37 hectares (453 acres) Number of industrial plots : 454 Size of each plot : 2000 sqm. Tariff : US $ 2.20 / sqm / year. Space of Standard Factory Building : 60912.77 sqm. Tariff : US $ 2.75 / sqm / month.

Space of Warehouse : 2667.79 sqm. Tariff : US $ 2.75 / sqm / month. Utility Services : Water Supply: From Chittagong WASA. Storage Capacity 7.26 million liters / day. Tariff : Tk. 19.40 / cum. Gas Supply: From Bakhrabad Gas System Ltd. Tariff : Tk. 5.76 / cum. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person : General Manager Email: cpz@ctg-bd.net Contract Address : Chittagong Export Processing Zone , South Halishahar, Chittagong Phone : +880 31 741446, +880 31 740919 Fax : +880 31 740031

Dhaka Export Processing Zone

Location : Savar. 35 kms from Dhaka city centre, 25 kms from Hazrat Shahjalal (R) Airport. 304 Kms from Chittagong Sea Port.

Profile Of Zone : Zone area : 143.84 hectares (346.51 acres) Number of industrial plots : 388 Size of each plot : 2000 sqm. Tariff : US $ 2.20 /sqm /year. Space of Standard Factory Building : 79843.19 sqm. Tariff : US $ 2.75 /sqm /month. Space of Warehouse : 2356 sqm. Tariff : US $ 2.75 /sqm /month. Utility Services : Supply: Own water supply system. Tariff : Tk. 18.47 / cu-m. Gas Supply: From Titas Gas Transmission & Distribution Co. Ltd. Tariff : Tk. 5.76 / cu-m. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person : General Manager Contract Address : Dhaka Export Processing Zone , Ganakbari, Savar, Dhaka Phone : +880 2 7789002, +880 2 7789411 Fax : +880 2 7789003

Karnaphuli Export Processing Zone


Location : North Potenga and Halishahar, within 6 Kms from Chittagong Port, 10 kms from main business center of Chittagong, 12 kms from Shah Amanat International Airport, Chittagong.

Profile Of Zone : Zone area : 108.64 hectares (268.32 acres) Number of industrial plots : 260 (100 in first phase) Size of each plot : 2000 sqm. Tariff : US $ 2.20 / sqm / year.

Space of Standard Factory Building : 59278.82 sqm. Tariff US $ 2.75 /sqm /month. Utility Services : Water Supply : From Chittogong WASA & through Own water treatment plant. Tariff : Tk. 18.47 / cu-m. Gas Supply : From Bakhrabad Gas System Ltd. Tariff : Tk. 5.76 / cu-m. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person :

Project Director Contract Address : Karnaphuli Export Processing Zone , Karnaphuli, Chittagong Phone : +880 31 801069 Fax : +880 31 801069