Custom clearance is mandatory to export or import any products. Whether you need to import a product from abroad or export something outside the country, you must get a customs clearance certificate and pay a certain amount of money as per Bangladesh customs tariffs.
So how much is customs clearance in Bangladesh? Let’s know in the following discussion.
What is custom tariff?
A custom tariff is a tax the government imposes upon goods and products as they cross the national borders. Tariff, duty-free and customs clearance fee are all used interchangeably.
How much are the tariffs on imports in Bangladesh
The National Board of Revenue (NBR) is Bangladesh’s supreme tax administration authority. The official customs department of Bangladesh works under the NRB.
Here is an overview of understanding the tariff on most common categories:
- Bangladesh offers incentives on capital equipment and machinery as well as certain inputs and supplies, making tariff rate calculation a complex and confusing procedure.
- The overall Most Favored Nation (MFN) export value is 14% for agricultural items. It includes machinery, equipment, raw materials and so on.
- The maximum MFN rate is 25%. It includes essential input items, common raw materials, and intermediate & completed commodities, all subject to rates ranging from 5% to 25%.
- Imports are also subject to an anticipatory income tax of 5% and a value-added vat of 0% to 15%. There are exceptions for luxury items like wine and perfumes, where tariffs may rise to 500%.
Criteria and documentation for import:
You have to fulfil several criteria to import any item. You need to submit the following things:
- Payment authorization form
- Shipping bill or airway bill
- Invoice or shipping documents
- Confirmation of origin
The concerned government agencies require supplementary certificates or import permissions for some commodities that concern health, safety, and other problems. However, the public sector requires less paperwork.
Importers need to certify through one of four organizations as follows:
- Bangladesh Export Processing Zones Authority (BEPZA) for projects located in EPZs
- Bangladesh Small and Cottage Industries Corporation (BSCIC) for microenterprises
- Bangladesh Handloom Board for handloom businesses run by labourers’ affiliations dedicated to preserving traditional Bangladeshi weaving.
- Ministry of Commerce’s Chief Controller of Imports and Exports for business merchants.
How long does it take to get a certification
An IRC is usually provided between three business days of the application’s submission. Commercial importers may bring in an unlimited number of non-prohibited items.
The IRC sets the maximum amount for each commodity an industrial consumer imports yearly, including goods on the prohibited importation list. The import authorization track raw resources and industrial imports, most of which reach Bangladesh at reduced tariff rates.
Short-term entry of import
Foreign companies’ distributors and agents are permitted to import equipment and machinery from their sponsors for demo or exhibition purposes under the following conditions:
- The products imported to Bangladesh will be re-exported within a year.
- At the time of confirmation, the importer files a bond and provides a payment certificate of agreement or a legal document to Customs indicating that the products would be re-exported responsibly.
- Special approval from the CCI&E is required if the products contain prohibited or banned items.
Temporary imports of machinery or tools may be duty-free if the importer receives an import/export license.
Proclamation of import
Unless exempted or suspended, all products transported into Bangladesh should be reported, and duty paid. It should be presented at the customs office alongside other necessary paperwork.
Shipping agents give their manifest info to the Customs administration online for imported goods into Bangladesh. When the Import General Manifest is filed online, the goods declaration is completed by the designated C&F Agent.
Invoice of Entry from their location and submits the product’s description to Customs systems via ASYCUDA World. The proclamation must be submitted in a format familiar to the Single Administrative Document.
Conclusion:
There are different types of charges and costs associated with trade. Yet, these costs and fees are not issued or received by a particular agent but rather by many border agencies or GoB entities associated with the import-export activity. Hope this write-up helps you understand Bangladesh’s whole customs clearance procedure easily.
