RESTRICTED  
  
WT/TPR/S/385  
6 February 2019  
(19-0660) Page: 1/140 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
BANGLADESH  
This report, prepared for the fifth Trade Policy Review of Bangladesh, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Bangladesh on its trade policies and 
practices.  
 
Any technical questions arising from this report may b e addressed to Sergios Stamnas 
(tel: 022 739 5382), Usman Ali Khilji (tel: 022 739 6936), Taufiqur Rahman (tel: 022 739 6439), 
and Fatima Chaudhri (tel: 022 739 6384) . 
 
Document WT/TPR/G/ 385 contains the policy statement submitted by Bangladesh.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Bangladesh. This report was drafted 
in English.  
  WT/TPR/S/385 • Bangladesh  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ .......................  8 
1   ECONOMIC ENVIRON MENT  ................................ ................................ .......................  13 
1.1   Main Features of the Economy  ................................ ................................ ...................  13 
1.2   Recent Economic Developments  ................................ ................................ .................  16 
1.2.1    Growth and income  ................................ ................................ ................................  16 
1.2.2   Prices  ................................ ................................ ................................ ...................  16 
1.2.3    Main macroeconomic  policy developments  ................................ ................................  16 
1.2.3.1    Monetary and exchange  rate policy  ................................ ................................ ....... 16 
1.2.3.2    Fiscal policy  ................................ ................................ ................................ ........  17 
1.2.4    Structural  reforms  ................................ ................................ ................................ . 17 
1.2.4.1    Tax reforms  ................................ ................................ ................................ ....... 18 
1.2.4.2    Privatization  ................................ ................................ ................................ ....... 18 
1.2.4.3   Competition policy  ................................ ................................ ..............................  18 
1.2.4.4    Labour market reforms  ................................ ................................ ........................  18 
1.2.5    Balance of payments  ................................ ................................ ..............................  19 
1.3   Developments in Trade and Investment  ................................ ................................ ...... 21 
1.3.1   Trends and patterns in merchandise and services trade  ................................ ..............  21 
1.3.2   Trends and patterns in FDI  ................................ ................................ .....................  24 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ ..........  25 
2.1   General Framework  ................................ ................................ ................................ .. 25 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 26 
2.2.1    Executive branches of Government  ................................ ................................ ..........  26 
2.2.2    Advisory bodies  ................................ ................................ ................................ ..... 26 
2.2.3    Policy objectives  ................................ ................................ ................................ .... 26 
2.2.4    Trade laws and regulations  ................................ ................................ .....................  27 
2.2.5    Transparency  ................................ ................................ ................................ ........  28 
2.3   Trade Agreements and Arrangements  ................................ ................................ .........  29 
2.3.1    WTO ................................ ................................ ................................ ....................  29 
2.3.1.1    Features  ................................ ................................ ................................ ............  29 
2.3.1.2    Trade -related  technical assistance  ................................ ................................ .........  29 
2.3.1.3    LDC graduation  ................................ ................................ ................................ ... 30 
2.3.2    Regional  and preferential agreements  ................................ ................................ ...... 30 
2.3.2.1    APTA ................................ ................................ ................................ .................  31 
2.3.2.2    SAPTA and SAFTA  ................................ ................................ ...............................  32 
2.3.2.3    BIMSTEC  ................................ ................................ ................................ ............  33 
2.3.2.4    Developing -8 (D-8) ................................ ................................ .............................  33 
2.3.2.5    Trade Preferential System – Organisation of Islamic Cooperation (TPS -OIC) ...............  34 
2.3.2.6    Other preferences and arrangements  ................................ ................................ .... 34 
2.3.3    Other agreements  ................................ ................................ ................................ .. 35 WT/TPR/S/385 • Bangladesh  
 
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  2.4   Investment Regime  ................................ ................................ ................................ .. 35 
2.4.1   Policy and institutional framework  ................................ ................................ ............  36 
2.4.2    Main regulatory framework  ................................ ................................ .....................  37 
2.4.3    Restricted activities  ................................ ................................ ................................  37 
2.4.4    Registration and approval  ................................ ................................ .......................  37 
2.4.5    Investment promotion  ................................ ................................ ............................  38 
2.4.6    Dispute settlement  ................................ ................................ ................................ . 38 
2.4.7    Bilateral treaties developments and international cooperation  ................................ ..... 39 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ .......................  40 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  40 
3.1.1    Customs procedures, valuation, and requirements  ................................ .....................  40 
3.1.1.1    Customs procedures and requirements  ................................ ................................ .. 40 
3.1.1.2    Customs valuation  ................................ ................................ ..............................  43 
3.1.1.3    Pre-shipment inspection  ................................ ................................ ......................  44 
3.1.2    Rules of origin  ................................ ................................ ................................ ....... 44 
3.1.3    Tariffs  ................................ ................................ ................................ ..................  44 
3.1.3.1    General features  ................................ ................................ ................................ . 44 
3.1.3.2    Applied MFN tariffs  ................................ ................................ ..............................  45 
3.1.3.3    MFN tariff dispersion and escalation  ................................ ................................ ...... 47 
3.1.3.4    MFN tariff bindings  ................................ ................................ ..............................  47 
3.1.3.5    Tariff preferences  ................................ ................................ ................................  48 
3.1.3.6    Duty c oncessions/exemptions  ................................ ................................ ...............  48 
3.1.4    Other charges affecting imports  ................................ ................................ ...............  48 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ..........................  48 
3.1.5.1    Prohibitions  ................................ ................................ ................................ ........  48 
3.1.5.2    Import approval and restrictions  ................................ ................................ ...........  49 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ..............  49 
3.2   Measures Directly Affecting Exports  ................................ ................................ ............  50 
3.2.1    Customs procedures and requirements  ................................ ................................ ..... 50 
3.2.2    Taxes, charges, and levies  ................................ ................................ ......................  50 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ...........................  51 
3.2.4    Export support and promotion  ................................ ................................ .................  52 
3.2.4.1    Export subsidies  ................................ ................................ ................................ . 52 
3.2.4.2   Duty and tax concessions  ................................ ................................ .....................  54 
3.2.4.3    EPZs ................................ ................................ ................................ .................  57 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................  57 
3.2.6    Export promotion and marketing assistance  ................................ ..............................  58 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 58 
3.3.1    Incentives  ................................ ................................ ................................ .............  58 
3.3.1.1    Taxation  ................................ ................................ ................................ ............  58 WT/TPR/S/385 • Bangladesh  
 
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  3.3.1.1.1    Features  ................................ ................................ ................................ .........  58 
3.3.1.1.2    Indirect taxation  ................................ ................................ ..............................  59 
3.3.1.1.3    Direct taxation  ................................ ................................ ................................ . 61 
3.3.1.2    Production incentives ................................ ................................ ...........................  61 
3.3.1.2.1    Cottage, Micro, Small and Medium Enterprises  ................................ .....................  62 
3.3.1.2.2    Research and development (R&D)  ................................ ................................ ...... 63 
3.3.1.2.3    Designated zones  ................................ ................................ .............................  64 
3.3.1.2.3.1    Economic zones  ................................ ................................ ............................  64 
3.3.1.2.3.2    High-tech parks ................................ ................................ .............................  65 
3.3.1.2.4    Sector -specific support  ................................ ................................ .....................  65 
3.3.2    Standards and other technical requirements  ................................ .............................  66 
3.3.2.1    Standards -setting framework  ................................ ................................ ...............  66 
3.3.2.2    Voluntary, compulsory and aligned standards  ................................ .........................  67 
3.3.2.3   Transparency and enforcement  ................................ ................................ .............  68 
3.3.2.4    Marking, labelling and packaging requirements  ................................ .......................  69 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ .. 69 
3.3.3.1    Food standards -setting framework  ................................ ................................ ........  69 
3.3.3.2    Quarantine regulations  ................................ ................................ ........................  71 
3.3.3.3    Transparency  ................................ ................................ ................................ ..... 73 
3.3.3.4    Marking, labelling and packaging requirements  ................................ .......................  73 
3.3.4    Competition policy and price controls  ................................ ................................ ....... 73 
3.3.4.1    Competition policy  ................................ ................................ ..............................  73 
3.3.4.2    Price regulation ................................ ................................ ................................ ... 75 
3.3.4.3    Consumer protection  ................................ ................................ ...........................  75 
3.3.5    State trading, SOEs, and privatization  ................................ ................................ ...... 76 
3.3.6    Government procurement  ................................ ................................ .......................  79 
3.3.6.1    Reforms  ................................ ................................ ................................ .............  79 
3.3.6.2    Regulatory and institutional framework  ................................ ................................ .. 79 
3.3.6.3    Procurement methods and related issues  ................................ ...............................  80 
3.3.6.4    Enforcement  ................................ ................................ ................................ ....... 81 
3.3.7    Intellectual property rights  ................................ ................................ ......................  81 
3.3.7.1    Industrial prope rty ................................ ................................ ..............................  83 
3.3.7.1.1    Patents and industrial designs  ................................ ................................ ............  83 
3.3.7.1.2    Trade marks  ................................ ................................ ................................ .... 85 
3.3.7.1.3    Geographical indications  ................................ ................................ ...................  85 
3.3.7.1.4    Plant varieties  ................................ ................................ ................................ .. 86 
3.3.7.1.5    Layout designs of integrated circuits (topographies)  ................................ .............  86 
3.3.7.1.6    Trade secrets  ................................ ................................ ................................ ... 86 
3.3.7.2    Copyright and related rights  ................................ ................................ .................  86 
3.3.7.3    Enforcement  ................................ ................................ ................................ ....... 87 WT/TPR/S/385 • Bangladesh  
 
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  3.3.7.3.1    Domestic enforcement  ................................ ................................ ......................  88 
3.3.7.3.2    Enforcement by Customs  ................................ ................................ ..................  88 
3.3.7.3.3    Judicial action  ................................ ................................ ................................ .. 88 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ....................  89 
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  89 
4.1.1    Features  ................................ ................................ ................................ ...............  89 
4.1.2    Policy and institutional developments  ................................ ................................ ....... 91 
4.1.3    Border measures  ................................ ................................ ................................ ... 92 
4.1.4    Domestic support measures  ................................ ................................ ....................  93 
4.1.5    Selected items ................................ ................................ ................................ ....... 94 
4.1.5. 1   Crops  ................................ ................................ ................................ ................  94 
4.1.5.2    Livestock  ................................ ................................ ................................ ...........  95 
4.1.6    Fisheries  ................................ ................................ ................................ ...............  97 
4.2   Mining and Energy  ................................ ................................ ................................ .... 99 
4.2.1    Mining  ................................ ................................ ................................ ..................  99 
4.2.2    Energy  ................................ ................................ ................................ ...............  100 
4.2.2.1    Hydrocarbons  ................................ ................................ ................................ ... 101 
4.2.2.1.1    Oil ................................ ................................ ................................ ................  101 
4.2.2.1.2    Gas ................................ ................................ ................................ ..............  102 
4.2.2.2    Electricity  ................................ ................................ ................................ .........  103 
4.2.2.3    Renewable energy and energ y efficiency  ................................ ..............................  105 
4.3   Manufacturing  ................................ ................................ ................................ ........  106 
4.3.1    Features, policy and measures  ................................ ................................ ..............  106 
4.3.2    Policy and institutions ................................ ................................ ...........................  106 
4.3.3    Border measures  ................................ ................................ ................................ . 107 
4.3.4    Domestic support measures  ................................ ................................ ..................  108 
4.3.5    Selected activities  ................................ ................................ ................................  108 
4.3.5.1    Garments  ................................ ................................ ................................ .........  108 
4.3.5.2    Jute industry  ................................ ................................ ................................ .... 109 
4.3.5.3    Pharmaceuticals  ................................ ................................ ................................  111 
4.4   Services  ................................ ................................ ................................ ................  111 
4.4.1    Features  ................................ ................................ ................................ .............  111 
4.4.2    Overall commitments under the General Agreement on Trade in Services and RTAs  ..... 112 
4.4.3    Financial services  ................................ ................................ ................................ . 112 
4.4.3.1    Banking and finance  ................................ ................................ ..........................  113 
4.4.3.2    Securities  ................................ ................................ ................................ .........  116 
4.4.3.3    Insurance  ................................ ................................ ................................ ........  118 
4.4.4    Telecommunications  ................................ ................................ .............................  120 
4.4.5    Transport  ................................ ................................ ................................ ............  121 
4.4.5.1    Shipping  ................................ ................................ ................................ ..........  122 WT/TPR/S/385 • Bangladesh  
 
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  4.4.5.2    Air transportation  ................................ ................................ ..............................  124 
4.4.5.3    Railways  ................................ ................................ ................................ ..........  126 
4.4.5.4    Road ................................ ................................ ................................ ...............  126 
4.4.6    Tourism  ................................ ................................ ................................ ..............  127 
5   APPENDIX TABLES  ................................ ................................ ................................ . 128  
 
CHARTS  
 
Chart 1.1 Product composition by main HS sections of merchandise trade  ...............................  22 
Chart 1.2 Direction of merchandise trade  ................................ ................................ ............  23 
Chart 1.3 FDI  ................................ ................................ ................................ ..................  24 
Chart 3.1 Average applied MFN tariff rates by HS section  ................................ ......................  46 
Chart 3.2 Distribution of MFN tari ff rates, 2011/12 and 2018/19  ................................ ............  46 
Chart 3.3 Tariff escalation by 2 -digit ISIC industry, 2018/19  ................................ .................  47 
Chart 4.1 Employment by economic activity, 2015/16  ................................ ..........................  90 
Chart 4.2 Interest rate spread (%), January  2010 to July  2018 ................................ ...........  116 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2011 -18 ................................ ........................  13 
Table 1.2 Basic economic indicators, 2011 -18 ................................ ................................ ...... 15 
Table 1.3 Balance of payments, 2011 -18 ................................ ................................ ............  19 
Table 1.4 Trade in services, 2011 -18 ................................ ................................ ..................  20 
Table 2.1 RTAs in force, main features, 2019 ................................ ................................ ....... 30 
Table 2.2 Results of the Fourth Round of APTA negotiations  ................................ ..................  32 
Table 2.3 Tentative time -frame for the reduction of Sensitive Lists, 2015  ................................  32 
Table 3.1 Structure of the tariff schedule, 2011/12 and 2018/19  ................................ ...........  45 
Table 3.2 Prohibited and restricted exports, 2018  ................................ ................................  51 
Table 3.3 Cash incentives and export subsidies for selected products, 2018/19 ........................  52 
Table 3.4 Local content requirements for eligible products under cash incentives 
(export  subsidies)  ................................ ................................ ................................ ............  53 
Table 3.5 Disbursement of cash incentive (export subsidy), FY2012/13 to 10  June 2018 of 
FY2017/18  ................................ ................................ ................................ ......................  54 
Table 3.6 Duty drawback inputs and amounts, 2012/13 -2017/18  ................................ ...........  56 
Table 3.7 Bond periods  ................................ ................................ ................................ ..... 56 
Table 3.8 Structure of direct and indirect tax revenue, 2011/12 -2017/18  ................................  59 
Table 3.9 Indicative list of non -financial public enterprises, 2019  ................................ ...........  77 
Table 3.10 Terms of IPR protection, 2019  ................................ ................................ ...........  83 
Table 4.1 Production  of selected crops, 2011 -16 ................................ ................................ .. 94 
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  APPENDIX TABLES  
 
Table A1.1 Merchandise exports, by HS sections and major HS chapters, 2011 -18 .................  128 
Table A1.2 Merchandise imports, by HS sections and major HS chapters/subheadings,  
2011-17 ................................ ................................ ................................ .......................  129 
Table A1.3 Merchandise exports by selected destinations, 2011 -18 ................................ ...... 130 
Table A1.4 Merchandise imports by selected origins, 2011 -18 ................................ .............  131 
Table A1.5 FDI inflows by se ctor and origin, 2012 -17 ................................ .........................  132 
Table A3.1 MFN applied summary, 2018/19  ................................ ................................ ...... 133 
Table A3.2 Tariff comparison, 2018/19  ................................ ................................ .............  135 
Table A3.3 EPZs: investment by sector, as at March 2018  ................................ ...................  136 
Table A3.4 EPZs: investment, employmen t, and export, July  2012-June 2018  .......................  137 
Table A4.1 Bangladesh's ASAs, as at October 2018  ................................ ............................  138 
 
 
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  SUMMARY  
1. Since the last TPR in 2012 , real GDP has grown at an average annual rate of approximately 
6.8% , and reached nearly 7.9% in 2017/18. Growth has been driven m ainly by the ready -made 
garment (RMG) sector ; consequently, the economy has continued to diversify away from an agrarian 
to a more manufacturing -based economy, supported by abundant low -cost labo ur. Growth has 
resulted in a decline in poverty levels, which  fell to 21.8% in fiscal year ( FY) 2018, and an 
improvement in other social indicators. In addition to providing a stimulus to growth, sound 
macroeconomic policies have contributed to stable inflation, moderate public debt, and greater 
resilience to extern al shocks. As a result, Bangladesh reached the W orld Bank's threshold for 
lower -middle -income country status in 2015 , and is on course to graduate from least developed 
country ( LDC) status in 2024.  Furthermore, growth has been led by strong domestic demand, with 
private consumption contributing  to about two thirds  of the growth. However, the informal nature 
of a considerable portion of the economy implies that GDP is significantly underestimated, and it 
possibly undermines the effectiveness of governm ent policy.  
2. Sustaining growth would depend on continued reforms. To address structural impediments , 
action was taken in areas such as tax ation, improving the business environment, enabl ing private 
participation in public infrastructure projects  – particula rly in the power and transport sectors  – and 
labour policy . The authorities have also tried to address these and other trade -related impediments 
in their reform and growth agenda, which is detailed in the 7th Five-Year Plan (FY 2016-FY 2020) .  
3. During the r eview period , the focus of monetary policy has remained unchanged, namely to  
contain inflation and ensure an uninterrupted supply of credit to the productive sector of the country. 
The easing of the monetary policy stance in FY 2018 was prompted by the tightening of the liquidity 
condition , due to the widening current account deficit and the weakening of the balance of payments. 
Bangladesh continues to have a managed floating exchange rate, with the central bank intervening 
in the foreign exchange market  to keep the exchange rate relatively stable against the US dollar. 
During the period under review, the fiscal deficit has remained in the 3 %-5% of GDP range . In 
FY 2017, the fiscal deficit was 3.5 % of GDP, below the budgeted target of 5%, while in FY  2018 it 
rose to 5.0%, al so below the budget target. This was achieved through  a prudent fiscal stance 
resulting in spending control , and the slower implementation of development projects, which 
compensated for revenue under -performance. With tax revenues at around 10% of GDP, there is a 
pressing need to boo st collection ; in this context, a  new VAT  regime , whose implementation  has 
been delayed over some years, is now expected to be implemented by July 2019 . 
4. During the period under review, Bangladesh's current ac count balance improved from a deficit 
of 0.3% of GDP in 2011/12 to a surplus of 1.9% in 2015/16, before deteriorating to a deficit of 3.6% 
in 2017/18. The deteriorat ion was mainly due to slower exports, higher imports, and a decline in 
remittances (these r ebounded in FY  2018). Consequently, the trade deficit as a proportion of GDP 
increased from around 3% in 2015/16 to around 7% in 2017/18. Remittances declined , mostly due 
to the slowdown in the Gulf Cooperation Council (GCC) countries and a shift towards i nformal 
remittance channels. Bangladesh's exports continue to be heavily concentrated in textiles and textile 
articles, which accounted for nearly 90% of total exports in 2017/18. The largest export market in 
2017/18 was the EU -28, followed by the United  States, Canada,  and Japan.  The structure of imports 
is less concentrated than exports. The largest single import category continued to be textiles, which 
are used as inputs for the garments industry. Over 80% of imports originate from Asia. Bangladesh's 
largest import suppliers are China, India,  and the EU-28. 
5. Bangladesh remains open to investment, and encourages it through incentives to various 
sectors under many schemes , despite its requirement for foreign investment prior 
clearance/permission on 17 contr olled sectors and foreign ownership limitations on e -commerce 
ventures, as well as four  sectors being reserved for government investment. In 2016, the 
Bangladesh Investment Development Authority (BIDA) was set up. Initiatives to improve the 
investment envi ronment, including the operation of a o ne-stop-shop, are ongoing. An array of tax 
and non -tax incentives remain available to companies operating in designated zones, highest priority 
activities, and creative and special development sectors. During the peri od under review , Bangladesh 
signed new bilateral double taxation avoidance agreements.  FDI inflows increased from 
approximately US D 1.2 billion in 2011/12 to nearly US D 2.6 billion in 2017/18. FDI is concentrated 
in the energy sector, followed by the garme nt manufacturing sector, the financial sector and 
telecommunications. The largest investors in Bangladesh are the United States;  the United Kingdom;  
the Republic  of Korea;  Singapore;  Australia;  and Hong Kong, China.  WT/TPR/S/385 • Bangladesh  
 
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  6. During the review period, Bangladesh pur sued wide -ranging trade -related and investment 
policies based on its Perspective Plan of Bangladesh (2010 -2021) (Vision 2021), which is focused 
on, inter alia , export -led growth. Export and Import Policies, which continue to set the main trade 
policy objec tives and measures on a three -year basis, remained relatively unchanged. Efforts to 
formulate a comprehensive trade policy, including production diversification, increased 
competitiveness, and trade agreement utilization and expansion, are ongoing.  
7. Bangla desh, a prominent voice for LDCs, remains committed to the multilateral trading 
system. During the review period, it improved its WTO commitments by  ratifying the Trade 
Facilitation Agreement (TFA). Its expected  graduation from LDC status in 2024 is to  have some 
implications for , inter alia , preferential market acces s to certain major markets, special and 
differential treatment (S&D) -related WTO benefits (e.g. TRIPS) , and the level of official development 
and technical assistance; the authorities are about to address post -graduation challenges. 
Bangladesh attaches importance to deepening intra -regional trade ties, inter alia , because of its 
graduation prospects; since its last Review, it has taken initiatives to negotiate regional trade 
agreements (RTAs) with a few countries. Bangladesh is a participant in several slow-progressing 
RTA initiatives, of which only the Asia Pacif ic Trade Agreement , the South Asian Association for 
Regional Co -operation  (SAARC) Preferential Trading Arrangement (SAPTA) and the South Asia Free 
Trade Agreement  (SAFTA) are in force; many of these arrangements have had relatively limited 
product coverage  and trade importance for Bangladesh until now. It remains a beneficiary of the 
Generalized System of Preferences schemes of several countries, and is entitled to additional 
LDC-specific preferences under certain schemes. Furthermore, it continued to recei ve assistance to 
reach economic development objectives, including export diversification under the Aid for Trade 
Work Programme and the Enhanced Integrated Framework (EIF) projects. Despite being a 
long-standing beneficiary of trade -related technical assis tance and submitting its WTO GATS enquiry 
points and TFA category commitments  notifications, Bangladesh continued to have a limited regular 
notifications record (i.e. customs tariff four times) during the review period; at the same time , it 
had no involvem ent in trade disputes in the WTO.  
8. The general thrust of Bangladesh's trade policy has remained unchanged. The tariff remains 
one of the main trade policy instruments and a significant source of tax revenue (11.7% of total tax 
revenue in 2016/17). Although over 95% of tariff lines are ad valorem , and therefore transparent, 
the tariff involves 16 different rates (6  ad valorem duties, and 10 specific duties), two more than in 
2011/12. As a result of the nomenclature change  to HS2017 , the splitting of tariff li nes and the 
increase in the coverage of specific rates, the simple average applied MFN tariff was slightly reduced 
from 14.9% in 2011/12 to 14.8% in 2018/19. Tariff protection varies substantially across and within 
sectors, averaging 18.1% for agricultural  products, an increase from 17.8% in 2011/12, and 14.1% 
for non -agricultural products in 2018/19 (WTO definitions), a slight decrease since the last Review. 
Ad valorem  tariff rates continue to range from zero to 25%; by late -2018 the ad valorem  equivalents  
(AVEs) of the specific rates ranged from 0.01% to 9.8%. Almost 53% of tariff lines are subject to 
rates of 10% or below, and rates of 25% apply to 45.5% of tariff items. To support industrial 
development and accommodate domestic supply and demand, imports  of capital machinery and 
spare  parts, both those for exporters those for a specific use or user , continued to benefit from 
customs duty concessions and general exemptions. A regulatory duty continues to be levied on a 
c.i.f. value plus 1% landing charge basis at several rates on 46.4% of all tariff lines, thus raising the 
average applied MFN border duty burden (i.e. customs and regulatory duties) to 22.8%.  Bindings 
cover 19% of all tariff lines , and all are at ad valorem  rates; although the average gap of 
147.2  percentage points between applied and bound MFN rates suggests low predictability in the 
tariff, the authorities did not use this scope to raise tariffs  during the review period .  
9. During the review period, Bangladesh undert ook several trade facilitation initiatives in the 
context of its Customs Modernization Action Plan (2013 -2017) , and implement ed commitments 
under the TFA and the WCO Revised Kyoto Convention; the se initiatives  also included regulatory 
developments, migration to the most recent generation  of ASYCUDA World, and a regulation on the 
introduction of an Authorized Economic Operator scheme. The transaction value method remains in 
general use , and pre -set customs value or minimum value continue to apply for numerous i tems.  
10. Import prohibitions, restrictions and licensing remain in place to, inter alia , protect public 
morals, and human life or health. The scope of the list of controlled goods, which covers several 
agricultural and industrial items banned or imported und er certain conditions and/or requir ing prior 
approval (including certain used motor vehicles and parts), remained unchanged during the review 
period. Import bans under this list include shrimps – a major domestic produce and export item  – WT/TPR/S/385 • Bangladesh  
 
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  chassis with two -stroke engines of three -wheeler vehicles, and three -wheeler vehicles with 
two-stroke engines. Several items (e.g. methanol/methyl alcohol, and crude soya -bean oil) can only 
be imported by recognized industrial units or stakeholders. During the review perio d, the legislative 
framework governing anti -dumping , countervailing and safeguard measures remained unchanged , 
as Bangladesh faces capacity constraints.  
11. During the period under review, there were no changes to Bangladesh's export procedures. 
Certain products continue to be subject to export prohibitions and restrictions, and e xport duties 
ranging from 2 %-25% continue to be levied on certain products. Bangladesh also provides export 
subsidies/cash incentives on selected products  (whose range was expand ed during the review 
period), ranging from 2 %-20%, and subject to local content requirements. Bangladesh also provide s 
a wide array of other support measures to export sectors , including concessional tariffs, a duty 
drawback system, special bonded warehous es, export processing zones (EPZs) , and  income tax 
rebate s. Exporters can also avail of concessional credit from banks at a 7% rate of interest for the 
financing of pre -shipment requirements . Additionally, a ll exporters also benefit from  an income tax 
exem ption on half of the total income from the export s, provided that they do not avail of any other 
tax incentives under any other scheme.  Bangladesh has no export licensing requirements . 
12. Measures involving various open -ended tax and non -tax concessions, such  as income tax 
incentives, accelerated depreciation, grants, low -interest loans and cross -subsidized electricity 
tariffs, continued to support production and trade in agriculture, energy development and supply, 
and several manufacturing activities, as well  as to encourage, inter alia , the activities of Cottage, 
Micro, Small and Medium Enterprises (CMSMEs), the establishment and operation of designated 
economic zones, product diversification, and regional development. The tax system remains 
dependent on trad e-related taxes, comprising  customs duties, regulatory duty, supplementary duty, 
VAT, advance trade VAT ( on imports by commercial importers only), and advance income tax ; should 
all these duties and taxes be considered , the average total tax incidences (TT I) on imports would be 
equivalent to 59.3% , at rates ranging from zero to 845.6% (semi -finished products of iron o r 
non-alloy steel) in 2018/19.  During the review period, corporate income tax rates continued to vary, 
depending on the activity, and some rat es were reduced or raised.  
13. The number of Bangladesh Standards (BDSs) increased by 14.2% over the review period; 
4.4% (2018) of all standards were adopted in technical regulations (mandatory), whereas about 
52% (42% in 2012) were aligned with international standards, and 4.5% (1.5% in 2012) with 
regional standards . New food safety legislation and institutional improvements were made, to ensure 
overall coordination in this area.  
14. During the review period, as a result of a standstill in the privatization proce ss, state 
involvement in certain parts of the economy remained important, relatively unchanged , and spread 
over several activities, including agriculture, fisheries, food, jute, textile s, electricity, petroleum, 
gas, construction, banking, insurance, telec ommunication s, and transport . Although several 
state-owned enterprises are portrayed as being profitable and contributing to employment 
generation and revenue earning, they are recipients of subsidies, and run significant debt servicing 
liabilities. Bangla desh, which is not a member of the WTO Agreement on Government Procurement 
(GPA), continues to use public procurement to benefit domestic suppliers through price preferences 
of up to 7.5% in the case of works and up to 15% in the case of goods. Its procure ment regime 
remains centralized, and is operated through an electronic government procurement system, whose 
coverage is being expanded.  
15. During the review period, the competition policy regulatory and institutional framework was 
put in place. The legislati on covers all areas, except for practices related to those goods and services 
which are controlled by the Government in the interest of national security and not open to the 
private sector; matters relating to import and export cartels (including exclusive  dealership 
arrangements) are yet to be dealt with. State -owned enterprises continued to influence domestic 
pricing in certain areas (e.g. essential commodities and energy). The consumer rights regulatory 
and institutional framework remained unchanged.  
16. Bangladesh, which, as an LDC, benefits from a renewed extension of the transition period for 
the full implementation of the provisions of the TRIPS Agreement, has sought to strengthen 
intellectual property rights (IPR) protection, by passing new or amending existing legislation on 
geographical indications and trade marks; further changes and developments are expected in 
patents, designs and plant variety and farmers' right protection. Despite a slight improvement, WT/TPR/S/385 • Bangladesh  
 
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  institutional and other constraints have cont inued to impede the effective enforcement of existing 
legislation.  
17. Bangladesh's  climate -sensitive agricultural sector continues to make a significant, albeit 
steadily declining, contribution to the economy ( 13.7% of GDP in 2017 /18), and  account s for a lar ge 
portion of employm ent and rural income, and the expansion of exports . Self-sufficiency remains of 
high importance , and action  was taken to address relevant challenges. Several long -standing and 
new policies have been focused, inter alia , on self-suffici ency in food grain production , improving 
food and nutrition security , broadening the export base through diversification of exports , and 
developing and commercializing biotechnology . 
18. During the review period, average tariff protection for agriculture increased , and remains 
higher than the overall applied MFN average . Several  agricultural commodities remain subject to 
export restrictions/prohibitions to ensure adequate domestic supply. Cash incentives continue to 
promote exports of certain agricultural products . To scale up productivity, domestic support 
measures included concessional credit for the purchase of agricultural inputs ; credit support 
regarding  the storing and marketing of agricultural products ; procurement of rice and wheat from 
poor farmers ; lower electricity tariffs for irrigation pumps ; and a reduction on electricity invoices of 
agro-based industries . The Trading Corporation of Bangladesh maintain a buffer stock of selected 
essential commodities , to stabilize their market prices . Most of t he product -specific aggregate 
measures of support (AMS) -related expenditure was used for price support for rice and wheat , and 
non-specific AMS was mainly focused on subsidizing fertilizer i nputs. Bangladesh is one  of the world' s 
largest  inland fishing nat ions, with shrimp being an important agricultural export. The  National 
Shrimp Fish Policy has been in place since 2014. Average MFN tariff protection for fish and fishery 
products remains high (23.8% in 2018/19 , 23.4% in 2011/12  on a HS basis ), and certain  support 
measures, including concessional loans, are available for fish production and processing . 
19. The mining sector's importance rose slightly from 1.7% of GDP in 2011/12 to 1. 8% in 
2017/18. The state -owned Bangladesh Oil, Gas and Minerals Corporation con tinues to  engage in, 
inter alia, coal and granite mining, the development and marketing of minerals , and production 
sharing contracts. Bangladesh's energy structure remains simple , with natural gas meeting almost 
71% (201 7/18) of total commercial requirements . The country is becoming more dependent on 
energy imports (e.g. oil and electricity) because consumption is growing faster than indigenous 
production. Several tax incentives remain available to investors in the sector. Energy tariffs, prices 
and charges continue to be regulated by the Bangladesh Energy Regulatory Commission. State 
involvement remains in place regarding  hydrocarbons, including an oil refining monopoly, and in the  
generation and distribution of electricity. Subsidies were provide d for the import of petroleum 
products until 2013/14 but , following the world oil price drop in recent years, no subsidy was required 
in the periods 2015/16 and 2016/17. An Energy Security Fund is to support projects for exploring, 
extracting, purifying, t ransmitting, and distributing gas, importing liquified natural gas (LNG), and 
undertaking other related projects. Retail electricity tariffs continue to differ according to  consumer 
category and voltage level (low, medium, high, extra -high), therefore invo lving cross -subsidization 
elements; as at 2018, the flat tariff for agricultural irrigation pumping was one  quarter  of the highest 
tariff, which was charged on construction, and was followed by those on industry and commercial 
and office activities.   
20. Manu facturing , an increasingly important activity ( 19% of GDP and 96.8% of total exports  in 
2017/18), remains heavily dependent on the labour -intensive textile and RMG sectors, although 
efforts are being undertaken to expand the relatively narrow industrial ba se. In addition to several 
policies in place, the National Industrial Policy 2016 promot es, inter alia , sustainable and inclusive 
industrial growth , infrastructural transformation , and  diversification of the economic base  while 
focusing on CMSMEs . Average tariff protection on industrial goods stands at 13.2% in 2018/19 , a 
slight reduction from 13.9% in 2011/12  (on a HS  basis) ; textiles and textile articles, and footwear, 
headgear, etc. attracted the highest average tariff rates , of 20.4% and 25% , respectively. CMSMEs 
mainly engaged in manufacturing have been assisted through industrial loans and other additional 
support . Some highest -priority activities with non -utilized potential benefit  from, inter alia , corporate 
income tax rebate s, concessiona l loans (including for export credit), and possible financial benefits 
or subsidies for utility services. Relatively similar assistance is available to RMG firms and for the 
pharmaceuticals industry , as Bangladesh kept taking advantage of the transition pe riod during which 
LDCs do not have to protect or enforce patents or undisclosed information relating to 
pharmaceuticals . The jute industry continues to benefit from compulsory jute packaging WT/TPR/S/385 • Bangladesh  
 
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  requirement s for 17 items , reduced corporate income tax rate s, the highest level of tariff protection 
(25%), and a cash incentive subsidy for exports  (varying from 5% to 20%  on the f.o.b. value).   
21. During the review period , the s ervices sector remained the main contributor to GDP, despite 
a slight decrease from 56.2% (20 11/12) to 55.9% (2017 /18). Bangladesh's GATS commitments 
remained unchanged ; the SAFTA  includes provisions on  trade in services .  
22. Banking and insurance activities continued to expand , with bank assets having grown  almost 
threefold . Microfinance institutions remain the dominant players in rural financial markets . 
Regulatory improvements in banking  covered, inter alia , liquidity indicators , risk-based capital 
adequacy , the reporting format, and the regular monitoring of fraud/forgery.  The capital s hortfall in 
some banks, accumulated non -performing loans (NPLs) in state-owned commercial banks, and 
weakening corporate governance across the board have affected the stability of the financial sector ; 
the NPL rate in the banking system increased from 6% i n 2011 /12 to 10% in 2016 /17. Several 
regulatory r eforms , largely focused on the Bangladesh Securities and Exchange Commission 's 
operational framework,  have been undertaken to strengthen the capital market . The insurance 
sector remains rather small , and the  vast majority of the population remain s untapped across 
product segments . Half of the re -insurable general insur ance business is required to be re -insured 
with the state owned Shadharan Bima Corporation (SBC) , and the remain der may be re -insured 
either with the SBC or with any other insurer , whether in or outside of Bangladesh.  
23. The telecommunications sector continued to expand , with mobile telephony and Internet user 
penetration  rising. State involvement in certain telecom activ ities persists . Strategic policies for 
developing a digital Bangladesh and provid ing affordable telecommunication services  led to 
institutional and regulatory developments involving the creation of the Ministry of Posts, 
Telecommunications and Information Technology  in 2014, and the issuance of directives on service s 
and tariffs , which require all tariff structures to comply with the official cost model . Universal service 
obligations  remain in place, and n umber portability was introduced in 2018.   
24. Banglades h's transport industry continues to face challenges . During the review period, 
policies were put in place to improve connectivity . At least 40% of the sea -borne cargoes relating to 
foreign trade must be carried by Bangladesh -flag vessels , unless no nationa l-flag vessel or flag 
vessel of the trading country  is available . No foreign -flag vessel may carry Bangladesh i coastal trade 
cargoes.  The two main trade cargo ports remain state-owned and -operated ; projects to energize  
operating activities were undert aken. During the review period, air freight dropped dramatically , and 
the state-owned Biman Bangladesh Airlines remained t he dominant player in the market . Bangladesh 
has continued to pursue greater integration in its aviation into international markets . Its policy has 
targetted  enhanc ing operational facilities of existing airports and develop ing new ones.  Several 
projects are underway to improve rail and road transportation.  
25. Tourism  (1% of GDP in 2017/18) is considered as a key driver for future growth, ec onomic 
diversification and poverty reduction . Policy priorities in the industry include the expansion of fixed 
infrastructure and the upgrade of facilities . In this context, some public -private partnership projects 
have been underway.  
26. Bangladesh's short-term growth outlook remains robust , and the economy is expected to grow 
at its current level. However, internal risks may stem from the effects of possible political 
developments on investor sentiment; rising inflation due to higher food prices; a sustained increase 
in NPLs and weak governance in the banking sector, affecting growth -supporting credit; and a further 
deterioration in the financial health of state -owned commercial banks. Exogenous risks may involve 
the impact of global trade conflicts on the Ban gladeshi economy. If the RMG sector is excluded from 
the increase of customs tariffs in major export markets, then the direct impact could be relatively 
small given Bangladesh's limited integration in the global supply chain.  However, i n addition to the 
ongoing reforms , which address diversification and competitiveness, improvement of the business 
climate and fiscal reform, the authorities recognize the need to undertake further reforms, including 
infrastructure development promoting rural growth and techni cal/vocational training, to sustain the 
inclusive and widespread growth that has been achieved. T hese reforms would help Bangladesh  
attain its economic and welfare policy objectives and further integrate into the world trading system . 
 WT/TPR/S/385 • Bangladesh  
 
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  1  ECONOMIC ENVIRONMENT1 
1.1  Main Features of the Economy  
1.1.  Bangladesh is a least developed country (LDC), but it is expected to graduate from this status 
in 2024 (Section 2.3.1.3). Strong GDP growth over the past decade has resulted in GDP per capita 
increasing to USD  1,675 (Tables 1.1 and 1.2) and Bangladesh crossing the World Bank's threshold 
to lower middle -income country status  in 2015. Growth  has also resulted in a decline in poverty 
levels, which fell to 21.8% in fiscal year (FY) 20182 and an improvement in other social indicators, 
such as infant mortality and life expectancy. Inequality as measured by the Gini coefficient rem ained 
largely unchanged, at around 0.32 during the review period.3 The services sector is the largest 
contributor to GDP, accounting for nearly 56% of GDP in 2017/18, followed by industry (30%, of 
which manufacturing 19%) and agricultu re, fisheries and for estry (13.8 %). Recently, the 
construction sector has also become an important contributor to GDP. Prudent macroeconomic 
management has resulted in declining price levels, relatively low unemployment and manageable 
external debt levels (Table 1.1).4 Furthermore, it is estimated that a sizable portion of the economy 
is informal, implying that GDP and GDP per capita are significantly underestimated, thereby reducing 
the effectiveness of government policy.  
Table 1.1 Selected macroeconomic indicators, 2011 -18 
  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
National accounts  
(% change, unless 
otherwise indicated)         
Real GDP (at 2005/06 prices)  6.5 6.0 6.1 6.6 7.1 7.3 7.9 
Consumption  4.0 5.2 4.3 6.0 3.4 7.5 11.4 
Private consumption  4.1 5.1 4.0 5.8 3.0 7.4 11.0 
Government consumption  3.1 5.8 7.9 8.8 8.4 7.8 15.4 
Gross fixed capital 
formation  10.6 5.4 9.9 7.1 8.9 10.1 10.5 
Exports of goods and 
non-factor services  12.5 2.5 3.2 -2.8 2.2 -2.3 8.1 
Imports of goods and 
non-factor services  10.5 1.2 1.2 3.2 -7.1 2.9 27.0 
XGS/GDP (%) (at current 
market price)  20.2 19.5 19.0 17.3 16.6 15.0 14.8 
MGS/GDP (%) (at current 
market price)  27.9 26.8 25.5 24.7 21.3 20.3 23.4 
Prices and interest rates         
Inflation (CPI, % change)  8.7 6.8 7.3 6.4 5.9 5.4 5.8 
Deposit rate (%, end -period)  8.15 11.79  9.81 8.52 6.10 5.52 7.52 
Lending rate (%, end -period)  13.75  13.67  13.10  11.67  10.39  9.56 9.95 
Exchange rate         
BDT/USD (annual average)  79.10  79.93  77.72  77.67  78.26  79.12  82.11  
Real effective exchange rate 
(2015/16=100)  72.5 79.5 82.8 94.6 100.0  102.4  .. 
Money and credit 
(% change)         
Broad money (M2)  17.4 16.7 16.1 12.4 16.3 10.9 9.2 
Total domestic credit  19.5 11.0 11.6 10.0 14.2 11.2 14.7 
Credit to private sector  19.7 10.8 12.3 13.2 16.8 15.7 17.0 
                                                
1 In this Section, many amounts in national currency are expressed in their official denomination, 
i.e. lakh and crore. Ten  lakhs is equivalent to 1 million, and 1 crore to 10 million.  
2 Information provided by the authorities. Furthermore, according to the authorities, extreme poverty 
was 11.3% in FY2018.  
3 World Bank online information. Viewed at: https://www.ceicdata.com/en/bangladesh/poverty/bd -gini-
coefficient -gini-index -world -bank-estimate .  
4 According to the World Bank, the unemployment rate was 4.4% in 2017. Vie wed at: 
http://datatopics.worldbank.org/jobs/country/bangladesh .  WT/TPR/S/385 • Bangladesh  
 
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    2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Fiscal sectora (% GDP)         
Fiscal balance (including 
grants)  -3.6 -3.8 -3.6 -3.9 -3.8 -3.5 -5.0 
Fiscal balance (excluding 
grants)  -3.2 -3.3 -3.1 -3.7 -3.7 -3.4 -4.8 
Total revenue  10.9 10.7 10.4 9.6 10.0 10.2 11.5 
Tax revenue  9.0 9.0 8.6 8.5 8.8 9.7 10.3 
Grants  0.3 0.6 0.5 0.2 0.1 0.0 0.2 
Total expenditure  14.4 14.5 14.0 13.5 13.8 13.6 16.5 
Development expenditure  3.9 4.4 4.4 4.2 4.7 4.5 6.6 
Total government debt  34.5 34.7 35.0 32.3 31.5 30.8 29.6 
Domestic  16.9 18.1 19.4 18.5 18.6 17.0 17.6 
External  17.6 16.6 15.6 13.7 12.9 10.9 12.0 
Saving and investment 
(% of current GDP)         
Gross national savings  29.9 30.5 29.2 29.0 30.8 29.6 27.4 
Gross domestic investment  28.3 28.4 28.6 28.9 29.7 30.5 31.2 
Savings -investment gap  1.6 2.1 0.6 0.1 1.1 -0.9 -3.8 
External sector  
(% of current GDP, unless 
otherwise indicated)         
Current account balance  -0.3 1.6 0.8 1.8 1.9 -0.5 -3.6 
Net merchandise trade  -7.0 -4.7 -3.9 -3.6 -2.9 -3.8 -6.7 
Merchandise exports  18.0 17.7 17.2 15.7 15.1 13.6 13.2 
Readymade garments 
(RMG) 14.3 14.3 14.2 13.1 12.7 11.3 11.2 
Merchandise imports  25.0 22.4 21.2 19.3 18.0 17.4 19.9 
Services balance  -2.2 -2.1 -2.4 -1.6 -1.2 -1.3 -1.7 
Worker remittances  9.5 9.6 8.2 7.8 6.6 5.1 5.5 
Capital account  0.4 0.4 0.3 0.3 0.2 0.2 0.1 
Financial account  1.1 1.8 1.7 0.6 0.4 1.7 3.3 
Direct investment  0.9 1.2 0.9 0.6 0.6 0.7 0.6 
Balance -of-payments  0.4 3.4 3.2 2.2 2.3 1.3 -0.3 
Merchandise exports 
(% change in USD)  6.2 10.7 12.1 3.1 8.9 1.7 6.4 
Ready -made garments  6.6 12.7 13.8 4.1 10.2 0.2 8.8 
Merchandise imports 
(% change in USD)  2.4 0.8 8.9 3.0 5.9 9.0 25.2 
Service exports (%  change in 
USD) 4.7 5.0 10.1 -1.0 14.2 2.8 25.4 
Service imports (%  change in 
USD) 9.8 5.2 20.3 -13.0 -0.6 10.9 31.9 
Terms of trade  
(2005/06 = 100)  86.0 86.0 85.9 85.9 87.1 87.1 .. 
Foreign exchange reserve 
(end-period, USD billion)  10.4 15.3 21.5 25.0 30.2 33.5 32.9 
in months of imports of 
goods and services  3.1 4.2 5.9 6.5 7.2 6.3 5.5 
Total external debt 
(USD billion; end -period)  26.1 29.3 34.0 37.3 40.8 45.9 54.7 
Public sector debt (% of 
total external debt)  93.9 90.4 86.7 79.0 78.4 77.0 74.5 
Private sector debt (% of 
total external debt)  6.1 9.6 13.3 21.0 21.6 23.0 25.5 
Debt service ratio (% of total 
export earnings)  4.0 4.0 3.9 3.5 3.1 .. .. 
.. Not available.  
a Based on actual figures, except for 2017/18 (budget revised figures).  
Note:  FY = 1 July to 30 June.  
Source:  Bangladesh Bureau of Statistics online information; Ministry of Finance online information; Central 
Bank of Bangladesh online information; and IMF online information.  WT/TPR/S/385 • Bangladesh  
 
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  Table 1.2 Basic economic indicators, 2011 -18 
  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Real GDP at market price 
(BDT billion, 2005/06 prices)  6,884.9  7,299.0  7,741.4  8,248.6  8,835.4  9,479.0  10,224.4  
Real GDP at market price 
(USD billion, 2005/06 prices)  87.0  91.3  99.6  106.2  112.9  119.8  124.5  
Current GDP at market price 
(BDT billion)  10,552.0  11,989.2  13,436.7  15,158.0  17,328.6  19,758.2  22,504.8  
Current GDP at market price 
(USD billion)  133.4  150.0  172.9  195.1  221.4  249.7  274.1  
GDP per capita at current 
market price (USD)  880.1  975.9  1,109.9  1,236.0  1,384.8  1,543.9  1,674.8  
GDP by economic activity at 
constant 2010 prices (% 
change)         
Agriculture, forestry, and 
fishing  3.0 2.5 4.4 3.3 2.8 3.0 4.2 
Crops and horticulture  1.8 0.6 3.8 1.8 0.9 1.0 3.1 
Fishing  5.3 6.2 6.4 6.4 6.1 6.2 6.4 
Mining and quarrying  6.9 9.4 4.7 9.6 12.8 8.9 7.0 
Manufacturing  10.0 10.3 8.8 10.3 11.7 11.0 13.4 
Electricity, gas and water  10.6 9.0 4.5 6.2 13.3 8.5 9.2 
Construction  8.4 8.0 8.1 8.6 8.6 8.8 9.9 
Services  6.6 5.5 5.6 5.8 6.2 6.7 6.4 
Wholesale and retail trade  6.7 6.2 6.7 6.3 6.5 7.4 7.5 
Hotels and restaurants  6.4 6.5 6.7 6.8 7.0 7.1 7.3 
Transport, storage, and 
communication  9.2 6.3 6.0 6.0 6.1 6.8 6.6 
Financial intermediation  14.8 9.1 7.3 7.8 7.7 9.1 7.9 
Real estate and business 
activities  3.9 4.0 4.3 4.4 4.5 4.8 5.0 
Public administration and 
defence  7.5 6.5 6.9 9.8 11.4 9.2 8.5 
Education  7.8 6.3 7.3 8.0 11.7 11.4 7.0 
Health and social work  3.8 4.8 5.1 5.2 7.5 7.6 7.0 
Community, social and 
personal services  3.2 3.3 3.3 3.3 3.3 3.6 3.7 
GDP by economic activity at 
current basic prices (%)         
Agriculture, forestry, and 
fishing  17.1 16.3 16.1 15.5 14.8 14.2 13.8 
Crops and horticulture  10.1 9.4 9.2 8.7 8.2 7.7 7.5 
Fishing  3.2 3.2 3.3 3.3 3.2 3.2 3.1 
Mining and quarrying  1.7 1.7 1.6 1.7 1.7 1.8 1.8 
Manufacturing  16.8 17.3 17.4 17.6 17.9 18.3 19.0 
Electricity, gas and water  1.4 1.4 1.4 1.4 1.4 1.4 1.4 
Construction  6.8 7.2 7.1 7.5 7.7 7.8 8.0 
Services  56.2 56.1 56.3 56.3 56.5 56.5 56.0 
Wholesale and retail trade  13.8 13.5 13.5 13.3 13.0 13.0 13.1 
Hotels and restaurants  1.0 1.0 1.0 1.0 1.0 1.0 1.0 
Transport, storage, and 
communication  11.3 10.9 10.5 10.4 10.3 10.0 9.6 
Financial intermediation  3.6 3.7 3.8 3.9 3.9 3.9 3.9 
Real estate and business 
activities  6.9 6.9 7.1 7.3 7.5 7.7 7.8 
Public administration and 
defence  3.4 3.3 3.5 3.5 4.0 4.2 4.2 
Education  2.5 2.5 2.6 2.6 2.8 3.0 3.0 
Health and social work  2.0 2.1 2.1 2.1 2.1 2.1 2.1 
Community, social and 
personal services  11.7 12.2 12.2 12.2 11.8 11.5 11.1 
Source : Bangladesh Bureau of Statistics online information.  WT/TPR/S/385 • Bangladesh  
 
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  1.2  Recent Economic Developments  
1.2.1   Growth and income  
1.2.  Since 2011/12, real GDP has grown at an average annual rate of approximately 6.8% 
(Table  1.1) and reached 7.9% in 2017/18.5 Growth has been driven by the ready -made garment 
(RMG) sector, consequently, the economy has diversified away from an  agrarian to a more 
manufacturing -based economy, supported by abundant low -cost labour (Table  1.2). More recently, 
sound  macroeconomic policies have contributed to robust growth, s table inflation, moderate public 
debt, and greater resilience to external shocks. Furthermore, growth has been led by strong 
domestic demand. Private consumption contributed to about two thirds of the growth. The 
contribution from net exports turned negati ve, with higher imports resulting from  higher demand 
for investment goods and food imports, due to natural disasters and slower export growth in FY2017.  
1.3.  According to the 7th Five-Year Plan (FYP) (Section 2.2.3), the authorities envisage real average 
annual  GDP growth of 7.4% during FY2016 -20. The IMF estimates potential growth over the same 
period to be a little over 7%. However, maintaining this growth is conditional on continued reforms. 
Contributions from both the labour force and productivity are expect ed to be modest, leaving capital 
formation to be the main growth driver. Hence, sustaining growth will be dependent on increased 
productive investments. This would require reforms addressing certain impediments in the economy 
(Section 1.2.4). The authoriti es have tried to address them in their reform and growth agenda, which 
is detailed in the 7th FYP. Furthermore, reforms in the areas of tax, improving the business 
environment, labour policy, and the financial sector have been undertaken (Sections 1.2.4 an d 
4.4.3).  
1.4.  According to the IMF, Bangladesh's short-term growth outlook remains robust, and risks are 
broadly balanced .6 However, downside risks stem from political unrest, which would adversely affect 
investor sentiment; rising inflation, due to higher fo od prices; a sustained increase in non -performing 
loans (NPLs) and weak governance in the banking sector, which could impair its ability to extend 
credit and support growth; and a further deterioration in the financial health of state -owned 
commercial bank s (SOCBs), which could worsen the fiscal deficit. G lobal trade conflicts may also 
have an impact. If the RMG sector is excluded from higher tariffs  (resulting from global trade 
tensions) , the direct impact could be relatively small, given Bangladesh's limi ted integration in the 
global supply chain.  
1.2.2   Prices  
1.5.  Inflation, as measured by the consumer price index (CPI), has been on a declining trend during 
the review period (Table 1.1). There was a temporary spike in 2017  (and in 2013) , as higher food 
prices, caused by flood -related disruption in agricultural harvests, pushed inflation to about 5.8 % at 
end-2017, while non -food inflation remained stable. Increased food imports continued to exert 
moderate inflationary pressure until June 2018, with average inflat ion being around 5.8%, slightly 
above the central bank's (Bangladesh Bank) 5.5% average inflation target. The target has been set 
at 5.6% for 2018/19 . 
1.2.3   Main macroeconomic policy developments  
1.2.3.1   Monetary and exchange rate policy  
1.6.  The conduct of monetary policy remains the remit of the Bangladesh Bank (Section  4.4.3.1), 
which, according to the authorities, is independent with regards to the formulation and 
implementation of monetary policy. According to the Bangladesh Bank Order, 1972 and the 
Bangladesh Bank (Ame ndment) Act, 2003, Bangladesh Bank's objectives are "to manage the 
monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value and 
maintaining a competitive external par value of the Bangladesh Taka towards fostering growth and 
development of country's productive resources in the best national interest". Furthermore, in recent 
                                                
5 Bangladesh Bank, Monetary Policy Statement July -December 2018 . Viewed at:  
https://www.bb.org.bd/monetaryactivity/mps/mps.php . 
6 IMF, Country Report No. 18/158 . WT/TPR/S/385 • Bangladesh  
 
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  years, the  Monetary Policy Statement (MPS) was drawn up, with the aim of containing inflation and 
ensuring an uninterrupted supply of credit to the pro ductive sector of the country.  
1.7.  The recent widening of the current account deficit and the weakening of the balance of 
payments (Section  1.2.5) resulted in a tightening of liquidity conditions, which resulted in an easing 
of the  monetary policy stance in Ap ril 2018. Bangladesh Bank reduced the banks' cash reserve ratio 
(CRR) from 6.5% to 5.5%, and the repo rate from 6.75% to 6.0%. It also reduced  the maximum 
advances -to-deposits ratio (ADR)  from 85.0% to 83.5% in January  2018, and extended the deadline 
for banks to comply with the ADR from June 2018 to March 2019. In addition, the authorities 
increased the share of state -owned agencies' deposits in private banks from 20% to 50%.  Improving 
liquidity conditions were evidenced by the ratio of excess statutory l iquidity ratio (SLR) assets to 
total demand and time liabilities (TDTLs), which rose from 8.8% in December 2017 to 9.2% in 
June 2018.  
1.8.  According to the IMF, the de jure  exchange rate arrangement is floating, and the Bangladesh 
Bank intervenes in the foreig n exchange market to keep the exchange rate relatively stable against 
the US dollar.7 The IMF recommends that the authorities should continue to gradually increase 
exchange rate flexibility, as this would help buffer the economy against external shocks, pr eserve 
the level of reserves, and increase monetary policy autonomy. However, t he authorities view 
excessive  exchange rate fluctuations as undesirable, given the foreign exchange market structure, 
and they are of the view that inter vention in the market i s needed to contain volatility.  During the 
period under review, the real effective exchange rate (REER) appreciated considerably, which has 
implications for export competitiveness . 
1.2.3.2   Fiscal policy  
1.9.  During the period under review, the fiscal deficit (excluding grants) remained in the 3% -5% of 
GDP r ange (Table  1.1). In FY2017, it was 3. 5% of GDP, below the budgeted target of 5%, while in 
FY2018 it rose to 5.0%, also below the target. This has been achieved through a prudent fiscal 
stance, including spending contr ol and the slower implementation of development projects, which 
compensated for revenue under -performance.  
1.10.   Between 2011/12 and 2014/15, both total and tax revenues as a proportion of GDP declined; 
according to the authorities, this was due to rebasing. Sin ce then, both ratios have been rising, albeit 
at slowly, with the Government missing its revenue targets. In 2017/18, total revenue as a 
proportion of GDP was 11.5%, while the tax -to-GDP ratio was 10.3%.  
1.11.   However, expenditure as a proportion of GDP has bee n declining, and stood at 13.6% in 
2016/17, before rising to 16. 5% in 2017/18. As a result of prudent fiscal and debt management, 
total public debt declined to 29.6% of GDP in 2017/18 (of this, 12% of GDP was external debt), 
compared to 34.5% of GDP in 201 1/12 (of this, 17.6% of GDP was external debt).  
1.2.4   Structural reforms  
1.12.   Trade and domestic reforms are considered intrinsically linked, under the 7th FYP 
(Section  2.2.3). The Government sees private sector businesses as central to the country's future 
prosperity.8 Under the 7th FYP, the Government also sees trade as a vital ingredient in achieving 
economic development, poverty reduction, and job creation, and improving its competitiveness and 
productivity. According to the IMF, to boost private investme nt and potential growth over the 
medium term, and make the growth processes more inclusive, wide -ranging structural reforms are 
needed. This will require en hancing productive investments, which would address  key bottlenecks 
in the economy. To effectively m obilize lo ng-term capital for investment, the financial sector would 
become more efficient, and reform th e banking sector and develop capital markets, In this regard, 
the Government has taken certain measures (Section 4.4.3). In addition, higher  tax revenu es would 
facilitate  the fiscal space to upgrade infrastructure, such as electricity, roads, rail, and ports . This 
will, in turn, improve the business environment (Section  2.5), attract foreign direct investment 
(FDI), and diver sify exports. Furthe r efforts  to boost labour participation  and reduce rigidity in the 
labour market  (Section 1.2.4.4) and encourage financial inclusion will also help inclusive growth.  In 
                                                
7 IMF, Country Report No. 18/158 . 
8 Planning Commission, Government of Bangladesh: 7Th Five Year Plan FY 2016 -FY2020, Accelerating 
Growth, Empowe ring Citizens.  WT/TPR/S/385 • Bangladesh  
 
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  this respect, the Public -Private Partnership (PPP) Act, passed in September 2015, should enable 
private participation in public infrastructure projects, particularly in the power and transport sectors.  
1.2.4.1   Tax reforms  
1.13.   Tax reforms appear to be urgently required, to boost low tax revenues. With tax revenues at 
around 10% of GDP, there is a pressing need to  increase collection rates. This would stimulate 
greater public investment and improved social safety nets, without undermining fiscal sustainability. 
The new value added tax (VAT) (Section 3.3.1.1.2), which is expected to be implemented in FY2019, 
is fund amental to this effort, and successful implementation would be an important signal that the 
Government is determined to persevere with needed structural reforms. Several actions  have been 
taken in preparation, such as the VAT familiarization programme, and  the launch of the registration 
module and the return submission module. Draft rules have also been prepared, and orders laying 
down the transition strategy and prescribing the exempt items are expected to be notified soon. 
According to the IMF, VAT, beyon d its direct revenue benefits (estimated at 1% of GDP per year), 
will also improve compliance and reduce tax evasion across the board, and serve as a key building 
block for future tax policy reforms. As a next step, there is considerable scope to broaden t he direct 
tax base, through a modern direct tax code. Tax reforms need to be accompanied by continued 
efforts to strengthen tax administration. The authorities' efforts to increase tax compliance and 
facilitate tax filing appear to be delivering some posit ive results, with an increase in the number of 
registered taxpayers ( increasing from 1.9 million in 2016 to 3.3 million in 2018) and of tax filings.9 
Enhanced risk -based auditing, online taxpayer registration, and electronic filing of tax returns should 
strengthen institutional capacity and help smooth the implementation of the new VAT law. The 
authorities are also making more efforts to settle big tax arrears cases pending in the courts, by 
applying Alternative Dispute Resolution mechanisms. Lastly, progre ss has been made in improving 
customs risk management and post clearance audit, with the objective of implementing a digitalized 
risk management regime.   
1.2.4.2   Privatization  
1.14.   State involvement in the economy continues to be prevalent, albeit at a declining rate 
(Section  3.3.5); this tends to crowd out the private sector. The authorities disagree, and do not 
consider the State to be prevalent in the economy. Under the 7th FYP (Section 2.2.3),  the 
Government sees private -sector businesses as central to the country' s future prosperity.10 SOCBs 
continue to suffer balance sheet weaknesses, with high NPL ratios (Section 4.4.3.1); this precludes 
them from lending to productive sectors of the economy.  However, according to the authorities, 
credit to the Government (gross) by the banking system decreased by 7% in FY2017 compared to 
FY2016, while, in contrast, SOCBs experienced significant growth (12% to 20%) in loans to the 
private sector. Furthermore, the authorities also stated that balance sheet weaknesses of the SOCBs 
have been substantially minimized, despite the existence of high NPLs . 
1.2.4.3   Competition policy  
1.15.   During the review period, the competition policy regulatory and institutional framework was 
put in place to, inter alia,  promote competition among public –private entities (Section 3.3.4.1).  
1.2.4.4   Labour market reforms  
1.16.   Growth may a lso benefit from increasing  the flexibility, quality and quantity of the labour 
market. Sustaining strong growth depends not only on  the quantity of tho se employed  but also on 
the quality of their human capital . Enhancing the latter  entails actions suc h as prudent spending on 
health and education, therefore improving the quality of the workforce, which is c onsidered a key 
driver of diversificatio n and str uctural transformation. In Bangladesh, the proportion of educated 
people in  the workforce is low compared to similar  countries; while the education index in the Human 
Development Index s hows that Bang ladesh has improved its ranking over the years, there  is still 
                                                
9 IMF, Country Report No. 18/158 . 
10 Planning Commission, Government of Bangladesh: 7Th Five Year Plan FY2016 -FY2020, Accelerating 
Growth, Empowering Citizens . WT/TPR/S/385 • Bangladesh  
 
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  room for improvement.11 Boosting female participation in the labo ur force is also key for raising 
potential growth.   
1.17.   Female participation in the labour force has been rising in Bangladesh. In 2017, the 
participation rate was 33.04%; and around 60%  of the total work force in the RMG sector comprises 
women. However, constraints remain, and these include widespread informality, mismatch of skills, 
lack of access to finance, poor infrastructure, and disparities in wages. Higher spending on education 
and vocational training is needed, as it not only enhances job prospects and addresses skill 
mismatches, but also addresses social causes. In this respect, the new Child Marriage Re straint Act 
was adopted in 2017 . Programmes such as the Female Secondary Scho ol Assistance Program have 
had success in keeping girls in school, and others, such as the Technical and Vocational Education 
and Training (TVET) Reform, Skills Towards Employment and Productivity (STEP),  the Skills for 
Employment Investment Program (SEIP)  and the Northern Areas Reduction of Poverty Initiative 
(NARI), focus on developing necessary skill -sets, with the intention of promoting better job 
opportunities and reducing the gender gap. Due to these measures, the enrolment of female 
students in prima ry and secondary education is higher than that of males. Coupled with that, 
numerous skills -development programmes for those having a certain level of formal general 
education contribute to the reduction of the existing gender gap.  
1.2.5   Balance of payments  
1.18.   During the period under review, Bangladesh's current account balance improved from a deficit 
of USD  447 million (0.3% of GDP) in 2011/12 to a surplus of nearly USD  4.3 billion (1.9% of GDP) 
in 2015/16, before deteriorating to a deficit of USD  9.8 billion (3.6%  of GDP) in 2017/18 (Table  1.3). 
The rising deficit reflects a widening of the gap between gross national savings and gross domestic 
investment. Between 2011/12 and 2015/16, the current account balance improved on the back of 
an improving trade balance and  rising workers' remittances. However, the current account deficit 
has deteriorated since then, mainly due to lower exports, higher imports, and a decline in 
remittances (these rebounded in FY2018).12 The increase in import values was mainly led by an 
increased demand for raw materials, while RMG exports  stagnated due to lower global demand and 
domestic security issues. Consequently, the trade deficit as a proportion of GDP increased from 
around 3% in 2015/16 to around 7% in 2017/18. Furthermore, remittances  also declined, mostly 
due to the slowdown in the Gulf Cooperation Council (GCC) countries, and a shift towards informal 
remittance channels.  
Table 1.3 Balance of payments, 2011 -18 
(USD million)  
   2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18a 
Current account balance  -447 2,388  1,409  3,492  4,262  -1,331  -9,780  
Goods and services balance  -12,321  -10,171  -10,890  -10,151  -9,168  -12,760  -22,832  
Goods balance  -9,320  -7,009  -6,794  -6,965  -6,460  -9,472  -18,258  
Exports  23,989  26,567  29,777  30,697  33,441  34,019  36,205  
of which: RMGs  19,090  21,516  24492  25,491  28,094  28,150  30,615  
Imports  33,309  33,576  36,571  37,662  39,901  43,491  54,463  
Services balance  -3,001  -3,162  -4,096  -3,186  -2,708  -3,288  -4,574  
Credit  2,694  2,830  3,115  3,084  3,523  3,621  4,539  
Debit 5,695  5,992  7,211  6,270  6,231  6,909  9,113  
Primary income  -1,549  -2,369  -2,635  -2,252  -1,915  -1,870  -2,392  
Credit  193 120 131 76 74 82 113 
Debit 1,742  2,489  2,766  2,328  1,989  1,952  2,505  
of which:  official interest 
payments  373 476 427 366 382 384 537 
Secondary income  13,423  14,928  14,934  15,895  15,345  13,299  15,444  
Official transfers  106 97 83 75 67 59 49 
Private transfers  13,317  14,831  14,851  15,820  15,278  13,240  15,395  
of which: workers' 
remittances  12,734  14,338  14,116  15,170  14,717  12,769  14,982  
                                                
11 UNDP Human Development Report . Viewed at: http://hdr.undp.org/en/countries/profiles/BGD .  
12 During FY 2018, remittance s grew by 17.3% , due to different remittance arrangements with exchange 
companie s abroad for smooth operation through  formal channels.  WT/TPR/S/385 • Bangladesh  
 
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     2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18a 
Capital account  482 629 598 496 464 400 292 
Financial account  1,436  2,770  2,855  1,267  944 4,247  9,076  
FDI 1,191  1,726  1,474  1,172  1,285  1,653  1,583  
Portfolio investment  240 368 937 379 139 457 365 
Other investment  5 676 444 -284 -480 2,137  7,128  
Trade credit  -1,118  -250 -340 -2,508  -2,101  -1,185  -1,270  
Net errors and omissions  -977 -659 621 -882 -634 -147 -473 
Overall balance of payments  494 5,128  5,483  4,373  5,036  3,169  -885 
a  Provisional.  
Source:  Bangladesh Bank online information.  
1.19.   During the period under review, the services deficit declined as a proportion of GDP, but grew 
in absolute terms. The increase was due to larger  payments in freight, financial services, personal 
travel, telecommunications and construction (Table 1.4). Regarding services receipts, payments for 
transportation, personal travel and construction also rose, albeit not as significantly as debits; the 
authorities stated that the changes were due to, inter ali a: simplified regulations for freight 
payments; increased payments for telecommunications services, due to the extension of 3G and 
4G networks; and payments for large infrastructure projects. During the period under review, 
payments for repatriated profits  and dividends rose, and these are reflected in the negative primary 
income balance, which was due, in part, to such payments not requiring permission from the 
Bangladesh Bank. On the other hand, current transfers, which mainly comprise workers' 
remittance s, fluctuated in absolute terms during the review period, but showed a significant decline 
as a proportion of GDP.  
Table 1.4 Trade in services, 2011 -18 
  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total credit (BDT billion)  193.7  226.0  242.1  239.6  271.6  287.2  366.2  
Total credit (USD million)  2,449.0  2,827.5  3,115.3  3,084.3  3,469.9  3,629.8  4,459.7   
% of total credit  
Manufacturing services on 
physical inputs owned by 
others  .. 1.7 2.0 2.3 2.2 1.6 1.8 
Maintenance and repairs  .. 0.1 0.2 0.1 0.1 0.1 0.1 
Transportation  13.7 16.2 14.8 12.1 11.9 12.0 13.1 
Passengers  0.1 0.1 0.1 0.1 0.0 0.1 0.1 
Freight  1.2 1.6 1.2 1.5 0.6 1.0 1.5 
Other  12.4 14.6 13.6 10.6 11.3 10.9 11.5 
Travel  4.0 3.8 4.6 4.9 4.4 8.3 7.8 
Business  0.1 0.1 0.0 0.1 0.0 0.0 0.0 
Personal  3.9 3.7 4.5 4.8 4.4 8.3 7.7 
Construction  1.2 1.4 1.5 2.4 2.4 3.8 3.3 
Insurance  0.5 0.4 0.1 0.0 0.0 0.0 0.1 
Financial services  2.0 2.2 1.9 2.4 2.4 2.4 3.4 
Charges for intellectual 
property  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Telecommunication, computer 
and information  21.3 12.4 14.3 12.1 18.1 15.7 12.0 
Other business services  12.8 11.2 12.9 13.8 12.9 13.9 14.8 
Personal, cultural and 
recreational services  0.1 0.2 0.7 0.3 0.2 0.2 0.3 
Government goods and 
services n.i.e.  44.5 50.4 47.1 49.6 45.4 41.9 43.2 
Total debit (BDT billion)  418.8  483.9  561.3  645.6  575.1  643.9  874.3  
Total debit (USD million)  5,294.8  6,053.5  7,221.8  8,311.2  7,348.2  8,137.8  10,648.3   
% of total debit  
Manufacturing services on 
physical inputs owned by 
others  .. 0.0 0.0 0.0 0.0 0.0 0.0 
Maintenance and repairs  .. 0.0 0.4 0.0 0.3 0.5 0.2 
Transportation  78.9 74.4 73.4 70.7 71.1 70.6 66.0 WT/TPR/S/385 • Bangladesh  
 
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    2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Passengers  9.4 10.1 12.7 4.4 5.2 5.5 4.3 
Freight  68.7 63.9 59.5 63.8 61.8 60.8 58.5 
Other  0.7 0.4 1.3 2.6 4.1 4.2 3.3 
Travel  6.2 5.3 5.8 4.9 6.0 6.3 6.9 
Business  0.8 0.9 0.6 0.4 0.5 0.5 0.4 
Personal  5.4 4.5 5.2 4.4 5.5 5.9 6.5 
Construction  0.2 0.4 1.1 4.8 2.9 2.1 3.3 
Insurance  0.6 0.5 0.0 0.0 0.1 0.0 0.0 
Financial services  2.0 7.0 7.0 9.4 9.5 10.0 12.7 
Charges for intellectual 
property  0.3 0.2 0.3 0.4 0.5 0.4 0.4 
Telecommunication, computer 
and information  0.5 0.5 0.5 0.7 0.9 1.3 0.7 
Other business services  5.6 5.5 4.9 4.9 5.4 5.7 6.2 
Personal, cultural and 
recreational services  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
Government goods and 
services n.i.e.  5.7 6.1 6.6 4.0 3.2 2.8 3.3 
.. Not available.  
Note:  Total debit figures in the above table exceed total debit figures as shown in the BOP table, as of 
2014/15 onwards.  
Source:  WTO calculations, based on Bangladesh Bank online information, and data provided by the 
authorities.  
1.20.   The current account deficit has been financed by the financial account, including, mainly, 
other investment, such as medium - and long -term (MLT) loans, med ium- and short -term private 
loans,  and FDI inflows, which were robust throughout the review period. Consequently, foreign 
exchange reserves more than tripled from 2011/12, to approximately USD  33.5 billion in 2016/17, 
providing over six months of import co ver (Table 1.1); in 2017/18, they dropped by 1.8% to 
USD 32.9 billion, providing 5.5 months of import cover.  
1.3  Developments in Trade and Investment  
1.21.   During the period under review, the ratio of trade in goods and services to GDP decreased 
from nearly 50% in 2011/12 to around 38% in 2017/18; the 7th FYP envisages a trade -to-GDP ratio 
of 50% by FY2020 .  
1.22.   FDI inflows rose from approximately USD  1.2 billion (0.9% of GDP) in 2011/12 to 
approximately USD  2.6 billion (0.9% of GDP) in 2017/18, with the stock of inward  FDI rising to 
nearly USD  15 billion. According to the authorities, the  increase was due to infrastructural 
development facilitated by the Government, such as the development of numerous economic zones, 
and the encouragement of private investment in the en ergy and power sector.  
1.3.1   Trends and patterns in merchandise and services trade  
1.23.   Exports continue to be heavily concentrated in textiles and textile articles, which accounted 
for nearly 90% of total exports in 2017/18 (Chart 1.1 and Table  A1.1); footwear and h eadgear were 
responsible for a further 2.8% of total exports, followed by live animals and products (1.4%) and 
raw hides and skins (1.4%). While the share of textiles and textile articles and footwear and 
headgear rose during the review period, the shares of live animals and products and raw hides and 
skins declined.  WT/TPR/S/385 • Bangladesh  
 
- 22 - 
 
  Chart 1.1 Product composition by main HS sections of merchandise trade  
 
Note:   Data in brackets refer to the HS section numbers.  
Source:   WTO calculations, based on Export Promotion Bureau of Bangladesh online information, and on 
Bangladesh Bureau of Statistics online information.  
1.24.   As in most countries, the structure of Bangladesh's imports is less concentrated than that of 
its exports. The large st single import category continued to be textiles, which are used as inputs for 
the garments industry; its share remained static during the review period (Chart 1.1 and 
Table  A1.2). During the period under review, the shares of machinery and electrical eq uipment, 
vegetable products and cereals, and mineral products rose. The shares of animal/vegetable fats and 
oils, prepared foodstuffs, and chemicals in total imports fell.  
1.25.   Bangladesh's largest export market in 2017/18 was the EU -28, followed by the United States, 
Canada, and Japan (Chart 1.2 and Table A1.3). The share of the EU -28 rose considerably, as did 
that of Japan, while the shares of the United States and Canada declined. A plausible reason for the 
change is duty -free imports into the EU -28 under the  Everything but Arms scheme (Section  2.3.2.6).  
Chart 1.1   Product composition by main HS sections of merchandise trade
2011/12 2017/18Exports:
Source:  WTO calculations, based on Export Promotion Bureau of Bangladesh online information 
and based on Bangladesh Bureau of Statistics online information.Plastics & rubber (7)
4.0%Raw hides & skins; 
leather products (8) 
1.4%
Machinery; electrical 
equipment (16)
14.9%Transport equipment 
(17) 7.3%
Textiles & textile articles (11)
22.6%Total:  USD 24.2 billion Total: USD 36.7 billion
Chemicals (6)
6.8%Transport equipment
(17) 6.9%
Textiles & textile articles (11)
22.3%Other textiles & textile 
articles  6.2%
Live animals & 
products (1) 1.4%
Chemicals (6)
8.7%
Plastics & rubber (7)
4.3%%Base metals & articles 
thereof (15)
7.2%Articles of apparel & clothing 
accessories, knitted/crocheted
41.4%
Vegetable 
products; 
cereals (2)
4.8%Footwear, headgear, 
etc. (12) 2.8% 
Base metals & 
articles thereof (15)
7.3%Machinery; 
electrical equip.
(16)  16.0%Other
6.5%Textiles & textile 
articles (11)
89.6%
Animal/vegetable
fats & oils (3)
9.5%Other
5.6%
Prepared foodstuffs; 
beverages; tobacco (4)
4.4%Vegetable 
products; 
cereals (2)
7.0% Animal/vegetable
fats & oils (3)
5.9%
Mineral
products (5) 
13.6%Other  4.7%
Mineral
products (5)
10.8%Prepared
foodstuffs, etc.(4)
3.5%Textiles & textile 
articles (11)
87.9%Articles of apparel & clothing 
accessories, not knitted/crocheted
42.1%
Articles of apparel & clothing 
accessories, knitted/crocheted
39.1%Articles of apparel & clothing 
accessories, not knitted/crocheted
39.6%
Other textiles & textile 
articles  9.1%
Footwear, headgear, 
etc. (12) 1.6% 
Other  6.2%
Live animals & 
products (1) 2.5%
Raw hides & skins; 
leather products (8) 
1.8%
Note:  Figure in brackets refer to the HS section number.Imports:
Total:  BDT 2.9 trillion
= USD 37.2 billionTotal:  BDT 4.7 trillion
= USD 59.6 billion2016/17 2011/12WT/TPR/S/385 • Bangladesh  
 
- 23 - 
 
  Chart 1.2 Direction of merchandise trade  
 
a Imports of Export Processing Zones.  
Note:  Total import figures differ from those shown in Chart 1.1, due to data being taken from different 
sources.  
Source:   WTO calculations, based on Export Promotion Bureau of Bangladesh and Bangladesh Bank online 
information.  
1.26.   Data on imports by origin were not available from the Export Promotion Bureau of 
Bangladesh; data from th e Bangladesh Bank was used, resulting in a discrepancy in the figures for 
imports by product and imports by origin.  
1.27.   Bangladesh's imports continue to be highly concentrated, with over 80% coming from Asia, 
whose share remained relatively stable during the review period (Chart 1.2 and Table A1.4). In 
2017/18, Bangladesh's largest import supplier was China, followed by India and the EU -28. The 
shares of all three have risen since 2011/12, while the shares of ASEAN have posted a slight decline 
since then.  
Chart 1.2   Direction of merchandise trade
2011/12 2017/18Exports:
United Kingdom
10.1%Italy 4.0%Belgium 3.1%
Spain 4.7%
Total: BDT 2.8 trillion
= USD 35.5 billionTotal: BDT 4.4 trillion
= USD 53.0 billionOther
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9%Germany
15.2%
Germany
16.1%Belgium 2.4%
EU-28
52.6%
Spain 6.7%United States
21.1%
France 5.7%France 5.5%Other EU -28
6.5%
Canada 4.1%Other EU -28
6.9%
Japan 2.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.1%
India 2.4%
Other
17.7%the Netherlands
2.9%Japan 3.1%
Imports:Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.4%Japan 3.1%
Imports:
Note:  Total import figures differ from those shown in Chart [1.1]; due to data taken from different source.Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.4%Japan 3.1%
Imports:
Source:  WTO calculations, based on Export Promotion Bureau of Bangladesh and Bangladesh Bank 
online information.Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.4%Japan 3.1%
Imports:
Japan
4.1%Brazil
2.7%
China
18.1%
Japan
3.5%India
16.3%
India
13.4%Other
27.5%
Other
32.4%
China
22.1%Brazil
3.4%United States
3.2%
EU-28
6.1%
EU-28
6.8%
Malaysia
3.9%Malaysia
2.7%
Indonesia
3.5%Indonesia
3.4%
Singapore
4.8%Singapore
5.1%Korea, Rep. of
4.4%EPZa
6.0%EPZa
6.7%Chart 1.2   Direction of merchandise trade
2011/12 2017/18Exports:
United Kingdom
10.1%Italy 4.0%Belgium 3.1%
Spain 4.7%
Total:  USD 24.2 billion Total: USD 36.7 billionOther
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9%Germany
15.2%
Germany
16.1%Belgium 2.4%
EU-28
52.6%
Spain 6.7%United States
21.1%
France 5.7%France 5.5%Other EU -28
6.5%
Canada 4.1%Other EU -28
6.9%
Japan 2.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.1%
India 2.4%
Other
17.7%the Netherlands
2.9%Japan 3.1%
Imports:Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.4%Japan 3.1%
Imports:
a     Imports of export processing zones.Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.1%
Canada 3.1%
Poland 2.6%
India 2.4%Japan 3.1%
Imports:Other
17.0%EU-28
58.2%Italy 4.3%
United Kingdom
10.9% Germany
16.1%Belgium 2.4%
Spain 6.7%France 5.5%Other EU -28
6.5%United States
16.3%
Canada 3.1%
the Netherlands  3.3%Poland 2.6%
India 2.4%Japan 3.1%
Imports:
Japan
4.1%Brazil
2.7%
China
18.1%
Japan
3.5%India
16.3%
India
13.4%Other
27.5%
Other
32.4%
China
22.1%Brazil
3.4%
United States
3.2%EU-28
6.1%
EU-28
6.8%
Malaysia
3.9%Malaysia
2.7%
Indonesia
3.5%Indonesia
3.4%
Singapore
4.8%Singapore
5.1%Korea, Rep. of
4.4%EPZa
6.0%EPZa
6.7%WT/TPR/S/385 • Bangladesh  
 
- 24 - 
 
  1.3.2   Trends and patterns in FDI  
1.28.   Bangladesh has a liberal and investor -friendly investment regime, offering incentives to 
various sectors under many schemes (Section 2.4 and Section 3.3.1.2). This has resulted in a steady 
inflow of FDI, from approximately USD  1.2 billion in 2011/12 to nearly USD  2.6 billion in  2017/18.13 
FDI is concentrated in the energy sector, followed by the garment manufacturing sector, the financial 
sector, and telecommunications  (Table A1.5) . The largest investors are the United States;  followe d 
by the United Kingdom;  the Republic of Korea;  Singapore;  Australia;  and Hong Kong, China. 
Furthermore, FDI originating from all has risen significantly, except from Australia, whose stock has 
declined. The stock of FDI in 2017 was nearly USD  15 billion ( Chart 1.3).  
Chart 1.3 FDI 
(USD million)  
 
 
Source:   UNCTAD, World Investment Report 2018 . 
 
                                                
13 Information provided by the authorities; it differs slightly from UNCTAD data.  
02505007501,0001,2501,5001,7502,0002,2502,500
02,0004,0006,0008,00010,00012,00014,00016,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017FDI inward stock FDI inflowChart 1. [BGD] Foreign direct investment, USD million
Source:  UNCTAD, World Investment Report 2018 online information.Left-hand scale: Right -hand scale:WT/TPR/S/385 • Bangladesh  
 
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  2  TRADE AND INVESTMENT  REGIMES  
2.1.  Since its last TPR in 2012, Bangladesh has pursued wide -ranging trade -related and investment 
policies , inter alia , focused on export -led growth . Its export and import policies remained relatively 
unchanged. The regulatory trade -related framework in several areas was updated.  
2.2.  Bangladesh, a prominent  voice for LDCs, remains committed to the multilateral trading system , 
and improved its WTO commitments by ratifying the Trade Facilitation Agreement (TFA). 
Bangladesh's  possible graduation from LDC status in 2024 , coupled with its World Bank Group rise 
to a lower middle -income country , will, inter alia , have some implications in several areas relating 
to market access and WTO commitments. A participant in some RTA initiatives with relatively limited 
product coverage and trade importance for the country unt il now, it has taken initiatives to negotiate 
new agreements. It remains a beneficiary of Generalized System of Preferences (GSP) schemes and 
their additional LDC -specific preferences. During the review period , Bangladesh had a limited but 
regular WTO noti fications record , and no involvement in trade disputes.  
2.3.  Bangladesh remains relatively open to investment , despite the requirement for prior 
clearance/permission for foreign investment in 17 controlled sectors , foreign ownership limitations 
on e-commerce ve ntures , and four sectors being reserved for government investment. In 2016 , 
important investment -facilitating regulatory and institutional reforms were made , to improve the 
investment environment. An array of tax and non -tax incentives remain available to companies 
operating in designated zones, high -priority activities , and creative and special development sectors.  
2.1  General Framework  
2.4.  During the review period, the Constitution of the People's Republic of Bangladesh, adopted and 
enacted on 16 December 1972, h as been subject to two amendments (2014, 2016).  
2.5.  Executive authority continues to rest with the Prime Minister , who must ensure the support of 
the majority of the members of Parliament. Ministers, state ministers and deputy ministers are 
appointed  by the President,  on the advice of the Prime Minister. As the Head of Government, the 
Prime Minister is the chief executive, and the head of the Cabinet. The President acts as the Head 
of State in accordance with the advice of the Prime Minister , and is e lected for a five -year term by 
members of Parliament. The last Presidential election was held on 18 February 2018 , and the next 
is due in 2023.  
2.6.  Legislative power continue s to be exerci sed by a unicameral legislature ( Jatiya Sangsad  or 
National Parliament) , comprising 300 members directly elected by universal vote, and an additional 
50 female members appointed by political parties on the basis of proportional representation of 
political parties in the National Parliament. Nation al elections are held on a fi ve-year cycle, with the 
last held in December 2018. There are parliamentary standing committees for different ministries , 
that oversee  the activities of the Government. A proposal for making a law, in the form of a bill , 
must be passed by a majority vote o f the total number of members present in Parliament. It is then 
sent to the President for assent.  
2.7.  The legal and judicial system is founded on English Common Law. The judiciary consists of the 
higher judiciary (the Supreme Court) and the subordinate judici ary (the lower courts).1 The judges 
of the subordinate courts are appointed through an independent commission, the Bangladesh Judicial 
Service Commission. The Supreme Court consists of the High Court Division and the Appellate 
Division. It has powers of su pervision and control of the subordinate courts and tribunals. The Chief 
Justice, and other judges in the Appellate Division, are appointed by the President; judges in the 
High Court Division are appointed by the President in consultation with the Chief Ju stice. Subordinate 
courts at district and upazila  levels , as well as special courts and tribunals such as the administrative 
tribunal, family courts, labour tribunal, land, commercial, municipal and marine courts, and tribunals 
                                                
1 Banglade sh scored 7.5 out of 18 in the World Bank' s 2016 Quality of Judicial Processes Index . Viewed 
at: http://www.doingbusiness.org/en/data/exploretopics/enforcing -contracts . WTO document 
WT/TPR/S/270/Rev.1, 26 November 2012. Banglapedia online information. Viewed at: 
http://en.banglapedia.org/index.php?title=Judicial_System . United States Department of State 
Information/Bureau of Economic and Business Affairs (2017), 2017 Investment Climate Statements Report - 
Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . WT/TPR/S/385 • Bangladesh  
 
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  for checking repression of women and children , remain in place. Since the last Review, separate 
cyber tribunals and anti -terrorism tribunals have been established , to deal with cases arising from 
cybercrimes and terrorism, respectively.   
2.8.  The country is divided into eight administrat ive divisions , each of which is placed under a 
Divisional Commissioner ; each division is sub -divided into Zilas (districts), which are headed by 
Deputy Commissioners.  
2.2  Trade Policy Formulation and Objectives  
2.2.1   Executive branches of Government  
2.9.  The Ministry of Commerce (MOC) remains the leading institution in the formulation, 
implementation and coordination of policies and activities relating to international trade in goods 
and services. It acts as the focal point for bilateral, regional and mult ilateral trade negotiations. Its 
WTO Cell deals with matters relating to WTO agreements and oversees WTO negotiations; it 
coordinates and monitors all notifications to WTO committees , as well as compliance with WTO 
obligations. Implementation of trade -related policies and regulations are administered by various 
agencies under the MOC , including the Bangladesh Tariff Commission , dealing , inter alia , with trade 
remedies ; and the Export Promotion Bureau  (EPB);  and the National Board of Revenue (NBR) , under 
the Ministry of Finance , which takes the lead role in tariff -setting. A host of other ministries and 
agencies , including the Ministry of Agriculture, the Ministry of Health and Family Welfare, the Ministry 
of Fisheries and Livestock, the Ministry of Industrie s, the Ministry of Cultural Affairs, the Ministry of 
Post, Telecommunications and Information Technology, the Ministry of Civil Aviation and Tourism, 
the Ministry of Shipping , and the Ministry of Road Transport and Bridges, are also involved in the 
process  of formulating and implementing trade and trade -related policies.  
2.2.2   Advisory bodies  
2.10.   Several policy consultative bodies  continue , with public and private sector participation , to 
support efforts for the formulation  of a coordinated policy , having  positive effects on the performance 
of the domestic and export sectors.2 Trade policy formulation begins with the MOC , and is finalized 
through a consultative process with the EPB. Proposals are invited from relevant stakeholders , 
including the private sector's cha mbers of commerce (e.g. the Federation of Bangladesh Chambers 
of Commerce and Industry, and the Bangladesh Garments Manufacturers and Exporters Association) 
and research organizations (e.g. the public/private Bangladesh Foreign Trade Institute (BFTI)); and 
independent academic institutions , such as the Centre for Policy Dialogue , issue papers and 
participate in trade -related policy debates. These proposals, along with inputs received, are then 
discussed in inter -ministerial meetings under the aegis of the MOC. The decisions for all trade policy 
matters are tabled at the Cabinet Sub -Committee on Economic Affairs , which is headed by the 
Finance Minister. Before cabinet approval, the policy is vetted by the Ministry of Law, Justice and 
Parliamentary Affairs.   
2.2.3   Policy objectives  
2.11.   Trade and trade -related policy formulation and objectives continue to be shaped by relatively 
long and wide -ranging strategies and plans. Vision 2021, issued in 2009, and the associated 
Perspective Plan 2010 -21, lay out a series of deve lopment targets for 2021 , the year of the 
50th anniversary of independence. Its overriding objective is for Bangladesh to become a 
middle -income country by 2021, raising per capita income to US D 2,000 , and reducing poverty from 
40% to 15%. Vision 2021 is b eing implemented through five -year plans , which set out policy 
objectives and priorities. The latest one, i.e. the 7th FYP (FY 2016-20), seeks to progressively raise 
GDP growth rate from 6.5% in FY2015 to 8% by FY2020. It recognizes  the merits of export -led 
growth in accelerating growth and creating jobs. It targets the substantial improvement of exports , 
the achiev ement of  a trade -to-GDP ratio of 50% , and an increas e of the  manufacturing sector's 
contribution to 21% of GDP by 2020.3  
                                                
2 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 . 
3 At the national budget speech (FY 2018 -19), the Go vernment expressed the intention to raise export 
earnings to USD  60 billion by 2021.  WT/TPR/S/385 • Bangladesh  
 
- 27 - 
 
  2.12.   Some of the key export strategies pronounced in both the 7th FYP the latest budget speech of 
the Government (FY 2018 -19) include expanding the volume of exports to existing markets, 
diversif ying the  export base, moving up the value chain, exploring new mar kets, expanding services 
exports, engaging more in free trade agreements (FTAs), pursuing duty -free and quota -free (DFQF) 
market access to both developed and developing country markets , and deepening trade under 
regional arrangements , such as the Asia -Pacific Trade Agreement ( APTA), the Bay of Bengal 
Initiative for Multi -Sectoral Technical and Economic Cooperation ( BIMSTEC ), and the South Asia Free 
Trade Agreement ( SAFTA ). Furthermore , the 7th FYP placed  special emphasis on a diversified 
manufacturing base,  including improving manufacturing efficiency and competitiveness, and 
recognized the relatively high nominal tariff protection on domestically produced consumer goods.  
2.13.   The trade policy of Bangladesh remains mainly guided by Export and Import Policies , which 
are issued on a three -yearly basis (Sections 2. 2.4, 3 and 4); d uring the review period, there have 
been two  such three -year periods . The Export Policy 2015 -18 aimed to consolidat e the position of 
Bangladesh in global trade. The Export Policy 2018 -21, w hich aims to raise the country's export 
earnings to US D 60 billion by 2021, was approved by the Cabinet in November 2018.4 Other key 
objectives include improving the quality of products by upgrading testing facilities to global 
standards, enhancing the inv olvement of women in export -oriented industries, increas ing the stake 
of services sectors , including information communication technology ( ICT), and bring ing dynamism 
to export trade by utilizing e -commerce and e -governance.5  
2.14.   Bangladesh continues to lack a comprehensive trade policy (CTP). The 7th FYP entrusted the 
MOC with developing a CTP.6 To this effect, the European Union provided technical assistance under 
the Bangladesh Trade Policy Support Programme , which had the overa ll objective of developing an 
integrated national trade policy. According to the authorities, the stakeholders in the trading 
community continue to support the longstanding practice of having separate import and export 
policies instead of a single comprehe nsive trade policy.  
2.2.4   Trade laws and regulations  
2.15.   During the review period, the range of Bangladesh's legal instruments in numerous trade and 
trade -related areas , including customs, standards, SPS, public procurement, competition, 
intellectual property right s, electricity, jute, industrial policy, securities, and civil aviation, was 
updated (Sections 3 and 4). The regulatory framework continues to consist of laws (acts), 
ordinances, President ial Orders and legislation implementing statutory regulatory orders (SROs) 
issued by the relevant public -sector agency. The Imports and Exports (Control) Act , 1950 empowers 
the Government to regulate the import and export of goods and services. It formulates and issues 
the Import Policy Order (IPO) and the Export Policy ev ery three years , in consultation with the 
concerned government agencies, trade bodies and relevant research institutes. Unlike the IPO, which 
has legal status, the Export Policy is a statement of intent to facilitate exports.  
2.16.   No regulatory reform to streamline burdensome regulations and reduce the regulatory burden 
to stakeholders was undertaken during the review period.7 No qualitative assessment on the existing 
                                                
4 Online information. Viewed at: https://www.thedailystar .net/business/export/export -policy -2018-
2021-cabinet -okays -draft-1656943 . 
5 The Policy is not applicable to the Export Processing Zones, the Private Export Processing Zones and 
the Economic Zones.  
6 The 7th FYP contains th e following seven guiding principl es for the CTP: "(i) to promote diversified, 
export -led industrialization as the major engine for increased and sustained economic growth; (ii)  to strengthen 
production networks of existing and new export products, thereby improving Bangladesh's position in global 
value chains; (iii) to increase Bangladesh's international competitiveness by creating a conducive environment 
for private -sector trade and investment , including reliable infrastructure, an effective transport network, coherent 
and enforceable trade -related policies , and strengthened institutions; (iv) to create favourable market access 
conditions through taking maximum advantage of existi ng trade agreements and engaging actively in the 
exploration of new bilateral and regional trade and investment agreements; (v) to make trade contribute towards 
poverty reduction through  increased and diversified exports, hig her income, and employment; (vi ) to make 
Bangladesh's trade regime contribute towards sustainable development by making it fully consistent with its 
development objectives and existing international trade commitments; and (vii) to establish the MOC as the 
national competent authority an d apex organization in all matters relating to trade policy formulation. " 
7 The regulatory burden means the costs imposed on enterprises, consumers, the authorities and other 
groups , as a result of regulation and compliance with regulatory obligations.  Reducing the administrative 
burden is one way of enhancing companies ' productivity and competitiveness.  Viewed at: 
https://tem.fi/en/reducing -the-regulatory -burden -of-enterprises . WT/TPR/S/385 • Bangladesh  
 
- 28 - 
 
  regulatory burden and benefits from its possible reduction was available from the authori ties. No 
Regulatory Impact Assessment (RIA) is used in the preparation of legal texts.  
2.2.5   Transparency  
2.17.   Bangladesh attaches importance to making laws easily  accessible. Laws are published in 
Bengali only (some are translated into English  by the Ministry of La w, Justice and Parliamentary 
Affairs ) in the Bangladesh Gazette , which is updated weekly , and is available to all individuals and 
institutions.8 The websites of most of the relevant ministries and agencies contain limited information 
in English. During the review period, Bangladesh has been developing key projects for e -government 
services.  
2.18.   As in all countries, a lack of transparency, and , thus, a lack of public accountability, creates 
scope for administrative discretion and therefore corruption.9 In February 2007, Bangladesh acceded 
to the UN Convention against Corruption , whose 186 parties (as at June 2018) are required to 
establish criminal and other offences to cover a wide range of acts of corruption.10 Despite its 
anti-corruption initiatives (see below), Bangladesh continues to rank poorly in this area , both at 
regional and international level.11  
2.19.   During the review period, Bangladesh's Anti -Corruption Commission (ACC) investigated 
numerous corruption cases and , as at March 2017 , had finalized a  draft bill of the Civil Service Act , 
with special arrest provisions. No information on the progress of the  passing of the bill , or on  any 
other major regulatory, institutional or other area in the fight against corruption from 2012 onwards , 
was available from the authorities. A 2013 amendment  of the ACC Act means that  it is now necessary 
for the ACC to obtain permission from the Government to investigate , or file any charge against , 
government officials or politicians. A Special Judge's Court deals with th e cases filed by the ACC. In 
2015, 207 out of 306 cases were acquitted by the Court; no comments or further data on law 
enforcement on corruption were available from the authorities. Corruption is seemingly considered 
an impediment to investment an d econom ic growth in Bangladesh .12 According to the ACC, 
seemingly Bangladesh's GDP would increase by 2% if corruption was prevented.13 Supporting the 
diversification of the economy and sustaining inclusive growth would appear to  require a more 
                                                
8 Hard copy and online  information. Viewed at:  
http://dpp.gov.bd/bgpress/index.php/document/gazettes/140 , as well at the relevant online service of the 
Ministry of Law, Justice and Parliamentary Affairs . Viewed at:  
http://bdlaws.minlaw.gov.bd/index.php?page=home&language=english . 
9 The authorities , inter alia , questioned the relevance of corruption in the Trade Policy Review exercise . 
According to the OECD, c orruption raises the cost of business, undermines public trust and hampers growth. It 
disproportionately affects the poor and vulnerable by diverting resources from essential public services . 
Accord ing to the World Bank Group, it  impedes investment, with consequent effects on growth and jobs.  
Corruption might unfairly determine the winners of government contracts . Or it might affect more fundamental 
issues of capture, such as how institutions work an d who controls them, a form of corruption that is often the 
costliest in terms of overall economic impact. More information about the state of perceived corruption in 
Bangladesh is available online at https://www.business -anti-corruption.com/country -profiles/bangladesh/ . 
OECD and World Bank Group online information. Viewed at: http://www.oecd.org/corruption/oecd -strategic -
approach -to-combating -corruption -and-promoting -integrity.htm  and 
http://www.worldbank.org/en/topic/go vernance/brief/anti -corruption . 
10 UNODC online information. Viewed at: 
https://www.unodc.org/unodc/en/treaties/CAC/signatories.html .  
11 According to the World Bank's  Worldwide Gov ernance Indicators, in 201 6, Bangladesh  was in the 
21st percentile  in the control of corruption indicator, well below South Asia's average (3 4) and that of 
neighbouring Lao PDR and Viet  Nam. In 201 7, Bangladesh  ranked 1 43rd out of 1 80 countries on Transparency 
International's Corruption Perception Index (CPI) , compared to 144th out of 174 countries in 2012 ; at the same 
time, for the second year in a row , and with a score in the  28th percentile , it ranked fourth in the Asia -Pacific  
region. World Bank Group  online information. Viewed at: 
http://info.worldbank.org/governance/wgi/index.aspx#reports ; Transparency International online information. 
Viewed at: https://www.transparency.org/news/feature/corruption_perceptions_index_2017 . 
12 United States Department of State Information/Bureau of Economic and Business Affairs (20 17), 
2017 Investment Climate Statements Report  - Bangladesh , 29 June, Washington, D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm ; and online information. Viewed at: 
https://www.u4.no/publications/bangladesh -overview -of-corruption -and-anti-corruption -with-a-focus -on-the-
health -sector  and https://www.gov.uk/dfid -research -outputs/anti -corruption -in-bangladesh -towards -feasible -
governance -improvements . 
13 The Dhaka Tribune  online, DG ACC: 2% more GDP growth if corruption prevented , 2 July 2018. 
Viewed at: https: //www.dhakatribune.com/business/economy/2018/07/02/dg -acc-2-more-gdp-growth -if-
corruption -prevented .  WT/TPR/S/385 • Bangladesh  
 
- 29 - 
 
  nuanced approach to anti‐corruption by , inter alia, finding policy combinations that create incentives 
for stakeholders in particular sectors or activities to behave in more productive ways.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.3.1.1   Features  
2.20.   Bangladesh has been a WTO Member since  1995, and participates actively in its work, 
including as a prominent voice for LDC s, assuming the role of the LDC Group Coordinator in 2015. 
Bangladesh improved its WTO commitments by ratifying the WTO Trade Facilitation Agreement (TFA) 
on 27 September  2016, becoming the 94th Member of the WTO and the 12th LDC to do so. 
Bangladesh accords at least MFN treatment to trading partners, including non -WTO Members. During 
the review period, it has not been involved in any cases under the WTO dispute settlement 
mechanism.  Bangladesh's trade policies have been reviewed four times in the WTO; the last Review 
was in 2012.  
2.21.   Bangladesh remains a supporter of the rules -based multilateral trading system ; it advocates 
for enhanced market access, balanced rules, and the strengthening of special and differential ( S&D) 
provisions in WTO agreements, and targets technical and financia l support for addressing supply -side 
and infrastructure constraints. Since the last Review, the main WTO issues of interest to Bangladesh 
include  the full and effective implementation of decisions taken in favour of LDCs at MC9 and MC10,  
such as decisions relating to DFQF market access, preferential rules of origin , and the LDC Services 
Waiver, as well as work on S&D provisions, fisheries subsidies negotiations, the Work Programme 
on Electronic Commerce , and work relating to the implementation of TRIPS Article  66.2.14 It has 
consistently extended its support to ending  trade -distorting policies in cotton.  
Notification  
2.22.   During the review period, Bangladesh submitted only two notifications to the WTO , relating 
to GATS (contact and enquiry points) and the TFA (notification of category commitments).15 Since  
2012, it submitted  its customs tariff to the WTO Integrated Data Base three times, i.e. in 2012, 
2013 and 2016 . No trade data submissions have been received at WTO.  The customs tariff for the 
year 2018/19 was submitted to the WTO Secretariat in the context of the current TP R.16 The MOC 
recently formed a Committee to facilitate the timely submission of trade data.  
2.3.1.2   Trade -related technical assistance  
2.23.   Bangladesh would like  the WTO's Aid for Trade Work Programme to have more focused 
discussion on aid for trade support , as envisag ed in the recommendations of the Task Force on Aid 
for Trade (WT/AFT/1) adopted in 2006, in areas of trade -related infrastructure and trade 
development. Aid for Trade support to Bangladesh grew from average disbursements of 
USD 352.0 million during 2006 -08 to US D 1,051.9  million in 2016 (in constant 2016 US D); in 2015 , 
the top donors were Japan (40%), the World Bank International Development Association (32%) , 
and Asian Development Special Funds (10%).17 
2.24.   Since 2009, the Enhanced Integrated Framework (EIF) ha s been assist ing Bangladesh in 
reaching its economic development objectives. Its Diagnostic Trade Integration Study (DTIS), with 
support from the World Bank, was completed in 2016. Following the recommendations contained in 
the DTIS, several projects are c urrently being implemented. An institutional capacity -building project 
started in April 2016, with a focus on implementing trade -related strategies. In 2018, the EIF Board 
approved Bangladesh's  first productive capacity -building project , entitled the Export Diversification 
and Competitiveness Development Project. In line with the priority sectors for exports identified in 
the Export Policy (2015 -18) (Section 2. 2.4), the Project aim s to strengthen productive capacity for  
RMG and jute products with a hig h end -value , build capacity to produce domestically active 
                                                
14 Prior to MC11, Bangladesh made an individual submission on the Work Programme on Electronic 
Commerce (WT/MIN(17)/29).  
15 WTO documents S/ENQ/78/Rev.14, 25 October 2013; and G/TFA/N/BGD/1, 27 February 2018.  
16 WTO document G/MA/IDB/2/Rev.47, 12 April 2018.  
17 WTO online information. Viewed at: 
https://www.wto.org/english /tratop_e/devel_e/a4t_e/profiles_e/BGD_e.pdf . WT/TPR/S/385 • Bangladesh  
 
- 30 - 
 
  pharmaceutical ingredients (API s) for the growing pharmaceutical sector , and develop capacity for 
high-quality agro -processed foods. The Government has established the necessary institutional 
set-up to implement EIF activities.  
2.3.1.3   LDC graduation  
2.25.   Bangladesh, an LDC since 1975, met all the three criteria for graduation , for the first time in 
2018.18 If it meets the graduation criteria for a second time at the next triennial review by the United 
Nations Co mmittee for Development Policy (CDP) in 2021, it is expected to graduate from LDC status 
in 2024.19 This progress comes against the backdrop of the country's rise from the low-income to 
the lower middle -income classification by the World Bank Group in 2015 . Its imminent graduation 
from LDC status, coupled with its elevation to the lower middle -income category by the World Bank, 
means that Bangladesh is likely to face challenges with regard to preferential market access, S&D 
benefits in WTO , and lack of acces s to concessional loans. In 2017, the Government formed a 
committee to oversee the preparations in the lead -up to graduation , and to develop strategies to 
address post -graduation challenges.  
2.26.   The main trade -related challenges regarding  LDC graduation could  emanate from the loss of 
preferences and reduced flexibility in the implementation of WTO agreements. Upon graduation, 
Bangladesh would have to bring its laws into conformity with WTO agreements in areas including 
export subsidies for industrial products and patent protection for pharmaceuticals (Sections  3.2.4.1, 
3.3.7.1 and 4.3.5.3). At present, WTO rules contain no explicit provisions regarding the graduation 
of LDCs. However, several instruments are available in the WTO to help graduating LDCs prepare 
for a smooth transition. The LDC Trade Ministers' Declaration , adopted at MC11 (WT/MIN(17)/40) , 
underlined the need for positive actions for graduated LDCs, and called upon development and 
trading partners to extend to the graduated country trade preferenc es previously made available 
due to  LDC status, or to reduc e them in a phased manner. It also invited all WTO Members to extend 
to a graduated country the existing S&D treatment related to the implementation of WTO 
agreements available to LDCs , for a perio d appropriate to the development situation of that country. 
Under the EIF, assistance is available to a graduated LDC for a period of five years after its 
graduation.  
2.3.2   Regional and preferential agreements  
2.27.   Bangladesh attaches importance to deepening intra -regional trade through regional economic 
and trade cooperation arrangements, inter alia,  because of the possible impact  of its graduation on 
preferential market access. It is party and founding member to several regional trade agreements 
(RTAs), of which on ly the APTA, the South Asian Association for Regional Cooperation ( SAARC ) 
Preferential Trading Arrangement (SAPTA) and the South Asia Free Trade Agreement (SAFTA) have 
been notified to the WTO (Table 2.1 , and below). Many of these arrangements have limited  product 
coverage and trade relevance for Bangladesh.  Bangladesh is also negotiating other RTAs with its 
trading partners. Since its last Review, it has taken initiatives to negotiate FTAs with a number of 
countries , including China, Indonesia, Malaysia, S ri Lanka, Thailand,  and Turkey. No data on 
preferential trade under each RTA in force was available from the authorities.  
Table 2.1 RTAs in force, main features, 2019  
RTAs in force 
APTA  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Bangladesh's merc handise trade with APTA parties  
WTO consideration status  
WTO document series   
Partial scope agreement  
31/07/1975  
17/06/1976  
1976 
Goods  
.. 
Not subject to the preparation of a factual presentation  
WT/COMTD/N/22; WT/COMTD/62  
                                                
18 The CDP, a body of the UN Economic and Social Council, is responsible for reviewing the status of 
LDCs and monitoring their progress following graduation from the category. It reviews a country 's position 
based on three criteria: gross national income per capita calculated based on a three-year average, the human 
asset index (HAI) , and the economic vulnerability index (EVI).  
19 While an LDC must meet two of the three thresholds, Bangladesh has met  all three criteria used for 
LDC graduation , reflecting the broad -based socio -economic progress of the country over the past years.  WT/TPR/S/385 • Bangladesh  
 
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  RTAs in force 
Global System of Trade Preferences (GSTP)a 
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Bangladesh's merchan dise trade with GSTP parties  
WTO consideration status  
GATT  document series   
Partial scope agreement  
13/04/1988  
19/04/1989  
1989 
Goods  
.. 
Not subject to the preparation of a factual presentation  
L/6564  
Protocol on Trade Negotiations (PTN)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Bangladesh's merchandise trade with PTN parties  
WTO consideration status  
GATT  document series   
Partial scope agreement  
8/12/1971  
11/02/1973  
1973 
Goods  
.. 
Not subject to the preparation of a factual presentation  
L/3598  
SAPTA  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Bangladesh's merchandise trade with SAPTA parties  
WTO consideration status  
WTO document series   
Partial scope agreement  
11/04/1993  
7/12/1995  
2016 
Goods  
.. 
Factual presentation not distributed  
WT/COMTD/10  
SAFTA  
Type of agreement  
Date of signature  
Entry into force  
 
End of the transition period  
Coverage (selected features)  
Bangladesh's merchandise trade with SAFTA parties  
WTO consideration status  
WTO document series   
FTA and economic integration agreement  
6/01/2004  
1/01/2006 ( goods); 29/11/2012 ( services) (not 
notified)  
2016 
Goods and services  
.. 
Factual presentation not distributed  
WT/COMTD/N/26  
.. Not available.  
a Bangladesh has not been a participant in the GSTP  since its third  round (2006 -10); it does not offer 
any concessions, nor does  it get any preferences from GSTP participants.  
Source:  WTO Secretariat, based on information from the WTO RTA database. Viewed at: 
http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?MemberCode=116&lang =1&redirect=1 . 
2.3.2.1   APTA  
2.28.   Bangladesh is a member of the APTA (previously known as the Bangkok Agreement) , which 
is the oldest preferential RTA in the Asia -Pacific region , and was signed in 1975.20 In 2017, Mongolia 
concluded bilateral tariff negotiations with par ticipating members , and is expected to join the APTA 
upon ratification.  
2.29.   Since the entry into force of the APTA, four Rounds of negotiations have been completed , 
resulting in the deepening of tariff concessions among participating countries. The Fourth Rou nd, 
launched in October 2007  and concluded in January 2017 , led to the exchange of tariff concessions 
on 10,677items (Table 2.2), compared to 4, 648items under the Third Round; these latest 
concessions were implemented as from 1 July 2018. This Round was on e of the most prolific , with 
three framework agreements relating to trade facilitation, investment and services being signed and 
ratified by all members. The APTA offers common rules of origin (ROO s), with a minimum local value 
content requirement of 45% of the f.o.b. value (35% for LDCs).   
                                                
20 Other APTA members are China;  India;  Lao PDR;  Korea,  Republic of ; and Sri Lanka.  WT/TPR/S/385 • Bangladesh  
 
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  Table 2.2 Results of the Fourth Round of APTA negotiations  
 Before the Fourth Round  After the Fourth Round  
No. of products under 
concession  4,648 (587)  10,677  
(1,259 - Bangladesh)  
(1,251 - Lao PDR)  
MoP (%)  26.80 (58.80)  31.46  
(86.44 - Bangladesh)  
(86.20 - Lao PDR)  
MoP* (%)  29.53 (66.44)  33.32  
(90.98 - Bangladesh)  
(90.76 - Lao PDR)  
Notes:  (1) Numbers in brackets indicate special concessions for LDCs.  
(2) Margin of Preference (MoP) is the percentage of applied MFN tariff to be exempted, estimated as 
a simple average of all the items under concession.  
(3) * Average MoP of China, India and the Republic of Korea only.  
Source:  United Nations Economic and Social Commission for Asia and the Pacific. Viewed at: 
https://www.unescap.org/sites/default/files/APTA%20Brochure%20rev.%20201701 16.pdf . 
2.30.   During the Fourth Round, Bangladesh offered general concessions on 598 HS12 tariff lines , 
and special concessions for four items for LDCs. At present , India offers concessions on the largest 
number of products (3,142) , followed by the Republic of K orea (2,797) and China (2,191). The 
Republic of Korea offer s specific preferences to Bangladesh on 951 items; the margin of preference 
is 100% for certain items of export interest to Bangladesh,  such as jute goods. Both China and India 
offer specific concessions to LDC participants in the APTA; China's special concessions list include s 
181 items , with a considerable number of items enjoy ing a preference margin of 100% (e.g. certain 
apparel items,  fish, and leather products) , while India's special concessions also include s items of 
export interest to Bangladesh.  
2.3.2.2   SAPTA and SAFTA  
2.31.   Members of the SAARC, founded in 1985 by seven countries (Bangladesh, Bhutan, Maldives, 
Nepal, India, Pakistan, and Sri L anka), deepened trade cooperation through the adoption of the 
SAFTA in 2006 , that superseded  the SAPTA (Table 2.1). Although the SAPTA remains in force, traders 
prefer to use the SAFTA , as it offers better benefits. Afghanistan joined the SAFTA  in 2005, an d 
acceded to it on 7 August  2011. This is a forum where LDCs (Afghanistan, Bangladesh, Bhutan, 
Nepal,  and Maldives) are a majority. Bangladesh and India are its two largest trading members.  
2.32.   Under the SAFTA, tariff liberalization, which commenced on 1 July  2006, provides for a phased 
Trade Liberalization Programme (TLP) , for the reduction of tariffs to between zero and 5% within 
ten years of the coming into force of the Agreement. This TLP cover s all tariff lines , except those 
items on each contracting part y's Sensitive List ; the main modality of negotiations has been the 
lowering of the number of tariff lines under the Sensitive Lists. As an LDC, Bangladesh benefit s from 
an additional grace period to reduce tariffs. It has excluded around 25% of its tariff lines from any 
tariff-reduction commitments; and its revised Sensitive List (Phase II) was concluded in 2017. The 
latest timeframe for the reduction of Sensitive List coverage and tariff rates is provided in Table 2.3.  
Table 2.3 Tentative time -frame for the reduction of Sensitive Lists, 2015  
Member State  To reduce Sensitive List 
products to To reduce t ariffs to Positions  
Afghanistan  235 by 2030  0 to 5% by 2030  Confirmed  
Bangladesh  450 by 2030  0 to 5% by 2030  Provisional  
Bhutan   100 by 2020  0 to 5% by 2020  Confirmed  
India  100 by 2020 (for non -LDCs)  0 to 5% by 2020  Confirmed  
Maldives  100 by 2020  0 to 5% by 2020  Confirmed  
Nepal  500 by 2030  0 to 5% by 2030  Provisional  
Pakistan  100 by 2020  0 to 5% by 2020  Confirmed  
Sri Lanka  Consultation with stakeholders ongoing  
Source:  SAARC Secretariat.  
2.33.   The general criteria of SAFTA ROOs  are: Change of Tarif f Heading (CTH) plus 60% of 
non-originating material for non -LDC contracting parties ; or CTH plus 70% of non-originating WT/TPR/S/385 • Bangladesh  
 
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  material for LDC contracting parties. Regional cumulation is allowed under the SAFTA, where the 
regional value addition requirement is 50% , of which 20% is to be in the final exporting country.  
2.34.   The SAARC Framework Agreement  on Trade in Services (SATIS) was signed in 2010, and was 
ratified by Bangladesh the same year. The SATIS allows SAARC countries to provide preferential 
market access to LDCs. Although the SATIS has been in force since 2012, negotiations on individual 
schedules of commitments under it are yet to be concluded. Progress in different areas of 
cooperation under the SAARC remains somewhat static , due to regional and geopolitical tensions 
among its members.  
2.3.2.3   BIMSTEC  
2.35.   Bangladesh is a member of the BIMSTEC , which is  nearing two decades of existence.21 It 
hosts the BIMSTEC Secretariat , which was established in 2014. At the latest BIMSTEC Summit , held 
in August 2018, the Heads of Governments added  two new priority sectors of cooperation (blue 
economy and mountain economy) , increasing the number of priority areas of cooperation to 16, 
includ ing trade and investment.22  
2.36.   Since 2005, BIMSTEC countries have been negotiating several  constituent agreements  and 
one protocol agreement. The constituent agreements  relate , inter alia,  to trade in goods, ROOs  
(agreed), trade in services, investment, customs cooperation, trade facilitation , and dispute 
settlement procedures.23 Although the Framework Agreement on the BIMSTEC Free Trade  Area 
(Framework Agreement) was signed in 2004, tariff negotiations have progressed slow ly. A protocol 
to amend the Framework Agreement is under consideration. Under the BIMSTEC, t ariff 
reduction/elimination was envisaged to be divided into two tracks: fast and normal. Under the 
fast-track approach, upon commencement of the tariff reduction phase, non -LDC participants (India 
and Thailand) were expected to open their markets to the products of LDCs (Bangladesh, Myanmar, 
Nepal and Bhutan) within one year; under the normal track, similar liberalization was to take effect 
within three years. The BIMSTEC FTA would also allow for negative lists, to which no tariff reduction 
would be granted, which  would be reviewed periodically.  
2.3.2.4   Developing -8 (D-8) 
2.37.   Bangladesh participates in the Developing -8 (D-8), which was established in 1997 and aim s 
to promot e development cooperation among a select group of Organisation of Islamic Cooperation 
(OIC) member States.24 Trade among D -8 members is one of the priority areas of cooperation.  
2.38.   The D -8 members signed a preferential tariff agreement (PTA) in 2006 , that entered into force 
in August 2011. Six countries (Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey) hav e 
completed all internal procedures for the implementation of the PTA , which beg an on 1  July 2016. 
Bangladesh ratified the PTA on 17 November 2017. The PTA covers tariff reduction for 8% of all 
tariff lines with tariff rates above 10%. The tariff reduction  modalities , similar to those of the Trade 
Preferential System – Organisation of Islamic Cooperation ( TPS-OIC) (Section 2. 3.2.5), are as 
follows: (i) tariffs above 25% to be reduced to 25%; (ii)  tariffs between 15 % and 25% to be reduced 
to 15%; and (iii) t ariffs between 10%  and 15% to be reduced to 10%.  
2.39.   Bangladesh, the only LDC member of the D-8, is to benefit from a longer implementation 
period than other members in the group. Tariff reduction is to be implemented in eight annual  
instalments for LDCs , compared to four for other members.  
                                                
21 Other BIMSTEC members are  Bhutan, India , Myanmar, Nepal, Sri Lanka,  and Thailand.  This 
subregional organization came into being on 6 June 1997 , through the Bangkok Declaration. Initially, the 
economic bloc was formed of four States, and was called  Bangladesh, India, Sri Lanka,  and Thailand – 
Economic Cooperation  (BIST-EC). Following the inclusion of Myanmar,  on 22  December 1997 , the group was 
renamed BIMST -EC. With the admission of Nepal and Bhutan in February 2004 , the name was changed to 
BIMSTEC.  
22 Fourth BIMSTEC Summit Declaration . Viewed at: 
https://drive.google.com/file/d/0Bw5iVdDDVNCRTko2ek02Y1F0T3hQemM1NTdjUy1icGZUOGMw/view . 
23 ROOs  for developing members of the forum  are 35% plus Change of Tariff Sub-Heading (CTSH), while 
LDC members enjoy flexibility of 5 percentage points, i.e. 30 %, plus  CTSH.  
24 Other D -8 members are Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan,  and Turkey.  WT/TPR/S/385 • Bangladesh  
 
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  2.3.2.5   Trade Preferential System – Organisation of Islamic Cooperation (TPS -OIC)  
2.40.   Bangladesh is party to the TPS -OIC, one of whose  most important projects is to foster 
intra-OIC trade.25 This System is based on three agreements, th e Framework Agreement, the 
Protocol on Preferential Tariff Scheme (PRETAS) and the ROOs . 
2.41.   The Framework Agreement, which sets out the general rules and principles for negotiations 
towards the establishment of the TPS -OIC, entered into force in 2002. The PRE TAS, which 
complements the Agreement by laying out the concrete reduction rates in tariffs in accordance with 
a time -table for implementation, entered into force in February 2011 (see below for tariff 
reductions). The ROOs , under the Agreement, entered int o force in August  2011 (TPS -OIC ROOs  
require 40% value addition for non -LDC members and 30% for LDC members). By December 2017, 
Turkey, Malaysia, Pakistan, Jordan, Bangladesh, Iran, and Morocco had conveyed their updated 
concession lists. Bangladesh ratifi ed the PRETAS in 2011 and , at the same time , conveyed its 
updated concession list of 476  items.  
2.42.   The PRETAS covers 7% of total national tariff lines of each participating State. Tariff reduction 
is to be implemented according to the following schedule: (i) tariffs above 25% to be reduced to 
25%; (ii) tariffs between  15% and 25% to be reduced to 1 5%; and (iii) tariffs between  10% and 
15% to be reduced to 10%. These tariff con cessions are yet to be implemented by the parties. LDC 
members of the OIC are given a three -year grace period for the tariff reduction of products covered 
under the PRETAS. As a result, the above tariff reduction will be carried out in six  annual instalmen ts 
by LDCs , and in four annual instalments by developing members of the OIC.  
2.3.2.6   Other preferences and arrangements  
2.43.   Bangladesh remains a beneficiary under the GSP schemes, in particular  the DFQF schemes, 
of Australia, Canada, the European Union, Iceland, Jap an, Montenegro, New Zealand, Norway, the 
Russian Federation, Switzerland, and the United States (until 2013).26 It is also entitled to DFQF 
schemes provided by certain Members of the WTO , including China, Chinese Taipei, Chile, India, 
Kazakhstan, the Republ ic of Korea, the Kyrgyz Republic, Tajikistan, Thailand,  and Turkey. Despite 
the current non -eligibility for the U.S.  GSP, Bangladesh i exports to this market were sustained; the 
United  States remains the second -largest individual country destination for Ban gladeshi exports 
(Table  A1.3) and , in 2017, Bangladesh was its third -largest supplier of clothing (HS61, HS62).27 
Bangladesh has also been expanding its exports to  the Canadian market , and considers this market's 
ROOs  as one of the most flexible , thus facil itating apparel exports.28 Bangladesh i exports to China,  
under its LDC -specific scheme , have been limited. The utilization of India's LDC DFQF market access 
preference scheme by Bangladesh has also been limited , as it mainly trades with India under the 
SAFTA framework , and on an MFN basis. No data on the share of exports benefiting from GSP 
treatment from 2012 onwards were available from the authorities.  
2.44.   During the review period, Bangladesh continued to b enefit from the EU Everything b ut Arms 
(EBA) scheme. I ts single -stage transformation rule helped the growth of woven garment exports to 
the EU market. The new Registration Exporter System (REX), an online self -certification scheme for 
the origin of goods that was to be effective for Bangladesh as from 1  Janua ry 2019, is expected to 
further ease the use of GSP benefits to developing countries , including Bangladesh. The E uropean 
Union remains the largest destination for Bangladesh i exports , accounting for more than 50% of its 
overall exports. Apparel is the single most important export item of Bangladesh to the EU markets.  
2.45.   At the initiative of the E uropean Union, a Compact for Continuous Improvements in Labour 
Rights and Factory Safety in t he Ready -Made  Garment and Knitwear Industry in Bangladesh  (or 
                                                
25 The OIC has 57 members, 53 of which are Muslim majority countries . Viewed at: https://www.oic -
oci.org/page/?p_id=52&p_ref=26&lan=en  and http://www.comcec.org/en/cooperation -areas/trade/trade -
preferential -system -among -the-member -states -of-the-oic/. 
26 The United States suspended Bangladesh from its GSP beneficiary list in June 2013 , as it considers that 
the country does not meet all eligibility criteria . WTO online information. Viewed at: 
http://ptadb.wto.org/Country.aspx?code=116 ; UNCTAD (2015), Generalized System of Preferences – List of 
Beneficiari es, 1 February. Viewed at: http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf . 
27 UNSD Comtrade database.  
28 Dhaka Tribune  online " $3 billion in exports from Ba ngladesh to Canada by 2021 ", 6 May 2018. Viewed 
at: https://www.dhakatribune.com/business/2018/05/06/3 -billion -exports -bangladesh -canada -2021. WT/TPR/S/385 • Bangladesh  
 
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  Sustainability Compact) was launched in July 2013 , in the aftermath of Rana Plaza tragedy.29 In 
cooperation with International Labour Organization (ILO), the Compact now brings together Canada, 
the European Union and the United States to help introduce necessary labour law reforms , including 
ensuring fire and building safety, protectin g the right to freedom of association , and ensuring 
responsible business conduct in Bangladesh. Progress on these efforts are discussed by these parties 
on an annual basis.  
2.46.   One of the key concerns of Bangladesh is the likely loss of LDC preferences (Section  2.3.1.3) 
after graduation , currently available in some key markets , such as the European Union,  where it 
benefi ts from a preference margin of 12  percentage points for its garments ' exports. This edge would 
be eroded upon its graduation from LDC status. As from 2018, under the aegis of the committee 
formed for the purposes of graduation, the Government and the priva te sector have started to 
explore options available to a graduated LDC to pursue preferential exports.30 These options include 
schemes providing preferential treatment equivalent to  that for LDCs, e.g. the EU GSP + programme. 
However, several eligibility con ditions , including the ratification of some 27  conventions, inter alia,  
relating to core human and labour rights, and environmental and governance principles, need to be 
met.  
2.3.3   Other agreements  
2.47.   Bangladesh maintains 49 bilateral trade agreements with more t han 40 countries; these 
agreements are general in nature , and are aimed at promoting bilateral trade.31 A Trade and 
Investment Cooperation Forum Agreement (TICFA) was signed between Bangladesh and the United 
States in 2013, to address issues of interest in trade and investment relations between these 
countries , such as market access, intellectual property, the digital economy, energy, infrastructure 
development, transparency in government procurement , and labour issues. Both parties meet on an 
annual basis t o discuss progress made in these areas.   
2.48.   Improving connectivity and regional integration among South Asian countries remains a 
priority in regional cooperation arrangements. On 15 June 2015 , a Bangladesh, Bhutan, India, and 
Nepal (BBIN) Motor Vehicles Agre ement (MVA)  was signed ; it, inter alia , permits member States to 
use their vehicles in each other's territory for the transportation of cargo and passengers, including 
for third country transport and personal vehicles.32 Bangladesh r atified the Agreement in  
August  2015; India and Nepal ratified it in July 2015 and January 2016, respectively. The Agreement 
is yet to enter into force , pending  Bhutan's upper house ratification .  
2.4  Investment Regime  
2.49.   New investment is seemingly required to sustain GDP and employmen t growth. During the 
review period, Bangladesh continued to actively seek foreign investment, particularly in the apparel 
industry, and in energy, power, and infrastructure projects (Sections 1.3.2 and  2.4.1).33 It offers a 
range of investment incentives un der its industrial policy and export -oriented growth strategy , with 
few formal distinctions between foreign and domestic private investors (Sections 2.2.3, 3.2.4, 3.2.5, 
3.2.6 , and 3.3.1.2). Bangladesh has made gradual progress in reducing some constraints  on 
investment. Large -scale infrastructure development projects are being undertaken, including in the 
power sector. However, it seems that there is still room for improvement in certain areas , such as 
infrastructure, financing capabilities, bureaucratic p rocedures, and corruption (Section 2.2. 5). 
During the review period , Bangladesh's  international ranking in terms of ease of doing business 
                                                
29 Viewe d at: http://trade.ec.europa.eu/civilsoc/meetdetails.cfm?meet=11468 . 
30 The EU EBA foresees a provision for an additional three -year transition period for the graduated LDC, 
following actual graduation from LDC status.  
31 These countries are: Afghanistan; Albania; Algeria;  Belarus; Bhutan; Brazil;  Bulgaria; Cambodia; 
China;  the Czech Republic; Egypt;  Germany; Hungary;  India;  Indonesia;  Iran; Iraq; Kenya; the Democratic 
People's Republic of Korea;  Korea, Republic of; Kuwait ; Libya; Malaysia;  Mali; Morocco; Myanmar;  Nepal;  
Poland;  Romania; Senegal;  Sri Lanka;  Sudan; Thailand;  Turkey;  Uganda;  Ukraine; the United Arab Emirates;  
the United States; Uzbekistan; Viet Nam; and Zimbabwe.  
32 India proposed a  SAARC  MAV during the  18th SAARC Summit  in Kathmandu  in November 2014 ; 
however,  an agreement could not be reached. Later , India pursued a similar MAV under  the BBIN initiative.  
33 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . WT/TPR/S/385 • Bangladesh  
 
- 36 - 
 
  declined , but steps are being taken to address this issue (Section  2.4.1).34 New government 
initiatives to improve the  business environment are promising but implementation remains to be 
seen.  
2.4.1   Policy and institutional framework  
2.50.   Since the last R eview, important regulatory and institutional changes have taken place. The 
Board of Investment (formerly one of the primary investment promotion agenc ies) and the 
Privatization Commission (formerly responsible for the privatization of state -owned enterprises  
(SOEs) ) were merged in 2016 , and a new authority , the Bangladesh Investment Development 
Authority (BIDA) (see below) , was  created under the BIDA Act (2016) (Section 3.3.5). The BIDA 
now acts as the main investment promotion agency of the country. The other three specialized 
institutions with authority in investment -related matters ( i.e. the registration of projects, the 
processing of foreign borrowings, the facilitation of import s of machinery and raw materials , and the 
processing of visa and work permit -related issues of foreign nationals) are the Bangladesh Export 
Processing Zones Authority  (BEPZA) , the Bangladesh Economic Zones Authority (BEZA ), and the 
Bangladesh High Tech Park Authority  (BHTPA) (Sections 3.2.4.3 and 3.3.1.2.3). The BIDA, the 
BEPZA and the BEZA are overseen by  the Prime Minister's Office. The state -owned Bangladesh Small 
and Cottage Ind ustries Corporation (BSCIC) caters to the needs of small and medium -sized 
enterprises ( SMEs ) (Section 3.3.5).  
2.51.   Since  2016, the BIDA fulfil s three main functions: (i) investment promotion (e.g. 
sector/industry -specific promotions); (ii) investment facilitat ion (e.g. pre -investment information, 
investor welcome service, registration/approval of foreign, joint venture and local projects, 
facilitati on of utility connections, etc.); and (iii) policy advocacy (e.g. assisting the Government in 
framing new policies  for private -sector development ). The BIDA's One -Stop Shop (OSS) (see below) 
attempts to bring the different regulatory requirements o f business (registration, licenc es, 
permissions, etc.) in to one place , to minimize the cost and time burden for businesses  and 
individuals.35 The OSS Act, passed on 5 February 2018, provides for a "one-stop service committee ", 
headed by a cabinet minister , to ensure effective management of the overall system . The launch of 
the pilot OSS was scheduled for 1 July 2018, and the fully-fledged OSS for 1  July 2019.36  
2.52.   The BIDA maintains a one -stop website ( http://www.bida.gov.bd/ ), that provides relevant 
laws, rules, procedure s, and reporting requirements for investors.37 Aside from information on 
relevant business laws and licen ces, the website includes information on the investment climate, 
opportunities for business, potential sectors, and how to do business in Bangladesh. Furthermore, it 
has an e -Service Portal for Investors, which provides s ervices such as  visa recommendations for 
foreign investors, approval/extension of work permit for expatriates, approval of foreign borrowing, 
and approval/renewal of branch/liaison and representative office s. The authorities indicated that the 
BIDA is a re latively new institution , and its online services will become  gradual ly more effective . All 
visa and work permits are delivered online , with visa issuance taking one day. As at November 2018 , 
more than 9,000 work permits and 6,600  visas had been  issued onl ine.  
2.53.   In September 2017, a National Committee for Monitoring and Implementation of Doing 
Business Reforms was formed , to bring together 15 reform -implementing government agencies, 
with the BIDA serving as its secretariat . The Committee is to monitor the implementation progress 
of short -, medium - and long -term reform recommendations. An action plan with specific timelines 
                                                
34 According to the World Bank's Doing Business 2013 and 2018 reports, Bangladesh's rank declined 
from 129th out of 185 countries in 2013 to 177th out of 190 countries in 2018 in overall te rms of the ease of 
doing business. World Bank Group (2013), Doing Business 2013: Smarter R egulations for Small and 
Medium -Size Enterprises , Washington, D .C. Viewed at: 
http://www.doingbusiness.org/content/dam/doingBusiness/media/Annual -Reports/English/DB13 -full-
report.pdf ; World Bank Group (2018), Doing Business 2018 - Reforming to Create Jobs , Washington , DC. 
Viewed at: http://www.doingbusiness.org/content/dam/doingBusiness/media/Annual -Reports/English/DB2018 -
Full-Report.pdf . 
35 The BEPZA and the BEZA maintain their own OSS service windows.  
36 Under the OSS, the BIDA is in the process of streamlining 150 client services, involving 34 agencies; 
the authorities expect this to contribute towards improving the country's ranking in th e World Bank's Doing 
Business index.  
37 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . WT/TPR/S/385 • Bangladesh  
 
- 37 - 
 
  has been developed to secure a World Bank Group ease of doing business ranking of below 100 , by 
2021. Key reforms include: meeting the dem and for power , by reducing the time required to obtain 
a commercial electricity connection from over 400 days to 4 weeks; providing easier access to credit , 
through increased coverage of credit -related information  of borrowers from banks and financial 
institutions  by the Credit Information Bureau (June 2018), and enhanced online information 
exchange between the Bangladesh Bank and the Microcredit Regulatory Authority (June  2019); the 
promulgatin g a new Secured Tran saction Law (December 2018); accelerating contract enforcement , 
through review and analysis of the Bangladesh Arbitration Act (December  2017); creating additional 
courts in Dhaka and Chittagong for commercial disputes (December 2018); setting a 365 -day lim it 
for the resolution  of cases; and improv ing trade facilitation measures (Section 3.1.1.1).  
2.4.2   Main regulatory framework  
2.54.   No major changes were made to the main piece of legislation governing investment. The main  
laws affecting foreign investment include the  Foreign Private Investment Promotion and Protection 
Act, 1980, the Bangladesh Export Processing Zones Authority Act , 1980,  the Bangladesh Private 
Export Processing Zones Act , 1996, the Companies Act , 1994, the Telecommunications Act , 2001, 
and the Banglad esh Economic Zones Act , 2010.38 
2.55.   The Foreign Private Investment Promotion and Protection Act provides for fair and equitable 
treatment for foreign investors, protection in relation to expropriation, and repatriation of profits. 
Repatriation of dividend s/profits on foreign investment and the transfer of invested capital is guided 
by the Guidelines for Foreign Exchange Transactions – 2018, and subsequent circulars issued under 
the Foreign Exchange Regulation Act, 1947.39 Protection of foreign investors, includin g the guarantee 
of national treatment, is also backed up by bilateral investment treaties (BITs) (Section 2.4.7). There 
have been no instances of foreign property expropriation since 1980.  
2.4.3   Restricted activities  
2.56.   Foreign and domestic private entities can es tablish , own, operate, and dispose of interests in 
most types of business enterprises.  
2.57.   Investment restrictions remain virtually unchanged. In July 2018, the Government amended 
its digital commercial policy which, inter alia , limits foreign investment to no more than 49% in local 
e-commerce ventures. Under the National Industrial Policy  2016, which replaced the Industrial Policy 
2010 (Section 4.3.2), four sectors remain reserved for government investment , and exclude both 
foreign and domestic private -sector  activit ies: arms and ammunition and other defence equipment 
and machinery; forest plantation and mechanized extraction within the bounds of reserved forests; 
production of nuclear energy; and security printing. In addition, under the Foreign Private 
Investment and Protection Act , 17 sectors require prior clearance  or permission from the respective 
line ministries  or authorities. These are: deep sea  fishing; private -sector bank s/financial institution s; 
private -sector insurance compan ies; private -sector  generation, supply and distribution of power; 
exploration, extraction and supply of natural gas  or oil; exploration, extraction and supply of coal; 
exploration, extraction and supply of other mineral resources; large -scale infrastructure project s 
(e.g. fl yover s, elevated expressway s, monorail s, economic zone s, inland container depot s, or 
container freight station s); crude oil refinery (recycling  or refining of lube oil used as fuel); medium 
and large industry using natural -gas condensate and other minerals  as raw material; 
telecommunication service s (mobile/cellular and land phone s); satellite channel s; cargo  or 
passenger aviation; sea -bound ship transport; sea -ports or deep seaport s; VOIP/IP telephone s; and 
industries using heavy minerals accumulated from sea beach es.  
2.4.4   Registration and approval  
2.58.   The BIDA is responsible for screening, reviewing and approving FDI in Bangladesh , except for 
FDI in Economic Zones,  which is  under the  BEZA. When  evaluating an investment proposal , emphasis 
is placed  on the amount of  investment per acre of land, the ratio of capital to loans, the ratio of 
domestic sale s to export s, the employment generation, environment mitigation plan s, efficient 
                                                
38 The Foreign Private Investment and Protection Act is the umbrella law which enables the Government 
to regulate FDI entry, though its scope is limit ed.  
39 The repatriation of capital and capital gains may be subject to reporting requirements or authorization 
by the Bangladesh Bank.  WT/TPR/S/385 • Bangladesh  
 
- 38 - 
 
  land-use plan s, energy saving plan s, and the overall value addition to the economy. Requirements 
vary by sector, but all foreign investors are required to obtain clearance certificates from the relevant 
ministries and institutions with regulatory oversight. A No Objection Certificate (NOC) , stating that 
the specific investment will not hi nder local manufacturers and is in line with the guidelines  of the 
ministry concerned, may be required in certain areas (e.g. healthcare).40 An NOC may also be 
required for 22 strategic sectors (as listed in the National Industrial Policy 2016 (Section 4.3. 2)), 
and no capping in terms of amount or percentage of equity is applied to foreign investment. Negative 
outcomes can be appealed, except for applications pertaining to the four restricted sectors 
(Section  2.4.3); no investment project proposal has been d eclined by the BIDA so far. According to 
the authorities , the BIDA online business registration process seems to have made progress. 
According to the World Bank, in 2018 , business registration in Bangladesh took 19.5 days on 
average , with nine distinct ste ps, compared to an average of 15.5 days in South  Asia.41 The 
authorities indicated that the investment approval process takes less than one week , and the 
required steps are gradually being reduced. With the support of the World Bank Group and the 
Internatio nal Finance Corporation, the Government is undertaking necessary reforms in the 
doing -business environment.  
2.4.5   Investment promotion  
2.59.   Bangladesh continued to promote investment , through an array of tax and non -tax incentives 
available to companies operating at  designated zones , including export processing zones  (EPZs) and  
high-tech parks, and in specific activities , such as high -priority acti vities (those that create 
large-scale employment and earn substantial export revenue), creative activities (architecture,  arts 
and antiques, fashion design, film and video, interactive laser software, software, and computer and 
media programming) , and special development sectors (Sections  3.2.4.3, 3.3.1.2.3, and 4.3.3).  
2.4.6   Dispute settlement  
2.60.   Bangladeshi law allows contracts to  refer to third -country forums for dispute settlement 
resolution. Bangladesh is a signatory to the International Convention for the Settlement of Disputes 
(ICSID), the United Nations Convention for the Recognition and Enforcement of Foreign Arbitral 
Awards , and the New York Convention.42 Alternative dispute resolutions are possible under the 
Bangladesh Arbitration Act , 2001, that allows for the enforcement of arbitral awards. Bangladesh is 
also a party to the SAARC Agreement for the Establishment of an Arbit ration Council for alternative 
dispute resolution in one of the SAARC member countries. As in many countries, Bangladesh has 
adopted a "conflicts of law" approach to determining whether a judgment from a foreign legal 
jurisdiction is enforceable in Banglad esh.  
2.61.   Slow adoption of alternative dispute resolution mechanisms and sluggish judicial processes 
reportedly impede the enforcement of contracts and the resolution of business disputes.43 In 
practice, enforcement of arbitration results appears  to be applied unevenly , and the Government 
has challenged ICSID rulings, especially those that involve rulings against the it. The timeframe for 
dispute resolution seems unpredictable , and has no set time-limit. Domestic courts reportedly tend 
to favour SOEs and local c ompanies, in investment disputes.44 So far , five cases have been brought 
to international arbitration by foreign investors ; all of them related to the hydrocarbons sector, of 
which two claims by Niko Resources (Canada) are pending.  
                                                
40 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . 
41 World Bank Group  online information . Viewed at:  
http://www.doingbusiness.org/data/exploreeconomies/bangladesh/ . 
42 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment C limate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . 
43 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . 
44 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at:  
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . WT/TPR/S/385 • Bangladesh  
 
- 39 - 
 
  2.62.   Investors seem to be increasingly turn ing to the Bangladesh International Arbitration Center 
(BIAC) for dispute resolution. The BIAC is an independent arbitration centre , which was established 
in April 2011 to improve commercial dispute resolution.45 According to the BIAC, fast -track cases 
are resolved in approximately six months , while typical cases are resolved in one  year. Major trade 
and business associations can sometimes help to resolve transaction disputes.  
2.4.7   Bilateral treaties developments and international cooperation  
2.63.   Bangl adesh maintains bilateral investment treaties (BITs) with 32 countries , for the promotion 
and protection of investment s.46 To avoid  investors from paying tax in two different countries, it has 
signed Avoidance of Double Taxation Treaties (DTT s) with 33 coun tries, including 5 (Belarus, 
Mauritius, Myanmar, Kingdom of Saudi Arabia and United Arab E mirates) since the last R eview.47 
 
                                                
45 The BIAC board  is headed by the President of the International Chamber of Commerce – Bangladesh 
(ICCB) , and includes  presidents of other prominent chambers , such as the Dhaka Chamber of Commerce and 
Industry (DCCI) and the Metropolitan Chamber of Commerce and Industry (MCCI).  United States Department 
of State Information/Bureau of Economic and Business Affairs (2017), 2017 Investment Climate Statements 
Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm . BIAC online information. Vi ewed at: 
https://www.biac.org.bd/biac -board/ . 
46 These countries are: Austria;  Democratic People's Republic of Korea;  Thailand;  Belgium;  Korea, 
Republic of ; the United Kingdom;  Canada;  Malaysia;  the United  States;  China;  Pakistan;  Uzbekistan;  France;  
Poland;  Viet Nam;  Germany;  Romania;  Singapore;  Indonesia;  Switzerland;  Denmark;  Iran; the Netherlands;  
India;  Italy;  the Philippines;  the United Arab Emirates;  Japan;  Turkey;  and Belarus.  BIDA online informatio n. 
Viewed at: http://bida.gov.bd/investment -policy -2. 
47 Other countries having signed a DTT with Bangladesh are: Canada;  Poland;  Norway;  China;  Romania;  
Turkey;  Denmark;  Singapore;  Viet Nam;  France;  Korea, Republic of ; the Philippines;  Germany;  Sri Lanka;  
Indonesia;  India;  Sweden;  Switzerland;  Italy;  Thailand;  Oman;  Japan;  the Netherlands;  Malaysia;  and the 
United Kingdom . BIDA online information. Viewed at: http://bida.gov.bd/investment -policy -2. WT/TPR/S/385 • Bangladesh  
 
- 40 - 
 
  3  TRADE POLICIES AND P RACTICES BY MEASURE1 
3.1.  The general thrust of Bangladesh's  trade policy has remained relatively unchanged during the 
review period.  The tariff remains one of the main trade policy instruments and a significant source 
of tax revenue . Consisting of ad valorem  and a few specific rates, it now involves 16 different r ates, 
2 more than in  2011/12. The simple average applied MFN tariff was slightly reduced from  14.9% in 
2011/12  to 14.8%  in 2018/19. Tariff protection varies substantially across and within sectors . 
Binding  commitments  cover 19% of all tariff lines ; there i s an average gap of 147.2  percentage 
points between applied and bound MFN rates . During the review period, Bangladesh undert ook 
several trade facilitation initiatives . The transaction value  method remains in general use , and the 
pre-set customs value or the minimum value continue to apply for numerous items . A regulatory 
duty continues to be levied on certain import s. Import prohibitions, restrictions and licensing remain 
in place. The scope of the list of controlled goods , which  covers several agricultural and industrial 
items that are banned or may only imported under certain conditions  and/or which require prior 
approval , remains unchanged. No anti-dumping or countervailing action s were taken.  
3.2.  During the period under review, th ere have been no changes to Bangladesh's export 
procedures. Certain products continue to be subject to export prohibitions, restrictions and duties. 
The range of products for which export subsidies/cash incentives are provided was expanded during 
the revie w period. The wide array of other support measures provided to export sectors includes 
concessional tariffs, a duty drawback system, income tax rebates, special bonded warehouses, and 
EPZs. Export finance and guarantees remain in place.  
3.3.  Measures involving various open -ended tax and non -tax concessions  continue to support 
production and trade . The tax system remains heavily dependent on trade -related taxes . Domestic 
and imported items are subject to VAT, a supplementary duty, advance trade VAT, and advance 
income tax. The number of Bangladesh Standards (BDS) has increased . As a result of a standstill in 
the privatization process, state involvement in the economy has remained significant  in certain 
activities. Bangladesh continues to use public procurement to support domestic suppliers . During 
the review period , the competition policy regulatory and institutional framework was put in place ; 
and price monitoring and/or stabilization measures remain in place . Consumer right protection 
remains unchanged . Banglades h has sought to strengthen intellectual property rights  by passing 
new, or amending existing , legislation .   
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.1.1   Customs procedures and requirements  
3.4.  During the review period, t he regulatory and institutional framework was updated. The 
Customs Act , 1969 (amended in 2014)  remains the main legislation governing imports. Other acts 
relating to customs clearance include the VAT Act , 1991; the VAT and Supplementary Duty Act , 
2012; the Imports and Exports (Control) Act, 1950; the Import Policy Order, 2015 -18 
(Section  2.2.4); the Export Policy, 2015 -18; and the Foreign Exchange Regulation Act , 1947.2 Some 
notable developments  in customs l egislation include the Customs Act, Advance Ruling Rules , 2016, 
the Clear ing and Forwarding  (C&F) Agents ' Licensing Rules , 2016, the Baggage Rules , 2016, the 
Courier Service Rules , 2016, the SRO on Authorized Economic Operator s (AEOs), 2018 , and the 
Custom s (Alternate Dispute Resolution) Rules , 2012. As at November 2018, t he proposed new 
Customs Act, 2018 ( entirely replacing the Customs Act, 1969) ha d been put before  Parliament and 
is expected to come into force early 2019. The Bangladesh Customs Authority continues to operate 
under the National Board of Revenue (NBR), which is the main body governing direct and indirect 
tax revenue collection in Bangladesh.3  
                                                
1 In this Section, many amounts in national currency are expressed in their official denomination, 
i.e. lakh and crore. Ten  lakhs is equivalent to 1 million, and 1 crore to 10 million.  
2 Government of Bangladesh. Viewed at:  http://www.bangladeshcustoms.gov.bd/relevant/allied_acts . 
3 The Customs network in Bangladesh includes two sea ports, three international airports, more than 
20 inland container depots, and more than 50 active land ports.  WT/TPR/S/385 • Bangladesh  
 
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  Registration  
3.5.  Bangladesh continues to maintain a system of registration  for commercial and industrial 
consumers.4 Commercial importers and industrial consumers (except for those located in EPZs, 
Section 3.2.4.3 ) must register with the Chief Controller of Imports and Exports within the Ministry 
of Commerce. Since January 2017,  the Chief Controller has generally been issuing import 
registration certificates (IRC s) within three  days, an improvement over the ten days required before 
that. As of January 2017, 8 ,420 commercial importers, 1 ,223 industrial consumers , and 
2,796 exporte rs were registered .  
Documentation   
3.6.  Under the Customs Act , 1969, shipping agents submit their Import General Manifest (IGM) 
electronically to Customs. Thereafter, the nominated clearing and forwarding  (C&F)  agent (or the 
importer himself) completes the goo ds declaration ( the Bill on Entry) and submits it to Customs 
through ASYCUDA World (see below).5 This declaration is made in a specific format , known as Single 
Administrative Document (SAD). For the release of goods, the importer is required to provide the  
following documents : letter of credit (L/C); invoice; bill of lading/ airway bill ( AWB)/truck 
receipt/ railway receipt; packing list; Country of Origin Certificate (except coal and export -oriented 
garments industries); insurance policy/cover note; and VAT/ Business Identification Number ( BIN) 
Certificate , along with the declaration.6  
3.7.  Furthermore, as per the Import Policy Order , 2015-18, some goods entering Bangladesh 
require additional documents. Some 55 items are subject to BDS s specified by the Bangladesh  
Standards and Testing Institution ( BSTI)7 (Section 3.3.2.2). They include: a radioactivity test report 
from the concerned authority of the exporting country , for food items (Section 3.3.3.2); a clearance 
certificate(s) from the Bangladesh Atomic Energy Co mmission , for food items to the effect that the 
radioactivity level found in the imported foodstuff is within the acceptable limit; a pre-shipment 
inspection test report , for milk food products and powder milk, coal and hard coke, Break Acrylic 
(HS 39.15 a nd 3915.90), M.S. Billets (7207) , and for items where the  value of a single item 
authorized for import by public sector agencies is BDT 50 lakh s or more; an approval letter from the 
Chief Inspector of Explosives of the Ministry of Power, Energy and Mineral  Resources , for explosives; 
and a copy of the intellectual property (IP) certificate (attested by the intellectual property right 
(IPR) holder of the branded goods) , in the case of import s of branded goods registered under any 
law related to IP in Bangladesh.  
Trade facilitation  
3.8.  During the review period, Bangladesh has undertaken several trade facilitation initiatives in the 
context of its Customs Modernization Action Plan (2013 -17), and h as implement ed international 
commitments such as those under the WTO Agreement on Trade Facilitation (TFA) and the WCO 
Revised Kyoto Convention (RKC). The NBR is incorporat ing provisions of the TFA and the RKC into 
the proposed new Customs Act , 2018. In ad dition, separate regulations have been introduced to 
implement provisions of TFA and RKC. For instance, the advance ruling system for the classification 
of goods has been in place since June 2016; so far, 14 rulings have been  dealt with  through the 
advance  ruling system , mainly involv ing electronics, prepared food and plastic products . The 
Authorized Economic Operator (AEO) system was implemented in June 2018; it  is being administered 
                                                
4 Commercial importers are those who import goods for sale without further processing. Priva te 
industrial consumers are units registered with one of the following four agencies: the Bangladesh Export 
Processing Zones Authority, for industries located in the EPZs; the Bangladesh Small and Cottage Industries 
Corporation, for small and medium -sized enterprises; the Handloom Board, for handloom industries run by 
weavers ' associations engaged in the preservation of classical Bangladesh weaving techniques; and the BIDA, 
for all other private industries.  Commercial and industrial importers are classified  into six categories based on 
the maximum value of their annual imports. Initial registration fees (ranging from BDT 5,000 to BDT 60,000) 
and annual renewal fees (ranging from BDT 3,000 to BDT 30,000) vary depending on the category.  
5 Apart from a very sma ll number of entrepreneurs, almost all the exporters and importers rely on C&F 
agents to deal with customs clearance. Most agents use the automated service for customs clearance.  
6 Government of Bangladesh. Viewed at: 
http://www.bangladeshcustoms.gov.bd/trade_info/customs_clearance . 
7 These items may be imported upon submission of a certificate of conformity, with the BDS issued by 
the accredited laboratory of the exporting co untries. Otherwise, imported goods are released subject to a 
standard verification certificate by the BSTI.  WT/TPR/S/385 • Bangladesh  
 
- 42 - 
 
  by the NBR.8 The system for the e-payment of duties, taxes and fees by exporters and importers 
became operational at the Chittagong seaport Customs House in 2014.  No data on the number of 
AEO participants or the share of payments made under the e -payment system were available from 
the authorities.  
3.9.  Action was taken to make custo ms formalities and procedures simpler, more transparent and 
more efficient. Bangladesh ha ving benefitted from all generations of ASYCUDA – the automated 
system for customs data , designed by UNCTAD – migrated to ASYCUDA World in July 2013. The 
Customs moder nization programme, with support from the World Bank Group , the Asian 
Development Bank (ADB) and the United States Agency for International Development (USAID), has 
been an ongoing process , with a special focus on risk management, post clearance audit, cle arance 
procedure s and the valuation system. The e stablishment of a National Single Window for traders , a 
customs information system integrating  trade-related stakeholders including banks and financial 
institutions, carriers, custom broker s and trade operators, port and airport authorities, government 
agencies, etc. , is envisaged by December 2021 . The NBR has already signed a memorandum of 
understanding ( MoU) with 38  government agencies , to facilitate the implementation of the National 
Single Wi ndow System.  
3.10.   Bangladesh deposited its instrument of accession to the RKC in September 2012 , in an effort 
to align its customs procedures with international standards. It ratified the TFA, and deposited its 
instrument of acceptance on 27 September 2016. Ba sed on its notification9, 34.5% of its 
commitments have been implemented to date (Category A), 38.2% will be implemented between 
February 2020 and February 2022 without capacity -building support (Category B) , and 27.3% will 
be implemented subject to techni cal assistance being provided (Category C).   
Clearance  
3.11.   Upon assessment of duties and taxes by Customs, a release order for clearance is issued and , 
after completion of port formalities , goods are cleared.10 Since 2013, 60% of the complete d 
declarations are assessed and cleared by customs on the same day . For the customs clearance of 
imported animals, plants and plant products, quarantine conditions (such as certification regarding  
quarantine, fumigation, etc.) must be observed. Fumigation is mandatory regard ing the import of 
raw cotton produced and packed in the Western Hemisphere.  
3.12.   At Chittagong, the main seaport (Section 4.4.5.1 ), Customs implement s a selectivity system , 
where shipments are screened against pre -determined risk criteria and then processed through the 
appropriate channel. The categories are : "green channel" imports that are released with minimal 
documentation checks and no physical inspection ; "yellow chann el" imports that undergo a full 
documentation check ; and "red channel" imports that account for 10% to 12% of the total and are 
subject to  full documentation and physical inspection.  
3.13.   Despite ongoing efforts, recent reports and studies demonstrate that the re is a need to further 
improve the efficiency of customs procedures in Bangladesh. According to the World Bank Group  
Doing Business Report for 2018, Bangladesh was ranked 173rd out of 190 economies (115th out of 
183 in 2012) surveyed under its  Trading Acr oss Borders Index .11 No data on the average processing 
time for the clearance of goods from Customs was available from the authorities.  According to the 
World Bank Group  Doing Business data, in 2018 , importing a shipment of goods required border and 
documen tary compliance equivalent to 183 hours and US D 1,293.8, and 144  hours and US D 370, 
respectively.12 In addition, a baseline study undertaken by the ADB in 2017, regarding the import 
of lentils from Nepal through the Banglabandha land port  found that , for a regular trader to complete 
                                                
8 Requirements for AEOs, and criteria for their selection, was issued through an SRO in June 2018. No 
further information was available from the aut horities. Viewed at: http://nbr.gov.bd/regulations/sros/customs -
sros/eng .  
9 WTO document G/TFA/N/BGD/1, 27 February 2018.  
10 In most cases, customs valuation is carried out by the Assessin g Officer (Principal Appraiser/Revenue 
Officer). If disputes arise on valuation or declaration issues, the file may be dealt with at a higher level.  
11 Viewed at: http://www.doingbusiness.org/en/data/exploreeconomies/bangladesh#DB_tab , 
https://openknowledge.worldbank.org/bitstream/handle/10986/5 907/DB12 -
FullReport.pdf?sequence=1&isAllowed=y  and 
http://www.doingbusiness.org/content/dam/doingBusiness/media/Annual -Reports/Englis h/DB2018 -Full-
Report.pdf .  
12 The authorities questioned the basis for calculating these indices.  WT/TPR/S/385 • Bangladesh  
 
- 43 - 
 
  the import process, 18  documents were required , and these needed to be submitted 71  times. In 
addition, a baseline study , undertaken by the ADB in 2017 , found that the average speed along the 
transport corridors was less than 30 km per hour , while the border crossing time for import s was 
over six hours.  The ongoing C ustoms Modernization Plan  entails, inter alia , further reduction s of 
Customs clearance times  and Customs interventions, and an integrated supply -chain management 
and security system. An automated risk management and selectivity system is envisaged under this 
Plan. As per the information supplied by the Government, a Time Release Study (TRS) was 
complet ed for four custom s houses , and further such studies are expected to be carried out in 2019 ; 
the findings were not available from the authorities .  
3.14.   Smuggled items appear  to include cattle, dried turtle, cigarettes, narcotics, gold, memory 
cards and counter feit goods.13 No information  on the anti -smuggling action taken by Customs, 
seizures/destruction/auctions of smuggled items , or fines collected , from 2012 onwards , was 
available from the authorities.   
3.1.1.2   Customs valuation  
3.15.   Bangladesh implements the WTO Agreemen t on Customs Valuation (ACV); its provisions were 
incorporated into the Customs Act , 1969 in February 2000. According to Section 25 of the Act, 
Customs is obliged to accept the transaction value of goods, which is generally stated on the 
commercial invoice , except in special circumstances. At present, the customs value of more than 
90% of imported goods is assessed according to the transaction value. In cases where the value of 
the goods cannot be determined, Customs is required to follow the following hier archical method , 
as specified in the ACV: (i) the transaction value of identical goods; (ii) the transaction value of 
similar goods; (iii) the deductive value method; (iv) the computed  value method; and (v) the 
fall-back method. According to the authoritie s, the valuation method is changed in 5% -7% of the 
cases.  
3.16.   Despite the general use of transaction value, the authorities often pre -set the customs value 
or minimum value for some items , for the purposes of levying custom duties  to seemingly tackle 
under -invoicing ; this is mostly done through the issuance of SROs. The latest SRO to this effect was 
issued in 201 7 and contains pre -set customs values for 11 HS four -digit product categories (including 
black tea, sugar, petroleum oils and fuels, and iron alloy and stainless steel products), and minimum 
values for 143 HS four -digit product categories (including honey, flowers, nuts, olive oil, fish, sugar 
confectionery, biscuits, juices, waters, beverages , cosmetics, tyres, wood products, woven fabrics, 
garments, footwear, tiles, tableware, kitchenware, air conditioning machines, ball bearings, 
batteries, hair accessories, ovens, and furniture and parts), all set in US  dollars; several item values 
differ d epending on the origin .14 The Government is phasing out the use of minimum value for 
custom s valuation purposes, under the proposed new Customs Act , 2018.  
3.17.   Under the Customs Act, traders have the right of administrative and/or judicial appeal , to the 
Commis sioner (Appeal). Any person unhappy with  the decision of the Commissioner (Appeal) or the 
Commissioner of Customs may appeal to the Appellate Tribunal, which consists of a technical 
member (Commissioner of Customs or above) and a judicial member. Persons n ot satisfied with the 
decision of the Appellate Tribunal have the right to appeal to the High Court Division of the Supreme 
Court.  No data on the cases dealt with from 2012 onwards was available from the authorities.   
3.18.   The Customs Act also provides for Alte rnative Dispute Resolution (ADR). Any case or dispute 
pending before any Customs authority or Bangladesh court in respect of a levy, an assessment, the 
collection or refund of dut ies or taxes, fines or penalties, or customs valuation issues can be dealt 
with and settled by ADR. Between  July 2012  and October 2018, 597 cases were fully settled  (out of 
998 applications) , while another 150 were partially settled .  
                                                
13 Customs online information. Viewed at: 
http://www.bangladeshcustoms.gov.bd/ news_pub/enforcement_seizures . 
14 SRO 142 -AIN/2017/28 Customs, 1 June 2017. Viewed at: http://nbr.gov.bd/uploads/sros/142_SRO -
165-2016-TV-Amend.pdf . WT/TPR/S/385 • Bangladesh  
 
- 44 - 
 
  3.1.1.3   Pre-shipment inspection  
3.19.   Bangladesh had phased out the previously mandatory pre -shipment inspection  (PSI) system 
by 31 December 2012 , upon the expiry of existing contracts with PSI agencies.15 However, the 
provisions of the Import Policy Order , 2015-18 stipulate voluntary PSI requirements for the following 
imports: those valued at BDT  5 million  or more; raw and packing materials for the pharmaceutical 
industry; break acrylic; chemical fertilizer s; coal and hard coke; M.S. billets; and "terrain" car parts.  
3.1.2   Rules of origin  
3.20.   Bangladesh does not use non -preferential rules of origin  (ROOs) ; however, it is yet to notify 
the WTO.  
3.21.   With respect to the application of preferential ROOs , being a party to the SAFTA 
(Section  2.3.2.2), Bangladesh applies preferential ROOs  on goods originating in Afghanistan, 
Bhutan, India, Pakistan, the Maldives, Nepal, and Sr i Lanka. The goods must be accompanied by a 
prescribed Certificate of Origin. According to the SAFTA ROOs , to qualify for preferential tariffs, 
goods should be  wholly obtained  in the contracting party , or up to 60% of non -originating materials 
(based on th e f.o.b. price) can be used for processed goods on condition that the final product is 
significantly different to the non -originating materials (i.e. change of tariff heading) ; there are 
conditions to determine whether finished goods qualify because of reg ional cumulation. Regional 
cumulation requires goods to have 50% regional value addition , with at least 20% value addition 
made locally.  
3.22.   Under the APTA (Section 2. 3.2.1), Bangladesh applies preferential ROOs  on goods originating 
in China,  India,  the Repub lic of Korea, Lao PDR,  and Sri Lanka,  based on value addition criteria. 
Under this, 45% value added is required from non -LDC participants in the APTA, and 35% from 
LDCs. In the case of cumulation, 60% of the good must be cumulated from non -LDCs, and 50% 
from LDC APTA members. In addition, for CTH and certain goods , there are product -specific ROOs . 
3.1.3   Tariffs  
3.1.3.1   General features  
3.23.   Since 1 July 2017 , Bangladesh has used the 2017 version of the Harmonized System of Tariff 
Classification (HS) ; at present its Customs ta riff consist s of 7,135  eight-digit lines (1,029  more than 
in 2012) (Table 3.1). At the budget session , which is held in June each year, Parliament approves 
the Finance Bill containing the Customs tariff ; it becomes effective from 1  July ( the fiscal year runs 
from 1 July to 30 June of the following year). The Bangladesh Tariff Commission (BTC), an 
autonomous statutory body, remains responsible for, inter alia,  submitting proposals on tariffs and 
import policy matters (Section 3.1.6).  
3.24.   The First Schedule to t he Customs Act, 1969 is the legal instrument for Customs Tariff in 
Bangladesh. It is published at the beginning of each financial year , and is also available online at 
https://customs.gov.bd/fil es/TRF_1819_TTI.pdf . The online version contains the rates of customs 
duties, supplementary duties, VAT, advanced income taxes, regulatory duties and advanced trade 
VAT (Sections 3.1.4 and 3.3.1.1.2). Since 2011, Bangladesh submitted its Customs Tariff to the 
WTO Integrated Data Base three times (Section 2. 3.1.1). Despite a constant drop in the period 
2011/12 -16/17 , the share of import duties in total tax revenue remained relatively important  
(Section  3.3.1.1.1).16  
                                                
15 The system was introduced in 1999, and the relevant law was notified to the WTO in 2004.  
16 The authorities do not endorse this assessment.  WT/TPR/S/385 • Bangladesh  
 
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  Table 3.1 Structure of the tariff schedule, 2011/12 and 2018/19  
  MFN applied  
  2011/12  2018/19  
Simple average rate (%)  14.9 14.8 
HS 01 -24 19.4 20.3 
HS 25 -97 13.9 13.2 
WTO agricultural products  17.8 18.1 
WTO non -agricultural products  14.3 14.1 
Duty-free tariff lines (% of all tariff lines)  4.3 4.6 
Simple average of dutiable lines only  15.5 15.5 
Tariff quotas (% of all tariff lines)  0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.3 0.4 
Domestic tariff "peaks" (% of all tariff lines)a 0.0 0.0 
International tariff "peaks" (% of all tariff lines)b 42.6 45.5 
Nuisance applied rates (% of all tariff lines)c 0.0 9.3 
Standard deviation  9.3 9.8 
Total number of tariff lines  6,106  7,135  
Ad valorem  rates (>0%)  5,826  6,780  
Duty-free rates  260 329 
Specific rates  20 26 
a  Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
b  International tariff peaks are defined as those exceeding 15%.  
c  Nuisance rates are those  greater than zero, but less than or equal to 2%.  
Note:  Calculations for averages are based on the national tariff line level (8 -digit), excluding specific rates. 
The 2011/12 tariff is based on the HS07  nomenclature , and the 2018/19 tariff is based on the 
HS17  nomenclature.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Applied MFN tariffs  
3.25.   Since 2012, the tariff structure has changed , through, inter alia,  the increase in both the 
number of tariff rates and the number of d uty free tariff lines , due to the change of nomenclature 
and the splitting of tariff lines , as well as the increase in the coverage of specific rates (see below). 
As a result, the 2018/19 simple average (unweighted) MFN applied tariff dropped slightly to 1 4.8% 
(14.9% in 2011/12) (Table 3.1 and Chart 3.1); overall, the change to the HS17 nomenclature had 
minimal impact on the change in the simple average. Tariff protection varies substantially across 
and within sectors, averaging 18.1% for agricultural produ cts, an increase since 2011/12, and 14.1% 
for non -agricultural products in 2018/19 (WTO definitions), a slight decrease since the last Review; 
it remains high on items for which Bangladesh should be competitive.17 In agriculture, average tariffs 
are highest  for beverages, spirits and tobacco , and sugars and confectionery, both at 25% , followed 
by dairy (23.1%), coffee and tea (22.9%) , and fruits, vegetables and plants (21.3%) (Chart  3.1, 
Table  A3.1). Manufacturing tariffs are highest for clothing (24.5%), fo llowed by fish and fishery 
products (23.8%) and textiles (19.4%), an input of the RMG industry.18 By according varied levels 
of protection to selected industries , tariffs distort competition by favouring some activities. A bout 
53% (57.2% at 12% and below in 2011/12) of tariff lines are subject to rates of 10% or below, and 
rates of 25% apply to 45.5% of tariff items (42.6% in 2011/12) (Chart  3.2); 4.6% (4.3% in 
2011/12) of tariff lines were duty -free and, inter alia,  affected w heat, onions, pulses, edible oils, 
seeds, fertilizers, medicines and cotton.  
                                                
17 The WTO definition of industrial products covers all non -agricultural products, i.e. products not 
covered by the WTO Agreement on Agriculture. W TO agricultural products include all processed and 
unprocessed agricultural commodities (HS Chapters 1 to 24, less fish and fish products, plus some additional 
HS items).  
18 This duty on textiles is exempted for RMG exporters.  WT/TPR/S/385 • Bangladesh  
 
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  Chart 3.1 Average applied MFN tariff rates by HS section  
 
Note:  The c alculation of averages exclude s specific rates.  
Source:  WTO Se cretariat calculations, based on data provided by the authorities.  
 
Chart 3.2 Distribution of MFN tariff rates, 2011/12 and 2018/19  
 
Note:  Figures in parentheses denote the share of total lines.  
Source:  WTO calculations , based on data provided by the authorities.  
3.26.   During the review period, the tariff structure's complexity increased slightly , due to the 
addition of new specific duties ; 95% of tariffs remain ad valorem  and, therefore , transparent.19 In 
2018/19, there were 16 different tariff rates (6  ad valorem duties, and 10 specific duties) , compared 
to 14 rates (6 ad valorem , and 8 specific) in 2011/12. Specific duties continue to affect cement 
                                                
19 The authorities do not endor se the assessment relating to the slight increase in the structure's 
complexity.  
0%5%10%15%20%25%30%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Calculations for averages exclude specific rates.
WTO Secretariat calculations, based on data provided by the authorities.Chart 3.[BGD]        Average applied MFN tariff rates by HS section
Note:
Source:01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.Average applied rate
2011/12 and 2018/19 
(14.9% and 14.8%, respectively)MFN 2011/12 
MFN 2018/19
Chart 3.[BGD]    Distribution of MFN tariff rates
Specific rates
(0.3%)2018/19 2011/12
5% 
( 16.2%)Duty free 
(4.3%)
6% 
(0.03%)3% 
(11.5%)
Source:  WTO calculations based on data provided by the authorities.5%
(16.9%)1%
(9.3%)Duty free
(4.6%)Specific rates
(0.4%)
Total tariff lines: 7,135 Total tariff lines:  6,10625%
(45.5%)25% 
(42.6%)
12%
(25.2%)
Note:  Figures in parentheses denote the share of total lines.10%
(21.9%)15%
(1.5%)WT/TPR/S/385 • Bangladesh  
 
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  clinkers, petroleum bitumen, gold, ferrous waste and scrap, and ve ssels; sugar, silver, pig iron and 
ferrous products were the new items subject to specific duties. The authorities consider that specific 
duties minimize the impact of customs duty on the price in the domestic market due to price 
fluctuations.  According to  the Secretariat's calculations on 13 tariff lines and based on 2015 import 
values, by late -2018 the ad valorem  equivalents (AVEs) of the specific rates ranged from 0.01% to 
9.8% (HS1701990, sugar). Although these specific rates do not form part of Banglad esh's WTO tariff 
binding commitments, their AVEs appear to be  in line  with these undertakings (Section  3.1.3.4).  
3.1.3.3   MFN tariff dispersion and escalation  
3.27.   Between 2012 and 2019, indicators of tariff dispersion (coefficient of variation) and escalation, 
which re mains pronounced, showed little change (Table 3.1 and Chart 3.3). Tariff dispersion has 
increased slightly , as indicated by a change in the standard deviation from 9.3% in FY2011/12 to 
9.8% in FY2018/19. Reverse tariff escalation remains in place; FY2018/1 9 data reflect reverse 
escalation with the average MFN applied tariff rate on raw materials (first stage of processing) being 
16.3%, whereas the average tariff on intermediate goods (semi -processed products) is below that 
level and the average tariff rate on finished goods (fully processed products) is lower than the rate 
at the first stage of processing (Table A3.1).  
Chart 3.3 Tariff escalation by 2 -digit ISIC industry, 2018/19  
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.4   MFN tariff bindings  
3.28.   With bindings covering 19% of all tariff lines , all at ad valorem  rates, Bangladesh maintains 
a low binding coverage; all its agricultural products tariff lines (W TO-definition) are bound , compared 
to 3.8% on non -agricultural goods. In 2018/19, the overall gap between the simple averages of MFN 
applied and bound rates stands at 147.2 percentage points (Table A3.2); this is estimated at 
168.3  percentage points for ag ricultural goods and 25.9 percentage points for non -agricultural 
goods. This gap , coupled with the low binding coverage , provides scope to raise MFN tariffs by 
applying higher or additional duties (Section 3.1.4) on several products to temporarily protect 
domestic producers. Despite the large binding overhang, during the review period , the overall 
average MFN applied rate remained virtually unchanged.  
3.29.   During the review period , Bangladesh's Schedule of Tariff Concessions Harmonized System 
(HS) (Schedule LXX)  was modified twice , and is currently based on HS 2002; its latest version was 
certified and became effective on 6 March 2018 ; its previous version had been based on HS 1996 
and was certified on 22 March 2017. Bangladesh has not been included in several collective waivers 
n.a.n.a.
0%5%10%15%20%25%30%
31 32 33 34 35 36 37 38 39 Total
manuf.Chart 3.Tariff escalation by 2 -digit ISIC industry, 2018/19
Average applied rate
in manufacturing
(14.6%)
First stage of processing
Semi-processed
Fully processed
n.a.       Not applicable.31   Food , beverages and tobacco      
32   Textiles and leather  
33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery
39   O ther manufacturing34   Paper, printing and publishing
35   C hemicals
36   Non -metallic mineral products
Source:  WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/385 • Bangladesh  
 
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  suspending the application of the provisions of Article II of GATT 1994 to allow Members to reflect 
the changes resulting from the HS  2012 and HS2017 nomenclatures i n their Schedule of Tariff 
Concessions.  
3.1.3.5   Tariff preferences  
3.30.   Under the SAFTA and the APTA, Bangladesh grants preferential tariff rates on certain goods 
originating in members of these RTAS  (Sections 2.3.2.1 and 2.3.2.2) . These preferences are 
contained in S ROs that are available online.20  
3.1.3.6   Duty concessions/exemptions  
3.31.   Duty concessions and general exemptions to the applied MFN rates continue to be provided 
in accordance with Section 19 of the Customs Act , on a case -by-case basis , through Bangladesh 
Gazette  notification. There are three types of tariff concessions: those on imports of capital 
machinery and spare  parts by registered industrial consumers (Section 3.1.1), including 
export -oriented industries; those targeting exporters ; and those provided for a speci fic use or user 
(i.e. end-use provisions) , such as dairy and poultry, pharmaceuticals, and the leather and textile 
industries. No data on the main product categories that benefitted from duty and tax 
concessions/exemptions or the value of imports and the r elated forgone tax revenue since 2012 was 
available from the authorities.   
3.1.4   Other charges affecting imports  
3.32.   Bangladesh continues to levy a regulatory duty (RD) on imports (including preferential 
imports) , aimed at compensat ing the backdrop of gradually dec reasing customs duties to ensure 
revenue growth ; it is levied on 3,311 HS eight -digit tariff lines in 2018/19 , mainly at a rate of 3% 
(3,207 tariff lines at MFN customs duty rates exceed 25%) , but also at rates of 4%, 5%, 10%, 15%, 
20%, 25%, 30% and 35% (H S 8706.00.39, chassis fitted with engines exceeding 4,000 cc) of the 
c.i.f. value plus a 1% landing charge; in 2012/13 , the RD was charged at 5% on goods having a 
25% customs duty , except those enjoying a concessionary rate.  No separate data on the revenue  
collected through the RD since 2012 was available from the authorities . RDs are published in SROs 
each fiscal year , and made are available on the Customs website (Section 3.1.3.1). In addition to 
the RD on some imports, all imports are also subject to VAT, supplementary duty (SD), advance 
trade VAT (imports by commercial importers only), and advance income tax (Section  3.3.1.1.2).21 
Should all these charges be added , the average total tax incidences  (TTIs) on imports would be 
equivalent to 59.3% , at rates ranging from zero to 845.6% (semi -finished products of iron o r 
non-alloy steel) in 2018/19 (Table A3.2) ; this average drops to 22.8% if only the customs duty and 
the RD are taken into account, with rates ran ging from zero to 60% (HS  8706.00.39, chassis fitted 
with engines exceeding 4,000 cc) .  
3.33.   Other than the above customs charges, a few more fees are to be paid for certain operations. 
For instance, a transhipment fee is applicable only in case of tariff -in-transit goods , to cover 
administrative costs. At present, transhipment fees amount to  BDT 280 per metric tonne.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.34.   Bangladesh prohibits certain imports , mainly to protect health, safety, security, the 
environmen t and natural resources. Its IPO, 2015-18 lays out numerous criteria and conditions for 
importation , including import controls and bans, import permits, licen ces, and conditions of renewal 
(Section 2.2. 4).  
3.1.5.1   Prohibitions  
3.35.   Bangladesh maintains a list of cont rolled goods and a list of prohibited goods that are 
contained in IPO 2015-18; the former remained unchanged during the review period . The list of 
                                                
20 Those relating to SAFTA are contained in SRO 78 -Law/2015/06/customs, 7 April 20 15, and 
SRO 68-AIN/2017/07/Customs, 28 March 2017, and tho se on the APTA are found in 
SRO 267-AIN/2018/40/Customs, 18 September 2018.  
21 Taxes paid in advance can be adjusted during the submission of periodic returns (VAT return or 
income tax return) by the importers.  WT/TPR/S/385 • Bangladesh  
 
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  controlled goods covers several agricultural and  industrial items under 21  four-digit HS product 
categories t hat either banned import, or allowed import s under certain conditions.22 Import bans 
under this list include: shrimps (a major domestic p roduce and export item (Section  4.1.6)) ; poppy 
seeds; grass and bhang (cannabis sativa); opium; gaseous hydrocarbons; goods including 
petroleum oil residues; sodium cyclamate; artificial mustard oil; polypropylene and polythene bags; 
chassis with two -stroke engines of three -wheeler vehicles; thr ee-wheeler vehicles with two -stroke 
engines; and glass syringes. Bangladesh maintains a ban on trade with Israel (Section  3.2.3).  
3.36.   The list of prohibited goods includes certain prohibitions, inter alia,  based on religious, safety , 
social or health grounds.23 These include: m aps, charts and geographical globes; horror comics, 
obscene and subversive literature; books, newspapers, periodicals, documents and other papers, 
posters, photographs, films, gramophone records, audio and video cassettes, tapes , etc. cont aining 
matter likely to cause religious outrage ; reconditioned office equipment, photocopier s, typewriter 
machine s, telex es, phone s and fax es, old computer s, old computer accessories, old electronic goods; 
goods (including their containers) bearing words o r inscriptions of a religious connotation; goods 
(including their containers) bearing obscene picture s, writing inscription s or visible representation s; 
live swine or any item prepared from pork; all kinds of industrial sludge and fertilizer , and any other  
products produced from sludge; and certain chemical insecticides and industrial chemicals.  
Furthermore, under other provisions of the IPO, imports of ocean -going ships, oil tankers and fishing 
trawlers that are over 25 years old are banned.   
3.1.5.2   Import approv al and restrictions  
3.37.   Under the list of controlled goods, some imports are allowed under certain conditions and/or 
require prior approval. They include: furnace oil; certain insecticides; certain fishing nets; used 
motor car s of any c.c. , and microbus es, minibus es, jeeps and other old vehicles , and tractors no 
more than five years old; used parts of motor vehicles; and firearms. Although import licences per se 
are not required for imports into Bangladesh (see below), in addition to the standard Letter of C redit 
Authorization ( LCA) import procedure, a permit, clearance, prior permission or approval may be 
required for certain controlled or restricted imports, thus implicitly imposing import licensing 
requirements.24 Several items (e.g. methanol/methyl alcohol , and crude soya -bean oil) can only be 
imported by recognized industrial units or stakeholders. IPO provisions require mandatory nuclear 
radiation tests for imported milk, dairy, edible oil s, vegetable seeds, grains, and other food products; 
the relevant c ertificates must be submitted in conjunction with other required certificates to 
Customs.  
3.38.   In 2007, Bangladesh notified to the WTO Committee on Import Licensing that its import 
licensing system was abolished in FY 1983 /84, and that no import licen ce was req uired for any item 
entering the country.25 According to the authorities, some  items require prior permission equivalent 
to automatic import licensing. Bangladesh's notification under the 2012 Decision on Notification 
Procedures for Quantitative Restrictions  is pending.26  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.39.   The regulatory and institutional framework in this area remain unchanged. The WTO rules on 
anti-dumping are incorporated in Sections 18B, 18C and 18D of the Customs Act , 1969, and were 
notified to the Committee on Anti -dumping Practices in 2007.27 NBR SRO 
                                                
22 Annexure -1 Part A of IPO 2015-18. 
23 Annexure -1 Part B of IPO 2015-18. 
24 These items include b eer and wine for hotels; M.S. sheet and plate (hot rolled), G.P. sheet, B.P. 
sheet, stainless steel, cold -rolled close annealed ( CRCA ) sheet, tin plate, M.S. sheet and silicon sheet; raw 
materials and packing materials for the pharmac eutical indust ry; refined, bleached and deodorized ( RBD) palm 
stearin and tallow; certain inputs used by export -oriented industries  (e.g. grey fabrics , and raw and packing 
materials ); second -hand or reconditioned capital machiner y; electric meter s (electri c kW meter s); refined palm 
olein and crude palm ole in; new, or not exceeding five -year-old, motor cars; cargo or passenger vessel s with 
steel or wooden bodies; plant and machinery for export -oriented industrial units; and trawlers and other 
fishing vessels , new or not more than  25 years old . Chapter  Two - General Provisions for Import , and Chapter 
Five - General Provisions for Industrial Import, in  IPO 2015-18. 
25 WTO document G/LIC/N/3/BGD/4, 5 October 2007.  
26 WTO document G/L/59/Rev.1, 3 July 2012.  
27 WTO documents G/ADP/N/1/BGD/1, 30 April 2007, and G/ADP/N/1/BGD/1/Corr.1*, 4 May 2007.  WT/TPR/S/385 • Bangladesh  
 
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  (No. 209-Law/1995/1642/Cus)  of 1995 details rules and procedures for the identification of dumped 
goods, the assessment and collection of anti -dumping duties, and the determination of injury.  
3.40.   In compliance with the WTO Agreement on Safeguards, Bangladesh has incorporated relevant 
provisions under Section 18E of the Customs Act , 1969. The laws, regulations and administrative 
procedures relating to safeguard measures were notified in 2002.28 An SRO to this effect was issued 
in June 2010.  
3.41.   The BTC (Section 3.1.3.1) remains responsible for undertaking dumping and subsidies 
investigat ions. No such action has been taken so far, mainly due to the inability of the domestic 
industries to furnish reliable information on dumping, subsid ies, and other evidence required for 
initiating investigations. The Government attaches due importance to c apacity building in these 
areas.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.42.   Exports continue to be governed by the Customs Act , 1969, the Export Policy , 2015-18, and 
the Prescribed Bill of Entry and Bill of Export Form Order , 2001. Under the provisions of Section  131 
of the Customs Act, to be able to export, an export declaration (Bill of Export/Shipping Bill) must be 
filed with Customs. The declaration must specify the description of the goods to be exported, their 
value, the exporter's name, the name of the foreign buyers/importers, and the name of the transport 
operators. The Prescribed Bill of Entry and Bill of Export Form Order, 2001 requires that , in addition 
to the export declaration, all export consignments must also have  an export credit/C  or, in its 
absence , an export contract or purchase order or an export guarantee approved by the negotiating 
bank; a commercial invoice , containing a detailed description of the goods , signed by the exporter; 
a packing list , containing quantity, weight and packing information; an EXP form certified by the 
Authorized Dealers , to ensure the realization of export proceeds; a Certificate of Origin (issued by 
the EPB or the Chamber of Commerce and Industry);  a VAT registration cer tificate; and a Taxpayer 
Identification Number (TIN). The export declaration must be approved by the Customs authority, 
which also conducts a documentary check and physical verification of export consignments, which 
are then exported.29  
3.43.   Export of certain g oods or product categories requires additional documentation , including an 
Export Registration Certificate for jute, jute goods and tea; and for tea exports , a consignment -wise 
export permit , issued by the Bangladesh Tea Board , is also needed. For the expo rt of urea fertilizer, 
approval from the Ministry of Industries is required , except for urea produced by the Karnaphuli 
Fertilizer Company Limited  (KAFCO) . A No Objection Certificate (NOC) from the Ministry of 
Information is required for the export of ente rtainment program mes, music, drama, films, 
documentary films , etc., in the form of audio cassettes, video cassettes, CDs, DVDs , etc. A utilization 
declaration for the export of RMGs  under bonded warehouse , or a utilization permission for the 
export of othe r goods under bonded warehouse, is obligatory ; while phytosanitary certificates 
(issued by the Plant Protection Wing of the Department of Agriculture Extension) for agricultural 
goods , if required by the importing country , are also mandatory. Other documen ts required include 
a quality control certificate in the case of the export of products for which such certificate is obligatory 
(e.g. a quality control certificate from the Department of Fisheries is necessary as per the 
requirements of the country of  destination for frozen fish); an NOC from the Chief Controller of 
Imports and Exports  (CCI&E) and the Bangladesh Bank , to allow exports on an export -cum-import 
or returnable basis; and a bank guarantee equa lling the value of goods to be exported on an 
export -cum-import or returnable basis.  
3.2.2   Taxes, charges, and levies  
3.44.   Export duties are levied on tobacco and tobacco products (10%), cotton waste (25%), ceramic 
building bricks (25%) , unwrought l ead (25%) and rice bran (10%) . The reason for the export duties 
was to  discourage production of these products. According to the authorities, brick production is not 
                                                
28 WTO document G/SG/N/1/BGD/1 , 17 September 2002.  
29 An EXP form is required by Bangladesh Bank under Section 12 of the Foreign Exchange Regulation 
Act, 1947. It contain s basic information regarding export consignment. It is required for monitoring purposes 
for the realization of export proceeds.  WT/TPR/S/385 • Bangladesh  
 
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  environmentally friendly, while tobacco production utilizes land needed for essential crops. Duty on 
the export of cotton waste is intended to encourage the dom estic use of cotton waste.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.45.   Bangladesh continues to prohibit the export of several goods , due to various reasons listed in 
Annex  1 of the Export Policy 2015 -18 (Table 3. 2). Furthermore, certain exports are r estricted; these 
are listed in Annex  2 of the Policy.  
Table 3.2 Prohibited and restricted exports, 2018  
A. List of export -prohibited products  
Soya bean oil, palm oil;  
All petroleum and petroleum products , except those produced from natural gas (such as naphtha, furnace oil, 
lubricant oil, bitumen, condensate, MTT,  and MS). However, this prohibition does not apply to the export of 
petroleum or LNG, as shares of the foreign investment companies are under pro duction-sharing contracts;  
Any passenger going abroad shall be allowed to carry , as accompanied baggage, in excess of his or her 
personal goods, US D 200 worth of goods, which are neither export -prohibited nor included in the list of 
conditional export s. In this case, no facilities/incentives , such as  duty draw back adjustment, subsid ies, etc., 
shall be awarded;  
Jute and "Shan" seeds;  
Wheat;  
Rice; 
As per Section 29 of  the W ild Life (C onservation  and Safety) Act, 2012, no person , through  any other  route  
except  a Customs  port of exit , without  a CITES certificate, where applicable, and  without  a licence, shall export 
or re-export any wild animal , or part thereof, trophy, uncured trophy, or plant  mentioned in Schedule IV or 
parts or derivatives hereof;  
Fire arms, ammunition and related materials;  
Radioactive materials;  
Archaeological relics;  
Human skeleton s, blood plasma, or anything produced from human beings or human blood;  
All types of pulses , except processed ones;  
All shrimp , except chilled, frozen and processed ones;  
Onions, garlic and ginger;  
Sweater shrimp of 71/90 count or smaller, except the species Harin/harina  and Chaka , including sea species , 
peeled undeveined  (PUD). Cooked shrimp;  
Cane, wood and wood logs/thick pi eces of wood (except handicrafts made from these  materials). However, 
rubber wood of  the Forest Industries Corporation is allowed to  be export ed if used as  inputs in furniture 
industries located in EPZs,  which are considered export ed. These furniture indus tries must submit export  
statements of furniture made from the wood as mentioned above to the concerned  authority;  
All types of frogs (alive or dead) and frog legs;  
Raw and wet blue leather.  
B. List of conditional export products  
Urea fertilizer produced in all factories can be exported with the prior approval of the Ministry of Industries;  
KAFCO does not need approval;  
Entertainment programmes, music, drama, films, documentary films , etc., can be exported in the form of 
audio cassettes, video ca ssettes, CDs, DVDs , etc., subject to an NOC  from the Ministry of Information;  
Petroleum and petroleum products produced from natural gas (such as naphtha, furnace oil,  bitumen, 
condensate, MTT and MS) can be exported subject to an NOC  from the Energy  and Mineral Resources Division. 
However, lubricating oil can be exported unconditionally ; the volume of export  must be reported to the Energy 
and Mineral Resources Divi sion; 
Chemical products enlisted in Schedules 1, 2, and 3 of the Chemical Weapons (Control)  Act, 2006 are 
controlled (exported or prohibited from export) by Section 9 of the A ct; 
Sugar;  
Hilsha  fish; 
Aromatic rice;  
The MOC  grants  permission for the export of raw hides and meat of  crocodile produced commercially in 
individual or joint venture farms, on the basis of  an NOC/approval from the Ministry of Environment and 
Forest.  
Source:  MOC, Export Policy 2015 -18. WT/TPR/S/385 • Bangladesh  
 
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  3.46.   Exports of agricultural commodities and manufactured goods are prohibited mainly for 
reasons of health, eco -balance, security, archaeol ogical value, or maintenance of adequate domestic 
supply. Exports of certain items , such as wheat, onions, unprocessed shrimp, raw hides, and blue 
leather , are prohibited,  so as to ensure adequate domestic supply. Exports of fertilizer s produced by 
a state -owned plant remain restricted , so as to meet domestic demand to ensure food security . 
According to the Export Policy 2015 -18, the Government , under special circumstances , can allow 
the export of prohibited goods ; for example, during th e review period, it allowed the export of 
soybean oil, blood plasma for test purposes only, and certain type of pulses in very limited quantities.  
3.47.   Trade with Israel,  including exports , is not permitted (Section 3.1.5.1 ). Re-exports (i.e. the 
export of impo rted goods in their original or unproc essed form) are not permitted. However, goods 
may be re-exported if there is at least a 10% value addition and a change in the quality or size of 
the product. Bangladesh has no export licensing requirements. For certai n products, an export 
certificate may be required from the relevant authorities.  
3.2.4   Export support and promotion  
3.2.4.1   Export subsidies  
3.48.   With a view to encouraging exports, the Government provides incentives to selected export 
sectors. These take the form of cash in centives , and are provided to exporters who do not avail of 
the duty drawback facility or the bonded warehousing facility. The rate of the incentive is decided 
by the Government , and is updated annually through circulars issued by the Bangladesh Bank, whic h 
administers the incentive scheme.  
3.49.   The list of products eligible for cash incentives  (export subsid ies) for goods shipped between 
1 July 201 8 and 30  June 201 9, along  with the associated rate of subsidy/cash incentive , is contained 
in FE Circular No. 31 ( Table 3. 3).  
Table 3.3 Cash incentives and export subsidies for selected products, 2018/19  
(F.o.b. value)  
Products  Rate of subsidy/cash 
incentive (%)  
Textiles  4a 
Textiles (SME industries)  4a 
Textiles ( new markets other than United States , Canada and E uropean Union) 3a 
Textiles ( export s to the Euro zone) 2a 
Hand-made products made of Hogla, straw, coir of sugarcane and coconutb  20a 
Agricultural and agri -processed goods  20a 
Stomach, horn, intestine, tendon (except bone) of cow and buffalo  10 
Light engineering products  15 
100% halal meat  20 
Frozen shrimp and other fish  2-10 
Leather goods  15 
Crust leather and finished leather from Savar Leather Industrial City  10 
Ships  10 
Potatoes  20 
PET bottle  flakes  5 
Polyester fibre from PET bottle flakes  10 
Furniture  15 
Seeds of corns and vegetables  20 
Carbon made of jute stick s 20 
Plastic goods  10 
Paper and paper goods  10 
Agar and atar  20 
Jute goods  5-20 
Software, ITES and hardware  10 
Shoes made of a mixture of synthetics and fabrics  15 
Active pharmaceuticals ingredients  20 
Accumulator batter ies  15 
Pharmaceutical goods  10 
Photovoltaic module s 10 
Motorcycle s 10 WT/TPR/S/385 • Bangladesh  
 
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  Products  Rate of subsidy/cash 
incentive (%)  
Chemical goods ( chlorine, hydrochloric acid, caustic soda and hydrogen  
peroxide)  10 
Razor s and razor blades  10 
Ceramic goods  10 
Caps 10 
Crabs and Asian eels  10 
Galvanized sheets/coils  10 
a A maximum of 10% is allowed to any single exporter against a particular export.  
b Products made of coir of coconut are included in the hand -made products made of Hogla, straw, coir 
of sugarcane during FY2018/19 . 
Source:  Information provided by the authorities.  
3.50.   Furthermore, to be eligible for the  cash incentives  (export subsid ies), certa in local content 
requirements must also be fulfilled (Table 3. 4).  
Table 3.4 Local content requirements for eligible products under cash incentives 
(export  subsidies)  
Sl. 
no. Product  Local content requirement  
1 Textiles  Textile goods made of yarn produced locally at 
Bangladesh Textile Mills Association ( BTMA ) mills 
2 Textiles (SME industries)  Ditto 
3 Textiles ( new markets other than United 
States , Canada and E uropean Union) Import content is useable , since the restriction to avail 
of customs bond/duty drawback facilities is waived  
4 Textiles ( export to Euro zone) As noted in Sl. No. 1 
5 Hand-made products made of Hogla, coir 
of coconut and sugarcane  Minimum 80% 
6 Agricultural and agro -processed goods  Agricultural - local products  
Agro-processed - more than 70%  
7 Stomach, horn, intestine, tendon (except 
bone) of cow and buffalo  Local products  
8 Light engineering products  Minimum 40% 
9 100% halal meat  Local products  
10 Frozen shrimp and other fish  Local products  
11 Leather goods  Import content is useable , since the restriction to avail 
of customs bond/duty drawback facilities is waived  
12 Crust leather and finished leather from 
Savar Leather Industrial City  Local products  
13 Ships Import content is useable , since the restriction to avail 
of customs bond/duty drawback facilities is waived  
14 Potatoes  Local products  
15 PET bottle flakes  Import content useable , provided that the customs 
bond /duty drawback facility is not availed  of 
16 Furniture  Import content useable , provided that the customs 
bond /duty drawback facility is not availed  of 
17 Seeds of corns and vegetables  Local products  
18 Carbon made of jute stick  Local products  
19 Plastic goods  Import content useable , provided that the customs 
bond /duty drawback facility is not availed  of 
20 Paper and paper goods  Import content useable , provided that the customs 
bond /duty drawback facility is not availed  of 
21 Agar and atar  Local products  
22 Jute goods  Local products  
23 Software, ITES and hardware  Minimum 30% 
24 Shoes made of a mixture of synthetics 
and fabrics  Minimum 30% 
25 Active pharmaceuticals ingredients  Minimum 20% 
26 Accumulator batter ies  Minimum 30% 
27 Pharmaceuticals goods  Minimum 30%  
28 Photovoltaic module s Minimum  30% 
29 Motorcycle s Minimum 30%  
30 Chemical goods ( chlorine, hydrochloric 
acid, caustic soda and hydrogen peroxide)  Minimum 30%  
31 Razor s and razor blades  Minimum 40%  WT/TPR/S/385 • Bangladesh  
 
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  Sl. 
no. Product  Local content requirement  
32 Ceramic goods  Minimum 30%  
33 Caps Minimum 30%  
34 Crabs and Asian eel s) Minimum 30% 
35 Galvanized sheets/coils  Minimum 30%  
Source:  Information provided by the authorities.  
3.51.   Since 2012/13, the incentive ( subsidy ) amount has been rising , and was nearly 
BDT 4,480 crore in 2017/18, with nearly half of the subsidy outlay going to the textile sector 
(Table  3.5) 
Table 3.5 Disbursement of cash incentive (export subsidy), FY2012/13 to 10  June  2018 
of FY2017/18  
(BDT in crore)  
Products  2012/ 13 2013 /14 2014 /15 2015 /16 2016 /17  2017 /18  
Textiles  1,204.6  1,273.6  2,004.7  1,901.3  2,396.6  2,283.8  
Leather goods  253.9  361.2  459.7  371.3  705.7  638.1  
Crust leather  21.7 1.0 0.0 -  - 11.9 
Finished leather  11.5 3.3 0.0 -   - 2.3 
Frozen shrimp and other fish  280.3  252.6  288.9  222.5  322.4  344.2  
Hand-made products made of Hogla, 
straw, coir of sugarcane and coconut  18.6 22.9 33.4 43.5 45.1 44.3 
Crushed bone/stomach, horn, intestine, 
tendon (except bone) of cow and 
buffalo  4.2 7.0 23.5 9.4 7.8 10.6 
Agricultural goods ( vegetable/fruit)  87.1 78.1 116.3  97.2 85.8 105.5  
Agro-processed goods  129.8  169.5  297.6  303.3  391.0  500.8  
Bicycle s 0.2 0.0 - - - - 
Potatoes  5.2 15.5 41.0 27.6 14.7 12.6 
Light engineering products  1.0 0.8   1.6 1.7 1.2 
100% halal meat  0.1 7.6 9.4 2.8 2.2 0.4 
PET bottle flakes  25.5 19.2 25.4 18.3 19.2 21.5 
Ships 6.1 1.5 - 1.2 4.7 - 
Plastic goods  - - - - 2.3 4.6 
Seeds of corn and vegetables  - - - - 0.9 12.7 
Furniture  - - - - - 0.8 
Paper and paper goods  - - - - - 3.5 
Carbon made of jute stick - - - - - 1.2 
Total (except j ute) 2,050.0  2,214.0  3,300.0  3,000.0  4,000.0  4,000.0  
Jute goods  350.0  378.0  700.0  500.0  395.0  480.8  
Total disbursed amount including j ute 2,400.0  2,592.0  4,000.0  3,500.0  4,395.0  4,480.8  
- No subsidy was paid out for that product that year.  
Source:  Information provided by the authorities.  
3.2.4.2   Duty and tax concessions  
3.52.   In addition to the export subsidy/cash incentive (Section 3.2.4.1), Bangladesh continues to 
provide a wide array of other support measures including, inter al ia: concessional tariffs, a duty 
drawback system, special bonded warehouses, and EPZs. As per the current Export Policy Order , 
industries deemed the highest priority sectors , and those classified as special development sectors , 
receive certain benefits and  facilities. According to the authorities, highest priority sectors refer to 
those sectors which have special export potential, but this potential cannot be utilized due to certain 
constraints. Sectors covered include:  high value -added re RMGs  and garment accessories; software WT/TPR/S/385 • Bangladesh  
 
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  and IT -enabl ing services, information communication technology ( ICT) products; pharmaceutical 
products; ship s and ocean -going fishing trawler s; footwear and leather products; jute products; 
plastic products; agro -products  and agro -processed products; furniture; home textiles and terry 
towel ling; home furnishing s; and luggage. Benefits and facilities accorded to these sectors are:  
project loan s at reduced interest rates on a priority basis30; income tax rebate s31; possible fi nancial 
benefits or subsidies for utility services, such as electricity, water and gas; export credit at lower 
interest rates and on soft er terms; air transportation facilities on a priority basis; duty 
draw-back/bond facilities; facilities for setting up ancillary industries , including infrastructural 
development for reducing the cost of production; expansion of institutional and technical facilities 
for improving and controlling quality of products; duty -free import s of equipment for setting up 
compliant industry; assistance in the production and marketing of products; assistance in exploring 
markets abroad; and necessary initiatives to attract foreign investment.  
3.53.   Special development sectors are defined as those products which have export potential but 
whose production, supply and export bases are not strong enough to exploit their export potential . 
These include: diversified jute products; electric and electronic products; ceramic products; light 
engineering products (including auto -parts and bicycle s); value-added frozen fish; papadu m; 
printing and packaging; rough diamond s and jewellery; paper and paper products; rubber; silk 
products; handicrafts; handloom products , including lungi; and coir products. Benefits accorded to 
these sectors are essentially t he same as those provided to the highest priority sectors.  
Duty exemption and drawback  
3.54.   Under the provisions of t he Value Added Tax Act , 1991 and the Customs Act , 1969, all duties 
and taxes paid on inputs/raw materials used for the manufacture of exported g oods or services shall 
be refunded , except income tax paid in advance and supplementary duty paid on the inputs/raw 
materials declared by the Government in the O fficial Gazette  as non -refundable. Exporters can claim 
the drawback within six months of export s. There are two ways to clai m drawbacks: on an actual 
case-by-case basis, or as a flat-rate drawback.  
3.55.   Flat-rate drawback is applicable to cases for which orders have been issued by the Director 
General of the Duty Exemption and Drawback Office (DEDO) and notified in the Official Gazette  (flat 
rate is paid against an input number) . Orders for drawback on the flat rate are issued for ease of 
refund of duties and taxes depending on the nature of the goods for export, the nature of the inputs 
used in the manufacture of the exported goods, the value of the inputs , and the rate of duties and 
taxes applicable to the inputs. Claims for drawback of duties and taxes against export s made to the 
DEDO , and all other claims f or the refund of duties and taxes , must be made to the respective 
Custom House or Customs, Excise and VAT Commissionerate. The DEDO is responsible for the 
payment of drawback of duties and taxes, and as per Gener al Order No -8/Mushak/2011 of 
13 September  2011, commercial banks no longer pay any kind of drawback.  According to the 
authorities, the duty drawback refunds are cleared within 30 days; these amounted to nearly 
BDT 110 crore against 467 inputs in 2017/18 (Table 3.6 ). 
3.56.   In addition to duty exemption and  drawback on taxes paid on imported raw materials, 
businesses are entitled to duty exemption and drawback on taxes paid on utilities and, in some 
cases, on the fuel consumed in the production process.  
                                                
30 Exporters –cum-manufacturers are eligible to receive fund s at an interest rate of LIBOR + 2.5% as 
working capital for importing  raw materials/inputs.  
31 All exporters also receive an income tax exemption on half of the  total income  from exports, provided 
that they do not avail of any  other tax incentives under any other scheme.  WT/TPR/S/385 • Bangladesh  
 
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  Table 3.6 Duty drawback inputs and amounts, 2012/13 -2017/18  
Year Number of inputs used in 
production of export items 
for which duty drawback 
was provided  Drawback 
Customs duty  
(BDT crore)  Drawback VAT 
(BDT c rore)  Total  
(BDT c rore)  
2012/ 13 1,297 30.5 57.9 88.4 
2013/ 14 913 33.8 74.9 108.7  
2014/ 15 939 28.4 86.0 114.5  
2015/ 16 788 21.1 75.5 96.7 
2016/ 17 789 29.2 113.8  143.0  
2017/ 18 467 27.0 82.5 109.6  
Source:  Information provided by authorities.  
Bonded warehouses  
3.57.   Under Chapter 11 of the Customs Act , 1969 and subsequent rules and orders issued since 
then, bonded warehousing facilities are offered to exporters and "deemed exporters", who can 
import and stock inputs duty -free.32 The bonded warehousing facilities are administered and 
supervised by the NBR  and the Customs Bond Commissionerates.  
3.58.   There are two categories  of bonded warehouses , depending on the types of inputs/raw 
materials used, the purpose of their use, and the type of exports . They are  special bonded 
warehouse s and general bonded warehouse s. Special bonded warehousing is applicable for 100% 
export -oriented RMG industries, which include the woven garment, knitwear and sweater 
manufacturing industries. General bonded warehousing applies to other 100% export -orient ed 
industries.  
3.59.   A bond licence , issued by the Customs Bond Commissionerate under the Bonded Warehouse 
Licensing Rules , 2008, is required to avail of bonded warehousing facilit ies. After obtaining the 
licence, the licensee may take possession  of his/her  imported material under a back -to-back L/C 
without paying any duties or taxes. However, imports are subject to limits stated in the bond licence. 
Furthermore, bonded warehouse licence holders are required to provide a bond to Customs to clear 
their consignments. The c urrent value of the b onds are: BDT 10 million for "deemed exporters" ; 
BDT 30 million for direct exporters (knit, woven, sweater) ; BDT 20 million for both "deemed" and 
direct exporter s; and BDT 30 million for diplomatic, duty free and duty paid. All imported goods 
cleared under  a bonded warehouse licence are stored at the bond holder's warehouses. In case of 
failure to export, importers are required to pay duty charges and taxes on the goods imported. Bond 
holders are required to maintain bond registers and other documents , and are subject to a 
mandatory yearly audit. Additionally, for export -oriented industries, the bond period varies from 
industry to industry (Table  3.7).  
Table 3.7 Bond periods  
Bonded warehouse type  Bonding period  
Special bonded warehouse  24 months; Commissioner reserves the right to extend the 
bonding period for a maximum of 6  months  
Direct exporter  24 months; Commissioner reserves the right to extend the 
bonding period for a maximum of 6  months  
Deemed exporter  24 months; Commissioner reserves the right to extend the 
bonding period for a maximum of 6 months  
Ship builder's bond  48 months; bonding period is extendable  
Source:  Bangladesh Customs,  and NBR. Viewed at: 
http://www.bangladeshcustoms.gov.bd/procedures/bonded_warehouse/123 . 
                                                
32 Deemed exporters are defined as those industries tha t do not have any direct export operations, but 
instead carry out their activities through subcontract ors and receive their proceeds in foreign exchange through 
local back -to-back L/Cs. WT/TPR/S/385 • Bangladesh  
 
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  3.2.4.3   EPZs  
3.60.   With a view to facilitating investment, creating job opportunities and promoting exports, the 
Government continues to maintain EPZ s. EPZs were set up under the BEPZA Act , 1980 and the 
Bangladesh Private Export Processing Zones Act , 1996. The Acts are administered by the BEPZA, 
which approves all projects and is also responsible for providing infrastructure facilities, 
administering tax incentives, issuing work permits for foreign nationals, and administering labour 
matters. Three types of investment are permitted in EPZs : 100% foreign -owned ; foreign -local joint 
ventures ; and 100% locally owned . All receive equal treatment. Industrial units located in the EPZs 
must export at least 90% of their production, i.e. they can sell a maximum of 10% on the domestic 
market upon payment of customs duties and other taxes. They are also permitted to purchase goods 
from the domestic tariff area.  
3.61.   Incentives offered  to enterprises in the EPZs are, inter alia : tax holiday for ten years for 
industries established before 1 January 2012 , seven years  for the industries in Mongla, Ishwardi and  
Uttara EPZ s, and five years  for the industries in Chittagong, Dhaka, Comilla, Ad amjee,  and 
Karnaphuli EPZ s; duty -free import of construction materials; duty -free import of machinery, office 
equipment, spare parts and vehicles (car s, jeep s, pick -ups, microbus es); duty -free import of raw 
materials; avoidance of double taxation; exemptio n from dividend tax; accelerated depreciation on 
machinery and plant; full repatriation of capital, dividend s and fees related to royalt ies and 
consultanc ies; foreign currency loan s from abroad under the direct automatic route; non -resident 
foreign currenc y deposit account s; work permits issued by the BEPZA; secured and protected bonded 
area; off -shore banking facilities; import on documentary acceptance basis; Customs clearance at 
the factory site; simplified sanction s procedure s; sub -contracting with expo rt-oriented industries 
inside and outside the EPZ; and relocation of foreign industries.  
3.62.   Currently eight EPZs are in operati on, with 5,844 registered enterprises , of which 476 are 
operational.  As of July 2018 , the cumulative investment in EPZs was USD 4.7 billion (Table A3.3). 
Since 2012, EPZ s have generated exports of US D 37 billion and created 167,150 jobs (Table  A3.4). 
Tax concessions  
3.63.   Under the Income Tax Ordinance , 1984, a 50% rebate is provided on taxable income 
generated from any export business. Like other eligible industrial enterprises, export -oriented 
industries are accorded a tax holiday of five to seven years. All 100% export -oriented RMG industries 
not enjo ying a tax holiday are subject to 0.60% tax at source on export proceeds. This is deemed 
the final settlement of tax liability. Industrial units set up between 1 July 1977 and 30  June 2012 
may opt for accelerated depreciation on machinery or plant at the f ollowing rates: for the first year 
50%; second year 30% ; and third year 20%.  
3.64.   To maintain price competitiveness for export products, VAT rebates are granted on a number 
of export -related services. For instance, VAT can be refunded on export support services , i.e. C&F 
Customs brokers' services, telephone, telex, fax, gas/electricity bills (80% refund), insurance 
premiums , and shipping agents' commission/bills.  
3.2.5   Export finance, insurance, and guarantees  
3.65.   Under the current foreign exchange regulatory framework, e xporting enterprises operating 
under the bonded  warehouse system can open back-to-back L/Cs (BBLCs) on a usance basis against 
an export L /C for input procurements. The BBLC is generally opened in such a way that import 
payment can be settled out of the realized export proceeds. Exporters may retain export proceeds 
in a single pool for the settlement of BBLCs. Access to short -term buyer's credit in foreign currency 
for up to 180 days is available to exporters, subject to an all-in cost of 6% per annum. Expor ters 
can also avail themselves of credit at a 7% rate of interest from banks , for the financing of 
pre-shipment requirements. The Bangladesh Bank operates an Export Development Fund (EDF) of 
USD 3 billion , to refinance banks for payments made by them again st input procurements. The rate 
of interest on an EDF loan is the 6-month LIBOR +2.5% and , under the programme , an exporter can 
obtain an EDF loan not exceeding US D 20 million. In respect of post -shipment finance, banks support 
exporters by making export pr oceeds available through the negotiation/purchase of export bills. In 
addition, usance export bills can be discounted in foreign currency at an all-in cost of 6% per annum. WT/TPR/S/385 • Bangladesh  
 
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  Furthermore, under the existing banking framework, exporters enjoy preferential tre atment in terms 
of access to finance.  
3.66.   Export proceeds can also be retained in foreign currency for up to a month , for the settle ment 
of import bills. This facility is available to exporters exporting without BBLC arrangements. In 
addition to these faciliti es, exporters can also hold foreign currency accounts , to retain a portion of 
the foreign currency of the repatriated export proceeds , up to 60% of the f.o.b. value, depending 
on domestic value addition.  
3.67.   The Export Credit Guarantee Scheme (ECGS), covering  risks on export credits at home, and 
commercial and political risks occurring abroad, is administered by the Sadharan Bima Corporation 
(SBC), a state -owned general insurance company. The ECGS aims to boost export promotion and 
open new markets by offering  guarantees to banks to enable exporters to obtain better loan facilities 
at the pre - and post -shipment stage s, and by providing a range of credit risk insurance cover to 
exporters against losses resulting from both commercial and non -commercial risks in r espect of 
goods sold to foreign buyers on credit. The revolving risk  of SBC in 2017 was BDT  11.5 billion.33 
3.2.6   Export promotion and marketing assistance  
3.68.   The Export Promotion Bureau (EPB)  (Sections 2.2.1 and 2.2.2) , administered by a board with 
members from bot h the public and private sectors, is a semi -autonomous institution under the MOC, 
responsible for export promotion. The EPB's activities also include  supporting the MOC in  the 
formulation and review of the Export Policy , including export incentives and fac ilities, the 
dissemination of trade information through its Trade Information Centre, product development for 
export, and the organization of trade fairs and national training programmes.  In 2012/13 -16/17, 
the EPB financed US D 11.6 million for participatio n in 133  trade fairs.  The Bangladesh Foreign Trade 
Institute (BFTI) supports export promotion through research, training and policy analysis . 
3.69.   Export promotion is coordinated at the inter -government -agency level , through meetings with 
all concerned parties , under the chairmanship of the Minister of Commerce. The National Committee 
on Export Promotion, headed by the Prime Minister, continues  to review the export situation at 
(long) intervals, and provides necessary recommendations.  
3.3  Measures Affecting Producti on and Trade  
3.3.1   Incentives  
3.3.1.1   Taxation  
3.3.1.1.1   Features  
3.70.   Bangladesh's tax system remains characterized by a low overall taxation level relative to GDP . 
It is heavily dependent on trade -related taxes. During the review period, total tax revenue as a 
share of GDP ranged fr om 8.5% (2014/15) to 10.4% (2017/18) ( Table 3.8). Despite a slight drop 
from the 2011/12 level, the contribution of customs duties (including RD (Section 3.1.4)) to total 
tax revenue remained relatively significant and stable (ranging from 11.3% to 11.8% o f total  tax 
revenues); VAT and income tax remain the main general tax components , followed by the 
supplementary duty (SD), a tax levied on both domestic and import goods. According to data 
covering only tax collection of the NBR , in 2017/18 , foreign trade -related taxes (i.e. import duty, 
RD, VAT and SD at the import stage, and export tax) accounted for 32.4% of NBR tax revenue , 
compared to 34.7% in 2011/12. Indirect taxes (i.e. their share of total tax revenue) dropped in 
2013/14 , then progre ssively r ose to almost their 2011/12 level by 2016/17, and subsequently 
bottom ed in 2017/18.  
3.71.   According to the authorities , during the review period , the tax system was modernized, tax 
laws were prepared according to the country's socio , cultural  and econom ic context s, and emphasis 
was placed on e -filing. Efforts have been under  way to increase tax revenue (Section 1.2.4.1 ). The 
Revenue Mobilization Program for Results – VAT Im provement Program (January  2015-June 2020) , 
a joint venture with the World Bank Gr oup worth USD 73 million (of which US D 13 million from the 
                                                
33 Information provided by the authorities.  WT/TPR/S/385 • Bangladesh  
 
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  Governme nt of Bangladesh) , is to improve revenue mobilization, transparency in the VAT 
administration , and the VAT Law implementation (Section 3.3.1.1.2). According to the World Bank 
Group , inter a lia, the tax system is complex, which encourages non -compliance, and the indirect tax 
system is distortionary, discretionary and narrow based.34 Furthermore, Bangladesh 's trade policy 
appears to be  influenced by considerations of revenue and assistance to local industries rather than 
trade competitiveness (Section 3.3.1.2).35 Border and internal tax exemptions appear to be 
widespread , and translate into high revenue losses not assessed by the authori ties (Sections  3.1.3.6, 
3.2.4.2, 3.2.4.3, 3.3.1.2.3  and 3.3.1.2.4).  At the time of the previous TPR , the authorities were 
aware that if indirect taxes were applied uniformly on domestic production and imports, they would 
both reduce the anti -trade bias and  increase government revenue.36  
Table 3.8 Structure of direct and indirect tax revenue, 2011/12 -2017/18  
  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total tax revenue 
(BDT billion)  952.3  1,074.5  1,160.3  1,288.0  1,518.8  1,780.8  2,322.0  
% of GDP  9.0  9.0  8.6  8.5  8.8  9.0  10.4   
(% of total tax revenue)  
Direct taxes  30.6 33.0 33.8 32.9 30.9 30.7 34.7 
Income, profits and 
capital taxes  29.6 32.0 32.6 31.6 29.7 29.4 33.5 
Land development 
tax 0.5 0.5 0.6 0.5 0.5 0.5 0.5 
Other taxes and 
duties  0.5 0.5 0.6 0.7 0.7 0.8 0.7 
Indirect taxes  69.4 67.0 66.2 67.1 69.1 69.3 65.3 
VAT 35.6 36.0 35.4 35.2 35.9 35.8 35.6 
Import dutya 12.6 11.8 11.3 11.6 11.7 11.7 11.4 
Export duty  0.07 0.00 0.00 0.00 0.02 0.01 0.02 
Excise duty  0.7 0.7 0.7 0.8 1.0 1.0 0.7 
SD  17.2 15.2 15.5 16.4 17.2 17.7 15.0 
Narcotics and liquor 
duty 0.1 0.1 0.1 0.1 0.0 0.0 0.0 
Motor vehicle tax  0.7 0.8 0.8 0.8 1.1 0.8 0.7 
Stamp duty  2.5 2.5 2.5 2.3 2.1 2.1 1.7 
Other surchargesb 0.0 0.0 0.0 0.0 0.0 0.2 0.2 
a  Including RD. 
b  Including health development, environment safety and IT development surcharges.  
Note:  Including NBR and non -NBR taxes.  
Source:   Ministry  of Finance online information.  
3.3.1.1.2   Indirect taxation  
3.72.   Bangladesh's indirect tax structure remains virtually unchanged. The authorities consider that 
domestic and imported goods are subject to the same tax rates. According to NBR calculations, if 
customs duty of 25% , RD, and all other indirect taxes discussed in this Section are taken into 
account,  a total tax amount of BDT 40,624 is levied on a dutiable value of BDT 50,000 , which is 
equivalent to a total tax burden of 81.2%.37  
                                                
34 World Bank Group (2017), Bangladesh Country Snapshot , October. Viewed at: 
http://www.worldbank.org/en/country/bangladesh . 
35 Approximately  80%-88% of government  revenue comes from tax es; the r est is collected from 
different non -tax sources.  Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's 
Wing Finance Division, December ; Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), 
Strengthening Competitiveness in Bangladesh — Thematic Asses sment: A Diagnostic Trade Integration Study , 
Directions in Development, July, Washington, D.C.  
36 WTO document WT/TPR/S/270/Rev.1, 26 November 2012.  
37 NBR online information . Viewed at:  http://nbr.gov.bd/faq /vat-faq/eng . WT/TPR/S/385 • Bangladesh  
 
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  Value a dded tax (VAT)  
3.73.   VAT is the single largest source of tax revenue . It is collect ed by the NBR under the Internal 
Resource Division of the Ministry of Finance . It is levied at a rate of 15%, except for exports , where 
it is zero. However, due to the complexity faced by certain service suppliers , some additional rates , 
based on notional value -added , apply to some services , and no rebate is provided to the VAT payer 
concerned; in 2015/16 and 2017/18 , there were ten and nine different lower rates that are to be 
brought down to five (2%, 4.5%, 5%, 7% and 10%) as from 2018/ 19.38 A new Value Added Tax 
and Supplementary Duty Act, 2012 , introducing a flat 15% rate of VAT, was enacted but , amid 
pressure from businesses, its implementation was delayed until 2019/20.39 The valuation basis for 
imports is the dutiable c.i.f. value plu s the corresponding amounts of import duty, RD, and SD.  
3.74.   VAT exempt ed products  include basic needs (food, medicine, education, etc.), agriculture, 
immovable property, and education items. The Budget Speech 2018/19 refers to VAT exemptions 
at the import, ma nufacturing and services (insurance) stages , to protect and support the 
development of the agriculture, heavy engineering, textile and export sectors (Section  3.3.1.2.4).40  
Supplementary duty (SD)  
3.75.   Bangladesh  continues to levy a n SD to protect domestic indu stries from facing international 
competition and to restrict the use of certain undesirable ( on social, moral, religious or health 
grounds)  or luxurious items as per  the Budget Speech 2018/19.41 It currently covers 1,767  HS eight-
digit tariff lines (1,267  tariff lines in 2012/13).42 In 2018/19, its rates ranged between 10% and 
500% , including items such as motor vehicles depending on their engine capacity (20% to 500%), 
cigarettes (350%), cosmetics (45%), and perfume (30%); in 2012/13, the maximum rate was 
250%. The SD is levied on the landed c.i.f. value of goods plus the amount corresponding to Customs 
duty and RD.43 For the domestic supply of goods and services, SD is charged on their "reasonable 
imposable value" at the same time of the payment of VAT.  
Adva nce trade VAT (ATV)  
3.76.   ATV continues  to be levied at rates of 4% (82 HS eight -digit items, mostly motor vehicles) 
and 5% (previously 3%) (6,476 items) , on the VAT paid value (assessable c.i.f. value plus effective 
amounts of import duty, RD and SD), only on commercial imports, i.e.  commodities imported for 
retail sale.44 Several agricultural (528 items, mostly live animals and products thereof, fish and 
crustaceans , and vegetable products) and industrial (49 items, mostly fertilizers and other 
chemica ls) products are zero rated.  
Advance income tax (AIT)  
3.77.   The AIT continues to be collected under the Income Tax Act , and levied on virtually 
everything,  at rates of 2% (46 HS eight -digit tariff items, mostly petroleum oil/gases/bitumen)  or 
5% (6,820 items) o n the assessable c.i.f. value of imports  or BDT  800 per ton ne (15 items, mostly 
iron and steel), with a corresponding adjustment when the taxpayer settles his /her yearly income 
                                                
38 The lower additional rates appear to apply to restaurants without air conditioning, electricity supply, 
information technology services, photography and garages, goldsmiths, construction, etc . NBR and other online 
information. Viewed at: http://nbr.gov.bd/faq/vat -faq/eng  and https://www.nordeatrade.com/en/explore -new-
market/bangladesh/taxes ; Budget Speech 2018 /19, Bangladesh on a Pathway to Prosperity .  
39 The Value Added Tax and Supplementary Duty Act, 2012 (Act No. 47 of 2012). Viewed at: 
http://nbr.gov.bd/uploads/acts/18.pdf ; Ministry of Finance (2017), Bangladesh Economic Review 2017 , 
Economic Adviser's Wing Finance Division, December ; World Bank Group (2017), Bangladesh Country 
Snapshot , October. Viewed at: http://www.worldbank.org/en/country/b angladesh . 
40 Budget Speech 2018 /19, Bangladesh on a Pathway to Prosperity .  
41 Budget Speech 2018 /19, Bangladesh on a Pathway to Prosperity .  
42 WTO document WT/TPR/S/270/Rev.1, 26 November 2012.  
43 NBR online information. Viewed at: http://nbr.gov.bd/faq/vat -faq/eng . 
44 NBR online information . Viewed at:  http://nbr.gov.bd/faq/vat -faq/eng , and 2018/19 Customs Tariff; 
Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in Bangladesh 
— Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington,  D.C. WT/TPR/S/385 • Bangladesh  
 
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  tax.45 Some exemptions on 254 agricultural and industrial items are given via SR Os. The authorities 
indicated that the AIT is also levied at rates ranging from 2% to 7% if the assessable value of 
domestic goods and services exceeds BDT 15 crore.  
Excise duty  
3.78.   Bangladesh abolished excise duties on all goods and services except for airlin e tickets (except 
for 2017 Hajj passengers) and services rendered by banks or financial institutions. The latter are 
subject to a tax on each savings, current, loan, or other account with balances above defined levels , 
at rates ranging from BDT 150 (bank a ccount balance BDT 100,001 to BDT 500,000) to BDT 25,000 
(bank account balance above BDT 50 million).46  
3.3.1.1.3   Direct taxation  
3.79.   As at 2018/19 , corporate income tax rates remain largely unchanged , and are as follows: 
25% for publicly traded companies; 35% for non -publicly traded companies; 37.5% (40% before  
2013) for publicly -traded bank s, insurance and financial institution s and banks; 37.5% for merchant 
banks; 40% (42.5% prior to 2018/19) for non -publicly traded bank s, insurance and financial 
institution s; 45% for  all cigarette, bidi, zarda, chewing tobacco or other tobacco product 
manufacturing companies (40%  for publicly -traded companies prior to 2014 ); 45% for non -traded 
and 40% (raised from 35% in 2013/14) for publicly -traded mobile phone operator companies; an d 
20% on dividend income.47 Companies operating in designated zones , and several activities including 
exports, continue to benefit from special c orporate income tax incentives48; accelerated depreciation 
is provided for enterprises ineligible for tax holiday s.49 The authorities consider that corporate tax 
for publicly -traded compan ies in Bangladesh is lower than many countries in South Asia, and is on 
a par with the global average (24.29%); however, tax rates for banks and financial institutions are 
slightly h igher than those of other corporate sectors , and this is the reason for the 2018/19 
reductions. E-commerce and online businesses ha ve been subject to income taxation to ensure a 
level playing field between  the general business community and those involved in e-commerce and 
online businesses.50 Persons with an annual taxable turnover from their economic activities of 
between  BDT 3 million and BDT 8 million remain subject to a 3% turnover tax.51 In 2014/15 , a 
sixth tax bracket of 30% on personal income of up to  BDT 250,000 ( BDT 220,000 until 2013/14)  
was added . The authorities indicated that a  draft Income Tax Act , aimed at matching international 
best practices in this area , is to be put before Parliament by 2019.   
3.3.1.2   Production incentives  
3.80.   In addition to border me asures (Sections 3.1.4 and 3.2.4.1 ), Bangladesh continue s to 
encourage production and trade through various tax and non -tax incentives. It has never submitted 
notifications to the WTO Committee on Subsidies and Countervailing Measures. Between 2011/12 
and 2016/17 , expenditure  under the Annual Development Programme (ADP) almost tripled , to 
                                                
45 Kathuria S anjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington, D.C.  
46 Online article and NBR information. Viewed at: https://bdnews24.com/economy/2017/06/28/excise -
duty-on-bank-accounts -is-revised -on-pm-s-request  and http://nbr.gov.bd/regulations/gos/excise -gos/eng ; 
USTR (201 8), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf  
47 Considering the importance of public health, policies were adopted in 2016/17 to discourage the 
consumption  of tobacco and toba cco products. Taxation of the mobile  phone operator  industry represents a 
major source of tax revenue.  Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic 
Adviser's Wing Finance Division, December ; Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity ; 
USTR (2018), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/de fault/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf   
48 More information is available in Sections  3.2.4.2, 3.2.4.3, 3.3.1.2.3, 3. 3.1.2.4, 4.1.4, 4.1.6, 4.2.2.2, 
4.2.2.3, 4.3.3, and 4.3.4.  
49 Paragraph 7 of the 3rd Schedule of the Income Tax Ordinance, 1984 . Viewed at: 
https://www.export.gov/article?id=Bangladesh -Performance -Requirements . 
50 Ministry of Finance (2017), Bangladesh Economic Review 2017, Economic Adviser's Wing Finance 
Division, December.  
51 NBR online information . Viewed at:  http://nbr.gov.bd/faq/vat -faq/eng . WT/TPR/S/385 • Bangladesh  
 
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  BDT 1 trillion (5.6% of GDP).52 In 2016/17 , this expenditure was allocated , inter alia , to agriculture 
(13.7% of total ADP expenditure) (i.e. agriculture, rural development and rural institutions, water 
resources , and others), manufacturing (2%), power and natural resources (17.8%) , transport 
(20.5%) , and communications (1.5%). The ADP expen diture for 2018/19 was to be allocated as 
follows: 21.8% for agriculture, 14.3% for power and natural resources, 26.3% for communication 
(roads, railways, bridges , and other) and 10.8% for other sectors. In 2016/17 , ADP expenditure was 
used, inter alia , to support the purchase of machinery and equipment (16% of total ADP 
expenditure), breeding stock (0.06%), interest and repayment of loans (0.8%) and subsidies 
provision (14.1%). Education and training accounted for 10.9% of the ADP expenditure in 2016/17.53 
As indicated in previous TPRs of Bangladesh, tax holidays are seldom cost -effective. Bangladesh 
does not produce an annual report on tax expenditures (e.g. forgone tax revenue in the form of tax 
incentives), therefore the tax authorities are not in a posit ion to evaluate the impact and 
effectiveness of such incentives  (Section 3.3.1.1.1) .54  
3.3.1.2.1   Cottage, Micro, Small and Medium Enterprises  
3.81.   Cottage, Micro, Small and Medium Enterprises (CMSME) remain the backbone of the economy , 
as they ensure large part of emplo yment, sustain economic growth and earn foreign currency. 
CMSMEs have been redefined in line with the National Industrial Policy  2016, and "turnover for 
trading concern" (trade -related turnover) has been added as an additional criteri on for sector 
determin ation.55 During the review period , tax incentives continued to be available to CMSMEs , and 
their turnover tax -exempted limit was raised from BDT 30 lakh to BDT 36 lakh in 2016.56 An income 
tax exemption on export earnings from handicrafts and cottage industr ies may still remain in place.57 
No data on forgone tax revenue due to these incentives were available from the authorities.  
3.82.   SMEs continue to benefit from "easy term" loans and  from other support , through banks and 
other financial institutions.58 The Bangladesh Bank instructed banks and financial institutions (FIs) 
to put emphasis on financing to CMSMEs , at a preferential rate  a couple of percentage points lower 
rate than the bank's "standard interest rate ". Banks and FIs are instructed to provide a three-month 
grace period for a one -year term loan , and a three - to six -month grace period for medium - to 
long-term loan s, based on the banker -customer relationship. Non-eligible activities are: crop and 
                                                
52 Bangladesh Bureau of Statistics (2018), 2017 Statistical Year Book Bangladesh , Tables 9.04 and 9.05, 
May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.por tal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B2017.pdf ; Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing 
Finance Division, December ; Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .  
53 Kathuria S anjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington, D.C.  
54 WTO document WT/TPR/S/270/Rev.1, 26 November 20 12.  
55 CMSME s are defined as follows: micro -enterprises in manufacturing (fixed assets of BDT  10 lakh -
BDT 75 lakh, 16-30 or less  employees) and services (fixed assets of less than BDT  10 lakh, maximum 
15 employees); cottage enterprise ( family industry in w hich members are engaged part -time or full -time in 
production and service -oriented activities ) (fixed assets of less than BDT  10 lakh, maximum 15 employees); 
small enterprises in manufacturing (fixed assets of BDT  75 lakh –BDT 15 crore, 31 -120 employees) and services 
(fixed assets of BDT  10 lakh –BDT 2 crore, 16 –50 employees); medium enterprises in manufacturing (fixed assets 
BDT 15 crore–BDT 50 crore, 121 -300 employees ( garments , minimum 1,000  employees)) and services (fixed 
assets of BDT  2 crore–BDT 30 crore, 51 -120 employees); and trading sector  micro -enterprise s (fixed assets of 
less than BDT  10 lakh , maximum 15  employees ) and s mall industries  (fixed assets of BDT  10 lakh –BDT 20 crore , 
16-50employees) . According to t he 2013 National Economic Census by th e Bureau of Statistics , there were a 
total of 7.81 million economic entities in Bangladesh, of which a bout 88 % were cottage enterprises, and 11% 
were SMEs. However,  in reality, it appears that about 99 % of Bangladeshi formal business enterprises are SMEs ; 
they constitute about 75 % of non -agricultural employment and contribute about 25 % to GDP.  Approximately  
25% is contributed by the manufacturing SMEs. However, this amount could be much higher if the contribution 
of SMEs in the service s sector , the largest GDP contributor , is taken into account . Md Joynal Abdin  (2017), SMEs 
and our development goals , 25 February . Viewed at: https://www.thedailystar.net/education -
employment/smes -and-our-development -goals-1366591 ; The Daily Star  online article entitled BB updates SME 
terms , 3 July 2017. Viewed at: https://www.thedailystar.net/business/bb -updates -sme-terms -1427509 ; 
Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance Division, 
December.  
56 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic A dviser's Wing Finance 
Division, December.   
57 According to SRO No. 339 -L/86, 13 August 1986 . 
58 Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .   WT/TPR/S/385 • Bangladesh  
 
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  fish production; real estate; finance  and insurance; pr ecious metal dealing; bar s and pub s; 
amusement, entertainment (except for amusement park s, tourism, film -making and TV 
broadcasting); weapon s, ammunition; or anything harmful to social stability. Between 2012 and 
June 2018 , all Bangladeshi banks and non -bank financial institutions (NBFIs) disb ursed a total of 
BDT 7.5 trillion for CMSME loans, which was allocated to manufacturing (27.9%), trading (61.3%) 
and services (10.8%) activities, including women entrepreneurs (4.5%); annual disbursements rose 
by a total of 231.9% in the period 2012 -17.59   
3.83.   Refinancing schemes are operated through the Bangladesh Bank to encourage banks and FIs 
to provide low -cost bank loans for SME industries under female  entreprene urship, agro -industries, 
new entrepreneurs , and other pr oductive sectors.60 Under the Loan Agreement for the Two-Step 
Loan (TSL) Project , aimed at support ing SME sector development, as from May 2011 , the Japan 
International Cooperation Agency (JICA) has provided a total amount of JPY 5 billion of concessional 
Official Development Assistance (ODA) loans to the Government; these funds have , in turn , been 
on-lent to the participating FIs, which then re -lend to private -sector sub -borrowers. Eligible 
end-borrowers are SMEs.61 The Bangladesh Ba nk Fund, the World Bank Group International 
Development Association  (IDA) Enterprise Growth and Bank Modernization Project (EGBMP) Fund , 
the Asian Development Bank ADB-1 Fund, the ADB-2 Fund,  the JICA Fund, the Women Entrepreneur 
Fund, and the New Entrepre neur Fund in the Cottage, Micro and Small Sector have been used , 
inter alia, to refinance SME loans.62 The authorities indicated that the participatory financial 
institutions (PFIs) are refinanced at the Bank Rate (5% as at November 2018); furthermore, PFIs  
are refinanced/pre -financed at a 2% interest rate under the JICA-funded Urban Building Safety 
Project. A maximum lending cap of 9% (Bank Rate + maximum 4% intermediation spread) has been 
imposed on financing to female -led enterprises under all refinancing  schemes. As at June 2018, 
eight different refinanc ing schemes , totalling BDT 7,590.05  crore, were being operated by the 
SME and Special Programmes Department of the Bangladesh Bank; the Small Ent repreneurs 
Refinance Scheme  and the Refinance Scheme for Agr o-based Industries in Rural Areas  accounted 
for 46% and 20% of the entire amount , respectively.  
3.3.1.2.2   Research and development  (R&D)  
3.84.   R&D investment increases and accelerates economic growth, and ensures sustainable 
development.63 Seemingly inadequate funding, lim ited resources, a shortage of skilled manpower in 
many areas, inadequate research facilities and skill development programmes, a lack of coordination 
among scientific organizations, outmoded science curricula in the educational institutions, 
dependence on foreign technology, brain drain and emigration of trained manpower , and poor social 
awareness  of the role of science and technology in national development mean that  Bangladesh  is 
underdeveloped .64 It has undertaken research work in only a relatively small number of areas , and 
progress in R&D activities has not been very satisfactory so far.  
3.85.   The National Science and Technology Policy 2011 is  aimed at , inter alia : creating an adequate 
R&D infrastructure in science and technology areas of national need ; encourag ing the  private sector 
to set up R&D centres for quality products; and developing SME -friendly technology for the 
sustainable growth of SMEs .65 The National Scientific and Technical Documentation Centre under the 
Ministry of Science and Technology (MoST) is the national scientific research archive , and provides 
support to R&D projects.66 In 2010/11 , BDT 15 crore was allocated to the development of science 
and technology , inter alia , through research contracts, the Coordinated Research Pro gramme (CRP) , 
                                                
59 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.   
60 Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .   
61 Project Implementation Unit, SME and Special Programmes Department , Bangladesh Bank (undated), 
Operating Guidelines for Financial Sector Project for the Development of Small and Medium -Sized Enterprises .  
62 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.   
63 Viewed at: https://www.innovationfiles.org/fueling -innovation -the-role-of-rd-in-economic -growth/ . 
64 MoST (undated), National Science and Technology Policy  - 2011. Viewed at: 
https://most.portal.gov.bd/sites/default/files/files/most.portal.gov.bd/policies/2303afd3_6664_4a38_957e_6e
35f1d7f0bf/National%20 Science%20&%20Technology%20Policy%20 -%202011%20%20English.pdf . 
65 MoST  (undated), National Science and Technology Policy  - 2011. Viewed at:  
https://most.portal.gov.bd/sites/default/files/files/most.portal.gov.bd/policies/2303afd3_6664_4a38_957e_6e
35f1d7f0bf/National%20Science%20&%20Technology%20Policy%20 -%202011%20%20English.pdf . 
66 Viewed at: http://old.bansdoc.gov.bd/sub/introduction_bansdoc.php . WT/TPR/S/385 • Bangladesh  
 
- 64 - 
 
  and Capacity Build -up/Capacity Institutionalization Programmes.67 Furthermore, in 2010/11 , 
171 programmes were financed by R&D organizations and universities. The MoST assisted Pilot 
Plants to commercialize R&D results.  Exemption from tax and  non-tax ince ntives for R&D activities 
per se  appear  to have been put in place since the last TPR. No information on R&D matters was 
available from the authorities.  
3.3.1.2.3   Designated zones  
3.86.   Support continues to be available for the establishment and operation of economic zones  
(EZs), Export Processing Zones (EPZs) and high -tech parks (Sections 3.2.4.3 , 3.3.1.2.3.1 and 
3.3.1.2.3.2). A joint venture worth USD 197.2 million (of which US D 7 million from the Gov ernme nt 
of Bangladesh) with the World Bank Group Private Sector Developm ent Support Pr oject (from 
3 August 2011 to 28  February 2021) is , inter alia , aimed at improving the business environment and 
access to serviced land , through EZs and hi -tech parks . The Bangladesh Economic Zones Authority 
(BEZA) (Section 3.3.1.2.3.1) is a beneficiary of this funding . it seems that , as at 2017, this project 
had generated US D 1.18 billion in direct investment , and created 12,310 new jobs in these zones 
and parks.68 The BEZA has also been sourcing ADP funds (Section  3.3.1.2) for infrastructu re 
development of different EZs , including tourism parks. As at October 2018, the BEZA register ed 
USD 16.98 billion in approv ed direct investment in EZs , including US D 5.81 billion as FDI; the 
projected employment relating to this investment is estimated a t approximately 600,000 jobs.  
3.3.1.2.3.1   Economic zones  
3.87.   The legal framework for investing in EZs remains based on the Bangladesh Economic Zones 
Act, 2010 , that was last amended in 2015 to insert provisions for the establishment of EZs in 
partnership with, or on the initiative of, the Government of Bangladesh and the Government of any 
other country , or between one or more government corporation s, authorit ies or enterprise s. The 
BEZA is responsible for establishing EZs in all potential areas , including underdeveloped re gions , 
with a view to encouraging rapid economic development through the increase and diversification of 
industry, employment, production and export s. The Private Economic Zone Policy 2015 is in place 
to extend support  relating to licence s, special facilities, one -stop services, permits, rights and 
obligation s of developer s, guidelines for environment al protection, protection of workers ' rights , etc. 
regarding  these zones (see below).69 Project clearance, visa recommendation s and assistance, work 
permits, and import/export permit services are processed under the one-stop service by the  BEZA.  
3.88.   Incentives for zone developers comprise: tax exemption on income derived from the business 
development of the EZ; VAT exemption on electricity or taxes on sale of  self-generated or purchased 
electric power for use in the processing area of the EZ (for 10 years); all purchase s, other than  
petroleum product s from the Domestic Tariff Area (DTA) exempt ed from VAT, sales tax, etc.; 
exemption from custom s/excise duties f or the development of EZs; exemption from stamp duty and 
registration fees for the registration of EZ land (first transaction only); exemption from stamp duty 
for the registration of loan/credit document s; exemption from dividend tax; and exemption from 
income tax on service charges.70 Industries set up within EZs are exempt from corporate income tax 
for the first three  years , and pay a reduced rate for the next seven years .71 There are six  categories 
                                                
67 MoST  (2012), Guidelines for Different Programmes under Special Allocation for Science and 
Technology , March. Viewed at: 
https:// most.portal.gov.bd/sites/default/files/files/most.portal.gov.bd/page/cec73ee6_6c9b_4278_8cce_acedd
1434afa/GUIDELINES%20FOR%20DIFFERENT%20PROGRAMMES%20UNDER%20SPECIAL%20ALLOCATI%E2%
80%A6.pdf . 
68 World Bank Group (2017), Bangladesh Country Snapshot, October . Viewed at: 
http://www.worldbank.org/en/country/bangladesh .  
69 Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .  
70 Tax exemption on income derived from the business development of E Zs, for a period  of 10 years out 
of a total of 15 years. After expiry of 10th year, tax exemption will be 70% in 11th year and 30% in 12th year. 
However,  according to the authorities the tax exemption will not be applicable from the 13th year. BEZA online 
information . Viewed at:  http://www.beza.gov.bd/wp -content/uploads/2016/10/Incentives -and-Benefits -for-
Developers -Investors -and-EZ-users -V2.pdf . 
71 SRO No. 219 of 2012 . Viewed at:  https://www.export.gov/article?id=Bangladesh -Performance -
Requirements . WT/TPR/S/385 • Bangladesh  
 
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  of EZs: public-private partnership (PPP) EZs; private EZs; government EZs; special EZs (SEZs) ; G2G 
EZs; and government agency EZs.72  
3.89.   Bangladesh plans to establish 100 environment -friendly EZs on 30,000 hectares of land by 
2030; they are to increase export earnings by US D 40 billion , and create  10 million jobs. A s at 
October  2018, the Government had approved 89 EZs (60 public and 29 private) , of which only 
10 were inaugurated ; development of another 26 were underway . However, according to the BEZA , 
55 were g overnment -owned zones , and 11 were p rivate sector-owned.73 Foreign and local investors 
have started setting up industries in these zones. S o far, 25 industries ha ve started commercial 
operations , to produce consumable items, paper, shoes, cement, motor cycle s, petro -chemicals, etc.  
in private EZs.  
3.3.1.2.3.2   High -tech park s 
3.90.   Bangladesh's IT services industry, which employs more than 20,000 people, seems to hold 
great potential , owing to the vast pool of young, trained and English -speaking resources.74 The 
Bangladesh High -tech Park Authority (BHTPA), set up in 2010, is entrust ed with establishing, 
managing and operating technology business parks; online information is available in Bengali only  
(http://bhtpa.gov.bd/ ). Since mid -2015, high-tech park developers have benefited from income tax  
exemption s similar to those available to EZs (Section 3.3.1.2.3.1) . In addition , industries established 
in high-tech parks benefit from customs dut y and VAT exemption on import s of capital equipment , 
construction material s (except mild steel wrought/bar, prefabricated building s, iron/steel sheet, 
cement, refrigerators, etc.) and two  vehicles. According to the BHTPA, as at November 2018 , 
seven  projects had been approved and were under  way, and one appears  to be operational, i.e. the 
Software Technology Park  (STP) at Janata Tower/Dhaka.75  
3.3.1.2.4   Sector -specific support  
3.91.   During the review period, sector -specific activities were supported by tax and non -tax 
incentives ; and border measures , including up to 20% cash incentives on exporting certain products , 
and a 50% reb ate on taxable income generated from export earnings (Section  3.2.4.1 ).76 Agriculture 
has benefited , inter alia , from the Bangladesh Bank's concessional credit (e.g. a 4% interest rate 
(for some import substitute crops (pulses, oil seeds, spices, maize), a 5% interest rate (for tribal 
farmers of hill track districts), and r efinance schemes (for milk production and artificial insemination, 
export -oriented jute mills and jute traders, and for sharecroppers)) ; subsidies for the purchase of 
agricultural inputs ( including fertilizer and equipment) ; seed distribution ; government procurement 
and state trading practices for the public storage of food grains (e.g. paddy, rice and wheat) ; lowest 
electricity tariff for irrigation pumps (see below) ; a 20% rebate on elect ricity invoices of agro -based 
industries ; and agricultural rehabilitation assistance programmes ( Sections 3.2.4.1,  4.1.3 and 
4.1.4 ).77 In line with other support measures to the jute sector (Sections 3.3.2. 2, 3.3.2.3  and 4.3 ), 
from 2016/17 , the corporate in come tax rate for the jute sector was reduced from 15% to 10%. In 
2016/17, the total revised budget allocation for the agricultural sector for development purposes 
stood at BDT 3,091.00 crore.  
3.92.   Certain energy development and supply activities continued t o benefit from support 
(Section  4.2.2 ). Power projects are exempt from corporate income tax for up to 15  years.78 The 
                                                
72 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
73 BEZA online information . Viewed at:  http://www.beza.gov.bd/wp -
content/uploads/2016/10/Incentives -and-Benefits -for-Developers -Investors -and-EZ-users -V2.pdf ; Budget 
Speech 2018 -19, Bangladesh on a Pathway to Prosperity . 
74 The Daily Star  online article entitled " Tax breaks for developers, investors of hi -tech parks ", 
14 July 2015.  Viewed at: https://www.thedailystar.net/business/tax -breaks -developers -investors -hi-tech-
parks -112048 .  
75 More information on the progress of works at certain parks is available at the Ministry of Finance (2017), 
Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance Division, December.  
76 Section 44(1) and paragraph 28 of the 6th Schedule Part A of the Income Tax Ordinance, 1984 . 
77 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.   
78 SRO No. 211 - Law/Income Tax/2013, 1 July 2013, amended by SRO No. 354 - Law/Income Tax/2013, 
18 November 2013, and SRO No. 213 - Law/Income Tax/2013, 1 July 2013. Viewed at:  
https://www.export.gov/article?id=Bangladesh -Performance -Requirements . WT/TPR/S/385 • Bangladesh  
 
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  World Bank Group and several donors have financed energy projects.79 According to Bangladesh 
Energy Regulatory Commission data, retail electricity tariffs differ according to  consumer category 
(Section  4.2.2.2 ); as of 2018, the flat tariff for agricultural irrigation pumping was one quarter  of 
the highest tariff , which was  charged on construction  activities,  and was followed by those on 
industry , and commercial and office activities. Between 2011/12 and 2017/18 , budgetary outlays 
totaling BDT 37,215.49 crore were used to cover electricity production costs , as tariffs do not  reflect 
them entirely. As a result of losses by the state -owned Bangladesh Petroleum Corporation (BPC) 
(Section s 3.3.5 and 4.2.2.1.1 ), due to non -adjustment of the world oil price increases in the 
domestic market and the level of custom duties  levied on o il imports , subsidy was used for importing 
petroleum products in 2011/12 ( BDT 8,550.00 crore), 2012/13 ( BDT 13,557.83 crore) , and 2013/14 
(BDT 2,477.60 crore); due to  the world oil price drop in recent years, no subsidy was required in 
2015/16 or 2016/17.80  
3.93.   In addition to border measures (e.g. customs duty concessions for raw materials for 
processing (leather, textile) , and certain items and parts), specific manufacturing activities benefit 
from tax incentives ( Sections 3.1.3.2 , 3.2.4.1, 4.3.3 and 4.3.4 ).81 The Industrial Policy Act , 2016 
provides for incentives for "green ", high -tech, or "transformative " industries (Section s 2.4.3, 2.4.4 
and 4.3.2).82 Corporate income tax holidays of five to seven years  remain in place for new 
enterprises in textiles, pharmaceuticals, plastic s, ceramics, sanitary items, iron works, steel works, 
fertilizers, insecticides, computer hardware, petrochemicals, pharmaceutical raw materials, 
agricultural equipment , and industrial machinery, depending on the location.83 The inco me tax rate 
for manufacturer s and exporter s of RMGs is 10% (12.5% for a public limited company), a much 
lower rate than the general income tax rate (Section  3.3.1.1.3); any garment factory having green 
building certification is subject to a tax rate of 10% .84 VAT exemptions for specific items at the 
production , import or service stage have been either withdrawn or extended (Section 3.3.1.1.3).  
3.3.2   Standards and other technical requirements  
3.3.2.1   Standards -setting framework  
Institutional and cooperation developments  
3.94.   During the review period, the institutional setting in this area remained virtually unchanged. 
The Ministry of Industries continues to be responsible for leading and facilitating the legal and 
technical institutional framework for national standards (except  pharmaceutical products), quality , 
and conformity assessment.85 Its main institutions are the Bangladesh Standards and Testing 
Institution (BSTI), the sole national standardization, enforcement and quality certification body , that 
also provides metrology a nd calibration services ; and the Bangladesh Accreditation Board (BAB) 
(Section s 3.3.2. 2 and 3.3.3.1 ). According to the authorities , the Department of Fisheries , under the 
administrative control of the Ministry of Fisheries  and Livestock , is in charge of Hazard Analysis and 
Critical Control Points (HACCP) certification (Section 3.3.2. 2). The BSTI Council, the highest 
decision -making organ of the institution, consists of representatives from different ministries, 
business chambers, scientific organizations, and universities. It remains the WTO enquiry point and 
had not subscribed to ePing as at November 2018 ( http://www.epingalert.org/en#/enquiry -
points/tbt ). It coordinates and heads a system of technical committees , consisting of a mixture of 
government, academia, and private  sector representatives , that draft voluntary standards; it also 
                                                
79 They include:  the G horashal Unit 4 Repowering Project ; the R ural Electricity Transmission and 
Distribution  Project; the P ower System Reliability and Efficiency Improvement Project ; and the S iddhirganj Power 
Project . World Bank Group (2017), Bangladesh Country Snapshot , October. Viewed at: 
http://www.worldbank.org/en/country/bangladesh . 
80 Ministry of Finance (2017) , Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
81 Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .  
82 United States Department of State Information/Bureau of Economic and Business Affairs (2017), 
2017 Investment Climate Statements Report - Bangladesh , 29 June, Washington , D.C. Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/2017/sca/270013.htm .  
83 Viewed at: https://www.export.gov/article?id=Bangladesh -Performance -Requirements . 
84 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December ; Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity .  
85 More information on these institutions is available in WTO document WT/TPR/S/270/Rev.1, 
26 November 2012 , and Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening 
Competi tiveness in Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in 
Development, July, Washington , D.C. WT/TPR/S/385 • Bangladesh  
 
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  influences the adoption and formulation of mandatory standards , while simultaneously benefitting 
from the incomes derived from testing, inspection, and certification against these mandatory 
standards.86 Although no regulatory impact analysis (RIA) appears  to be in place, Bangladesh 
gathers  stakeholders ' opinions prior to the adoption of a standard or technical regulation.  
3.95.   During the review period , MoUs or bilateral cooperation agreements (BCAs)  signed between 
national standards bodies (NSBs) and the BSTI increased from 2 in 2012 to 9 in 2018 (September); 
the new arrangement s involved the NSBs of India, Saudi  Arabia, Nepal, Bhutan, Sri  Lanka, Turkey,  
and China.  
Policy developments  
3.96.   The main policy objectives in this area remain unchanged , and involve the harmonization of 
national standards with international ones,  and the adoption of international standards. During the 
review period , steps were  taken , inter alia , to expand the activities of the BSTI throughout the 
country under the 2015 Expansion and Strengthening of Bangladesh Standards and Testing 
Institution s Project ( in five districts). A modern energy -efficient testing laboratory was established 
in the BSTI Head Office , under the technic al and financial assistance of the Deutsche Gesellschaft 
für Internationale Zusammenarbeit GmbH ( GIZ) (Germany) (Section 4.2.2.3 ).87  
Regulatory framework  
3.97.   During the review period, the main legislative framework in the area of standards remained 
largely unc hanged , except for new BSTI ( Amendment) Act , 2018 (passed on 28  October  2018), and 
the Weights and Measures Standards Act , 2018; in both cases , the amendments , inter alia , increased 
fines and prison offence durations .88 A number of standards ' "special rules " are contained the IPO 
issued by the MOC. For example, the 2015 -18 Order includes applicable conditions for the import of 
food for human consumption, secondary quality imports of certain sheets and plates (e.g. stainless 
steel, tin plate, and silicon) , and the testing of standards for electric kW meters.89  
3.3.2.2   Voluntary, compulsory and aligned standards  
3.98.   Standards continue to be implemented on a voluntary basis, unless they are designated as 
technical regulations  (compulsory) . As at June 2018, the BSTI had formulated and adopted 
3,768  (3,300 in 2012) BDS s. Alignment with international standards reduces the trade 
restrictiveness of technical regulations; according to the authorities, as at June 2018 , about 52% 
(42% in 2012) of BDSs were aligned with internati onal standards , and 4.5% (1.5% in 2012) with 
regional standards (i.e. 171  European Standards  (ENs) and 3 South  Asian Regional Standards 
Organization  standards ).90 In 2018, international standards adopted by the BSTI included 
1,535  (1,368 in 2012) Internatio nal Organi zation for Standardi zation (ISO) standards, 198 (163 in 
2012) International Electrotechnical Commission (IEC)  standards , 86 ISO/IEC  standards,  and 
140 Codex Alimentarius Commission ( CAC) standards. As at May 2018, 166 (4.4% of all BDS s) were 
mand atory (i.e.  under the Mandatory Certification Marks Scheme); and 55 (43 in 2012) imported 
products required mandatory certification (i.e. inspection and testing) before customs clearance . 
The BSTI provide s Clearance Certificates of Imported Commodities thr ough ASYCUDA World .91 
                                                
86 The consultative process for standards development is reportedly weak. Although various consultative 
committees are in p lace, they are largely dominated by the BSTI, and business sector representatives are often 
drawn from SOEs. Furthermore, i t is international best practice to separate regulatory powers (such as setting 
mandatory standards) and conformity assessment (such as testing, inspection, and certification).  Kathuria 
Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in Bangladesh — 
Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, Washington , D.C.  
87 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
88 More information about the legislative framework can be viewed at: http://www.bsti.gov.bd/ . 
89 IPO 2015-18. Viewed at: 
https://mincom.portal.gov.bd/sites/default/files/files/mincom.portal.gov.bd/pa ge/e177ee18_f389_4f9e_a40c_
57435cfac5b2/Import%20Policy.pdf . 
90 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington, D.C.  
 91 The categories of items under the Mandatory Certification Marks Scheme consist of: agricultural and 
food products (71 items); chemical products (42); engineering products (15); jute and textile products (11); WT/TPR/S/385 • Bangladesh  
 
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  According to the BSTI , all consignments are inspected, and no risk profiling is used to prioritize the 
burden of conformity assessment.92 At the time of the previous TPR, the authorities indicated that 
testing and certification procedur es for technical regulations  were the same for domestic and 
imported products.  
3.99.   Since 2010 , Management System Certification (MSC) has been an important addition to the 
BSTI; as at July 2018 , it had issued 48 different system certificates under the quality, environment 
and food safety management systems.93  
3.100.   During the review period , the legal framework governing HACCP s was updated. For fisheries , 
it consists of Rule 5(1)  and 19 and Schedule  9 of the Fish and Fish Product (Inspection and Quality 
Control) Rules , 1997 (amended in 2008  and 2014) and , for livestock , the Framing of Animal 
Slaughter and Meat Control Rules , 2018 are under preparation; a quality control laboratory will be 
established at Savar, Dhaka.  
3.101.   The BAB remains empowered to accredit Testing and Calibration Laboratories, Medical 
Laboratories, Inspection Bodies, Personnel Certification , and Product Certification. It already 
accredited different types of testing and calibration laborat ory system certification to national and 
multinational organi zations/companies. As at November 2018, the BAB had accredited 
66 Conformity Assessment Bodies (CABs) , of which 50 were testing laboratories, 9 , calibration 
laboratories, 2 , medical laboratories,  2, system certifications bodies, and 3 , inspection bodies; some 
applications for accreditation are being  process ed. International accreditation bodies seemingly 
operate in Bangladesh and , in the future , may compete with the BAB; they appear to primarily 
service the garment industry and similar export -oriented light manufacturing industries.94 The BAB 
is responsible for framing policies and approving rules  and regulations for accreditation, and 
establishing multilateral recognition arrangements (M RAs) with r egional and international 
accreditation bodies. Since 2015 , it has been the signatory to , and full member of , the Asia Pacific 
Laboratory Accreditation Cooperation (APLAC) and the International Laboratory Accreditation 
Cooperation (ILAC).95 It is an affilia ted member of the Pacific Accreditation Cooperation (PAC) , and 
applied for membership of the International Accreditation Forum (IAF). It also works closely with 
the Standards and Metrology Institute for Islamic Countries (SMIIC), the SAARC Expert Group on 
Accreditation (SEGA), and the HALAL scheme.   
3.3.2.3   Transparency and enforcement   
3.102.   Transparency in the area of standards appears to remain a concern. According to a 2010 
United Nations Industrial Development Organization (UNIDO) baseline study report, as the 
legislation is focused on technical regulations , many BDSs have remained unpubli shed for years; as 
at November 2018 , there were about 1,500 (out of 3,768) unpublished BDSs.96 Bangladesh has not 
submitted any notification on draft measures (technical regulations) or conformity assessment 
                                                
and electrical and e lectronics products (27). The categories of products subject to mandatory certification prior 
to customs clearance comprise: food products (23 items); chemical products (14); textile product s (2); electrical 
and electronic products (9); and engineering pro ducts (6). These lists are available at: http://www.bsti.gov.bd/ . 
The products and issues regulated by technical regulations  appear to be chosen somewhat randomly, allegedly 
not in line with international best practi ce. Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), 
Strengthening Competitiveness in Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study, 
Directions in Development , July, Washington , DC.  
92 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington, DC.  
93 BSTI online information.  Viewed at:  
http://bsti.portal.gov.bd/sites/default/files/files/bsti.portal.gov.b d/page/fe1167fe_3ff0_449e_8e63_447eb405b
6a9/Management%20System%20Cirtificate%20(19 -02-2018)%20(1).pdf . 
94 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Int egration Study , Directions in Development, July, 
Washington , D.C.   
95 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
96 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthen ing Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington , D.C.   WT/TPR/S/385 • Bangladesh  
 
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  procedures to the WTO Committee on Technical Barr iers to Trade so far.97 Until now , it has not been 
subject to TBT -related specific trade concerns.  
3.103.   In 2016/17, 654 mobile courts had been established (Section 3.3.7.3.3) , and 
1,219  surveillance actions were undertaken , leading to 1,323 cases being filed ag ainst standards ' 
offenders by the BSTI , and requiring them to cease the sale and /or distribution of illegal and /or 
sub-standard products.98 At the same time; 505  mobile courts had been established and 
367 surveillance actions were conducted against users of  illegal weights  and measures, resulting in 
1,280 filed cases. Offenders were fined a total of BDT 5.43 crore.  
3.3.2.4   Marking, labelling and packaging requirements  
3.104.   During the review period , the main regulatory framework in this area remained virtually 
unchanged , except for jute packaging . Marking, labelling and packaging requirements are contained 
in relevant BDS s. Labelling requirements are also found in the Bangladesh Standards of Weights and 
Measures (Packaged Commodities) Rules, 2007 , under the Weights and M easures Ordinance, 1982. 
Each package should contain: the name and address of the manufacturer and packer; the common 
or generic name of the product , with all ingredients; the net weight; the dates of manufacture and 
expiry; and the retail price of the pac kage. Upon the enactment of the Compulsory Use of Jute Fiber 
Packaging Act , 2010 and the Rules for Compulsory Use of Jute Fiber Packaging , 2013, another 
measure to support the  jute sector , jute fib re packaging has become compulsory for 17 items.99  
3.3.3   Sanitary  and phytosanitary requirements  
3.3.3.1   Food standards -setting framework  
Institutional and policy developments  
3.105.   Several ministries and agencies (e.g. the Ministry of Agriculture, the Ministry of Health  and 
Family Welfare , the Ministry of Fisheries, the Bangladesh Food Safety Authority/Ministry of Food (see 
below), and the BSTI/Ministry of Industries)  remain responsible for SPS measures , depending on 
their area of expertise (Sections 3.3.2 and 3.3.3.2).100 Food safety standards continue to be set by 
the BSTI, which generally seeks to base them on the international Codex Alimentarius  standards.101 
The BSTI focuses on the implementation of the mandatory food BDSs for which it is responsible 
(Sections 3.3.2.1 and 3.3.3.2); as of July 2018, there were 598 food BDS s, of which 82 were 
mandatory (about 14%) , and 140 had been adopted from Codex Alimentarius  standards .102 All 
established maximum residue limits (MRLs) , and  are implemented across the board for both 
imported and locally produced products. To improve the coun try's seemingly complicated food 
inspection framework , following the passing of relevant legislation (see above), as from 
2 February  2015, the Bangladesh Food Safety Authority (BFSA) , a statutory body under the Ministry 
of Food , was established  to ensure t he overall coordination.103 The BFSA is the main body for 
                                                
97 So far, Bangladesh's WTO notifications consisted of: a TBT Art. 15.2 notification in document 
G/TBT/2/Add.88  (2006); and an acceptance to the TBT Code of Good Practice in  documents G/TBT/CS/N/92 
(1998) and G/TBT/CS/N/145 (2002) . WTO document G/TBT/40 , 12 March 2018 . 
98 A mobile court takes place w hen a magistrate moves to the place of the offence co mmitted and tries 
the case outside the courtroom.  Bangladesh Law Digest online information Viewed at: 
http://bdlawdigest.org/mobile -court-conflict -of-interest -between -the-judiciary -and-the-executive.html ; 
Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance Division, 
December.  
99 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Advi ser's Wing Finance 
Division, December.  More information is available in Sections 3.2.3, 3.2.4, 3.3.1.2.4, 3.3.2.1 , and 4.3.5.2. 
100 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 .  
101 The National Codex Contact Point and National Codex Committee are in the  BSTI. Kathuria Sanjay, 
and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in Bangladesh — Thematic 
Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, Washington, D.C.  
102 This BDS coverage includes: cereals; pulses ; oilseeds; milk and milk products ; fish and fisheries 
products ; spices and condiments ; animal feed ; fruit and vegetable products ; starch, derivatives and their 
by-products ; forest products ; food colour ings; artificial sweeteners and additives ; pesticides ; soft drinks and 
beverages ; and irradiated food products . BSTI (2018), List of Bangladesh Standards (BDS) on agricultural and 
food products , January. Viewed at: http://www.bsti.gov.bd/ .  
103 Fifteen  ministr ies are reportedly involved in food safety and quality control, and ten are directly 
involved in food inspection and enforcement services. The roles and responsibilities of the ministries and agencies 
concerned  seem unclear.  Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening WT/TPR/S/385 • Bangladesh  
 
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  ensuring food safety , and for establishing rules and regulations for setting MRLs (see below) and 
applicable limits for chemicals and other contaminants according to Codex standards.  The BFSA's 
multid isciplinary National Food Safety Management Advisory Council is tasked with providing advice 
and direction/guidance to the BFSA and all others concerned with food safety management.104  
International cooperation  
3.106.   Bangladesh is a member of the World Organizati on for Animal Health (OIE). In partnership 
with the BSTI, the United Nations Food and Agriculture Organization (FAO) Food Safety Programme 
has continued to support capacity development activities to strengthen the country's participation 
in the Codex stand ard-setting process .105 Bangladesh signed SPS-related MoUs with Sri Lanka, 
Viet Nam, India , and the Russian Federation.  
Regulatory developments  
3.107.   Since its previous TPR , Bangladesh's main laws and regulations governing food standards 
and sanitary and phytosanitary (SPS) standards were added to with  food safety legislation , including: 
the Food Safety Act, 2013; the Food Safety (Food processing and administration system) Ru les, 
2014; the Formalin Control Act, 2015; the Formalin ( Import, Production, Transportation, Storage, 
Sales and Usage) Control Rules, 2015 ; the Food Safety (Contaminants, Toxins and Harmful 
Residues) Regulations, 2017; the Food Safety (Labelling) Regulatio ns, 2017; the Use of Food 
Additives Regulations, 2017; the Food Sample Collection, Testing and Analysis Regulations, 2017; 
the Food Safety (Technical Committee) Rules, 2017; and the Safe Food (Food Hygiene) Regulation, 
2018.106 This legislation was passed to  ensure the establishment of an efficient and effective 
authority (see below) , and to regulate, through coordination, the activities relating to food 
production, import, processing, stock, supply, marketing and sales , to ensur e access to safe food 
through the appropriate application of scientific process.  
MRLs  
3.108.   As at July 2018, the BSTI's BDSs covered 27 pesticides (including one insecticide) 
(Section  3.3.3.1). MRLs are checked by the Plant Protection Wing of the Department of Agricultural 
Extension under t he Ministry of Agriculture.  This Wing ensures the prevention of the introduction of 
quarantine pests through import ed plants and plants products, beneficial organisms and packaging 
materials. The BFSA is responsible for setting and promulgating MRLs for fo od; its Food Safety 
(Contaminants, Toxins and Harmful Residues) Regulations contain a set of MRLs for most food s for 
human consumption.  
                                                
Competitiveness in Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in 
Development, July, Washington , D.C. 
104 The National Food Safety Management Advisory Council is chaired by the minister in charge of the 
Ministry of Food, and includes high -level representatives from the Cabinet , the Parliament , the Ministry of Public 
Administration , the Ministry of Home Affairs , the Ministry of Health and Family Welfare , the MOC, the Ministry of 
Agriculture , the Ministry of Fisheries and Livestock , the Ministry of Environment and Forest , the Ministry of 
Industries , the MoST, the Ministry of Information , the Bangladesh Council of Sci entific and Industrial Research , 
the Bangladesh Atomic Energy Commission , the Bangladesh Food Safety Authority  (BFSA), the BSTI, the BAB, 
the Institute of Nutrition and Food Science  (University of Dhaka ), the University of Dhaka , the Federation of 
Banglade sh Chambers of Commerce and Industries , the City Corporation , and the Upazila Parisad Chairman (to 
be nominated by the Government).  BFSA online information. Viewed at: 
http://www.bfsa.gov.bd/index.php/bfsa -advisory -council/223 -bfsa-advisory -council .  
105 FAO online information. Viewed at: http://www.fao.org/in -action/food -safety -
bangladesh/news/detail/en/c/411759/ . 
106 Sanitary standards remain governed by the Pure Food Ordinance , 1959, as revised by the Food Safety 
Ordinance , 1994, and the Pure Food Rules, 1967 . At the time of the previous TPR, d omestically, the food safety 
regime was considered  as weak.  According to a 2010 FAO report, while a range of national policies and other 
documents made some reference to aspects of food safety and quality in Bangladesh, there was only limited 
focus on food  safety, and important issues were dealt with only superficially. WTO document 
WT/TPR/S/270/Rev.1, 26 November 2012 ; BFSA  online information . Viewed at:  
http://www.bfsa.gov.bd/index.php/law -justice. Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), 
Strengthening Competitiveness in Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , 
Directions in Development, July, Washington, D.C.  WT/TPR/S/385 • Bangladesh  
 
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  Food additives  
3.109.   The B FSA is responsible for setting limits on food additives. Its Use of Food Additive 
Regulation s set these limits for different food products and ingredients. The BSTI ensures that a 
product standard is in line with the requirements set in the Regulation. As at July 2018, the BSTI's 
BDSs covered 19 food colour ings, artificial sweeteners , and additives (Section 3.3. 2.2).  
Genetically modified raw materials  
3.110.   The Biosafety Rules , 2012 govern the approval process for the introduction of genetically 
engineered (GE) products developed domestically or by a third country. According to these Rules,  
all GE products must be approved before they can be imported or sold domestically.107 Under the 
Plant Quarantine Rules , 2018, genetically modified raw materials may be imported for scientific 
purposes  only (Section 3.3.3.2).  
3.3.3.2   Quarantine regulations  
Institut ional and procedural developments  
3.111.   Customs , in close collaboration with port authorities , remains responsible for border food 
inspection , as prescribed by the IPO in place as well as a number of subsidiary acts and standards 
(see below , and Sections 3.3.2. 1 and 3.3.3.1).108 The authorities indicated that , since 2012 , the 
International Standards for Phytosanitary Measures (ISPMs) guidelines (including ISPM No. 31, 
methodologies for sampling of consignments) have been followed for carrying out food import 
inspe ctions.109 Shipping documents must include radioactivity test reports and certificates declaring 
the food "fit for human consumption ", and "not mixed with harmful substances ", and indicating  the 
country of origin; the implementation of this requirement appears to have raised some concern.110 
Customs carr ies out physical tests, including organoleptic tests , at the port of entry. According to a 
2010 FAO report, imported food samples may be analy sed by laboratories at the BSTI (products 
subject to mandatory B DSs only (Section 3.3.3.1)), the Bangladesh Atomic Energy Commission, the 
Plant Protection Wing, the Department of Agricultural Extension, the Fish Inspection and Quality 
Control Wing of the Department of Fisheries, the Bangladesh Council of Scientific and  Industrial 
Research, and the Customs Department Laboratory in Chittagong.111 Products not complying with 
the rules may be re-labelled correctly, downgraded to purposes other than for human consumption, 
or destroyed, depending on the issue. Customs keep s information on the compliance history of 
importers , for risk mana gement administration  purposes .  
Phytosanitary measures  
3.112.   Plant protection activities remain under the Director of the Plant Protection Wing. During the 
review period, some changes were made to th e main laws and regulations on phytosanitary 
                                                
107 Viewed at: http://bangladeshbiosafety.org/2017/05/16/bangladesh -biosafety -rules-2012/ . 
108 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington , DC.  
109 Viewed at: 
https://www.i ppc.int/static/media/files/publication/en/2016/11/ISPM_31_2008_Sampling_of_consignments_E
N.pdf . 
110 IPO 2015 -18 require s imports to be accompanied by : certificates for the absence of melamine for the 
import of milk and milk products; certificates for radioactivity (presence of CS -137), required for many products 
and origins, issued by the exporting country and by the Bangladesh Atomic Energy Commission; and certificates 
for the "purity " of oil palm products (including palm oil, palm olein, and RBD palm stearin). It seems that t he 
scientific basis for such requirements is not obvious , as it is claimed that neither the process through which they 
are adopted nor the form in whic h they are published meets international best practice.  Although they  target 
legitimate needs , such as  food safety, they appear to be  formulated in a way that offers little protection , and 
inflicts unnecessa ry costs on the private sector and the consumer.  The requirement for radioactivity tests has 
reportedly  not been strictly implemented on food products originating from countries from the SAARC and ASEAN. 
Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in Bangla desh 
— Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, Washington , 
DC.  
111 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnost ic Trade Integration Study , Directions in Development, July, 
Washington , D.C.  WT/TPR/S/385 • Bangladesh  
 
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  requirements and procedures.  Phytosanitary measures continue to be governed by the Destructive 
Insects and Pest Rules , 1966 and the Plant Quarantine Act , 2011 (last amended in 2018).112 
Since  2012, the Plant Quara ntine Rules, 2018 and the Pesticide Act, 2018 have been introduced.  As 
at 2018, the list of plants and plant products permitted for importation , which is currently operated 
by the Department of Agricultural Extension of the Ministry of Agriculture  and is to be issued by the 
National Plant Quarantine Authority upon its establish ment, covered 125 items (including cereals, 
fruits, vegetables, spices, oil seeds, pulses, flowers and flower bulbs/seeds, herbaceous/ornamental 
plants, timber logs and forest  products, coffee, tea, tobacco, cotton and some industrial (non -food) 
crops) and indicated their use, country of origin, the requirement of additional declarations, and 
special conditions of import; it also contained a list of 38 weed species subject to q uarantine. Any 
imported plants or plant products must be accompanied by a phytosanitary certification , issued by 
the authorities of the exporting country, and are subject to quarantine and inspection. If the 
requirements are not met, the Quarantine Officer  may send the commodity back to the 
shipper/reject entry/destroy it , or may allow entry, subject to treatment. As at November 2018 , 
Bangladesh had 32 (26 in 2012) plant quarantine stations/entry points, of which  3 (3 in 2012)  are 
located in international a irports, 3 (2  in 2012) in seaports, 3 (1 in 2012) in river ports, 1 (1 in 2012) 
in an Inland Container Depot (ICD), and 22 (19 in 2012) in border land ports. The authorities 
indicated that the legislation provides for a transaction time of 24 hours for per ishable items for  the 
issuance of  a phytosanitary certificate; for other items , the 24 -hour requirement may be extended 
to meet relevant fumigation, inspection or any other treatment or test needs. According to the Plant 
Protection Wing, transaction times were low, one to two hours if documents were satisfactory and 
no inspection problems were found.113 If testing was needed, up to three  days could be required to 
finalize the transaction; in the case of seeds, the transaction time could exceed three days.   
Sanitary measures  
3.113.   During the review period, the main laws and regulations on sanitary quarantine requirements 
remained unchanged (see below). They include: the Bangladesh Diseases of Animal Act, 2005; the 
Bangladesh Diseases of Animal Rules, 2008; the Bangla desh Animal and Animal Product Quarantine 
Act, 2005; the Bangladesh Fish and Animal Feed Act, 2010 ; the Bangladesh Animal Slaughter and 
Meat Quality Control Act , 2011; and the Animal Feed Rules, 2013.114 The Ministry of Health and 
Family Welfare  (MOHFW ) and the Ministry of Fisheries and Livestock continue to cooperate for the 
prevention and control of human and animal exotic diseases that are transmissible through 
international trade and commerce (e.g. human cases of avian influenza). Animals and animal 
produ cts remain subject to inspection and quarantine. Meat from EU countries must be certified as 
free from b ovine  spongiform encephalopathy (BSE).115  
3.114.   Fisheries measures remain governed by: the Fish and Fish Products (Inspection and Quality 
Control) Ordinance, 1 983; the Fish and Fish Products (Inspection and Quality Control) Rules, 1997 
(amended in 2008, 2014 and 2017); the Fish Feed and Animal Feed Act, 2010; the Fish and Fish 
Production (Inspection and Quality Control) Rules, 1997 (last amended in 2008); the Fish Feed 
Rules, 2011; the Fish Hatchery Act, 2010; the Fish Hatchery Rules, 2011; and the Fish Quarantine 
Act, 2018. In 2015 , the Quality Control (QC) laboratories were separated from the Fish Insp ection 
and Quality Control (FIQC) section of the Department of Fisheries , under the administrative control 
of the Ministry of Fisheries and Livestock , now run by a Quality Assurance Officer . QC laboratories 
are involved in the testing of pre -export sample s of fish and fish products and samples under the 
residue monitoring program me (RMP) , such as the  National Residue Monitoring Program  (NRCP) , as 
well of fish feed and feed ingredients. Exportable fish and fish products are harvested, collected, 
transported,  preserved, processed and packed as per FIQC rules and regulations and the importing 
country's standards. As at 2018 , pre-export tests of fish, shrimp and fishery products were 
conducted in three  QC laboratories in Dhaka, Khulna and Chittagong. Bangladesh has faced,  and 
                                                
112 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 ; Plant Quarantine Act, 2011. Viewed at: 
http://dae.portal.gov.bd/sites/default/files/files/dae.portal.gov.bd/page/634ba167_b3aa_4297_8d44_2cf394d
7552c/Plant%20Quarentine%20Act%202011%28English%20 Version%29.pdf ; Plant Quarantine Act, 2018. 
Viewed at: http://www.dpp.gov.bd/upload_file/gazettes/25946_99978.pdf .  
113 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington , D.C.  
114 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 . 
115 Kathuria Sanjay, and Mariem Mezghenni Malouch e, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
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  continues to face , ongoing challenges in meeting standards for its fish exports, in particular to the 
EU market, which is the largest importer of Bangladesh shrimp; frozen shrimp accounted for 42% 
of total agricultural exports (HS 1 -24) in 2 016/17 , and 10% of the total EU imports of this item in 
2017.116  
3.115.   Under a livestock diseases prevention and control project , Bangladesh constructed 
24 quarantine stations in different sea , land and airport entry points , to enhance the level of border 
control s and inspections , to ensuring the  protection of human, animal and plant life or health in its 
territory , in line with relevant OIE obligations (Section 3.3.3.1).  
Other  
3.116.   Under the EU's Rapid Alert System for Food and Feed (RASFF) , between January 2012 and 
June 2018 , there have been 143 notification cases , including border rejections and information for 
attention/follow -up, for food items (e.g. shrimp, fruit and vegetables, cereals and bakery products, 
confectionery, and herbs and spices) from Bangladesh,  involving , inter alia , the presence of 
salmonella enterica  or unauthorized substances, a drop compared to 235 cases between 2005 and 
2011.117 
3.3.3.3   Transparency  
3.117.   So far , Bangladesh has not submitted any notification to the WTO Committee on Sanitary 
and Phytosanita ry Measures , and neither has it been subject to SPS -related specific trade concerns.  
3.3.3.4   Marking, labelling and packaging requirements  
3.118.   The Food Safety (Labeling) Regulation, 2017 , which was introduced in 2017 and replaced 
the Pure Food Rules, 1967, determine s all the major aspects of food packaging and labeling. 
Marketing, labeling and packaging materials of genetically modified organism ( GMO) food 
requirements are based on the Biosafety Rules.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.119.   During  the review period, the legal and institutional framework for competition was 
developed , in line with the Perspective Plan of Bangladesh (2010 -21): Making Vision 2021 a Reality, 
which , inter alia , aims to promot e competition among public –private entities.118 The Plan also 
advocates strengthened competition policies , in order to maintain a moderate rate of annual inflation 
at around 5% -7%.  
Regulatory developments  
3.120.   During  the review period, the legal framework for competition underwent significant 
changes. Following the enactment of the Competition Act, 2012 , the Government has been active in 
preparing related complementary rules and regulations.119 The Bangladesh Competition Commission 
(BCC) (Chairperson and Members) Appointment Rules , 2015 (see below) were adopt ed. Draft 
Competition Fund Regulations , 2018 were prepared and sent to the Legislative and Parliamentary 
Division. As at November 2018, BCC Meeting and Procedure Rules , 2017 were to be prepared and 
their final draft was to be completed in early 2019.  
                                                
116 Data from the UN Comtrade Database, SITC Rev.3 , and the Bangladeshi authorities.  
117 RASFF online data. Viewed at: https://webgate.ec.europa.eu/rasff -
window/portal/?event=notificationsList&StartRow=1 .  
118 Ministry of Planning/Planning Commi ssion/ General Economics Division  (2012) , Perspective Plan of 
Bangladesh (2010 -2021): Making Vision 2021 a Reality , April . Viewed at:  
http://www.plancomm.gov.bd/perspective -plan/. 
119 BCC (2017), Laws and Rules . Viewed at: http://www.ccb.gov.bd/site/page/9d9b8565 -b308-4846-
b5bb-bbf50a91b708/Law -and-Regulations .  WT/TPR/S/385 • Bangladesh  
 
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  3.121.   The Competition Act, 2012 (the Act), was enacted , repealing the former Monopolies and 
Restrictive Trade Practices (Control and Prevention) Ordinance , 1970.120 The Act's 46 sections focus 
on three main concerns: anti -competitive agreements (Section 15); abuses of  dominant position 
(Section 16); and anti -competitive combinations (Section 21).121 Section 15 provides a 
non-exhaustive list of horizontal and vertical arrangements that may adversely affect competition. 
These include price fixing, bid rigging, market alloc ation, tie -in arrangements, exclusive distribution, 
refusal to deal , and resale price maintenance. The same section provides an exemption from 
competition scrutiny , to ensure  the right of any person to "block"  any infringement of intellectual 
property rights , and the right to export goods (to the extent to which the Agreement relates 
exclusively to the production, supply, distribution or control of goods , or the provision of services 
for such export).122 Section 16 lists a set of conditions considered as abuses by a dominant 
enterprise, including discriminatory and predatory pricing. Section 21 prohibits anti -competitive 
combinations which cause , or are likely to cause , an adverse effect on competition. The Act do es not 
contain any provisions on leniency program mes. Plans for drafting Guidelines as per Sections 15, 
16 and 21, for example in relation to practices related to abuse of dominant position, the interface 
between IP and competition, horizontal and vertical  mergers, procedural rules for merger 
investigations, and plans for a whistle -blower/leniency policy, are yet to be developed .  
3.122.   Section 4 of the Act provides for an exemption for practices related to those goods and 
services which are controlled by the Gov ernment in the interest s of national security and which are 
not open to the private sector.123 A detailed list of product exemptions by SOE is yet to be finalized. 
According to the authorities, matters relating to import and export cartels (including exclusi ve 
dealership arrangements) are yet to be dealt with.  
Institutional developments  
3.123.   The BCC, set up under Section 5 of the Act and consisting of one Chairperson and 
four members, has been operational since October 2016.124 Its vision consists of: promoting, 
ensuring, and sustaining a congenial atmosphere for competition in trade; and preventing, 
controlling, and eradicating collusion, monopoly and oligopoly positions, combination or abuse of 
dominant position s, or activitie s adverse to competition.125 Its main function is to eliminate practices 
having an adverse effect on competition in the market, to promote and to sustain competition, and 
to ensure freedom of trade. The BCC , inter alia , deals with the investigation and appro val of mergers 
and acquisitions, including foreign entities that have established a place of business in Bangladesh. 
The BCC can investigate any such proposal on an ex officio  basis or upon complaint by a 
third party.126 It also drafts rules, policy, instruc tions of notifications and administrative directions 
related to competition, and provides policy implementation advice to the Government.  
3.124.   Advocacy has also been a focus.127 In particular, the BCC seeks to develop public awareness 
of anti-competitive agreements , by conducting research, holding seminars, symposia, workshops 
and other similar activities , and publish ing and disseminat ing information thereon . The BCC favour s 
cross-jurisdictional dialogue. It is a member of the Internation al Competition Network (since 
20 February 2018), has attended the OECD's Global Forum on Competition meetings (sin ce 2016) , 
and has participated in the activities of the International Group of Experts of UNCTAD , and in staff 
training by the Competition Com mission of India (CCI), the Japan Fair Trade Commission (JFTC) and 
the Korea Fair Trade Commission (KFTC).128 Work for signing MoUs with the CCI, the JFTC and the 
                                                
120 BCC online information. Viewed at: http://www.ccb.gov.bd/site/page/bab76c90 -2146-48fc-82e7-
51f6d7f6c383/History -Mission -Vision -and-Functions . 
121 The Competition Act, 2012. Viewed at: 
http://www.dpp.gov.bd/upload_file/gazettes/20533_10683.pdf . 
122 Section  15 (4) of the Competition Act . 
123 The Competition Act, 2012.  
124 BCC (2017) , About Competition Commission . Viewed  at: http://www.ccb.gov.bd/site/page/bab76c90 -
2146-48fc-82e7-51f6d7f6c383/About -Competition -Commission . 
125 BCC online informa tion. Viewed at:  http://www.ccb.gov.bd/site/page/bab76c90 -2146-48fc-82e7-
51f6d7f6c383/History -Mission -Vision -and-Functions . 
126 There is  no provision for independent review or an appellate body in the Competition Act 2012.  As 
per Section 29 of the Act, there is a provision for appeal to the Government against a BCC order . 
127 BCC online information . Viewed at:  http://www.ccb.gov.bd/site/page/bab76c90 -2146-48fc-82e7-
51f6d7f6c383/History -Mission -Vision -and-Functions . 
128 BCC online information . Viewed at:  http://www.ccb.gov.bd/site/page/bab76c90 -2146-48fc-82e7-
51f6d7f6c383/History -Mission -Vision -and-Functions . WT/TPR/S/385 • Bangladesh  
 
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  KFTC is underway; in March  2018, the BCC held its first  bilateral meeting with the KFTC to expl ore 
areas of cooperation.  
Enforcement  
3.125.   As at August 2018, the BCC had received four complaints. These involved: an 
anti-competitive agreement between the Raowa  convention hall and a catering service (complaint 
submitted on 3 October 2017, case closed on 16  May 2018 upon BCC instruction for the repeal of 
the agreement); anti -competitive activities of Chittagong C&F agencies, allegedly related to a fixed 
commission (complaint submitted on 13 December 2017, under investigation); an anti-competitive 
practice re lating to the sharp price hike of rod, an essential building material, allegedly due to a 
syndicate involved in the business (complaint submitted on 20  March  2018, under investigation); 
and an anti -competitive practice in the paper industr y (complaint subm itted on 28 May 2018, under 
investigation). Furthermore, in September 2018 , a working group was established by the Bangladesh 
Institute of Development Studies , to analyse onion market behaviours; a report is to be issued in 
2018.129  
3.126.   Concerning merger contro l, in January 2016, the two parent companies of the 
Malaysia -based Robi and the India -based Airtel agreed to merge their operations in Bangladesh,  in 
the first telecommunications and largest corporate merger in the country.130 Upon completion of 
anti-competi tion scrutiny by the Bangladesh Telecommunication Regulatory Commission (BTRC) 
(the BCC was not established  at that time), this US D 12.5 milli on deal was cleared in 
November  2016, with the final approvals of the BTRC and the Prime Minister. The authorities 
indicated that the BCC is not yet in a position to deal with mergers.  
3.3.4.2   Price regulation  
3.127.   SOEs continued to influence domestic pricing in certain areas (Section  3.3.5) . Since  2015, 
the Trading Corporation of Bangladesh  has been mandated to build up buffer stocks for the 
stabilization of market prices of essential commodities. The state -owned Bangladesh Petroleum 
Corporation (BPC) remained the sole seller of crude and refined oil in t he domestic market and did 
not adjust domestic retail prices to world price fluctuations (Sections 3.3.1.2.4, 3.3.5 and 4.2.2.1 ); 
the price of refined oil is fixed by the BPC, and is not regulated by the Bangladesh Energy Regulatory 
Commission ( BERC). During the review period , the BERC has determined: the bulk tariff for power 
generation, the wheeling charge for transmission and the retail tariff for the distribution of electricity; 
and the gas transmission charge for gas transmission companies, the distrib ution tariff (margin) for 
gas distribution companies , and the tariff for end -users of gas (Section  4.2.2).131  
3.3.4.3   Consumer protection  
3.128.   Consumer protection rights and principles are embodied in the Constitution.132 Since the last 
Review , no changes were made to the  Consumer Rights Protection Act (CRPA), 2009, an addition to 
around 61 seemingly outdated and overlapping laws (see below) dealing with consumer rights and 
their protection mechanisms in a sporadic way . The Directorate of National Consumer Rights 
Protectio n (DNCRP) , under the MOC,  remains responsible for issues in this area , and operates a 
National Consumer Complaint Center; the National Consumer Rights Protection Council , under the 
same Ministry , is, inter alia , in charge of policy formulation, government advice and raising public 
awareness. Furthermore, the law also provide s for the establishment of specific courts (e.g. Drug 
Court, Food Special Court, Mobile Court s, Ordinary Criminal Courts, Ordinary Civil Courts) to protect 
the ri ghts of consumers. The Consumers Association of Banglades h (CAB), a non -governmental 
non-profit and voluntary consumer organization , runs a Complaint Cell to receive and document 
complaints and grievances related to the violation of rights and interests regarding  the purchase and 
                                                
129 Onions are an essential com modity , involving huge demand and price sensitivity in Bangladesh . 
130 Export.gov, Bangladesh Legal Regime , 20 October 2017. Viewed  at: 
https://www.export.gov/apex/article2?id=Ba ngladesh -Legal-Regime . 
131 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.   
132 Articles 15, 18 and 32 of the Constitution . Viewed at: 
http://bdlaws.minlaw.gov.bd/pdf_part.php?id=367 . Mollik Wasi Uddin Tami  (2016), Consumer Rights 
Protection and Bangladesh , 13 August . Viewed at: http://bdlawdigest.org/consumer -rights -protection -in-
bangladesh.html ; Md. Nayem Alimul Hyder (2017), Consumer's rights protection in Bangladesh , 26 April. 
Viewed at: https://thefinancialexpress.com.bd/views/consumers -rights -protection -in-bangladesh . WT/TPR/S/385 • Bangladesh  
 
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  use of commodities and services; consequently, it initiates investigations , and provides redressal in 
the form of settlement through negotiation and mediation between the parties.133 Legal assistance 
is sometimes provided to the aggr ieved consumers. According to data from the authorities , between 
2010/11 and 2016/17 , all complaints were d ealt with ; in 2017/18 , out of 9,019 complaints received, 
8,207 were s ettled, and 812 were under investigation.  
3.129.   The CRPA and other laws provide for b oth civil and criminal remedies; however, there seem 
to be concerns regarding  the CRPA provisions in this respect.134 The CRPA provides that only 
competent government officers are entitled to institute a case against the violation of such laws ; 
hence, a cons umer action is limited to lodging a complaint with the Director General of the DNCRP.135 
As at 2017 , the main consumer problems reportedly  involved adulteration, product inconsisten cy 
regarding  price, deceptive advertising, deceptive packaging and branding, false information about 
goods and services, cheating in weights and measures, false date s, fraudulent production process 
and selling, etc.136 The overlapping of the different consumer protectio n-related laws appears to be 
a problem for implementing measures against criminality associated with the violation of consumer 
rights , and weakens enforcement.137  
3.3.5   State trading, SOEs, and privatization  
3.130.   SOEs in certain critical areas continue to play an impo rtant role in shaping the economic 
development of Bangladesh. In spite of  being a drain on public resources , through a range of 
subsidies and contingent liabilities, they continue to exert considerable influence on the economy 
through the supply of vital i nputs and services and t heir pricing policies ( Sections  3.3.4.2 and 4.2). 
3.131.   During the review period, state involvement in certain vital parts of the economy has 
remained relatively unchanged , and is spread over several activities , including agriculture, fis heries, 
food, jute, textile s, electricity, petroleum, gas, construction, banking, insurance, telecoms , and 
transport; its presence is considerable in energy (including petroleum and gas) and banking activities 
(Section s 4.1.4, 4.1.6, 4.2, 4.3.4, 4.3.5, 4.4 .3.1, 4.4.3.3, 4.4.4 and 4 .4.5.1). SOEs continue to be 
managed largely by ministries , including the Cabinet Division, the Ministry of Finance, the Planning 
Commission, and "concern line" ministries .138 As at July 2018, at least 112  SOEs were operating in 
Bangladesh , of which 46 were non-financial public enterprises (see below) , compared to 45 in 2012 , 
with the increase due to the addition of the Rajshahi Water Supply and Sewerage Authority.139 Since 
2013, the G overnment broke the monopoly of the BPC , by allo wing the private sector to import 
crude and refined oil , under the condition that the refined oil would be sold to the BPC, which is the 
                                                
133 Gradually, the CAB widened its scope to establish and safeguard consumers ' rights and interests in 
social, economic, health a nd environmental issues.  CAB online information. Viewed at: 
http://www.consumerbd.org/about -cab/. 
134 The CRPA does not  seem to  follow international standards in terms of dispute resolution . It, inter alia, 
does not provide for any quasi -judicial dispute resolution system for the resoluti on of consumer  complaints.  The 
usual trial procedure for redressing issues arising out of the violation of the CRPA proved to be time -consuming , 
complex and multifarious.  Mollik Wasi Uddin Tami  (2016), Consumer Rights Protection and Bangladesh , 
13 August . Viewed at: http://bdlawdigest.org/consumer -rights -protection -in-bangladesh.html . 
135 Mollik Wasi Uddin Tami, Consumer Rights Protection and Bangladesh , Bangladesh Law Digest, (2016). 
Viewed at: http://bdlawdigest.org/consumer -rights -protection -in-bangladesh.ht ml. 
136 Md. Nayem Alimul Hyder (2017), Consumer's rights protection in Bangladesh , 26 April.  Viewed at: 
https://thefinancialexpress.com.bd/views/consumers -rights -protection -in-bangladesh . 
137 The following have been observed by experts as potential impediments to enforcement : different laws 
on the same subject, different types of punishment for the same offenc e under different laws, court fees for filing 
a suit for compensation, delay s in proceedings ; the investigation procedure is left to the police instead of the 
independent authorities ; and a lack of a monitoring mechanism. Md. Nayem Alimul Hyder (2017), Consumer's 
rights protection in Bangladesh , 26 April. Viewed at: https://thefinancialexpress.com.bd/views/consumers -
rights -protection -in-bangladesh . 
138 SOEs usua lly report to the ministries, although the Government has allowed some enhanced autonomy 
for certain SOEs, such as the Biman Bangladesh Airline.   
139 These 46 SOEs do not cover public limited compan ies with state share -ownership, such as the 
Bangladesh Biman  Corporation  and its subsidiaries , providing  aircraft ground handling, aviation engineering, 
aviation training , and flight catering  services ( Section 4.4.5.2 ). The corporate governance structure of SOEs in 
Bangladesh has been restructured , as per the guide lines published by the OECD, but , reportedly, the country' s 
practices are still not quite up to OECD standards.  OECD (2015), OECD Guidelines on Corporate Governance of 
State -Owned Enterprises, 2015 Edition , OECD Publishing, Paris. Viewed at: 
http://dx.doi.org/10.1787/9789264244160 -en. Viewed at:  https://www.export.gov/article?id=Bangladesh -
Performance -Requirements ; Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's 
Wing Finance Division, December.   WT/TPR/S/385 • Bangladesh  
 
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  sole authority for selling refined oil in the country  (Section 4.2.2.1.1) ; however, private companies 
involved in power  generation are allowed to import refined oil. A monopoly is retained in all gas -
related activities (Section 4.2.2.1.2 ). According to data from the authorities , it appears  that, between 
2013/14, a peak year, and 2016/17 , the number of people employed in SOEs has steadily dropped , 
by an overall 9% .140 Total assets of the 46 non -financial SOEs increased by 72.28% , from 
BDT 216,987.05 crore in 2011/12 to BDT 373,821.44 crore in 2016/17 . No data on the SOEs 
contribution (percentage shares) to GDP, employment or government revenue were available from 
the authorities. Following a net loss of BDT 2,604.73 crore in 2012/13, SOEs earned profit for 
four consecutive years (2013/14 -2016/17); net profit stood at BDT 6,644.47 crore in 2016/17.141 
Their contribution to the pub lic exchequer rose steadily from BDT 1,240.17 crore (2014/15) to 
BDT 1,841.05 crore (2015/16) and BDT 2,503.48 crore (2016/17). Between 2011/12 and 2016/17, 
government grant s/subsid ies provided to SOEs rose by 75.4% , from BDT 1,245.90 crore to 
BDT 2,185.90  crore; the Bangladesh Water Development Board (BWDB) remains the major 
subsidy/grant recipient (49.6% of the total subsidy amount in 2016/17).  
3.132.   During the review period, the privatization process  came to a standstill . No privatization took 
place after 201 2. Under the Perspective Plan (Section 3.3.4.1), whilst privatization of identified SOEs 
is to continue, strategically -placed SOEs are to be provided with adequate support to run as 
commercially viable, profitable organizations, blending public -sector owne rship and private -sector 
management. Scaling down the coverage and size of SOEs is also planned , so as to provide  impetus 
to private enterprises , which often face uneven competition from SOEs regarding  the procurement 
of raw materials and breaking into exp ort markets, e.g. in the case of jute textiles.142 No information 
on cases of scaling -down was available from the authorities. In 2018 , the authorities considered that 
the centralized management of the public -sector jute industry was not suitable , and envisa ged the 
introduction of a PPP to run the state -owned jute mills (Table 3.9, and Section s 4.3.4 and 4.3.5.2 ).143 
The Privatization Commission was merged with the Board of Investment (BOI) to form the 
Bangladesh Investment Development Authority (BIDA) on 1  September 2016 (Section s 2.4.1 and 
2.4.2 ).144  
Table 3.9 Indicative list of non -financial public enterprises, 2019  
Sector  Number of 
enterprises  Name of enterprises  
Agriculture  2 Bangladesh Fisheries Development Corporation (BFDC) ; and 
Bangladesh Agriculture Development Corporation (BADC).  
Power, gas and 
water  6 Bangladesh Oil, Gas and Mineral Corporation; Bangladesh Power 
Development Board (BPDB); Dhaka Water Supply and Sewerage 
Authority; Chittagong Water Supply and Sewerage Authority; 
Rajshahi Water Supply and Sewerage Authority; and Khulna Water 
Supply and Sewerage Authority.  
Indu stry  6 Bangladesh Textile Mills Corporation (BTMC); Bangladesh Steel and 
Engineering Corporation (BSEC); Bangladesh Sugar and Food 
Industries Corporation (BSFIC); Bangladesh Chemical Industries 
Corporation (BCIC); Bangladesh Forest Industries Development 
Corporation (BFIDC); and Bangladesh Jute Mills Corporation (BJMC).  
Trade  3 Bangladesh Petroleum Corporation (BPC); Trading Corporation of 
Bangladesh (TCB); and Bangladesh Jute Mills Corporation 
("wind -up").  
                                                
140 At the time of the previous Review,  SOEs operating in traditional utilities, infrastructure, trade and the 
manufacturing sector accounted for more than 20% of public sector employment. WTO document 
WT/TPR/S/270/Rev.1, 26 November 2012 .  
141 According to the  authorities, the total Debt Service  Liabilities (DSL s) against the 112 SOEs stood at 
BDT 203,172.89 crore in 2015 /16; up to June 2017, outstanding loan s by the state-owned commercial bank  to 
30 SOEs stood at BDT 26,794.65 crore. The operating profit on total assets of SOEs rose from 1.58% in 2014/15  
to 3.46% in 2015 /16. The rate of dividend on equity increased to 2.68 % in 2015 /16, compared to 1.49 % in 
2011/12. Considering the turnover of assets, the efficiency of resource utili zation during 2015 /16 decreased 
slightly , compared to the level o f efficiency in the previous fiscal years.  Ministry of Finance (2017), Bangladesh 
Economic Review 2017 , Economic Adviser's Wing Finance Division, December.   
142 Planning Commission/ General Economics Division  (2015) , The 7th Five Year Plan FY 2016 –FY 20 20 - 
Accelerating Growth, Empowering Citizens , December . Viewed  at 
http://www.lged.gov.bd/UploadedDocument/UnitPublication/1/361/7th_FYP_18_02_2016.pdf .  
143 Budget Speech 2018 -19, Bangladesh on a Pathway to Prosperity . 
144 BIDA Act, 2016 . WT/TPR/S/385 • Bangladesh  
 
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  Sector  Number of 
enterprises  Name of enterprises  
Construction  5 Rajdhani Unnayan Kartipaksha (RAJUK); Chittagong Development 
Authority (CDA); Rajshahi Development Authority (RDA); Khulna 
Development Authority (KDA); and National Housing Authority 
(NHA).  
Transport and 
communication  7 Bangladesh Shipping Corporation (B SC); Bangladesh Inland Water 
Transport Corporation (BIWTC); Bangladesh Road Transport 
Corporation (BRTC); Chittagong Port Authority; Mongla Port 
Authority; Bangladesh Land Port Authority; and Bangladesh Bridge 
Authority  
Other services  17 Bangladesh Freed om Fighter Welfare Trust; Bangladesh Film 
Development Corporation (BFDC); Bangladesh Parjatan Corporation; 
Bangladesh Small and Cottage Industries Corporation (BSCIC); 
Bangladesh Civil Aviation Authority; Bangladesh Inland Water 
Transport Authority (BIWTA) ; Bangladesh Rural Electrification Board 
(BREB); Bangladesh Export Processing Zone Authority (BEPZA); 
Bangladesh Handloom Board ; Bangladesh Sericulture Board; 
Bangladesh Tea Board; Bangladesh Telecommunication Regulatory 
Commission (BTRC); Export Promotion  Bureau (EPB); Bangladesh 
Sericulture Research and Training Institute ; Bangladesh Energy 
Regulatory Commission; Bangladesh Standard and Testing 
Institution (BSTI); and Bangladesh Export Zone Authority (BEZA).  
Note:  The table's content , and SOE allocation per sector , is furnished  by the authorities ; they indicated 
concern over their classification of certain entities as SOEs (e.g. certain regulatory authorities, 
boards , the BEPZA and the EPB). 
Source:  Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
State trading  
3.133.   The public sector remains the country's largest importer , as most government agencies, 
autonomous organizations, and public sector corporations import items purchased through public 
tender directly , in line with the public procurement legislation (Section 3.3.6.2).145 Imports by 
government agencies , including the TCB, government and semi -government  entities, and 
state-owned industries, remain substantial.146 At the time of the previous Review,  the major public 
sector or state -owned direct importers were the BPDB ; the BSEC ; the Bangladesh Oil, Gas and 
Mineral Corporation , or Petrobangla; the BSFIC ; the TCB;; the BREB ; the Dhaka Electric Supply 
Authority; and the Wat er and Sewage Authority.147 No data on imports by these entities from 2012 
onwards was available from the authorities.  
3.134.   In 2015, the TCB was mandated to build up buffer stock for the stabilization of market prices 
of essential commodities , through import and local procurement, to sell them at a fair price 
(i.e. afordable for low -income people ).148 According to data from the authorities, between 2012/13 
and 2017/18 , the TCB imported: 10,357 metric ton nes of chick peas; 11,022  metric ton nes of red 
lentils; 1,915 metric ton nes of palm oil; 2,014 metric ton nes of soyabean oil; and 526  metric  tonnes 
of dates. In addition , the TCB purchased different essential commodities from the local market. As 
the TCB maintains buffer stocks and sometimes sells its products below purchase price, between 
2012/13 and 2016/17 , a subsidy of BDT 23,531  million was provided , to cover the related financial 
gaps. The TCB reportedly  suffers from governance problems , and is not an efficient buyer ; this limit s 
its ability t o stabilize edible oil and sugar prices, for which the market -structure issues are apparently 
similar.149 During the review period , the BPC, which imports crude and refined oil according to 
domestic demand, did not reflect world price fluctuations in its dom estic sale prices.150 The 
non-adjustment of the oil price and the C ustom s duty to the domestic market has led to the 
                                                
145 WTO document WT/TPR/S/168 /Rev.1, 15 November 2006 . 
146 Viewed at: https://www.expor t.gov/apex/article2?id=Bangladesh -Selling -to-the-Government . 
147 WTO document WT/TPR/S/270/Rev.1, 26 November 2012.  
148 The fair retail price of the TCB's product s may be  fixed below  the world market price s so that 
targeted consumer groups  can afford them,  and so that the  domestic market price remains stable.  
149 Kathuria Sanjay, and Mariem Mezghenni Malouche, eds. (2016), Strengthening Competitiveness in 
Bangladesh — Thematic Assessment: A Diagnostic Trade Integration Study , Directions in Development, July, 
Washington, D.C.  
150 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.   WT/TPR/S/385 • Bangladesh  
 
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  disbursement of subsid ies in the amount of BDT 8,550.00 crore in 2011/12, BDT 13,557.83 crore in 
2012/13 and BDT 2,477.60 crore in 2013/14 to BPC for the import of petroleum products; no subsidy 
disbursement was required in 2015/16 or 2016/17 , due to the drop in international oil prices in 
recent years.  
3.135.   Bangladesh has never notified the WTO of any state -trading acti vities undertaken by entities 
within the meaning of Article  XVII:4(a) of the GATT 1994.   
3.3.6   Government procurement  
3.136.   Government procurement of goods and services was estimated at BDT 230 billion in 
2016/17, representing 1.17% of GDP, the same as in 2011/12; dur ing this period , it rose by 88% 
in value terms.151 At the time of the previous Review , government agencies , such as the Roads and 
Highways Department (RHD), the Local Government and Engineering Department (LGED), the 
Bangladesh Water Development Board (BWDB) , the Rural Electrification Board (REB), the Public 
Works Department (PWD), and the Power Development Board (PDB) , conduct ed a large share of 
procurement. No data was available from the authorities, on the share of foreign suppliers in the 
procurement and public works market, the main categories of goods and services procured, or the 
main public -sector entities in the total value of procured goods and services and public works 
contracts , from 2012 onwards.  
3.3.6.1   Reforms  
3.137.   During the review period , Bangladesh conti nued to reform its government procurement 
system , with World Bank Group  support. The Public Proc urement Reform Project II (PPRP -II), jointly 
funded by the Government and the World Bank Group , was completed in 2017; it included the 
introduction of an electronic government procurement (e -GP) system (see below).152 The new 
USD 60 million  Bangladesh -World Bank Group  Digitizing Implementation Monitoring and Public 
Procurement Project (DIMAPPP) , for the period 2017 -22, is currently being implemented.153 Upon 
completion , it is expected that all public procur ement  organizations will be registered in the e -GP 
system , and will conduct e -procurement as part of the G overnment 's plan to fully digitize public 
procurement.  
3.3.6.2   Regulatory and institutional framework  
3.138.   During t he review period , the regulatory framework, consisting of the Public Procurement 
Act (PPA 2006) and the Public Procurement Rules (PPR 2008), appears  to have been amended 
in 2017 but all texts available online are only in Bengali.154 Detailed procurement proc essing and 
approval procedures are set out in the PPR 2008. The Law and Rules  share common principles of 
transparency, accountability and fair competition as important features of internationally accepted 
best practices in government procurement. The autho rities consider that this framework  addresses 
                                                
151 In Bangladesh , government procurement is defined as the procurement of goods, works or services by 
any procuring entity , using public funds  or development funds provided by foreign governments or organizations . 
It includes procurements by any government, semi -government, or statutory body , or company registered under 
the Companies Act , 1994. However, these estimates do not include development or public works expenditure or 
procurement by SOEs. Bangladesh Bureau of Statistics (2018), 2017 Statistical Year Book Bangladesh , 
Table  9.01, May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B2017.pdf . 
152 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 ; Ministry of Finance (2017), Bangladesh 
Economic Review 2017 , Economic Adviser's Wing Finance Division, December.   
153 According to the authorities, the DIMAPPP  is set to achieve four objectives: i) r estructuring the Central 
Procurement Technical Unit (CPTU)  and institutionaliz ing the e-GP system; ii) digitizing the public procurement 
process , to bring all government organizations under the e-GP system; iii) training government officials and 
bidders to enhance their capacity regarding  procurement management  and engagement; and iv) digitizing 
project monitoring . Viewed at: http://www.cptu.gov.bd/about -cptu/public -procurement -reform.html ; World 
Bank Group (2017), Bangladesh Country S napshot , October. Viewed at: 
http://www.worldbank.org/en/country/bangladesh . 
154 The PPA 2006 and the PPR 2008 and their amendments are available online. Viewed at: 
http://www.rhd.gov.bd/Documents/PPR/07%20 -%20ThePublicProcurementAct2006(041207)45.pdf , and 
http://www.cptu.gov.bd/procurement -policy -and-procedure -documents/procurement -act.html . WT/TPR/S/385 • Bangladesh  
 
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  the domestic realities as well as best global practices.  It remains unclear whether the regime covers 
all SOE -related procurement activities (Section 3.3.5).  
3.139.   The public procurement system remains centralized , and is operated by the Central 
Procurement Technical Unit (CPTU) , within the Implementation Monitoring and Evaluation Division 
(IMED) of the Ministry of Planning , through e -GP (see below). The CPTU remains in charge of 
monitoring the implementation of the PPA, and conducting government procurement in the country. 
It is responsib le for propos ing amendments to the PPA and the PPR, and issu ing guidance and 
instructions regarding the interpretation and implementation of the PPR and other documents. A 
draft Act of Bangladesh Public Procurement Authority (BPPA) appeared  to be under preparation in 
October 2018.  
3.3.6.3   Procurement methods and related issues  
3.140.   Since the previous Review , there has been no apparent change in the procurement methods, 
bidding procedures or procur ement thresholds. They consist of: the Open Tendering Method (OTM), 
seemingly the most preferred method; the Request for Quotation Method (RFQM); the Direct 
Procurement Method (DPM); the Limited Tendering Method (LTM); the Two -Stage Tendering Method 
(TSTM) ; and the Single -Stage Two -Envelope Tendering Method (SSTETM) which a Procuring Entity 
(PE) can adopt with proper justification of sufficient grounds and the approval of the head of the 
PE.155 For intellectual and professional service procurement, quality and cost -based selection (QCBS) 
and fixed budget selection (FBS) are the preferred methods. A framework contract may be used for 
commonly -used goods on a periodic basis or for recurrent physic al services. No information on the 
threshold ceilings of the procurement value and/or requirements/conditions for each procurement 
method , or data on each procurement method's share in the total procurement value since 2012 
were available from the authorit ies. 
3.141.   The PPA 2006 continues to distinguish between domestic and international procurement.  
Joint ventures with local partnerships are encouraged but are not mandatory in international 
procurement. Bangladesh maintains a price -preference scheme for domestic  suppliers in the case of 
international tendering. Domestic manufacturers/producers remain eligible for a price preference of 
up to 7.5% in the case of works , and up to 15% in the case of goods, compared to international 
competitors with the same condition s.156 Joint venture s, consortia and associations between national 
and foreign firms are not eligible for domestic preferences if the local partner's share is below 50%. 
For international procurement, tender notices are published in an English newspaper or pu blication 
of wide international circulation, a UN publication, or in the foreign missions of Bangladesh at home 
and abroad.  
3.142.   Bangladesh is neither a party nor an observer to the WTO Agreement on Government 
Procurement (GPA).  
3.143.   Since 2011 , a centralized elec tronic government procurement (e -GP) system, involving three 
modules ( e-Tendering, e -Contract Management , and  e-Performance Management ), has been in 
place, and operat es under the Guidelines on e -GP, which was  issued by the CPTU.157 For the 
expansion of e -GP system, a new high -speed data centre was set in the CPTU. The CPTU also 
provides a 24/7 helpdesk support service to tenderer s and procuring entit ies. According to CPTU 
data, as of May 2018 , 1,081 procuring agencies out of 1,300 were registered in the syste m, and the 
rest were soon to be registered ; in total , 7,122 officers from different PEs, including banks , had 
received training on e -tendering.158 As at May 2018, a total of 32,528  tenderers were registered 
                                                
155 LTM can be used when the goods or services can only be purchased from a limited number of suppliers 
or contractors , due their speciali zed nature, or when there is a need to reduce spare parts in stock and to reduce 
maintenance costs, or when the time and cost required to receive and evaluate a large number of tenders would 
be disproportionate compared with the value of the contra ct. TSTM may be used for large and complex projects 
where the complete technical specifications cannot be prepared at the initial stage of the procurement process , 
or alternative technical solutions are available in a rapidly evolving industry.  
156 Articles  83(1)(e) and 98(21)(e), and Schedule  II of the PPR, 2008.  
157 The project initially targeted four government agencies, namely the BWDB, the LGED, the REB, and 
the RHD , which  carry out the main procurement activities in the country.  The guidelines are availa ble at: 
https://www.eprocure.gov.bd/help/guidelines/eGP_Guidelines.pdf . Ministry of Finance (2017), Bangladesh 
Economic Review 2017 , Economic Adviser's Wing Finance Division, De cember.   
158 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December .  WT/TPR/S/385 • Bangladesh  
 
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  with the e -GP system. More than 95,350  tenders , with a total estimated value of over 
BDT 84,037  crore, were invited through the e-GP system. Under the 7th FYP (2016 -20), issued by 
the General Economics Division of the Planning Commission of Bangladesh, the share of public 
institutions using e -GP is to r each 65%, 89% and 100% in 2018, 2019 and 2020, respectively. 
According to a World Bank Group Implementation Completion Report , e-GP reduced the procurement 
cost by 13% , to 20%, resulting in savings of more than US D 446 million.159 Overall, e -GP appears 
to have promoted more competition among bidders, resulting in more competitive pricing and lower 
transactions costs , through improved access for bidders throughout the country.  
3.3.6.4   Enforcement  
3.144.   A review panel mechanism remains in place for settling complaints and a ppeals lodged by 
aggrieved tenderers. Review panels are constituted of legal, technical and procurement specialists 
appointed by the CPTU. A panel may reject the appeal, advise the parties to act according to relevant 
rules or principles, recommend remedia l measures, suggest annulment of a non -compliant action, 
suggest the payment of compensation by a PE for costs incurred to the complainant, and/or 
recommend that the procurement proceedings be completed. Its decision is final and binding for all 
concerned parties. No information or data on the complaints and appeal cases dealt with since 2012 
were available from the authorities.  
3.145.   A Public -Private Stakeholders Committee (PPSC) is in place , to monitor the public 
procurement process , and ensure transparency and  accountability. No information on the outcome 
of its activities (cases, issues, items) since 2012 was available from the authorities. Reportedly, 
there are concerns , inter alia , over the use of outdated technical specifications, the structuring of 
specifications to favo ur preferred bidders, and a lack of overall transparency in public tenders.160 
Despite the existence of anti -corruption safeguards in the government procurement system, these 
safeguards do not always appear to be effectively implemented , due to the lack of a dedicated 
oversight agency to look into complaints , and to the fact that the CPTU only provides technical 
information , and lacks investigative power.161 Tenderers violat ing the procurement rules risk being 
blacklisted. The list of deba rred companies is published on the national e -GP Portal.162 No information 
on the blacklisted or debarred companies was available from the authorities.  
3.3.7   Intellectual property rights  
3.146.   Bangladesh's policy stance is that intellectual property (IP) is an effective policy tool for 
unlocking creative, inventive and innovative potential.163 It considers that IP stimulates the transfer 
and use of technologies and creative works , and encourages fair competition, thereby fostering 
social, cultural and economic dev elopment. The broad development vision and goals articulated in 
the national and sectoral policies and strategies can be met by enacting IP laws, and setting up 
institutions to administer them. The National Industrial Policy 2010 recognized the importance of 
the protection of IP rights (IPRs) in industrial development and technological capacity -building.164 It 
was succeeded by the National Intellectual Property Policy 2018 , which is to be implemented over a 
ten-year period from the date of its approval; as at  November  2018, it had been approved by the 
Cabinet but was waiting for publication in the Bangladesh Gazette . It envisages: enhancing IP 
awareness and encouraging creativity and innovation; modernizing IPR administration and 
management; creating IP , and d eriving economic and commercial benefits from its use; 
strengthening the legal and legislative framework; and fostering respect for IPRs. A draft National 
Innovation and Intellectual Property Policy and Strategy of the Government of Bangladesh, 2016 -18, 
through ASYCUDA World,  is under consideration.  
                                                
159 World Bank Group's project review. Viewed at: 
http://documents.worldbank.org/curated/en/166581524751306692/pdf/Bangladesh -BD-Public -Procurement -
Reform -Project -II.pdf . 
160 USTR (201 8), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Pres s/Reports/2018%20National%20Trade%20Estimate%20Report.pdf  
161 Transparency International Bangladesh (2014), National Integrity System Assessment Bangladesh 
2014, 14 May. Viewed at: 
https://www.transparency.org/whatwedo/publication/bangladesh_national_integrity_system_assessment_2014  
162 Viewed at: https://www.eprocure .gov.bd/resources/common/DebarmentRpt.jsp . 
163 Ministry of Industries  (2018), National Intellectual Property Policy 2018 – Draft, July.  
164 WTO document WT/TPR/S/270/Rev.1, 26 November 2012 . WT/TPR/S/385 • Bangladesh  
 
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  3.147.   During the review period , no further IPR protection enhancement through the expansion of 
international commitments was undertaken. As at August 2018, Bangladesh continued to participate 
in only 2 out of the 26 treaties administered by the World  Intellectual Property Organization 
(WIPO).165 Accession to other international treaties (such as the Patent Cooperation Treaty (PCT), 
the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) ) 
remains under consideration. The authorities indicated that , as at November  2018, accession to the 
PCT has been subject to several inter -ministerial meetings , and discussion with different 
stakeholders on accession to the Protocol  Relating to the Madrid  Agreement (1989) (Concerning the 
International Registration of Marks of 1891) was ongoing. Bangladesh is a signatory to the Nagoya 
Protocol on Access and Benefit -sharing (2011).166  
3.148.   As an LDC Member, Bangladesh has continued to benefit from the extended time -limit, until 
1 July 2021 , or when a particular country ceases to be in the least -developed category if that 
happens before 2021, for the full implementation of the provisions of the TRIPS Agreement, other 
than those relating to national treatment and MFN treatment.167 Similarly, it has remained a 
beneficiary of the Council for Trade -Related Aspects of Intellectual Property Rights (TRIPS Council) 
decision , extending until 1 January 2033 , or when a particular country ceases to be in the 
least-developed categor y if that happens before 2033, the transition period during which LDCs do 
not have to protect or enforce patents and undisclosed information relating to pharmaceuticals. LDCs 
are exempt from TRIPS notification requirements ; therefore , so far , Bangladesh ha s submitted very 
few notifications to the TRIPS Council ( the latest  dates back to 2008) , and none during the review 
period.  
3.149.   During the review period , Bangladesh made some slow progress toward s aligning its 
legislative framework with the  TRIPS  Agreement,  and towards  updating outdated legislation in 
certain areas (e.g. patent and designs). It enacted the Geographical Indication of Goods 
(Registration and Protection) Act, 2013; the Geographical Indications of Goods Rules, 2015; the 
Trademarks Amended Act, 201 5; and the Trademarks Rule s, 2015. It has also formulated the draft 
Patent Act s, 2012, 2014 and 2017, the draft Plant Variety and Farmers ' Right Protection Act, 2015 , 
and the draft Designs Act , 2018.  
3.150.   The Department of Patents, Designs and Trademarks (DPDT) , under the Ministry of 
Industries , and the Copyright Office Bangladesh,  under the Ministry of Cultural Affairs , remain in 
charge of formulating IPR policy, laws and regulations, their enforcement, and inter -agency 
coordination in their area of compe tence (e.g. with the MOC, the Ministry of Foreign Affairs, the 
Ministry of Cultural Affairs, and universities). Under the National Intellectual Property Policy 2018 , a 
National Council of IP , and Sectoral Committees for each identified thrust sector , are to be created 
for the purpose of overseeing implementation at the national level, as well as for follow -up and 
monitoring; a single IP office may also be established in line with this Policy.168  
3.151.   Under IPO provisions , parallel imports are allowed only if acco mpanied by an IP certificate 
attested by the IP right holder of the exporting country  of the concerned branded goods; in the 
                                                
165 Bangladesh is a member of the Paris Convention for the Protection of Industrial Property Rights (1991) 
and of the Berne Convention for the Protection of Literary and Artistic Works  (1999). WIPO online information. 
Viewed at: http://www.wipo.int/treaties/en/ . 
166 The Nagoya Protocol is relevant to the work of the TRIPS Council in examining the relationship between 
the TRIPS Agreement and the Convention on Biological Diversity (CBD). This work was undertaken pursuant to 
the mandate of the provisions of the 2001 Doha  Ministerial Declaration, and reiterated in the 2005 Hong Kong 
Ministerial Declaration. WTO document WT/TPR/S/270/Rev.1, 26 November 2012 .  
167 WTO online information. Viewed at: https:// www.wto.org/english/tratop_e/trips_e/ldc_e.htm . 
168 Thrust sector refers to  those industries/industrial subsectors which have already been able to 
successfully contribute to the country's industrialization and poverty alleviation by increasing GDP, creating 
employment opportunities and increasing export income. They benefit from s pecial tax and non -tax incentives 
(Section 3.3.1) . Reportedly, Bangladesh has 32 thrust sectors with the potential to fetch billions of US dollars in 
investment and export earnings ; they include apparel, agriculture, ICT, light engineering, pharmaceuticals, 
infrastructure, frozen food s, energy, handicrafts, ceramics, tourism and healthcare  (Sections 4.3 and 4.4.6 ). 
Ministry of Industries (2018), National Intellectual Property Policy 2 018 – Draft, July . Viewed at: 
http://www.bdtradeinfo.com/business -investment/industrial_policy.php ; The Daily Star  online article entitled 
32 thrust sectors could fetch bi llions, 22 December 2016 . Viewed at: https://www.thedailystar.net/frontpage/32 -
thrust -sectors -could -fetch-billions -1333828 . WT/TPR/S/385 • Bangladesh  
 
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  absence of such certificate , Customs clearance is refused.169 No data on the value or main product 
categories of parallel imports sin ce 2012 were available from the authorities.  
3.152.   Bangladesh maintains several arrangements  with international and foreign 
agencies/organizations in this area , covering technical cooperation/assistance activities. They 
include: participation in WIPO Lex and the WIPO  Electronic Document Management  System (EDMS); 
a service level agreement with the WIPO Directory of Technology and Innovation Support Centers 
in Bangladesh (January 2015); an MoU with the State Intellectual Property Office of China (now the 
China National Intellectual Property Administration ) (March 2017); and cooperation under the 
Knowledge Sharing Program  (KSP) of the Korean Institute of Intellectual Property (2014) . 
Switzerland approved a three -year Bangladesh i-Swiss Intellectual Property Projec t (BSIP) in 2012. 
The Project was to pursue a three -pronged strategy: strengthening the policy environment; 
establishing IP support services; and promoting the use of IPRs.  
3.3.7.1   Industrial property  
3.3.7.1.1   Patents and industrial designs  
3.153.   The legal framework and protecti on terms in this area remain unchanged; the latter are 
below the level set under the TRIPS Agreement (Table 3. 10). A draft Patent Act , 2017 has been 
under consideration since 2012 (see above) , and is to be possibly passed in 2019. Under the Patents 
and Des igns Act , 1911, patents are granted for any inventions, including chemical compounds and 
pharmaceutical compositions , and new processes for their manufacture. Inventions considered being 
against national law or morality, and life -forms , such as plants , are not protected. As indicated by 
the authorities at the time of the previous Review , only pharmaceutical compositions and new 
processes for the manufacture of chemical compounds are protected. There has been no compulsory 
licensing case so far.  
Table 3.10 Terms of IPR protection, 2019  
IPR Main 
legislation  Duration of 
protection  Minimum duration 
of protection under 
TRIPS  Comments/plans  
A) Industrial property  
Patents  Patents and 
Designs Act, 
1911, and 
Patents and 
Designs Rules, 
1933 16 years from date of 
application, renewable 
for 5 or 10 years upon 
application  Minimum 20 years 
from date of filing  Draft amendment 
provides for 
extension to 
20 years; bill 
being vetted.  
Industrial 
designs  Patents and  
Designs Act, 
1911, and 
Patents and 
Designs Rules, 
1933 5 years, renewable for 
two successive 5 -year 
periods  10 years   
Geographical 
indications  Geographical 
Indications of 
Goods 
(Registration 
and Protection) 
Act, 2013, and 
Geographical 
Indications of 
Goods Rules, 
2015 5 years , subject to 
renewal  Unlimited  Draft bill under 
preparation.  
                                                
169 IPOs 2012-15 and 2015 -18 stipulate: " Protection of intellectual -property ri ght: In case of import of 
branded goods registered under any law related to intellectual property in Bangladesh, copy of intellectual 
property certificate attested by the intellectual property right holder of concerned branded goods shall be 
submitted to the Customs Authority ". IPO 2015-18. Viewed at: 
https://mincom.portal.gov.bd/sites/default/files/files/mincom.portal.gov.bd/page/e177ee18_f389_4f9e_a40c_
57435cfac5b2/Import%20Policy.pdf ; The New Nation  online article entitled Fixing legality of "parallel imports" , 
17 November 2015. Viewed at: http://thedailynewnation.com/news/73858/fixing -legality -of-parallel -
imports.html . WT/TPR/S/385 • Bangladesh  
 
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  IPR Main 
legislation  Duration of 
protection  Minimum duration 
of protection under 
TRIPS  Comments/plans  
Trade marks  Trademarks Act, 
2009, and 
Trademark 
Rules, 2015  7 years from date of 
registration, 
renewable for 10 -year 
periods thereafter  At least 7 years, 
renewable indefin itely  
Layout designs 
of integrated 
circuits  None None 10 years from first 
commercial 
exploitation  Draft amendment 
provides for 
15 years 
protection; draft 
bill not yet 
circulated.  
Undisclosed 
information  None None No specific period   
B) Copyright and related rights  
Copyright  Copyright Act, 
2000, and 
Copyright Rules, 
2006 Life of author plus 
60 years  Life of author plus 
50 years  Copyright Act 
currently being 
amended; the 
duration of 
protection remains 
unchanged.  
Related rights  Idem 50 years from year of 
performance or 
fixation; 25  years 
from year of broadcast  50 years from year of 
performance or 
fixation; 20  years 
from year of broadcast   
Source:  Information received from the  authorities.  
3.154.   The authorities indicated that no e -filing of patent applications is yet in place , and 
registrations are published in the domestic press. During the period 2012 -17, the DPDT processed 
1,936 applications (82.7% foreign) and accepted 759 patents (89.9% foreign).170 Since 2006 , 
Bangladesh, like other LDCs, has ma intained a "mail -box" under Article 70.8 of the TRIPS 
Agreement.171 At the time of the previous Review,  the administrative suspension and the "mailbox" 
were incorporated into law only for pharmaceuticals and agrochemical compounds. Between 2012 
and 2017 , the DPDT  accepted 417 applications received through "mail box" , and abandoned/refused 
585. As in all net technology -importing countries, patent filing by non -residents continues to exceed 
those by residents , whose share remains significant for an LDC. At the time of the previous Review,  
more than half of the patents filed were in the fields of optics, pharmaceuticals, environmental 
technology , and biotechnology.172 The authorities indicated that , as the legislation requires patent 
applications to be processed  within 21 months of filing , there is no pendency in this area.  
3.155.   Regarding industrial designs, as with  patents , no e-filing of applications is yet in place , and 
there is no publication system for accepted design applications. During the period 2012 -17, the 
DPDT processed a steadily -rising number of industrial designs applications , totalling 8,346 (91.9% 
local) , and registered 5,346 of them (86.5% local).173 Unlike patents, industrial design protection 
continues to be overwhelmingly sought by local residents, mai nly SMEs from the sizable textile 
industry (Sections 3.3.1.2.1 and 4.3.5.1 ). The authorities indicated that , as the legislation requires 
applications to be processed  within nine months of filing , there is no pendency in this area.  
                                                
170 DPDT online data . Viewed at:  http://www.dpdt.gov.bd/site/page/cda6b625 -2ebd-4354-bc48-
46e40c14656d/Patents . 
171 Countries subject to a transition period are required under TRIPS Article 70.8 to provide a means by 
which patent applications for inventions can be filed. These applications do not need to be examined for their 
patentability until the country begins to apply patent protection in that area. However, when that time comes, 
the applicat ion must be examined with reference to the prior art that was disclosed when the application was 
first filed (i.e. the invention should  be assessed as to whether it was "new" as at that earliest date).  If the 
application is successful, product patent prote ction must be granted for the remainder of the patent term , 
count ing from the filing date of the application . WTO document IP/C/W/546, 23 March 2010.  
172 Bangladesh continues to hold the unique position of being the only LDC with significant manufacturing 
capacity in the pharmaceutical sector  (Section 4.3.5.3 ). Its pharmaceutical needs are met by domestic firms , 
and it exports a wide range of pharmaceutical products , totalling USD 88.7 million in 2016 /17, or 0.27% of total 
exports (USD  49.6 million or 0.2/% i n 2012) (UNSD Comtrade data), according to data supplied by the 
authorities . WTO document WT/TPR/S/270/Rev.1, 26 November 2012.   
173 DPDT online data . Viewed at: http://www.dpdt.gov.bd/site/page/8506dcc7 -5b77-408d-bc39-
c58b3bd08cd7/Design . WT/TPR/S/385 • Bangladesh  
 
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  3.3.7.1.2   Trade marks  
3.156.   During the review period , protection terms  in this area remained unchanged , and remained 
at the level set under the TRIPS Agreement (Table 3.10).174 The legal framework was updated , with 
the addition of the Trademark Rules , 2015, that supplemented the Trade Mark Act , 2009 and 
repealed the Trade Marks Rules , 1963. The legislation also protects service marks and well -known 
marks; and covers the registration of collective marks.  
3.157.   Trade marks remain by far the most important industrial property right used in Bangladesh,  
in terms of the number of applications filed, especially by residents. Since January 2018 , an e-filing 
system for  trade mark  applications is in place;  registered trade marks are published in the domestic 
press. A pplications for the registration of service mar ks can be filed under the 11th edition of the 
Nice Classification for Services , in classes 35 to 45.175 Between 2012 and 2017, the DPDT processed 
72,855 applications for trade marks (70.5% residents) , and accepted 22,020 of them (23% 
residents).176  
3.3.7.1.3   Geographic al indications  
3.158.   Bangladesh enacted the Geographical Indications of Goods (Registration and Protection) Act, 
2013 (GI Act), and the Geographical Indications of Goods Rules, 2015.177 The protection terms are 
below the level set under the TRIPS Agreement (Table 3.10). The GI Act provides for registration as 
a means of protection of GIs , but unregistered GIs are also protected if the indication is true as to 
its place of origin. Registration may be sought by the producers of the goods or by any association, 
institution, government body, or authority of any group which represents the interest of persons 
producing GI goods. The Act provides for equal levels of protection to all products for which GIs can 
be used. Consumer deception or confusion and public morality, inter alia , are set as the criteria for 
which the registration of GIs is prohibited. The Act also prohibits the registration of GIs that are 
generic, or ones that are not protected or ceased to be protected or have fallen into disuse in the 
country of origi n. Protection may also be denied if a third party can prove that the proposed 
registration should not be proceeded with for any justifiable cause spelled out in the Act. The Act 
provides that the registration of certain trade marks may be cancelled or deni ed if they are in conflict 
with GIs, or if the said trade mark is comprised of a GI and the goods or services so indicated are 
not produced in the place they indicate, or the trade  mark is used in such a manner that could  create 
confusion among st the consu mers as to the place of origin of the goods or services. The Act defines 
certain acts as infringement ; imprisonment and monetary fine s are provided as punitive punishment.  
3.159.   On 17 November 2016, the Jamdanee sharee  (one of the finest muslin textiles) was the  first 
product to be GI -certified in Bangladesh under the GI Act; it was followed by Ilish (a fish related to 
herring) on 1 June 2017.178 As at October 2018, the DPDT was processing 25  applications for 
22 different domestic products originating in 15 distric ts, including Fazli mango, Langra mango, 
Kataribhog rice, Kalijira rice , and honey from the Sundarbans.  
                                                
174 More information about these terms is available at WTO document WT/TPR/S/270/Rev.1, 
26 November  2012.  
175 Bangladesh is among the countries us ing the Nice Classification without being a party to the 1957 Nice 
Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration 
of Marks ; its 11th edition came into force on 1 January 2018 . WIPO online  information . Viewed at: 
http://www.wipo.int/classifications/nice/en/ .  
176 DPDT online data . Viewed at:  http://www.dpdt.gov.bd/site/page/f cc0c892 -e541-4fb3-8d1d-
4b79697e27e3/Trademarks . 
177 DPDT online information. Viewed at: http://www.dpdt.gov.bd/ ; Mahua Zahur  (2017), The Geographical 
Indication Act 2013: Protection of Traditional Knowledge in Bangladesh with Special Reference to Jamdani , 
published at Geographical Indications at the Crossroads of Trade, Development, and Culture , June. Viewed at: 
https://www.cambridge.org/core/books/geographical -indications -at-the-crossroads -of-trade-development -and-
culture/geographical -indication -act-2013-protection -of-traditional -knowledge -in-bangladesh -with-special -
reference -to-jamdani/A88B67AA09AAD7217230953C42D658E6/core -reader . 
178 Dhaka Tribune  online article " 22 Bangladeshi  products waiting to get GI certification ", 
10 September  2017. Viewed at: https://www.dhakatribune.com/bangladesh/2017/09/10/22 -banglade shi-
products -waiting -get-gi-certification . WT/TPR/S/385 • Bangladesh  
 
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  3.3.7.1.4   Plant varieties  
3.160.   The long-awaited Plant Variety and Farmers ' Right Protection Act , 2015, formulated to 
protect the country 's authority on plant varietie s, was to be put before the Cabinet for approval in 
August  2015.179 The draft law proposes 15 to 20 years of protection rights to breeders of various 
types of plants. Farmers would have the right to protect indigenous knowledge regarding the plants ' 
genetic resources , and to benefit from the  use of the resources. No one would be allowed to produce, 
reproduce, sell or market the seeds of the protected varieties without authori zation from the 
breeders, except for farmers who will not use the plants for commerci al purpose s. A Plant Variety 
and Farmers ' Rights Protection Authority is to be established , to register and issue licences to the 
breeders regarding newly -developed plant varieties.  
3.3.7.1.5   Layout designs of integrated circuits (topographies)  
3.161.   According to the authorities , this area is not covered by the existing legislation. The 
preparation of relevant legislation is planned but there has been no progress so far.  
3.3.7.1.6   Trade secrets  
3.162.   Protection of trade secrets appears to be treated under several  different laws.180 Section 49 
of the Patent and Designs Act, 1911 prevents disclosures of information about industrial designs in 
bad faith. Section 73 of the Contract Act, 1872 entitles a party to receive compensation for breaches 
of contractual obligations; confidentiality and  non-disclosure agreements are commonly used to 
protect confidential information. Further, the Preamble of the Competition Act, 2012 
(Section  3.3.4.1) can be read as extending the ambit of anti -trust practices to mala fide  disclosures 
of information. Penal  action is envisaged under Section 405 of the Penal Code, 1860 , for the offence 
of criminal breach of trust, which , under Section 406 , is punishable with up to three  years ' 
imprisonment and/or a fine.  
3.3.7.2   Copyright and related rights  
3.163.   Copyright protection rema ins an important area for Bangladeshi literary, dramatic, musical, 
artistic, cinematograph, sound recording, broadcasting, architectural designs, traditional cultural 
expression  (TCE), computer software, database, mobile apps and crea tive industries, e -mails, 
websites and other modes of communications including electronic device producers.181 During the 
review period , protection terms in this area remained unchanged , at or beyond the level set under 
the TRIPS Agreement (Table 3.10).182 The Copyright ( Amendment)  Act, 2005 contains provisions 
relating to computer programs and digital media copyrights, database, rental rights, cinema, 
broadcasting rights, performers ' rights, phonogram rights, etc. According to WIPO, the Act is 
consistent with the Bern Convention an d the TRIPS Agreement.183 An amendment to the Copyright 
Act is under consideration , and is expected to  cover , inter alia : copyright, related rights and 
neighboring rights, in line with provisions of the WIPO conventions and treaties after 2005; 
administrativ e remedies, pari passu ; and provisions ensuring individual rights in the composite rights 
at the time of assignment to the producer of the composite right.  
3.164.   As set out in the Berne Convention, copyright protection in Bangladesh is automatic upon 
the creatio n of an eligible work. Consequently, copyright registration remains optional but the 
copyright registration certificate of any work is considered as prima facie  evidence in any court or 
dispute (Section  60, Copyright Act , 2000(Amendment , 2005) ; those who w ish to register can file an 
application with the Copyright Office , under the Ministry of Cultural Affairs (see above). According 
                                                
179 At the time of the previous Review, a  draft law for the protection of plant varieties and farmers' rights 
was prepared at the Ministry of Agriculture , and was awaiting approval.  Dhaka Tribune  online article, " Plant 
variety protection act to get approval soon ", 15 July 2015 . Viewed at: 
https://www.dhakatribune.com/uncategorized/2015/07/15/plant -variety -protection -act-to-get-approval -soon. 
180 Alfred Christopher D'Silva (2017), Protection of Trade Secret , 28 November. Viewed at : 
https://www.thedailystar.net/law -our-rights/protection -trade-secret -1497535 .  
181 At the time of the previous Review, it was acknowledged that Bangladesh was well known in South  Asia 
and around the world for its creativity in contemporary literature, music, and art. There were even concerns over 
alleged theft of Bangladeshi music .  
182 More information about these terms is available in WTO document WT/TPR/S/270/Rev.1, 
26 November  2012.  
183 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/details.jsp?id=11172 . WT/TPR/S/385 • Bangladesh  
 
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  to data  from the authorities, in 2017 , there were 618 copyright applications and 625  registrations; 
most of them related to lit erary (283 registrations) and artistic (185  registrations) work s, and 
software (72 registrations). At present , the registration certificate is granted within 35  days of 
application (37 in 2012). It appears that foreign software companies face significant c hallenges 
registering and enforcing their copyrights in Bangladesh.184 It also appears  that Bangladesh has not 
yet instituted a notification system using its Official Gazette that would make copyright enforcement 
practicable.185 The authorities indicated that , as copyright registration is not mandatory , the 
registrations are not officially gazetted,  but the Copyright Office maintains a detailed record of all 
registered work and , upon written request,  the information is usually provided.  
3.3.7.3   Enforcement  
3.165.   Bangladesh continues to recognize that IPR enforcement is important for encouraging 
innovation and creation, technological development, the promotion of fair competition , and 
protection of consumer rights.186 Although it has adopted policies and seemingly im proved IPR 
enforcement, concerns remain , inter alia , due to its limited  resources and weak agency co ordination 
in this area (Sections 3.3.7.3.1 and 3.3.7.3.2).187 According to the authorities , the Copyright Office 
ensure s IPR enforcement through its Copyrigh t Board and its  Copyright Taskforce , upon receipt of a  
complaint from the copyright holder. Complaint s regarding  infringement and plagiarism are low , due 
to a lack of awareness or interest on the part of  copyright holder s. The Copyright Office has not 
received any such complains since 2014. According to Business Software Alliance (BSA) estimates, 
Bangladesh's rates of unlicensed software installation seem to have dropped from 90% (2011) to 
84% (2017), the second highest in Asia  Pacific, whereas the commerci al value of unlicensed software  
rose from US D 147 million (2011) to US D 226 million (2017), the fourth lowest in Asia Pacific.188 
Counterfeit goods appear to  remain readily available domestically , and pirated physical goods 
sourced from Bangladesh  allegedly caus e damages to right holders in foreign markets .189 
Bangladesh's ranking regarding  IPR protection has remained virtually unchanged. In 2017, it ranked  
124th out of 137  economies in the WEF Global Competitiveness index in terms of IP protection, 
compared to 133rd out of 144  economies in 2014.190 According to the International Property Rights 
Index (IPRI), in 2018 , it ranked 122nd globally and 19th regionally out of 125 and 19  economies, 
respectively , as compared to  120th globally and 19th regionally  out of 123 and 19  economies, 
respectively, in  2012.191  
3.166.   IPR laws contain provisions on civil remedies in case of infringement.192 Penalties for the 
infringement of registered patents and industrial designs range from BDT 5,000 to BDT 10,000; no 
imprisonment i s foreseen. Regarding infringement of trade mark s, the maximum penalty is 
two years' imprisonment and/or a fine of BDT 200,000; for subsequent offences, imprisonment may 
extend to three years and the fine may be raised to BDT 300,000. For copyright infring ement, 
                                                
184 USTR (201 8), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf  
185 USTR (201 8), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf  
186 WTO document WT/TPR/S/270/Rev. 1, 26 November 2012.  
187 At the time of the previous Review, IP offices ha d weak links with IP -enforcing agencies, particularly 
Customs, police and the judiciary. During the review period, Bangladesh was not included in the Special 301 
Watch List  or Notoriou s Markets reports of the Office of the US Trade Representative . Viewed at: 
https://ustr.gov/issue -areas/intellectual -property/special -301/2012 -special -301-review . 
188 The BSA is the leading advocate for the global software industry before governments and in the 
international marketplace . Viewed at: http://www.bsa.org/ . BSA (2018), BSA Global Software Survey – Software 
Management: Security Imperative, Business Opportunity , June . Viewed at: https://gss.bsa.org/wp -
content/uploads/2018/05/2018_BSA_GSS_Report_en.pdf . 
189 USTR (2 018), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Press/Report s/2018%20National%20Trade%20Estimate%20Report.pdf   
190 WEF (2017), The Global Competitiveness Report 2017 -2018, Geneva. Viewed at: 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf ; and WEF (2015), The Global 
Competitiveness Report 2014 -2015, Geneva. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014 -15.pdf .  
191 The IPRI rates the main institutions of a strong property rights regime: the legal and political 
environment, physical property rights, and IPRs. It is the world' s only index entirely dedicated to the 
measurement of intellectual and physical property rights. International property rights index online information. 
Viewed at: https://international propertyrightsindex.org/countries  and 
https://internationalpropertyrightsindex.org/about .  
192 WTO document WT/TPR/S/270/Rev.1, 26 November 2012.  WT/TPR/S/385 • Bangladesh  
 
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  imprisonment ranges from six months to four years , and the fine from BDT 50,000 to BDT 200,000. 
For films, the penalty for infringement is imprisonment from one to five years , and the fine from 
BDT 100,000 to BDT 500,000.   
3.167.   Bangladesh continued to r eceive technical and financial assistance from the WTO, WIPO  and 
its trading partners (see above), including the U.S. Patent and Trademark Office and the 
U.S. Department of Justice, to ensure the strengthening of IPR protection and enforcement 
(Section  3.3.7.3.1).193 The BSA, the leading advocate for the global software industry , established 
a Bangladesh office in early 2014 , as a platform to improve IPR protection in the country.194  
3.3.7.3.1   Domestic enforcement  
3.168.   Government agencies , consisting of the Rapid Action Battalion (RAB) and the local police, 
remain empowered to take action against counterfeiting in the domestic market.195 The DNCRP , 
under the MOC,  is charged with tracking and reportin g on counterfeit goods (Section  3.3.4.3). 
Despite a will ingness  to investigate IPR infringers, these institutions are unlikely to initiate 
independent investigations.196 No data (type of goods or values tracked/reported/seized) on 
activities in this area since 2012 were available from the authorities .  
3.169.   The relatively low general level of public awareness on IP -related matters appears  to have 
improved,  partly due to the efforts of the Intellectual Property Rights Association of Bangladesh 
(IPAB), a common platform for all relevant stakeholders, includi ng the Government.197 Apart from 
IPR awareness development, the IPAB provides support to the concerned stakeholders for protecting 
owners' IP Rs, consumers' rights , and the Government's rights. It has been cooperating  with the 
WTO, USAID, the Swiss Federal In stitute of Intellectual Property , and WIPO , regarding  implementing 
IPR projects , such as IP training, awareness campaign s, dialogue and others. The World Bank Group 
International Financial Corporation and the United States Patent and Trademark Office  have 
supported  the IPAB. Bangladesh continues to observe WIPO's World IP Day each year , with the 
direct involvement of senior government officials.  
3.3.7.3.2   Enforcement by Customs  
3.170.   In addition to the IPO (see above), it appears that certain provisions of the Custo ms Act , 
1969 allow for measures to protect against imported goods infringing trade  marks and industrial 
design s, but not copyright.198 Upon complaint by the affected right holder, Customs, in cooperation 
with the IPR regulatory agencies, can inspect, seize, and detain shipments of any counterfeit or 
pirated materials. Customs reports are not publicly available.199  
3.3.7.3.3   Judicial action  
3.171.   Although n o specialized IP enforcement court exists in Bangladesh, t he infringement of IPRs 
can be challenged in the domestic courts  (Section s 3.3.2.3  and 3.3.4.3 ), and right holders, both 
foreign and domestic, can file a suit. An appeal against the lower court decision can be brought to 
the Appellate Court. The Copyright Board, the Registrar of the Copyright Office, or any designated 
official of the DPDT can also hear cases with respect to registrations granted to right holders; these 
agencies only maintain records of complaints lodged by aggrieved parties. Any person aggrieved by 
any final decision or order of these agencies may appea l to the High Court Division of the Supreme 
Court. No data on the number, content or type of infringement of complaints received and dealt 
with, or the penalties imposed , since 2012 was available from the authorities.   
                                                
193 USTR (201 8), 2018 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimat e%20Report.pdf   
194 Viewed at:  https://www.export.gov/article?id=Bangladesh -Protection -of-Property -Rights .    
195 Viewed at: https://www.export.gov/article?id=Bangladesh -Protection -of-Property -Rights . 
196 Viewed at: https://www.export.gov/articl e?id=Bangladesh -Protection -of-Property -Rights . 
197 The IP AB's Executive Committee consists of high level intellectuals , as well as representative s of the 
Ministry of Industries (Registrar of the DPDT), the Ministry of Cultural Affairs (Registrar of the Copyright Office), 
the MOC  (DG, WTO Cell) , and the Ministry of Home Affairs (Joint Secretary).  Viewed at: 
http://www.ipab.org.bd/about.php . 
198 WTO documents IP/C/W/546, 23 March 2010; and WT/TP R/S/270/Rev.1, 26 November 2012.  
199 Viewed at: https://www.export.gov/article?id=Bangladesh -Protection -of-Property -Rights . WT/TPR/S/385 • Bangladesh  
 
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  4  TRADE POLICIES BY SECTOR1 
4.1.  During the review period, trade -related policy tools and developments continued to affect 
resource allocation in the economy, with government intervention split between border and domestic 
support measures.  
4.2.  Agriculture remains important in supporti ng economic growth, with policy emphasis, inter alia, 
placed on self -sufficiency. Average tariff protection for agriculture increased, and remains higher 
than the overall applied MFN average and that for manufacturing. Several agricultural commodities 
remain subject to export restrictions/prohibitions, while others benefit from cash incentives for 
export and domestic support measures. Fisheries continue to benefit from domestic support and 
high tariff protection.  
4.3.  The mining sector's relatively low importanc e rose slightly; the state -owned company in this 
area signed new lease agreements to excavate, and its mining licences have been renewed. The 
energy sector continued to rely largely on natural gas, and is becoming more dependent on imports; 
initiatives wer e undertaken to promote renewable energy and energy efficiency. Energy tariffs, 
prices and charges continue to be regulated, and state involvement remains in place in all 
energy -related areas. Subsidies have been provided for the import of petroleum produc ts, and an 
Energy Security Fund was set up. Retail electricity tariffs continue to differ, according to consumer 
category and voltage level.  
4.4.  Manufacturing, an increasingly important activity, remains heavily dependent on the 
labour -intensive textile and RM G areas, although efforts are being undertaken to expand this 
relatively narrow industrial base. Average tariff protection on industrial goods was slightly reduced, 
and remains lower than in agriculture; textiles and textile articles, and footwear, headgea r, etc. 
attracted the highest average tariff rates. Cottage, Micro, Small and Medium Enterprises (CMSMEs), 
some highest -priority activities, the jute industry, RMG firms, and the pharmaceuticals industry 
benefit from tax and/or non -tax support.  
4.5.  During the review period, the services sector remained the main contributor to the gross value 
added. Bangladesh's GATS commitments remained unchanged. Banking and insurance activities 
continued to expand, and regulatory improvements, including in the areas of securi ties, were 
undertaken; the non -performing loan (NPL) ratio in the banking system increased. The insurance 
sector remains rather small; half of the re -insurable general insurance business is required be 
re-insured with the relevant state -owned firm. The tel ecommunications sector continued to expand, 
as strategic policies for developing a digital Bangladesh and providing affordable telecommunication 
services led to some institutional and regulatory developments; number portability was also 
introduced. Efforts  to improve the country's transport connectivity were undertaken. At least 40% 
of the sea -borne foreign trade cargoes must be carried by Bangladesh -flagged vessels, unless there 
is no available national flag vessel or flag vessel of the trading country, an d no cabotage is allowed. 
The state -owned airline company remained a relatively sizeable player in the market, and efforts for 
greater integration into the international aviation market were continued. Tourism policy priorities 
were pursued through PPP pro jects.  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Features  
4.6.  Agriculture continues to play an important role in supporting economic growth, accounting for 
a large portion of employment and rural incomes, as well as a source for the expansion of exports. 
It is also  a major contributor to sustained food, nutrition and livelihood security, with overall goals 
of achieving self -sufficiency in food production, reducing rural poverty, and fostering sustainable 
economic development.2 Agriculture's contribution to non -agricultural growth has maintained an 
upward trend, where it provided raw materials. Therefore, the expansion of the sector is a high 
                                                
1 In this Section many amounts in national currency are ex pressed in their official denomination, 
i.e. lakh and crore. The value of 10 lakhs is equivalent to 1 million, and 1 crore to 10 million.  
2 Bangladesh Bureau of Statistics (2017), Bangladesh Strategic Plan on Agricultural and Rural Statistics . 
Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b343a8b4_956b_45ca_872f_ 4cf9b2f1a
6e0/SPARS_Final_BBS_Rev_090817.pdf . WT/TPR/S/385 • Bangladesh  
 
- 90 - 
 
  policy priority, with special emphasis on: agricultural extension and training; innovation, 
procurement and management of agric ultural input and equipment; seed production; storage and 
distribution; extension of irrigation facilities and fertilizer management activities; farm 
mechanization; and crop storage.  
4.7.  The contribution of agriculture, forestry and fisheries to GDP declined during the review period, 
from 17.1% in 2011/12 to 13.8% in 2017/18 (Table 1.2). This decline in the highly climate -sensitive 
agriculture sector was due to gradual loss of cultivable land (see below), despite higher crop intensity 
and the adoption and diss emination of new technology. Despite a reduction of 45.1% in 2012/13 to 
42.7% in 2015/16 and 40.6% in 2016/17, around 70% of the population depends on agriculture in 
one form or another for their livelihood (Chart 4.1).3 According to the World Bank Group, in 2016, 
nearly half of the Bangladeshi workforce, and roughly 87% of rural households, relied on agriculture 
for at least part of their income.4 According to the 2015 agricultural census of Bangladesh, the 
majority of farms are small and medium -scale (98. 45%) with less than 3 ha of land; only a few are 
large-scale farmers (1.55%).5 Furthermore, 10% of farmers own 50% of the land, and roughly 60% 
of farmers are landless and depend on sharecropping. Approximately another 20% of farmers are 
regarded as margin al. 
Chart 4.1 Employment by economic activity, 2015/16  
 
a Including mining and quarrying, 0.2%; and electricity, gas and water, 0.3%.  
Source:  Ministry of Finance, Bangladesh Economic Review 2017.  
4.8.  The sector faces several challenges, such as the gradual decline in land availability. Almost all 
arable land is being used, with little scope for any significant expansion of cultivation into new areas. 
The shifting rate of agricultural land to non -agricu ltural use is about 1% per year, and is due to 
urbanization and industrialization. Furthermore, the average farm size is diminishing each year, and 
the cost of production and risk faced by farmers is increasing. Infrastructure challenges, such as 
insuffici ent post -harvest storage, particularly for perishable high value products, and failure to 
ensure steady maintenance of domestic stocks, persist in the sector.  Private -sector investment in 
agriculture value chains remains low.  
4.9.  Self-sufficiency remains of hi gh importance, and the authorities have taken steps to encourage 
it through, inter alia, the expansion of irrigation facilities, the reduction of water logging, and the 
production of improved quality and high -yielding varieties of seeds, and their preserva tion and 
distribution (Section  4.1.2). According to the authorities, the area under irrigation has increased 
                                                
3 Ministry of Finance (2017), Bangladesh Economic Review 2017 . Viewed at: 
https://mof.gov.bd/site/page/4 4e399b3 -d378-41aa-86ff-8c4277eb0990/BangladeshEconomicReview .  
4 World Bank online information (2016). Viewed at: 
http://www.worldbank.org/en/results/2016/10/07/bangladesh -growing -economy -through -advances -in-
agriculture . 
5 Bangladesh Bureau of Statistics (BBS) (2016), Agriculture Market Information System (AMIS) in 
Bangladesh . Viewed at: 
http://www.fao.org/fileadmin/templates/ess/documents/apcas26/presentations/APCAS -16-5.2.5_ -
_Bangladesh_ -_AMIS_in_Bangladesh.pdf . 
Chart 1.[BGD] Employment by economic activity, 2015/16
Source:  Ministry of Finance, Bangladesh Economic Review 2017.Trade, hotels & 
restaurants
15.1%
Public administration
& defence
1.7%Agriculture, forestry
& fishery
42.7%Manufacturing
14.4%
a   Including mining & quarrying 0.2%;  electricity, gas & water 0.3%Construction
5.6%
Services
36.9%Finance & business
services
0.7%Transport, 
maintenance &
communication
8.0%
Commodities & 
personal 
services
11.3%Othera
0.5%WT/TPR/S/385 • Bangladesh  
 
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  from 53.7  ha in 2012 to 74.3 ha in 2017/18.6 Agricultural research has also been given priority, for 
the development and expansion of drought - and saline -tolerant varieties, and of short -duration 
crops, and the efficient use of fertilizer.  
4.10.   During the review period, the share of agricultural products (including food, beverages and 
tobacco) in total exports dropped from 4.1% in 2011/12 to 3.2% in 2017 /18; similarly, their much 
higher share in total imports reduced slightly, from 19.5% to 17.2% in 2016/17 (Tables  A1.1 and 
A1.2). In 2017/18, the principal destinations for agricultural exports included the European  Union, 
Canada, the  United States, China and the Middle East.  
4.1.2   Policy and institutional developments  
4.11.   The institutional framework for agricultural policy remains unchanged. Agriculture policy is 
the overall responsibility of the Ministry of Agriculture. However, several other ministries and 
agenci es are involved, including: the Ministry of Fisheries and Livestock; the Ministry of Food and 
Disaster Management; the Ministry of Water Resources; the Bangladesh Water Development Board; 
the Local Government Engineering Department; and the Ministry of Loc al Government, Rural 
Development, and Cooperatives. Under these ministries, outreach and extension agencies, research 
institutes, and organizations remain responsible for technology dissemination. Coordination in the 
ministries is carried out through inter -ministerial meetings.  
4.12.   Since the last Review, several old policies have remained in place and some new policies have 
been adopted. The National Food Policy (NFP 2006) aims to enhance purchasing power, to increase 
access to food, and to ensure adequate nut rition for all. During the review period, the NFP was 
implemented through a Plan of Action (2008 -15) which included: providing guidance for 26  strategic 
areas of interventions and more than 300 action agendas; identifying responsible actors 
(government and  non-government); and suggesting a set of priority targets and indicators for 
monitoring progress. To this end, the authorities undertook a Country Investment Plan (CIP) for 
Agriculture, Food Security and Nutrition (2011 -15), which laid out 12 priority pro grammes anchored 
in the policy, programmatic and investment framework of Bangladesh. The CIP also detailed a 
monitoring framework for effective implementation of food policy agenda in the country.  
4.13.   According to the authorities, the agriculture sector is an  example of policy convergence: top 
down and bottom up. Policy -driven resources were made available from the top to support the 
availability of inputs, extension services, credit to farmers, and R&D to meet the challenges of 
increasing productivity and sus tainability. At the same time, bottom up reforms were put in place to 
ensure the rights of beneficiaries, including the opening of bank accounts for them. The aim was to 
leverage IT -enabled services for extension services, crop protection and technology di ffusion.  
4.14.   In 2007, the Government adopted a long -term development strategy, Vision 2021, aimed at 
transforming Bangladesh into a middle -income country by 2021 (Sections 2.2.3 and 2.3.1.3). 
Vision  2021 is being achieved through the National Perspective Plan  (2010 -21). In the context of 
this strategy, the Government has prioritized self -sufficiency in food grain production, and the 
achievement of nutritional requirements/objectives by 2021. Vision 2021 is being implemented 
through five -year medium -term plans.  The Sixth Five -Year Plan (6th FYP 2011 -15) has been replaced 
by the Seventh Five Year Plan (7th FYP 2016 -20), which was approved in 2015 (Section  2.2.3).7 The 
objective of the current Plan is to sustainably intensify and diversify agricultural production to meet 
the nutritional needs of the increasing population. Its strategic goals include: intensifying production 
to address the caloric requirements of an increasing population; diversifying production to ensure 
balanced nutrition for all, and to maximize rural incomes; promoting the sustainability of the use of 
natural resources, for sustainable agricultural growth; and promoting adaptation to climate change 
of agro -food systems, to enhance the resilience of agriculture -based livelihood systems.  
4.15.   The Nation al Agriculture Policy (NAP 2013) aims to improve food and nutrition security and 
quality of life for rural people, through increased productivity and agricultural diversification. Its 
specific objectives include: sustainability and profitability in agricul tural production; research and 
extension; increasing productivity; employment and income generation; competitive farming 
                                                
6 BBS, 2017.  
7 Planning Commission, Ministry of Planning, Bangladesh Agriculture Sector Development Strategy , 
background paper for the preparation of the 7th FYP. Viewed at: http://www.plancomm.gov.bd/wp -
content/uploads/2015/02/17_ -Agriculture -Sector -Development -Strategy.pdf . WT/TPR/S/385 • Bangladesh  
 
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  through commercialization, adaptability to climate change, developing market, agro -processing and 
agro-based industries; and promoting export of agricultural products. NAP  2013 also identified 
different strategies for R&D in the following areas: the management system of research institutes, 
the planning and financing of research, research topics and areas, technology transfer, equality in  
providing services, a building information data base, PPPs, and the protection of IPRs. NAP 2018 has 
been enacted, and new issues have been incorporated, including: research on agriculture 
development; technology transfer and agriculture extension mechani zation; specialized agriculture; 
ICT; marketing of agricultural products; women empowerment; and nano -technology.  
4.16.   A draft of the National Agricultural Extension Policy (2012) has highlighted nine key principles: 
increasing production (horizontal and vertic al) and productivity as a whole; cost -effective efficient 
decentralized demand -responsive extension services; targeting and mobilizing farmers' groups 
(FGs) and their federations (FOs); bottom -up planning and implementation; coordinated and 
integrated exte nsion services through the National Agricultural Extension  System (NAES); 
development of agri -business and contract farming for export promotion; adaption to climate change 
and development of specialized extension service for climatically -distressed areas;  broad based 
extension support (in -time input support and subsidies, credit, price enhancement, etc.); and 
digitalized agricultural extension services (e -agriculture).  
4.17.   The agricultural biotechnology sector is in the nascent stage of development but, durin g the 
review period, the Government sought to move forward in developing and commercializing 
biotechnology through a National Biotechnology Policy, 2012, and an Action Plan of the National 
Biotechnology Policy, 2014. At the same time, the regulatory framew ork in this area was expanded, 
with the introduction of: the Bangladesh Biosafety Rules, 2012; the Bangladesh Standard for 
Guidelines for the Safety Assessment of Foods Derived from Genetically Engineered Plants, 2013; 
the Guidelines for the Environmental Risk Assessment of Genetically Engineered Plants, 2016; the 
User's Guide to Biosafety Regulatory Process for Genetically Engineered Plants in Bangladesh, 2017; 
and the Biodiversity Act, 2017.  
4.1.3   Border measures  
4.18.   During the review period, average MFN tariff pr otection for agriculture increased from 17.8% 
in 2011/12 to 18.1% in 2018/19, and remains higher than the overall applied MFN average (14.8% 
in 2018/19) and the average for manufacturing (Table A3.1). According to the authorities, this 
increase was due to the characteristics of the sector (strongly linked with food security and 
vulnerability to climate change) and the need to maintain food security during adverse 
environmental emergencies. Import duties on agricultural products (WTO definition) remain highe r 
than on non -agricultural products (Table  3.1). Animals and animal products, dairy products, fruit, 
vegetables and plants, coffee and tea, cereals and preparations, sugars and confectionary, fats and 
oils, and prepared food and beverages are subject to th e highest tariff rates (Chart 3.1 and Section 
3.1.3.2).  
4.19.   Under IPO 2015 -18 (Section 3.1.5), certain types of machinery used in agriculture and animal 
feed for the poultry industry have been generally exempt from tariffs (Sections  3.1.3.6 and 4.1.5.2). 
Nuclear radiation tests are mandatory for imported milk, dairy, edible oils, vegetable seeds, grains, 
and other food products (Sections 3.1.5.2, 3.3.2 and 3.3.3). In addition, according to IPO 2015 -18, 
fishmeal and fish feed are subject to import restrictions (Section  3.1.5).  
4.20.   Under the latest Export Policy (2015 -18) and the Strategy for Export Diversification 
(2015 -20), aimed at broadening the export base through diversification of exports to stabilize and 
expand export revenues as well as boost economic growt h, a number of agricultural commodities 
remain subject to export restrictions/prohibitions to meet domestic demand, such as soybean edible 
oil, wheat, onions, garlic, all sorts of pulses, rice except aromatic rice, ginger, flour, and jute seed 
(Section  3.2.3).8 Agro and herbal products and the tea sector have been identified as potential new 
areas in which export earnings could be increased.  
4.21.   Cash incentives continue to promote exports of certain agricultural products (Section  3.2.4.1). 
They are allocated t o specific products, including frozen shrimp and other fish, vegetables and fruits, 
                                                
8 Policy Research Institute of Bangladesh (2015), Strategy for Export Diversification 2015 -2020. 
Viewed  at: www.plancomm.gov.bd/wp -content/uploads/2015/02/7_Strategy -for-Export -Diversification.pdf .  WT/TPR/S/385 • Bangladesh  
 
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  agro-processed goods, and seeds of corn. The amount disbursed in the form of cash incentives for 
agricultural products and agro -processed items increased during the review period (Table  3.5). 
4.22.   During the review period, Bangladesh did not submit any export subsidies notifications to the 
WTO Committee on Agriculture. According to its latest notification, no export subsidies were used to 
support exports of agricultural goods during FY 2000/01 -2006/07.9  
4.1.4   Domestic support measures  
4.23.   To scale up productivity, during the review period, domestic support measures included 
concessional credit for the purchase of agricultural inputs including fertilizer and equipment, and 
seed distribu tion (Section 3.3.1.2.4). A corporate income tax break, ranging from five to 
seven  years, has benefited new enterprises in fertilizers, insecticides, and agricultural equipment 
(Section  3.3.1). Cash incentives have been provided for agricultural rehabilita tion assistance 
programmes, and state -trading operations were undertaken by the Bangladesh Agriculture 
Development Corporation (BADC)  for the public storage of food grains, such as rice and wheat 
(below, and Section  3.3.5). Other types of support available  to agricultural sector inputs included 
subsidies for utility services, such as lower electricity tariffs for irrigation pumps, and a 20% 
reduction in electricity invoices for agro -based industries (Section 3.3.1.2.4).10  
4.24.   According to the authorities, the c oncessional credit disbursement amount (at a concessional 
interest rate of 4%) increased from BDT  74.90 crore in 2011/12 to BDT  91.32 crore in 2017/18. 
Since 2009/10, the Extended Agricultural and Rural Credit Policy has, inter alia,  provided for credit 
for fish cultivation in coastal areas, and for the extension of credit support for storing and marketing 
agricultural products.11 In 2017/18, BDT  21,393 million was disbursed for agriculture and rural 
credit.12  
4.25.   During the review period, poor farm incomes were  also supported, through domestic 
procurement of rice and wheat from poor farmers. In 2018, rice and flour were sold to poor families 
led by women under the Open Market Sale (OMS) policy. Under this policy, the authorities purchased 
rice and wheat flour, a nd sold it to poor families, at a per kilogram price of USD  0.36 for rice and 
USD 0.2 for wheat. The authorities sold 5 kg of rice per day to lower income families until the 
Boro harvest in April 2018. In 2017, the programme supplied 56,962 MT of rice (3%)  and 
301,456  MT of wheat (48%) of total rice and wheat distribution under the public food distribution 
system.13 According to the authorities, the OMS for lower income families continued until 2018.  
4.26.   SOE operations support, directly or indirectly, the agric ulture sector (Section  3.3.5). Since 
2015, the Trading Corporation of Bangladesh (TCB) has maintained buffer stock of some selected 
essential commodities, to stabilize their market prices (Section 3.3.4.2 and 3.3.5).  In 2018, the TCB 
regulated five commodi ties: refined sugar, refined soybean oil, red lentils, chick peas, and dates. In 
addition, it maintains a buffer stock of refined sugar, refined soybean oil, and red lentils. The quantity 
of the buffer stock depends on the market situation; according to th e authorities, the buffer is not 
less than 500 MT of each item.  
4.27.   In 2017/18, the total budget allocation for agriculture, including the Ministry of Agriculture, 
the Ministry of Livestock and Fisheries, and the Ministry of Food, was BDT  103.8 billion 
(BDT 86.1 billion for non -development and BDT  17.7 billion for development).14 In addition, BDT  6.0 
billion was allocated to provide subsidies to farmers, for fertilizer and other agriculture inputs. 
                                                
9 WTO document G/AG/N/BGD/4, 4 May 2011.  
10 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
11 Agricultural Credit and Financial Inclusion Department (2013), Agricultural and Rural Credit  Policy and 
Programme: 2013 -2014. Viewed at: https://www.bb.org.bd/aboutus/regulationguideline/agri_policy2013 -
2014.pdf . 
12 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
13 Global  Agricultural Information Network (2018). Grain and Feed Annual , Bangladesh . Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN %20Publications/Grain%20and%20Feed%20Annual_Dhaka_Banglad
esh_4 -3-2018.pdf .  
14 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  Furthermore, an amount of BDT  75 million was allocated for agri cultural rehabilitation assistance 
programmes.15  
4.28.   Most of the product -specific aggregate measures of support (AMSs) related expenditure was 
used for price support for rice and wheat, and non -specific AMSs mainly focused on subsidizing 
fertilizer imports. Du ring the review period, Bangladesh made no WTO notifications on domestic 
support for agriculture. Its most recent notification dates back to 2011, and covers the level of 
domestic support for FYs 2002/03, 2004/05 and 2006/07.16  
4.1.5   Selected items  
4.1.5.1   Crops  
4.29.   Crop p roduction remains the dominant agricultural activity, despite a decrease in its share of 
GDP, from 10.1% in 2011/12 to 7.5% in 2017/18.17 Total crop production increased from 
BDT 1,136.5 billion in 2011 to BDT  1,532.4 billion in 2016 ( Table 4. 1). During the  review period, 
total cropped land increased from 14.9 million ha in 2012 to 15.4 million ha in 2017.18 The area 
under cultivation included: rice, 74.85%; wheat, 2.92%; potatoes, 3.13%; maize, 2.20%; pulses, 
2.44%; oilseeds, 2.73%; spices and condiments, 2. 60%; sugarcane, 0.65%; tea, 0.39%; fruit, 
0.99%; and vegetables, 2.64%.19  
Table 4.1 Production of selected crops, 2011 -16 
  
2011  2012  2013  2014  2015  2016  
Total 
agricultural 
production  BDT billion  1,269.8  1,437.3  1,627.2  1,672.1  1,695.2  1,752.8  
Crop 
production  BDT billion  1,136.5  1,298.3  1,469.0  1,485.4  1,489.9  1,532.4  
Rice, paddy  BDT billion  766.5  870.6  983.8  967.0  897.8  900.6   
'000 ha  11,528.0  11,423.0  11,372.0  11,319.5  11,371.8  11,386.0   
'000 tonnes  50,627.0  50,497.0  51,534.0  52,325.6  51,278.4  52,590.0  
Potatoes  BDT billion  68.9 97.6 86.7 114.3  134.5  147.8   
'000 ha  460.2  430.4  443.9  461.7  471.0  475.7   
'000 tonnes  8,326.4  8,205.5  8,603.0  8,950.0  9,254.3  9,474.1  
Onions, dry  BDT billion  16.3 32.7 48.6 40.0 65.0 42.5  
'000 ha  127.9  135.7  134.4  150.9  169.6  177.5   
'000 tonnes  1,051.5  1,159.3  1,168.0  1,387.0  1,704.4  1,735.3  
Garlic  BDT billion  5.8 9.2 15.8 18.4 18.2 40.8  
'000 ha  42.0 44.3 42.5 53.0 57.0 60.8  
'000 tonnes  209.2  233.6  223.7  312.0  345.7  381.9  
Maize  BDT billion  13.9 21.4 30.0 34.5 36.6 40.8  
'000 ha  165.5  197.1  234.7  307.2  325.3  335.0   
'000 tonnes  1,018.3  1,297.7  1,548.0  2,124.0  2,272.0  2,445.6  
                                                
15 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
16 WTO document G/AG/N/BGD/3, 4 May 2011.  
17 BBS (2018). GDP of Bangladesh (Final) 2017 -18. 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/057b0f3b_a9e8_4fde_b3a6_6daec385
3586/F 2_GDP_2017_18.pdf  and BBS (2014). Yearbook of Agricultural Statistics  - 2012. Viewed at: 
http://203.112.218.65:8008/WebTestApplication/userfil es/Image/LatestReports/AgriYearbook -2012.pdf .  
18 BBS (2018), Yearbook of Agricultural Statistics 2017 . 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/1b1eb817_9325_4354_a756_3d18412 
203e2/AgriYearbook -2017.pdf , and BBS (2014). Yearbook of Agricultural Statistics - 2012. Viewed at: 
http://203.112.218.65:8008/WebTestApplication/userfiles/Image/LatestReports/AgriYearbook -2012.pdf .  
19 BBS (2018). Yearbook of Agricultural Statistics 2017 . Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/1b1eb817_9325_4354_a756_3d18412
203e2/AgriYearbook -2017.pdf .  WT/TPR/S/385 • Bangladesh  
 
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2011  2012  2013  2014  2015  2016  
Mangoes, 
mangosteen 
and guavas  BDT billion  27.7 29.3 36.9 30.4 29.5 36.1 
 
'000 ha  111.1  124.0  119.6  124.0  101.5  153.1   
'000 tonnes  889.2  945.1  956.9  992.3  1,018.1  1,161.7  
Chillies and 
pepper, dry  BDT billion  40.3 21.1 23.0 19.7 27.7 30.7 
 
'000 ha  105.0  97.1 93.5 89.8 92.2 102.0   
'000 tonnes  176.1  126.0  102.0  110.0  123.2  130.3  
Wheat  BDT billion  19.0 21.9 28.2 28.3 29.1 27.0  
'000 ha  373.7  358.2  416.4  429.8  437.6  445.0   
'000 tonnes  972.1  995.4  1,255.0  1,303.0  1,348.0  1,348.2  
Livestock 
production  BDT billion  133.2  139.1  158.1  186.7  205.3  220.5  
Source:  FAOSTAT online information.  
4.30.   Bangladesh is one of the largest rice -producing and -consuming countries in the world. 
According to the authorities, in 2017/18, an estimated 13 million farm families grew rice on roughly 
11,386 million ha ( Table 4. 1), occupying almost 70% of the total cropped area and about 80% of 
the total irrigated area.20 Though Bangladesh has made significant progress in agriculture, especially 
with respect to rice production and yields, the demand for rice still outstrips domestic production, 
and the country remains  a net importer of rice.  
4.31.   Although rice is the major staple, income, growth and rapid urbanization have changed 
domestic consumption patterns to high -value non -cereal products (vegetables and fruit) and animal 
products (fish, poultry, eggs, milk and meat).  The share of rice in per capita calorie consumption 
declined during the review period, due to an increase in income, enabling the population to diversify 
diets with a higher intake of non -cereal foods. The population also reduced their consumption of 
whea t, with daily per capita consumption decreasing by 24% between 2010 and 2016.21  
4.32.   The current average MFN applied tariff rate on cereals (HS  Chapter  10) rose from 3.7% in 
2011/12 to 5.8% in 2018/19. Customs duties on rice rose from zero in 2011/12 to 25% in 2018/19, 
and have been subject to large fluctuations during the review period. In 2017, they were reduced 
from 10% to 2%, to ensure domestic supply at an affordable price, which was 40% higher in 2017 
than in the previous year.  
4.1.5.2   Livestock  
4.33.   During the review period, the contribution of the livestock sector to GDP dropped from 1.84% 
in 2011/12 to 1.54% in 2017/18. According to the authorities, an estimated 20% of the population 
are directly engaged in the livestock sector, and 45% are indirectly engaged. Small and marginal 
farms continue to dominate the production of livestock; in addition,  in 2017/18, amongst rural 
households including the landless, marginal and small -scale farmers, over 70% owned livestock.22 
The subsector contributes towards meeting the daily essential animal protein requirement for human 
consumption, the reduction of poverty, the cultivation of land, and the production and export of 
leather and leather goods. The production of animal protein, such as milk, meat (beef, mutton, 
chicken) and eggs , has been gradually increasing. According to the authorities, the livestock and 
poultry populations rose to 54.7 million and 329.2 million, respectively, in 2016/17, and 55.1  million 
and 337.9 million, respectively, in 2017/18.23 Although Bangladesh has a high cattle density, 
according to the authorities, there is a deficit in milk production in relation to demand. According to 
the Department of Livestock Services (DLS), under the Ministry of Fisheries and Livestock, in 
                                                
20 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
21 The Daily Star , "Appetite for Rice on Wane ", 23 October 2017. Viewed at: 
https://www.thedailystar.net/business/appetite -rice-wane -1480402 .  
22 World Bank (2017), Bangladesh Livestock Development -based Dairy Revolution and Meat Production 
Project (DRMP ). http://pubdocs.worldbank.org/en/266521493741368519/LDMPP -Identification -Mission -Mar27 -
Apr6-2017-AM.pdf .  
23 Ministry of Finance (2017),  Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  2017/18, the demand for milk was 150. 29 lakh MT, whereas the production was 94.06  lakh MT; 
therefore, there was a deficit of 56.23 lakh MT.24 In 2017/18, in terms of meat production, there 
was a 0.46 lakh MT surplus of meat produced over demand.  
4.34.   Several initiatives have been taken for livesto ck development, including: breed gradation 
through artificial insemination, using superior quality frozen and liquid semen; the production and 
distribution of vaccines for poultry and livestock; the supply of cheaper duckling and chicks; 
increased producti on of semen; artificial foetus transfer technology; and the prevention and control 
of anthrax, foot and mouth disease, and avian influenza.  
4.35.   The 2007 comprehensive National Development Livestock Policy, developed by the Ministry 
of Fisheries and Livestock,  remains unchanged. Its main objective is to provide an enabling 
environment, opening opportunities, and reducing risks and vulnerability, to harness the full 
potential of the livestock subsector, to accelerate economic growth for the reduction of rural po verty, 
in which the private sector will remain the main actor, while the public sector will play a facilitating 
and supportive role. The specific objectives of the Policy include: promoting sustainable 
improvements in the productivity of milk, meat and egg  production, including processing and value 
addition; promoting sustained improvements in income, nutrition, and employment for landless, 
small and marginal farmers; and facilitating increased private -sector participation and investment 
in livestock produc tion, livestock services, market development, and the export of livestock products 
and by -products.25 Additional sectoral policy texts include the Livestock Extension Policy (Draft), 
2013.  
4.36.   The National Poultry Development Policy (2008), to control the quali ty of inputs for 
sustainable poultry development, remains unchanged. The regulatory framework for disease control 
and eradication includes: the Diseases of Animal Act, 2005; the Animal and Animal Product 
Quarantine Act, 2005; the Animal Slaughter and Meat Control Act, 2011; the Animal Feed Rule, 
2013; and the Animal Slaughter and Meat Control Rule, 2018, which has not yet been enacted.   
4.37.   To assure quality feed supply to livestock and poultry, and to increase food safety, the 
Government approved the Fisheries  and Livestock Feed Act, 2010. Similarly, to assure the halal 
method, and to prevent the unscientific slaughter of animals, the Government approved the Animal 
Slaughter Act, 2011 and the Animal Feed Rules, 2013. In order to expand modern veterinary service s 
to farmers, 64 District Veterinary Hospitals, 491 Upazila Livestock Development Centers (ULDCs), 
and ten  Metro Thana Livestock Offices have been established. Modern veterinary services, training, 
disease diagnostic facilities, treatment facilities, and a rtificial insemination, disease control and 
prevention services are provided from these centres. Moreover, 22 mini diagnostic laboratories were 
established in other districts, to provide technical support to poultry and dairy farmers through the 
analysis o f animal and poultry feeds and disease diagnosis. To provide a one -stop service to farmers, 
63 new ULDCs buildings were con structed, and 22 ULDC buildings are being constructed under the 
ULDC Establishment Project. Twelve new duck hatcheries were establish ed and two duck hatcheries 
are being constructed under the Regional Duck Breeding Farms Establishment (Duck Hatchery) 
Project. According to the authorities, 77,935  poultry farms were registered as at 2017/18. In 
addition, as at June 2017, there were: 18,69 8 layer farms; 53,985 broiler farms; 7,705 duck farms; 
207 hatcheries; 16 grandparent stock farms; 156 feed mills; 58,423 dairy farms; 3,917 goat farms; 
and 3,632 sheep farms.  
4.38.   Policies targeting technology adoption have focused on growth in livestock produ ction, 
especially through the cross -breeding of cattle and goats, and disease control in poultry.26 The 
authorities are also focusing on increasing the productivity of small -scale producers; promoting 
                                                
24 General Economics Division (2015), Seventh Five Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering citizens .  
25 Ministry of Fisheries and Livestock (2017), Nation al Livestock Development Policy . Viewed at: 
http://old.dls.gov.bd/files/Livestock_Policy_Final.pdf .  
26 World Bank (2016), Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Redu ction. Viewed 
at: http://documents.worldbank.org/curated/en/95109146819823 5153/pdf/103244 -REPLACEMENT -PUBLIC -
Dynamics -of-Rural-Growth -in-Bangladesh -Reformatted -conf-version -May-17.pdf . WT/TPR/S/385 • Bangladesh  
 
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  commercial production; providing extension advice, treat ing livestock diseases, and supplying other 
services to poor farmers; and strengthening market linkages for small and poor farmers.27 
4.39.   The average MFN applied tariff on animals and animal products increased during the review 
period, from 14.5% in 2011/12 to 21.1% in 2018/19 (Table A3.2). Imports of animals and animal 
products remain subject to inspection and quarantine (Section 3.3.3).  
4.1.6   Fisheries  
4.40.   Bangladesh is one of the world's largest inland fishing nations.28 During the review period, 
the fisheries sector contributed slightly more than 3% to GDP, equivalent to more than one quarter 
of total share of agriculture to GDP (Table 1.2).29 In 2011/12, the sector earned BDT  47,040  million 
by exporting 92,500 MT of fish  and fish products. Although small -scale inland capture fisheries have 
historically dominated fish production, there has been considerable growth in aquaculture.  In 
2011/12, the contribution of inland aquaculture, inland capture and marine fisheries to tot al fish 
production were 52.82%, 28.34 % and 17.74%, respectively, while in 2016/17, they were 56.44%, 
28.14% and 15.42%, respectively.  Fish and fish products are the major source of animal protein 
(about 60% of the daily animal protein intake), essential v itamins and other nutrients.30 Fisheries 
products, such as shrimp prawns, crab, catfish, carp, and tilapia, are exported to 50 markets, 
including: the European Union; United States; China; Japan; Hong Kong, China; Singapore; the 
Kingdom of Saudi Arabia; Mal aysia; and the Russian Federation.  In 2017, an estimated 50% -60% 
of total agricultural exports was composed of shrimp exports, contributing about 75% -85% to total 
value -added.31  
4.41.   In 2013, the Government formulated the National Aquaculture Development Strate gy and 
Action Plan for the period 2013 –20.32 The Strategy and Action Plan were formulated in line with the 
CIP of 2010 –15, and the 6th FYP (2011 –15). They provide a road map for realizing  the growth 
potential of the sector. The 1998 Fisheries Policy remains  unchanged. Its objectives include the 
enhancement of resources and production; poverty alleviation through self -employment in the 
sector; meeting the demand for animal protein; achieving economic growth and earning foreign 
exchange; and maintaining the ec ological balance, biodiversity and public health. The Ministry of 
Fisheries and Livestock's 2006 Fisheries Strategy consists of  sub -strategies for: inland and marine 
capture fisheries; aquaculture and shrimp farming and aquaculture extension; quality cont rol; 
human resources development and monitoring and evaluation. The National Shrimp Fish Policy was 
adopted in 2014. Its main objectives are maintaining the environmental and ecological balance, 
protecting biodiversity, following HACCP approach, traceabili ty, job creation, and shrimp production, 
processing, marketing and export market expansion.  
4.42.   To sustain the aquaculture industry, the National Aquaculture Development Strategy and 
Action Plan was approved in 2013, following the aims and objectives of 1998 Fisheries Policy and 
the 2006 Fisheries Strategy. Furthermore, to sustain growth in the shrimp sector, the National 
Shrimp Policy (2014) was formulated and enacted, to achieve targeted objectives, covering shrimp 
production and management; processing, qual ity control and export; employment and poverty 
reduction; and environment and disease surveillance. The Aquaculture Medicinal Products (AMP) 
Guidelines, 2015, and the Fish and Fishery Products Official Controls Protocol, 2015 were also 
formulated and enact ed, to address food safety compliances.  
4.43.   The regulatory framework governing fisheries dates back to 1983.33 For fisheries resource 
conservation and management and the maintenance of the quality of fish and fish products, the 
following rules are being enforce d: the Framing of Marine Fisheries Act, 2018 (under consideration); 
the Fish and Fish Products (Inspection and Quality Control) Rules, 1997 (amended in 2008, 2014 
                                                
27 World Bank (2016), Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction . Viewed 
at: http://documents.worldbank.org/curated/en/951091468198235153/pdf/103244 -REPLACEMENT -PUBLIC -
Dynamics -of-Rural-Growth -in-Bangladesh -Reformatted -conf-version -May-17.pdf . 
28 FAO online information. Viewed at: http://www.fao.org/fishery/facp/BGD/en . 
29 Department of Fisheries (2018), Annual Report 2017 .  
30 Department of Fis heries (2018), Annual Report 2017 .  
31 Department of Fisheries (2018), Annual Report 2017 .  
32 FAO online information. Viewed at: http://www.fao.org/3/a -i3903e.pdf . 
33 It consists of: the Protection and Conservation of Fish Act, 1950; the Protection and Conservation of 
Fish Rules, 1985; the Marine Fisheries Ordinance, 1983; the Marine Fisheries Rules, 1983; and the Fish and 
Products (Inspection and Quality Control) Ordi nance, 1983.  WT/TPR/S/385 • Bangladesh  
 
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  and 2017); the draft Fish and Fish Products (Inspection and Quality Control) Act, 2018; the F ish 
Quarantine Act, 2018; the National Shrimp Policy (2014); the National Residue Control Plan Policy 
Guidelines, 2011 (amended 2012); the Fish and Fishery Products Official Control Protocols, 2015; 
and the Guidelines for the Control of Aquaculture Medicin al Products -AMPs, 2015. The Fish Hatchery 
Act, 2010, the Fish Hatchery Rules, 2011, the Fish Feed and Animal Feed Act, 2010, and the Fish 
Feed Rules, 2011 were approved by the Government, to, inter alia,  ensure quality fish feeds. 
Furthermore, the Fish Qua rantine Act, 2017 and the Marine Fisheries Act, 2017 are at the final 
approval stage.  
4.44.   The Department of Fisheries (DOF), under the administrative control of the Ministry of 
Fisheries  and Livestock, supports sustainable growth in fish and shrimp production  for domestic 
consumption and export, and the management of open water fisheries resources. The Bangladesh 
Fisheries Development Corporation (BFDC) owns a large portion of the sea -going fishing boats and 
ships, and has a wide -ranging mandate to promote and  engage commercially in all aspects of 
fisheries; its core activities are handling, processing and marketing.34 The DOF mandate includes: 
disseminate improved aquaculture technologies, through training and demonstration, and extend 
extension advisory servic es to the focal stakeholders; enhance fisheries resources, through enacting 
conservation and management measures; assist the administrative ministry to formulate policies, 
acts, etc; enforce quality control measures, and issue health certificates for expor table fish and fish 
products; conduct fisheries resources surveys and assessment of stock, to develop fisheries 
database for proper planning; facilitate the arrangement of institutional credit for fish and shrimp 
farmers, fishers and fish traders and entre preneurs; facilitate alternative income -generating 
activities for rural poor and unemployed people, to alleviate poverty; formulate and implement 
development projects /programmes, for the sustainable utilization of fisheries resources, to ensure 
food secur ity; and disseminate improved aquaculture technologies, through the e -extension service. 
There are 253  industrial fishing trawlers (see below) under the DOF's control, as well as 
approximately 67,000  artisanal mechanized and non -mechanized boats. Eight shi ps, two fish 
processing centres, and eight  landing and marketing centres are under BFDC control.  
4.45.   In 2013, Bangladesh obtained the right to access 1 lakh km2 of water area in the Bay of 
Bengal, through the International Tribunal for the Law of the Sea (ITL OS). The DOF is planning to 
assess the fisheries resources in the Bay of Bengal for maximum sustainable yield. A research vessel, 
to conduct appropriate stock assessment, is about to be purchased, and a vessel tracking monitoring 
system is to be developed.  
4.46.   Regarding inland fisheries, the Ministry of Land leases water bodies ( Jalmohals ) (e.g. ponds 
or wetlands) to individuals or groups on an annual basis; community -based fisheries management 
has been piloted through development projects (funded by the Govern ment and by donor agencies) 
through 400  community -based organizations (CBOs).35 Aquaculture is operated in ponds, seasonal 
water bodies, oxbow lakes ( baors ) and shrimp/prawn farms. Water bodies, oxbow lakes ( baors ), 
shrimp farms, prawn farms, m ud crab cultu re, pen culture , and cage culture accounted for 78.56%, 
9.24%, 0.34%, 10.56%, 0.62%, 0.57% and 0.11% of the activity's catch, respectively, in 2016/17. 
Marine fisheries are an open access resource, and its industrial sector is regulated through the 
licensi ng of vessels; regulated mesh sizes for cod -ends (45 mm for shrimp and 60 mm for fish trawl); 
shrimp trawlers must land, not discard; and shrimp trawlers are permitted to fish for 30 days, and 
must have at least 30% fish in the total catch. Licensed vessel s must land at designated ports. The 
industrial fleet comprises fish and shrimp trawlers; in 2017/18, 253 (195 in 2011/12) were engaged 
in fishing with a court order, including 40 unregistered trawlers, of which 31   are active and 9 are 
out of order. There  were 37 double -rigged shrimp trawlers in 2012, the same as in 2017/18.  
4.47.   Average MFN tariff protection for fish and fishery products remains high (23.8% in 2018/19, 
23.4% in 2011/12). Under the latest Export Policy (2015 -18), the f rozen food and fish produ ct 
industry have, inter alia, benefited from: loans at lower interest rates, payable in easy installments, 
to increase the production of shrimp and fish; venture capital to the frozen food sector, for producing, 
processing and exporting value -added product s; duty -free imports of essential quality control 
machinery; shrimp and fish insurance, similar to that for agricultural crops; steps being taken to 
withdraw duty and VAT on fry, feed, electricity, chemicals, etc., to increase production of shrimp 
                                                
34 FAO online information. Viewed at: http://www.fao.org/fishery/facp/BGD/en . 
35 FAO online information. Viewed at: http://www.fao.org/ fishery/facp/BGD/en .  WT/TPR/S/385 • Bangladesh  
 
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  and fish ; and a loan facility at a low interest rate for registered small shrimp and fish cultivators, for 
the alleviation of poverty.  
4.48.   Bangladesh incorporated illegal, unreported and unregulated (IUU) fishing into its regulatory 
framework in 2010, through an amendment to the Marine Fisheries Ordinance, 1983, followed by 
SRO No. 59 -ain/2010.  
4.2  Mining and Energy  
4.2.1   Mining  
4.49.   During the review period, Bangladesh continued to produce mainly coal, hard rock, peat, 
mineral sand, metallic minerals, white clay, silica sand, ordinary/sand mixed stone, limestone and 
gravel.36 The mining sector's contribution to GDP increased slightly, from 1.7% in 2011/ 12 to 1.8% 
in 2017/18 (Table  1.2). The industry (HS Section 5, mineral products) accounted for 13.6% of total 
imports in 2016/17 (10.8% in 2011/12), and 0.1% of total exports in 2017/18 (1.3% in 2011/12); 
its main traded items are mineral fuels/oils.37 According to the authorities, new mineral discoveries 
during the review period included bituminous coal and hard rock. Coal is one of the main energy 
resources of Bangladesh and, since 2010, the Geological Survey of Bangladesh (GSB) has discovered 
an estimated  2 billion tonnes of coal reserves, which is equivalent to more than 70  trillion cubic feet 
of gas.  
4.50.   Bangladesh maintains policies to further explore mineral resources; its 7th FYP 2016 -20 
provides for a Domestic Coal Export Policy (Section 4.2.2). The coal  policy of Bangladesh was 
formulated in 2010 by the Ministry of Power, Energy and Mineral Resources, with the involvement 
of the GSB, but it has not yet been approved. According to the authorities, as the main exploration 
authority of coal energy, the GSB is entitled to perceive royalties from coal extraction, thereby 
allowing it to implement its exploration work more efficiently, and develop its manpower, technical 
assistance, equipment and laboratory facilities. The GSB also has the authority to engage in  coal 
field development and mining activities. The main policy objective of the oil, gas and mineral 
resource sector is to meet the energy demand of the country by undertaking exploration, production, 
development and appraisal of oil and gas fields, and th e subsequent enhancement of energy reserves 
(Section  4.2.2).38 In 2010, Bangladesh planned to implement a coal power project to meet the 
country's demand for electricity, as gas reserves are drawn down, to promote the development, 
exploration, marketing, an d mining of coal; a draft policy proposed a waiver of corporate taxes for 
contractors and licensees.39 This plan is currently under review by the Government.  The GSB has 
implemented various projects for mineral exploration, geo -hazard assessment, urban deve lopment, 
coastal geology, engineering geology, geophysical surveys, drilling, analytical chemistry, 
petrology -mineralogy, and palaeontological studies, etc. for sustainable economic development. As 
at November  2018, one power station, based on Barapukuria Coal, had been established. Local and 
overseas training in mining is being implemented, to develop a skilled workforce. Research facilities 
have been expanded, by procuring modern equipment to work in the micropaleontology, petrology -
mineralogy, analytical  chemistry, engineering geology, geophysics, remote sensing and geographic 
information system (GIS), sedimentology and clay mineralogy laboratories.40  
4.51.   During the review period, the main regulatory framework governing mining remained virtually 
unchanged. Th e White Clay Extraction and Marketing Guidelines, 2014 were introduced. Under the 
Mines and Minerals (Regulation and Development) Act, 1992 (Act No.  39, 1992) and the Mines and 
Minerals Rules, 2012, the Bureau of Mineral Development (BMD), under the Energy  and Mineral 
Resources Division of the Ministry of Power, Energy and Mineral Resources, issues exploration 
licences, and grants mining leases and quarry leases for different minerals. The Bangladesh Oil, Gas 
                                                
36 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . 
37 Export Promotion Bureau of Bangladesh, and BBS.  
38 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic  Adviser's Wing Finance 
Division, December.  
39 Five coal fields in the country contain 3 .3 billion  tonnes of coal. Fong-Sam, Yolanda (2012), The 
Mineral  Industry of Bangladesh , published in the U.S. Department of the Interior, U.S. Geological Survey, 
2010 Minerals Yearbook – Bangladesh , August. Viewed at: 
https://minerals.usgs.gov/minerals/pubs/country/2010/myb3 -2010-bg.pdf .  
40 General Economics Division (2015). 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . WT/TPR/S/385 • Bangladesh  
 
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  and Minerals Corporation (Petrobangla) continues  to, inter alia, engage in: coal and granite mining; 
the development and marketing of minerals; and production -sharing contracts (Section  3.3.5 and 
4.2.2). The Bangladesh Power Development Board (BPDB) (Section 4.2.2.2), a state -owned power -
generating enti ty, buys fuel energy products (gas and coal) from Petrobangla's subsidiary 
companies. Government revenue (royalties) generated by the mining contracts from 2015 to 
2018 totalled BDT  187.33 crore. In terms of licences, two subsidiary companies of Petrobangl a were 
awarded three licences from the BMD. Between 2015 and 2017, the BMD signed lease agreements 
with 83  companies, to excavate stone from Sylhet, Lalmonirhat, Nilphamary, and Panchogar 
Districts; and 50  quarry lease agreements for silica sand from Maulv ibazar and Hobigonj. The mining 
licence for coal for Petrobangla's Bar apukuria Coal Mine Company Limited (BCMCL), and the hard 
rock mining licences for Modhyapara Granite Mining Company Limited (MGMCL) and for Dhighipara 
coal mine have been renewed.41  
4.52.   The average MFN tariff protection for minerals and metals stood at 13.2% in 2018/19 
(Table  A3.1), compared to 13.7% in 2011/12.  
4.2.2   Energy  
4.53.   Bangladesh's energy structure remains simple: fossil fuels, such as coal and gas, which are 
produced domestically; and petro leum products, which are imported. In 2017/18, natural gas met 
almost 71% of the country's total commercial use of energy (Section 4.2.2.1.2).42 Sector -wise, gas 
usage in 2017/18 included: electricity, 40.22%; captive, 16.32%; fertilizer, 4.85%; industry, 
16.88%, tea estates, 0.10%; commercial, 0.84%; domestic, 16.03%; and CNG, 4.76%. In addition, 
in 2017/18, coal met almost 4% of the country's total commercial use of energy.  The rising share 
of overall energy imports (i.e. oil and electricity) compared with  indigenous production and increased 
consumption implies that Bangladesh is becoming more dependent on energy imports 
(Section  4.2.2.1.1 and 4.2.2.2). In 2016/17, 282 licences, including 46 (out of which 15  are in 
operation) for gas and 84  licences for pet roleum activities, were issued, to increase  investment in 
the sector.  
4.54.   Bangladesh's energy policy remains focused on reducing extreme dependence on natural gas, 
through diversification of the energy mix and the use of alternative/renewable energy resources; 
balanced and synchronized development of gas production, transmission and distribution activities; 
and participation of private entrepreneurs in oil and gas exploration, production and distribution 
(Section  4.2.1).43 The 7th FYP is focused on  establishing/developing: a Gas Allocation Policy; a 
Domestic Gas Exploration Policy; an Energy Efficiency and Conservation Programme; a 
Domestic  Coal Export Policy; an Energy Subsidy Policy; an Import of Liquefied Natural Gas Strategy; 
a Plan for Import Coal Facilities; and a Financial Incentive Mechanism for Improved Cooking Stoves. 
It also aims at promoting the use of liquefied natural gas in the domestic and transport sectors.44 
Furthermore, during the review period, action was taken to promote renewable ene rgy and energy 
efficiency (Section  4.2.2.3).   
4.55.   To expedite the long -term development of the energy sector, the Bangladesh Energy 
Regulatory Commission (BERC) continues to carry out activities to create a favourable environment 
in the electricity generation,  energy transmission, transportation, marketing, management, and 
operation of this sector.45 The BERC has been working to ensure transparency in tariff fixation, 
protect consumers' interests, and create a competitive market. In terms of tariff fixation, the  BERC 
determines the bulk tariff for power generation, the wheeling charge for transmission, and the retail 
tariff for distribution of electricity. It also determines the gas transmission charge for gas 
transmission companies, the distribution tariff (marg in) for gas distribution companies, and the tariff 
                                                
41 Coal production from Barapukuria has increased significantly , due to the application of modern coal 
extracting method s. Energy and Mineral Resources Division online information. Viewe d at: 
https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/b618ee33_8727_40f6_b290_5 dbd3d
d0090b/42_Energy_English.pdf . 
42 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
43 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
44 General Economics Division (2015). 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . 
45 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  for end users of gas. It fixes tariffs by taking into consideration the financial capabilities of the 
producing/distributing agencies, consumers' affordability capacities, and the Government's capacity 
to provide subsidies. The BERC remains in charge of settling disputes between licensees and 
consumers in the energy sector. After the implementation of the BERC Act, 2003 and the Bangladesh 
Energy Regulatory Commission Dispute Settlement Regulations, 2014, th e BERC settled several 
disputes between licensees and consumers and issued orders.46 The Commission settled 84  disputes 
up to 2017/18. To increase accountability and transparency in the energy sector, in 2018, the BERC 
intends to introduce the Uniform Syste m of Accounts for all licensees of gas production, transmission 
and distribution, targeting 2019/20.  
4.56.   Incentives remain available to foreign and domestic investors in the energy sector, including: 
tax allowances on the payment of royalties, technical know -how and technical assistance fees, and 
facilities for their repatriation; tax allowances on interest paid on foreign loans (for the power 
sector); tax exemption on capital gains from the transfer of shares by the investing company; 
avoidance of double taxa tion for foreign investors on the basis of bilateral agreements; approved 
remittances of up to 75% of salary for foreigners employed in Bangladesh, and facilities for the 
repatriation of their savings and retirement benefits at the time of their departure;  based on the 
recommendation of the host ministry/agency, the issuance of work permits for project -related 
foreign nationals and employees is allowed without any restrictions; and facilities for the repatriation 
of invested capital, profits and dividends.47 
4.2.2.1   Hydrocarbons  
4.2.2.1.1   Oil 
4.57.   Bangladesh has an estimated storage capacity of about 13.27 million MT of fuel oil.48 During 
the review period, mineral fuels/oils and products of their distillation (HS Chapter 27) rose by 78.4%, 
from USD  1.98 billion (2011/12) to USD  3.5 billion (2016/17).49 In volume terms, crude oil imports 
increased by 28.1%, from 1  million MT in 2011/12 to 1.4 million MT in 2016/17; refined petroleum 
products imports, such as diesel oil, increased by 28.8%, from 3.4  million MT in 2011/12 to 
4.4 million  MT in 2016/17.50  
4.58.   The Bangladesh Petroleum Corporation (BPC) remains the country's sole petroleum refining 
entity, and retains monopoly rights in downstream activities (i.e. retail trading) (Section 3.3.5). 
Since 2013, the Government broke the monopoly of the BPC by allowing the private sector to import 
crude and refined oil, under the condition that the oil refined by them would be sold to the BPC for 
commercialization; however, private power -generation companies have been allowed to import 
refined oil for  their own use . The BPC imports, acquires, stores and markets petroleum products. Its 
subsidiary, the Eastern Refinery Limited (ERL), is the sole refinery in Bangladesh, and plays a vital 
role in supplying around 40% of the country's current petroleum prod ucts. To strengthen energy 
security, in 2018, the BPC undertook the Installation of ERL Unit -2 Project, to increase the processing 
capacity of its existing refinery from 15.00  lakh MT to 45.00 lakh MT; the project is expected to be 
completed in 2023. In ad dition, in 2018, the Installation of Single Point Mooring (SPM) with 
Double  Pipelines Project was implemented, with the aim of receiving importable crude and refined 
petroleum from vessels in the Bay of Bengal, to ensure smooth and cost -effective procedure s. In 
2014, an MOU was signed between the BPC and the China Petroleum Pipeline Bureau (CPP), a 
Chinese state -owned company, to implement the former project, and the Engineering, Procurement 
and Construction (EPC) Contract was signed in 2016. To finance the  project, two loan agreements 
were signed between the Economic Relations Division (ERD) of the Ministry of Finance and China 
Exim Bank, amounting to USD  550.4  million, which is the total amount of the Engineering, 
Procurement, Construction and Commissioning Contract (EPCC) between the BPC and the CPP.  
                                                
46 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
47 Bangladesh Country Commercial Guide online information. Viewed at: 
https://www.export.gov/article?id=Bangladesh -Power -and-energy . 
48 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
49 Data provided by the authorities.  
50 Ministry of Finance (2017), Banglade sh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December . WT/TPR/S/385 • Bangladesh  
 
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  4.59.   The BPC imports crude and refined oil annually, according to the country's demand, without 
adjusting the domestic retail prices to world prices. As a result of losses by the state -owned BPC 
(Sectio n 3.3.5) due to non -adjustment of the oil price in the domestic market and the custom duties 
paid on the higher oil price in the international market, subsidies were provided by the authorities 
for the import of petroleum products in 2011/12 (BDT  8,549.50 crore), 2012/13 
(BDT 13,557.83  crore), 2013/14 (BDT  2,477.60 crore) and 2014/15 (BDT  600.00 crore); following 
the world oil price drop in recent years, no subsidy was required in the periods 2015/16 and 2016/17 
(Section  3.3.1.2.4).51 According to the author ities, the BPC proposed to the Government to provide 
a subsidy of approximately BDT  8,000 crore during the period 2018/19; as at November 2018, this 
proposal was still under consideration.  
4.60.   The average MFN applied tariff rate for petroleum stood at 15.5% i n 2018/19 (Table A3.1), 
compared to 16% in 2011/12.  
4.2.2.1.2   Gas 
4.61.   Bangladesh was the 8th largest producer of natural gas in Asia Pacific (WTO geographical 
groupings) in 2015, and 28th in the world's.52 Up to December 2017, a total of 25 onshore and 2 
offshore gas fields had been discovered, of which about 15.22 trillion cubic feet of gas had been 
produced cumulatively, leaving net recoverable reserves at 12.54 trillion cubic feet. In 2017, gas 
was the m ain source of fuel for the power (41.3%), fertilizer (5.44%), industrial (16.13%), and 
domestic (14.63%) sectors. Between 2011/12 and 2016/17, annual natural gas production and 
consumption increased from 743.7 billion cubic feet and 971.6 billion cubic fee t, respectively, to 
751.7 billion cubic feet and 987.3  billion cubic feet, respectively.53  
4.62.   Petrobangla retains a monopoly in all gas -related activities (Section 3.3.5, 4.2.1 and 4.2.2.2). 
Its companies remain active in exploration and production (Banglades h Petroleum Exploration and 
Production Company Ltd (Bapex), Bangladesh Gas Fields Company Ltd, and Sylhet Gas Fields 
Limited), transmission (Gas Transmission Company Ltd) and distribution (six  companies).54 The 
BERC's 2009 Gas Development Fund, which is fin anced by part of the gas retail tariff, supports the 
financial capacity for the exploration and production of gas by these nationalized companies; its 
cumulative deposit up to 30 June 2017 was BDT  9,185.95 crore.55  
4.63.   The main regulations in natural gas inclu de the Bangladesh Gas Act, 2010, and the 
Bangladesh Gas Marketing Rules, 2014. According to the authorities, to minimize the demand -supply 
gap, the Government has enhanced gas production, and has taken initiatives to import a 
considerable quantity of liqui fied natural gas (LNG). Two Terminal Use Agreements (TUAs) have 
been signed, with Excelerate Energy Bangladesh Limited (EBBL) and Summit LNG Terminal Co. (Pvt.) 
Ltd., to install two Floating Storage and Re -gasification Units (FSRUs) at Moheshkhali, Cox's B azar, 
to supply 500  million standard cubic feet of gas per  day each. The first FSRU, which is to be installed 
by the EBBL, was commissioned in October 2018, and the second FSRU, to be installed by Summit 
LNG Terminal, is to be commissioned in March  2019. T o import LNG, in 2018, two long -term LNG 
Sales Purchase Agreements (SPAs) were signed, with Rasgas, Qatar and Oman Trading International 
(OTI), Oman, on a government to government (G2G) basis.   
4.64.   As from September 2015, an Energy Security Fund has been finan ced by the transfer of 
BDT 1.01  per cubic metre of gas sold; the cumulative deposit up to 30 June 2017 to this Fund was 
BDT 4,219.53 crore.56 On 10 April 2018, a notification on the formation of the Energy  Security Fund 
                                                
51 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
52 The Daily Sun  online article entitled Bangladesh holds largest  oil, gas reserves in Asia Pacific , 
26 July 2016. Viewed at: http://www.daily -sun.com/arcprint/details/1 53817/%E2%80%98Bangladesh -holds -
largest -oil-gas-reserves -in-Asia-Pacific%E2%80%99/2016 -07-26; online data. Viewed at: 
https://photius.com/rankings/2018/energy/natur al_gas_production_2018_0.html . 
53 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
54 Petrobangla online information. Viewed at: https://petrobangla.o rg.bd/# . 
55 The Daily Sun  online article entitled Bangladesh holds largest oil, gas reserves in Asia Pacific , 
26 July 2016. Viewed at: http://www.daily -sun.com/arcprint/details/153817/%E2%80%98Bangladesh -holds -
largest -oil-gas-reserves -in-Asia-Pacific%E2%80%99/2016 -07-26. 
56 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Fi nance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  Policy - 2018 was issued.57 The Fund is to be used for exploring, extracting, purifying, transmitting, 
and distributing gas, importing LNG, and undertaking other related projects to ensure energy 
security in the country.  The BERC is expected to manage the Fund.   
4.65.   During the review period, the BERC determined the gas transmission charge, the distribution 
tariff (margin), and the tariff for end users of gas (Section 3.3.4.2 and Section  4.2.2).58 Gas retail 
tariffs vary, depending on the consumer category. Since 2012, the average gas retail tariff was 
increased three times. The end user -weighted average price per cubic metre of natural gas was as 
follows: BDT 4.93 in September  2015; BDT  6.22 (26% increase) in March 2017; BDT 6.96 (12% 
increase) in June 2017; and since November  2018, it is BDT 7.38 (6% increase).  
4.2.2.2   Electricity  
4.66.   In 2017/18, the main sources of power generation were: natural gas (66.44%), heavy fuel -oil 
(17.4%); power imports (8.1%); high speed diesel oil (4.6%); coal (1.8%); and hydro (1.7%).59 
Their shares in 2011/12 stood as follows: natural gas (79.18%); heavy fuel oil (11.83%); power 
imports (8.1%); high speed diesel oil (4.27%); coal (2.52%); and hydro (2.21%). In 2016/17, a 
total of 57.3 billion kWh of net energy was generated from power p lants, compared to 35.1 
billion  kWh in 2011/12. In the same year, public -sector power plants generated 46.43% of 
electricity, and 45.43% was generated by the private sector; the rest consisted of power imports 
from India.60 Despite the increase in generatio n, demand for electricity cannot be met, due to 
transmission and distribution bottlenecks and a deficit in gas supply to power plants. The per capita 
generation of 464  kWh (including captive) in 2017 was lower than that of many developing 
countries.61 The s ystem loss of electricity decreased from 14.61% in 2011/12 to 11.87% in 2017/18.  
Regulatory developments  
4.67.   During the review period, the main regulatory framework developments included the passing 
of: the Rural Electrification Board (REB) Act, 2013, to refor m the REB; the Bangladesh Energy and 
Power Research Council Act, 2015, to encourag e and sponsor energy - and power -related R&D 
activities; the Special Act for Quick Procurement in Power and Energy Sector, 2018, to encourage 
private investors in the power se ctor; and the Electricity Act, 2018, updating the rules of the power 
sector.  
Power Generation  
4.68.   The BPDB (Sections 4.2.1 and 4 .1) remains responsible for a major portion of the generation 
and distribution of electricity, mainly in urban areas except Dhaka an d the West Zone of the 
country.62 To increase the efficiency and capability of the BPDB, on 1 February 2011, the BERC 
created the Electricity Maintenance and Development Fund; cumulative deposits to the Fund stood 
at BDT  5,962 crore up to 30 June 2017. The construction of the 383.51 MW (+/ -10%) Bibiyana gas -
based combined cycle power plant is being financed by this Fund; as at 2017, three  additional 
projects had been approved, for a 5 MW solar power plant at Thakurgaon, a 75  MW power plant at 
Sylhet, and a 1 00 MW gas tu rbine power plant.  
                                                
57 Energy News of Bangladesh  online article entitled 20-year Energy Security Fund Formulated for 
LNG Import , 25 April 2018 . Viewed at: http://energynewsbd.com/details.php?id=1131 .  
58 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
59 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
60 Since 5 October 2013, 500 MW power has been imported from India; and an additional 500  MW 
power was to be imported  from Bheramara after the enhancement of the substation's capacity by June  2018. A 
further 100 MW of power has been impo rted from India (Palatana, Tripura state) since March 2016. Ministry of 
Finance (2017), Bangladesh Economic Review  2017, Economic Adviser's Wing Finance Division, December.  
61 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's W ing Finance 
Division, December.  
62 Subsidiaries of the BPDB are: the Ashuganj Power Station Company Ltd. (APSCL); the Electricity 
Generation Company of Bangladesh (EGCB); the North West Power Generation Company Ltd. (NWPGCL); and 
the West Zone Power Distrib ution Company Ltd. (WZPDCL). BPDB online information. Viewed at: 
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  4.69.   Since October 1996, a policy to encourage the private sector to generate electricity under 
PPP, Rental Power Producer (RPP), and Independent Power Plant/Producers (IPP) arrangements have 
been in place. Up to June 2012, arrang ements included: eight IPPs, with installed capacity of 
1,445  MW and a share of electricity of 16% of the total installed capacity; 10 S mall Independent 
Power Producers  (SIPPs), with installed capacity of 325  MW and a share of electricity of 4%; 24  RPPs, 
with installed capacity of 1,419  MW and a share of electricity of 16%; and 7 Quick Rental Power 
Plants (QRPPs), with installed capacity of 517  MW and a share of electricity of 6%. Up to 
30 June 2018, arrangements changed, and included: 32 IPPs, with install ed capacity of 3,953  MW 
and a share of electricity of 25% of the total installed capacity; 13 SIPPs, with installed capacity of 
350 MW and a share of electricity of 2%; 12 RPPs, with installed capacity of 523  MW and a share of 
electricity of 3% ; and 16 QR PPs, with installed capacity of 1,273  MW and a share of electricity of 
8%. Power projects are exempt from corporate income tax for up to 15  years.63 Several donors, 
including the World Bank Group, have financed energy projects.64 As at 2017, 36  power generat ion 
projects were underway (17 of which were public), representing a capacity of 11,997  MW.  
4.70.   Considering the increasing scarcity of natural gas and the rising demand for electricity, a 
Power Sector Master Plan - 2016 (PSMP) was put in place; long -term targ ets have been set for an 
installed electricity generation capacity of 24,000 MW against a demand of 19,000  MW by 2021; 
40,000 MW against a demand of 33,000 MW by 2030; and 60,000 MW against a demand of 
52,000  MW by 2041.65 As at November 2018, the PSMP -2016 was being reviewed.  
Grid and distribution  
4.71.   In 2017, 80% of the population (25.9 million consumers) had access to electricity facilities, 
and the national grid covered 401,000  km.66 In 2017, the total grid -based installed capacity was 
13,555  MW, including: 7 ,582 MW from the public sector; 5,373 MW from the private sector; and 
600 MW from cross -border trade. Under the PSMP -2016, an integrated power distribution 
programme was undertaken, to increase the distribution network, to give access to electricity to the  
entire population by 2021 and to improve customer service.  
4.72.   The state -owned Power Grid Company of Bangladesh Ltd. (PGCB) is the sole company 
responsible for the operation, maintenance and development of the transmission system. Power 
generated in differen t power plants is transmitted to the national grid through 400  kV, 230 kV and 
132 kV transmission lines. In 1996, when the PGCB was formed, the total lengths of 230  kV and 132 
kV lines were 838  circuit kilometres (ckt km) and 4,755 ckt km, respectively; as  at June 2018, 
transmission lines had increased to 3,342.622 ckt km and 6,994.788 ckt km, respectively, with an 
additional 697.762 ckt km at 400 kV. The total length of the Optical Ground Wire (OPGW) (a dual 
functioning cable) installed in the transmission  line increased from 4,200 km to 5,549 km in 2017, 
upon completion of the National Load Dispatch Centre (NLDC) project in 2010.  
4.73.   Six state -owned organizations remain responsible for electricity distribution: the BPDB; the 
Bangladesh Rural Electrification Bo ard (BREB); the Dhaka Power Distribution Company (DPDC); the 
Dhaka Electric Supply Company (DESCO); the West Zone Power Distribution Company (WZPDC); 
and the Northern Electricity Supply Company (NESCO).67 Up to June  2017, the BREB had connected 
a total of 1 9.1 million  consumers.68 Among them, 17.2 million were domestic; 0.2  million, irrigation; 
1.3 million,  commercial; 0.2 millio n, charitable institutions; 0.2  million,  industrial; and 0.04 million, 
other constructions. As at June  2017, 16 BREB projects were u nder way, at an estimated cost of 
                                                
63 SRO 211 -Law/Income Tax/2013, 1 July 2013, amended by SRO 354 -Law/Income Tax/2013, 
18 November 2013, and SRO 213 -Law/Income Tax/2013, 1 July 2013. Viewed at:  
https://www.export.gov/article?id=Bangladesh -Performance -Requirements . 
64 They include:  the G horashal Unit 4 Repowering Project ; the R ural Electricity Transmission and 
Distribution  Project; the P ower System Reliability and Efficiency Improvement Project ; and the Siddhirganj  Power 
Project . World Bank Group (2017), Bangladesh Country Snapshot , October. Viewed at: 
http://www.worldbank.org/en/country/bangladesh . 
65 General Economics Division (2015). 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . 
66 Ministry of Finance (2017), Bangladesh Economic Rev iew 2017 , Economic Adviser's Wing Finance 
Division, December.  
67 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
68 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  nearly BDT  36,912.88 crore. They were related to: the expansion, development and enhancement 
of the existing distribution system; the installation of pre -payment meters; technical assistance; the 
replacement of overloaded transformers; the expansion of the distribution line; and consumer 
connection.  
Electricity tariffs  
4.74.   The retail electricity tariffs differ by consumer category and voltage level (low, medium, high, 
extra-high), and therefore involve cross -subsidization elem ents (Section 3.3.1.2.4).69 According to 
the authorities, the average retail (end -user) electricity tariff increased from BDT  4.85 per kWh 
February  2012 to BDT 6.85 per kWh in December 2017. As at 2018, the flat tariff for agricultural 
irrigation pumping wa s one quarter of the highest tariff, which was charged on construction, and 
was followed by those on industry and commercial and office activities. Considering the 
socio-economic condition of the poor and lower middle -income consumers, the BERC has fixed t he 
life-line tariff for residential users at 1 -50 electricity units at BDT  3.36-3.87 per kWh, for the BREB, 
and BDT  3.33 per kWh for other electricity distribution utilities from September  2015; this remained 
unchanged until the latest tariff order, in Dec ember 2017, when the life -line tariff was fixed at 
BDT 3.50-3.87 per kWh for the BREB, and BDT  3.50 per kWh for other distribution utilities.  
Regional cooperation  
4.75.   To enhance the development of its power sector, Bangladesh is working with its neighbouring 
countries and with the SAARC, BIMSTEC, the South Asia Subregional Economic Cooperation 
(SASEC), and the D -8 regarding regional cooperation (Section  2.3.2.4). In addition to that with 
India, Bangladesh has initiated cross -border trade of electricity through bilateral cooperation with 
Nepal, Bhutan, and Myanmar.70 An MoU was signed between Bangladesh and China in 2012, to 
enhance cooperation in the power sector, and increase investment opportunities in electricity 
generation, transmission, distribution, energy efficiency, and renewable energy (see below).71  
4.2.2.3   Renewable energy and energy efficiency  
4.76.   Considering the gradual decrease in Bangladesh's primary fuel reserves (i.e. natural gas) 
(Sections  4.2.1 and 4.2.2.1.2), action has been taken to address viable alternatives. Under the 
Sustainable and Renewable Energy Development Authority (SREDA) Act, 2012, the SREDA was 
established. Several government agencies are working with it for the effective utilization and 
conservation of renewable energy, in both the pub lic and private sectors; and to monitor and 
coordinate renewable energy and the efficiency of energy -related issues.72  
4.77.   The 2016 Energy Efficiency and Conservation Master Plan, up to 2030, developed by the 
SREDA with assistance from the Japan International Cooperation Agency (JICA), is aimed at ensuring 
energy efficiency and conservation.73 Its energy -saving  targets include saving 15% of "primary 
energy per GDP" by 2021, and 20% by 2030. The main components of the Master Plan are: setting 
an energy management  programme for large industries; establishing an energy -efficient or star 
labelling programme for electrical appliances; setting an energy -efficient building programme and 
introducing a green building rating system; providing technical support and identify ing the financing 
for project implementation; and creating awareness of energy efficiency among the population. An 
Interim  Action Plan for Improvement of Energy Efficiency and Conservation was put in place in 2013, 
as an intervention for energy efficiency and demand side management, and a Clean  Cook Stove 
Country Action Plan was put in place in the same year  
                                                
69 BERC online information. Viewed at: https://dpdc.org.bd/article/view/52/Tariff%20Rates . 
70 As at 2017, there were plans to import 4,000 MW from B hutan and Nepal by grid interconnection; at 
the same time, a feasibility study on grid interconnection facilities for the import of an additional 1,000  MW 
from India  was underway. Ministr y of Finance (2017), Bangladesh  Economic Review 2017 , Economic Advise r's 
Wing Finance Division, December.  
71 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
72 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division,  December.  
73 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  4.78.   During the review period, energy saving and environmentally -friendly power generation 
systems were introduced, using renewable and modern technology. As at September 2018, 14  solar 
minigrids, 1,000 solar irrigation pumps, 2 solar parks (total 23 MW capacit y), and 5.2  million solar 
home systems were installed. According to the authorities, the following incentives and financial 
benefits are being provided for the establishment of these systems: solar power companies are 
exempted from income tax after commenc ement; solar power companies are allowed to import 
spare parts, without paying customs duty, VAT, supplementary duty, or import fees, up to an amount 
of 10% of the total cost of plant and equipment, for the first 12 years of commercial operation 
(exemption s not applicable for locally produced "international standard equipment"); foreign 
companies are allowed to repatriate equity and profit to their home country; foreign investors are 
exempted from income tax for solar power projects; foreign investors are a llowed to form joint 
ventures to implement solar power projects; with the consent of the lender and the utility company, 
the solar power company can insure the project through its headquarters; local company registration 
by foreign investors is exempt from  stamp duty; companies enjoy the existing benefits of IPPs 
(Section 4.2.2.2); companies are allowed to raise funds locally, as per the regulation of the Board 
of Investment (BOI); and companies are encouraged to use locally produced quality products and 
engineering services for solar power generation.  
4.79.   In 2018, a Net Metering Guideline was published by the Government, to accelerate investment 
in renewable energy power generation.74 It is intended to help household, commercial and industrial 
consumers of grid -connected electricity to use solar energy for power generation. The Guideline is 
also aimed at facilitating them to become electricity producers, meeting their power demand, partly 
or fully, on their own, and even sell excess electricity to the power dist ribution agencies or 
companies. Furthermore, t he Power Division, under the Ministry of Power, Energy and Mineral 
Resources, is planning to set up floating solar power plants across the country, as part of the 
Government's plan to generate 24,000  MW of elec tricity by 2021, as well as  encourage solar boating 
and other new technologies in the renewable energy field.  
4.3  Manufacturing  
4.3.1   Features, policy and measures  
4.80.   Manufacturing remains a priority economic sector in terms of its contribution to the economy, 
employm ent and merchandise exports. Its share in GDP increased from 16.8% in 2011/12 to 19% 
in 2017/18 (Table 1.2), while its share in total employment increased from 12.34% in 2010 to 14.4% 
in 2016/17 (Chart 4.1).75 Low wages continue to assist the expansion of m anufacturing activities led 
by SMEs in the labour -intensive textile and RMG areas, which employ an estimated 5  million people, 
of which about 60% are female.76 Bangladesh's narrow industrial base remains concentrated in the 
garment industry, although subsec tors, such as jute products, pharmaceuticals, shipbuilding, toys, 
ceramics, and furniture, are further being developed. As at 2017/18, manufacturing continued to 
account for 96.8% of total exports (95.9% in 2011/12), of which 89.6% (87.9% in 2011/12) were 
textiles and textile articles (Table  A1.1). In 2016/17 textile and textile products (mainly cotton) and 
machinery and electrical equipment remained the main manufacturing imports, representing 22.3% 
and 16.0% of total imports, respectively (Table A1.2).  
4.3.2   Policy and institutions  
4.81.   The authorities' long -term development strategy, Vision 2021 (Section 2.2.3), includes 
strategies for developing manufacturing activities by, inter alia:  undertaking initiatives to ensure the 
competitiveness of potential labour -intens ive manufactures, beyond textiles, RMG and leather 
goods; developing SME -based industrialization; policy support for emerging sectors, such as 
high-end RMGs, pharmaceuticals, shipbuilding, etc.; promoting FDI through incentives, to stimulate 
access to tech nology and "frontier know -how" capital market liberalization and reform, to create 
opportunities for raising equity capital to support industrial sector growth; the continuation of 
                                                
74 Viewed at: https://www.dhakatribune.com/opinion/special/2018/01/21/guideline -net-metering -grid-
consumers -finalized  and 
https://powercell.portal.gov.bd/sites/default/files/files/powercell.portal.gov.bd/notic es/c7bca4a1_9cd9_4cf4_b
d6e_848642a2a527/Report%20(Net%20Metering%20Guideline) -%202017.10.22.pdf . 
75 As per BBS Labour Force Survey data available for the years 2010 and 2013.  
76 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  privatization and adequate support to identified SOEs to run as commerciall y viable profitable 
organizations; providing adequate resources to industrial development institutions, to enable them 
to function efficiently to stimulate domestic investment, FDI and joint ventures; and developing 
diversified jute products, through the a ppropriate use of technology.77  
4.82.   Under the 7th FYP 2016 –20 (Section 2.2.3), policy objectives include: full utilization of the 
current production capacity in the industrial sector, with special focus on Cottage, Micro, Small and 
Medium Enterprises (CMSMEs) (Section 3.3.1.2.1); infrastructural developm ent, including ports, 
power, transport and communications; human resource development; assisting backward linkage 
industries on a priority basis; treating the RMG and textile industries as priority sectors, in view of 
their special contributions to the cou ntry's export trade, and strengthening other industry -related 
policies, such as the Textiles Policy, the Jute Policy, and the Silk Policy as supplementary to the 
Industrial Policy (below, and Sections 4.3.5.1 and 4.3.5.2); collecting information on industr ial 
development and arranging for technology dissemination; removing policy discrimination, if any, 
between domestic and foreign investments, and enhancing regional and sub -regional cooperation, 
and taking steps to bring about industrial development in lin e with different agreements with the 
WTO; providing assistance for the creation of a strong capital market, so that investments in the 
industrial sector are increased; initiatives to set up industrial parks (Section 3.3.1.2.3); taking into 
consideration hi ghly-developed technology -based seed breeding, production and development, and 
agricultural goods -processing activities as industries; incentives for R&D, and the acceptance and 
transfer of environmentally -friendly appropriate technology; promoting FDI to bring about 
technology transfer, efficiency and management development, and enhance marketing skills; and 
creating a long -term credit fund to generate industrial production capacity, and a venture capital 
fund to support the commercial production and marke ting of creative industries.78 
4.83.   The National Industrial Policy (2016) is, inter alia,  aimed at promoting sustainable and 
inclusive industrial growth, through the generation of productive employment, to create new 
entrepreneurs; mainstreaming women in the ind ustrialization process; and creating international 
market linkage. To implement this Policy, the authorities are focusing on SME development. The key 
objectives of the Policy are: infrastructural transformation; diversification of the economic base; 
accele rated economic growth, mainly through the development of the private sector; employment 
generation; and an increase in income level and the development of the livelihood of the people. A 
time-bound Action Plan has been developed, in consultation with conce rned ministries, divisions and 
other stakeholders, to achieve the desired industrial growth.79  
4.84.   The Ministry of Industries continues to formulate and implement policies and strategies, as 
well as providing necessary facilities and assistance to establish an d expand industries for growth, 
employment generation and improvement in living standards. During the review period, the 
manufacturing -related policies adopted include: the National Industrial Policy (2016); the Policy 
Strategies for Development SMEs (2015 ); the Handicrafts Policy (2015); the Motorcycle Industry 
Development Policy (2018); the Innovation and Intellectual Property Policy (2018) (Section  3.3.7); 
and the National Quality (Goods) and Services Policy (2015). The important and underlying 
objective s of the Industrial Policy 2016 include sustainable and inclusive industrial growth through 
the generation of productive employment to create new entrepreneurs, mainstreaming women in 
the industrialization process and international market linkage creation.80 To this end, special 
emphasis is being put on SME development.  
4.3.3   Border measures  
4.85.   The simple average MFN tariff on industrial goods stands at 13.2% in 2018/19, a slight 
reduction from 13.9% in 2011/12 (Tables 3.1 and A3.1). The IPO 2015 -18  (Section 3.1.5)  contains 
provisions governing the import of many items, including those relating to export -oriented 
industries. According to the authorities, the Economic Zones and Export Processing Zones have been 
kept outside the purview of IPO 2015 -18. Some import -facilitating provisions are in the IPO for 
                                                
77 General Economics Division (2012) , Perspective Plan of Bangladesh (2010 -2021): Making Vision 2021 
a Reality . 
78 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens .  
79 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
80 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  factories located outside the BEZs or BEPZs. Goods and commodities, including restricted goods, can 
be imported for re -export. Under the latest Export Policy (2015 -18) and the Strategy for Export 
Diversification (201 5-20), the 12 highest -priority activities with non -utilized potential benefit from: 
project loans at reduced interest rates on a priority basis; corporate income tax rebates; possible 
financial benefits or subsidies for utility services, such as electricit y, water and gas, consistent with 
the WTO Agreement on Agriculture, and the Agreement on Subsidies and Countervailing Measures; 
export credit at lower interest rates and on softer terms; air transportation facilities on a priority 
basis; duty draw -back/bon d facilities; facilities for setting up ancillary industries, including 
infrastructural development, to reduce production costs; expansion of institutional and technical 
facilities, for improving and controlling quality of products; duty -free import of equ ipment, for setting 
up compliant industry; assistance in the production and marketing of products; assistance in 
exploring markets abroad; and initiatives to attract foreign investment.81 Similar measures (except 
for corporate income tax rebates) benefit an other 14 special development sectors.82  
4.3.4   Domestic support measures  
4.86.   During the review period, general and industry -specific manufacturing activities continued to 
benefit from tax incentives. VAT exemptions at the import or manufacturing stage remain in place  
(Section  3.3.1.1.2). Support is available for the establishment and operation of economic zones 
(EZs) and high -tech parks (Section 3.3.1.2.3). In addition, a tax holiday is provided, for 10 to 
12 years, to the developers of SEZs and high -tech parks, which  includes 10 years of full holiday and 
another 2 years of reduced tax rates. Companies set up in the zones are subject to tax exemptions 
starting from 100% for the first three years, and reduced rates for the following seven  years. In 
addition to measures under the Export Policy (2015 -18) (Section 4.3.3), there are corporate income 
tax holidays of five to seven years for new enterprises in textiles, pharmaceuticals, plastic, ceramics, 
sanitary items, iron works, steel works, fertilizers, insecticides, compu ter hardware, petrochemicals, 
pharmaceutical raw materials, agricultural equipment and industrial machinery (Section 3.3.1.2.4).  
4.87.   CMSMEs, mainly engaged in the manufacturing sector, have been assisted through industrial 
loans and other additional supports,  by banks and financial institutions, under the close monitoring 
and supervision of Bangladesh Bank, for financing and development (Section  3.3.1.2.1). There has 
been a gradual increase of CMSME financing in the manufacturing sector, from BDT  21,897.33 cro re 
in 2012 to BDT  161,777.32 crore in 2017 (BDT  77,515.25 crore up to June 2018).83 In addition, the 
Bangladesh Bank, with the assistance of the Government and development partners, operates 
refinance schemes for SMEs in agro product -processing industries i n rural areas (in 2018, total loans 
of BDT  1,602.97 crore were granted up to September  2018). The number of beneficiaries in the 
industrial sector was 2,897 in 2018 (up to September).84  
4.88.   A few SOEs remained in place in t extile mills, jute mills, steel and e ngineering, and chemicals 
activities (Section 3.3.5). Domestic support continues to be provided through a price-preference 
scheme for domestic suppliers in the case of international tendering (Section  3.3.6.3).  
4.3.5   Selected activities  
4.3.5.1   Garments  
4.89.   Bangladesh is th e world's second -largest producer of RMGs. The RMG industry, the backbone 
of the country's exports (Section 4.3.1), comprises large and medium scale companies and a few 
small -scale manufacturing enterprises, with a skilled workforce. Labour costs are among  the lowest 
in RMG -producing countries, with a minimum wage of BDT  6,805 per month in 2013. In 2018, 
                                                
81 These  highest priorit y activities consist of: high value -added RMGs  and garment accessories; software 
and IT -enable d services,  and ICT products; pharmaceutical products; ship s and ocean -going fishing trawler s; 
footwear and leather products; jute products; plastic products; agr o-products and agro-processed products; 
furniture; home textiles and terry towel ling; home furnishing s; and luggage.  
82 The special development sectors  consist of: diversified jute products; electric and electronic products; 
ceramic products; light engineering products (including  auto-parts and bicycles); value -added frozen fish; 
poppadum s; printing and packaging; rough diamond s and jewelry; paper and paper products; rubber; silk 
products; handicrafts; ha ndloom products , including lungi; and coir products.  
83 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
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  according to the authorities, the minimum wage was expected to increase to BDT  8,000; however, 
as at November 2018, this increase was still under process f or approval. In 2017/18, there were 
more than 4,300 RMG factories, and 1,430 textile mills, with a capacity of yarn production of 2.1 
billion kg per year. According to the authorities, in 2018, 100% of yarn and fabric needs were met 
by the domestic primary  textile sector (PTS); in 2016/17, about 85% -90% of knit yarn and 35% -
40% of woven fabric requirements for the RMG subsector exports were met by the domestic PTS.85  
4.90.   As at November 2018, Bangladesh continued to maintain a policy framework for investment 
in RMG, offering investors: establishment of new textile/RMG mills in the private sector; joint 
ventures with existing textile/RMG mills; acquisition of public sector textile mills that are being 
privatized; and indirect investment through financial services and/or leasing.86 The state -owned 
Bangladesh Textile Mills Corporation (BTMC)  remains operational. According to the authorities, the 
share of the BTMC in domestic production decreased from 9.36% in 2011/12 to 4.98% in 2017/18.   
4.91.   In 2018/19, the corporate inc ome tax rate of manufacturers and exporters of RMGs was 
reduced to 15%, and 12.5% for a public limited company. Furthermore, any garment factory that 
obtained a green building certification would benefit from a lower tax rate of 12% 
(Section  3.3.1.2.4). Th e RMG industry also benefits from concessional interest rates and subsidies 
on the cost of utilities. The BEPZA allows the setting -up of garment and textile industries in EPZs 
(Section  3.2.4.3). As at August 2018, RMG -related investment in EPZs included: g arments, USD  1.7 
billion; garment accessories, USD  630.7 million; textiles, USD  663.7 million; knitting and other 
textiles, USD 312.7 million.  
4.92.   The simple average MFN applied tariff on textiles increased from 16.8% in 2011/12 to 19.4% 
in 2018/19; and for c lothing it increased from 19.6% in 2011/12 to 24.5% in 2018/19 (Table  A3.1). 
To facilitate the import of commodities by garments exporters, the Bangladesh Garments 
Manufacturers and Exporters Association (BGMEA) was entrusted with the responsibility of iss uing 
Utilization Declarations (UDs) in 2018. IPO 2015 -18 contains provisions governing RMG trade 
operations, including Customs duty concessions for raw materials for the leather and textiles 
industries (Section 3.1.3.6). Special bonded warehousing is appli cable for 100% of export -oriented 
RMG industries, which include woven garments, knitwear and sweater manufacturing industries 
(Section 3.2.4.2). In addition, declarations for the export of RMGs under bonded warehouses are 
mandatory (Section 3.2.1). In 2017 /18, Bangladesh's largest RMG export market was Germany, 
generating USD  5.57 billion, an 8.65% increase from the previous year, followed by the 
United  States (USD  5.35 billion) and the United Kingdom (USD  3.72 billion).  
4.3.5.2   Jute industry  
4.93.   The jute industry (both raw fibre and jute manufactured goods) remains relatively important 
in terms of employment and exports. According to the authorities, in 2017/18, jute's contribution to 
total exports was 2.8%. An estimated 4  million people work in jute mills.87 Accord ing to the 
authorities, in 2017/18, Bangladesh exported more than 90% of the world's demand of raw jute, 
and about 80% of jute goods. According to the authorities, they contributed 2.8% to total national 
export earnings. Diversified commodities produced by  jute are increasing, along with traditional jute 
products (see below). The main manufactured products produced using jute include: yarn and twine; 
jute sacking; geo -jute; hessian; tobacco sheets; bags; serum cloth; decorative items; and carpet 
backing clo th. It is also blended with other textiles.  
4.94.   Jute mills are operated by both the public and the private sectors. In 2017, there were 
26 government and 234 private jute mills in the country.88 The Bangladesh Jute Mills Association 
(BJMA), representing the pri vate jute spinning sector, has 26 different categories of mills, producing 
hessian sacking, carpet backing cloth, yarn, geo -jute, and cotton bagging. According to the 
                                                
85 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
86 Bangladesh Investment Development Authority (BIDA) online information. Viewed at: 
http://bida.portal.gov.bd/ .  
87 Ministry of Textiles and Jute  online information. Viewed at: 
https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/5e31763f_f5b2_4ecb_bf9a_edc8609
d2f3f/G -2_05_41_Textile_English.pdf .  
88 Ministry of Textiles and Jute  online information. Viewed at: 
https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/5e31763f_f5b2_4ecb_bf9a_edc8609
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  authorities, the state -owned Bangladesh Jute Mills Corporation (BJMC)  seems to have been subject 
to a "wind -up" (Section 3.3.5). In 2016/17, the country's mills produced 1.41 million MT of jute 
products, and increased their exports to 0.89 lakh MT, earning BDT  735.25  crore (0.85  million  MT 
with export earnings of BDT  653.51 crore in 2015/16).89 
4.95.   The National Jute Policy (2018) focuses on the reopening of closed jute mills, the 
modernization of mills, and the establishment of jute as the second most important export item by 
2021. Its specific objectives include: establishing composite jute mills t o produce high -quality fabric 
from jute; establishing a professional design institute to develop various designs of jute and jute 
products to meet international demand; the automation of the market information system (MIS) of 
the jute sector; and prioritiz ing the jute sector.  
4.96.   The Jute Act, 2017 was formulated to identify and address existing problems in the textile 
and jute subsectors.90 The objectives of the Act included: issuing and renewal of licences for jute 
and jute goods businesses; production, marki ng, and "connection" of the export income of jute and 
jute goods; development, expansion and research of jute cultivation; increase of jute and jute goods' 
production to cope with local and international demand; preparation of a land use plan for jute 
cultivation; research and invention of diversified jute goods; supply of necessary information among 
jute cultivators; quality control, ensuring the quality of jute goods, and providing 
consultation/suggestion and support to jute mills during production; preve ntion of irregularities and 
dishonest activities in the jute business; and implementation of advance technology -based jute and 
jute seed production and extension project.  Upon implementation of the Compulsory Use of Jute 
Fibre Packaging Act, 2010 and the R ules for Compulsory Use of Jute Fibre Packaging, 2013, the 
packaging requirement became compulsory for 17 items, including rice, wheat, maize, fertilizer, 
sugar, chili, onions, garlic, turmeric, ginger, pulses, coriander, potatoes, flour, wheat grain and r ice 
bran (Sections  3.3.1.2.4, 3.3.2.4 and 4.3.5).  
4.97.   Since 2002, a Jute Diversification Promotion Centre (JDPC) has provided financial and 
technical support to the private sector, to diversify jute products and their usage.91 The JDPC focused 
on increasing aw areness and skills, market expansion through market research, feasibility studies, 
demonstration programmes and fair design workshops, and buyer -seller interactions. By 2018, it 
had supported the development of 25 medium -scale, 100 small -scale and 400  cottage industries. 
JDPC's achievements during 2009 -18 included: registering an estimated 650  small - to medium -sized 
entrepreneurs; undertaking training of around 8,000 trainees; acquiring 43  technologies; identifying 
250 jute diversified products (JDP)s; and establishing 7 Jute Entrepreneur Service Centres (JESCs) 
and two Raw Materials Banks (RMBs).   
4.98.   In 2017/18, the JDPC arranged events to promote jute products, including: fairs and 
exhibitions (28); awareness workshops (10); buyer -seller meets (6); and entrep reneur development 
training (260). It also implemented a multi -country and multi -dimensional research project, the 
Development and Application of Potentially Important Jute Geotextiles (JGT), under which it 
completed 14 field trials and created the expansi on of the market of JGT for use as an engineering 
material for rural road construction, river bank protection, and hill slope stabilization. According to 
the authorities, internal consumption of JGT in 2017/18 is estimated at 10  crore m2, amounting to 
USD 70 million.  
4.99.   During the review period, the simple average MFN applied tariff on jute remained unchanged, 
at 25%. The jute industry has benefited from a cash subsidy to exports, which is announced annually 
with a rate varying from 5% to 20% (Section 3.2.4). The export of jute and jute goods requires 
additional documentation, including an Export Registration Certificate (Section  3.2.1). The 
disbursements of export subsidies/cash incentives increased from BDT  350 crore in 2012/13 to 
BDT 480.8 crore in 2017/18 ( Table  3.5). In line with other support measures to the jute sector 
(Sections 3.3.2.1 and 3.3.2.3), as from 2016/17, the corporate income tax rate for the jute sector 
has also been reduced to 10% (Section  3.3.1.2.4).  
                                                
89 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
90 The Daily Star , Jute packaging made mandatory for 11 more products , 23 January 2017 . Viewed at: 
http://www.newagebd.net/article/7648/jute -packaging -made -mandatory -for-11-more-products . 
91 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  4.3.5.3   Pharmaceuticals  
4.100.   During the review period , the importance of the pharmaceutical sector to economic growth 
continued to increase, as Bangladesh kept taking advantage of the transition period during which 
LDCs do not have to protect or enforce patents and undisclosed information relating to 
pharmac euticals (Section 3.3.7). According to the authorities, in 2017, 98% of total domestic 
demand for medicine was met by domestic production.92 In 2017, 267 pharmaceutical manufacturing 
units produced 26,910 brands of medicine. Exports of finished pharmaceutic al products increased 
from BDT  539.62 crore in 2012 to BDT  2,245.60 crore in 2016 (latest figures available).93 
Furthermore, export destinations have increased from 87 countries in 2012 to 127 in 2016, including 
the European Union, African countries, and th e United States. According to the authorities, 
pharmaceutical imports are limited to high -tech produc ts, such as blood products, bio -similar 
products, anti -cancer drugs, and vaccines.  
4.101.   Corporate income tax holidays, of five to seven years, for new enterprises in pharmaceuticals 
remain in place (Section 3.3.1.2.4). During the review period, the simple average MFN applied tariff 
on pharmaceuticals dropped from 4.4% (2011/12) to 3.8% (2018/19). Cash incentives involving 
local content requirements are a lso available for exports of active pharmaceuticals ingredients 
(Section  3.2.4.1).  
4.4  Services  
4.4.1   Features  
4.102.    Services continue to be the main contributor to GDP; its share remained slightly above 56% 
during the review period (Table  1.2). The annual growth in the services sector declined moderately 
between 2011/12 and 2012/13, and then rose progressively to above 6%, peaking in 2016/17 at 
6.7%, and moderately slowing down in 2017/18 to 6.4% (Table  1.2). According to data from the 
authorities, the share of services in total employment increased from 34.1% in 2013 to 36.9% in 
2015/16 (Chart 4.1) and to 39% in  2016/17 (only data available). In 2017/18, the leading services 
sectors were: wholesale and retail trade; hotels and restaurants; transport, storage and 
communic ation; and real estate and business services. In terms of employment, trade, hotels and 
restaurants accounted for a large percentage of employment, at 15.1% in 2015/16; this was 
followed by commodities and personal services (11.3%), transport, maintenance and communication 
(8%), public administration and defence (1.7%), and finance and business services (0.7%) 
(Chart  4.1).  
4.103.   In 2017, Bangladesh ranked as the 104th largest exporter and 64th largest importer of 
commercial services in the world.94 In 2017/18, it s main services exports consisted of 
telecommunications, computers and information (15.7%); transportation (12.0%); and travel 
(8.3%). Imports largely consisted of transportation (70.6%), financial services (10.0%) and travel 
(6.3%) (Table 1.4). FDI in the  services sector is mostly concentrated in the trade and commerce; 
and transport, storage and communication sectors.  
4.104.   According to the World Bank's Services Trade Restrictiveness Database, Bangladesh applies 
trade -restrictive services policies. With a servi ces trade restrictiveness index (STRI) score of 
44.2 (where 100 is the most restrictive, and 0 the least), it ranked 88th out of the 104  countries 
covered by the World Bank. It is more restrictive in mode 4 (index score of 70), than in mode  1 
(46.2) or mod e 3 (33.8).95 Although the services sector has been a major contributor to the economy 
                                                
92 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
93 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Fina nce 
Division, December.  
94 WTO online data. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=BD .  
95 According to the World  Bank's Services Trade Restrictiveness Database,  Bangladesh's s core compared 
to India ( 65.7), Nepal (42.9), Pakistan (28.3) and Sri Lanka (38.2).  Viewed at: 
http://iresearch.worldbank.org/service trade/ . WT/TPR/S/385 • Bangladesh  
 
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  and its growth, it seems confronted by severe capacity constraints, owing to the lack of sufficient 
infrastructure, energy, and financial and qualified human resources.96  
4.4.2   Overall commitments under the General Agreement on Trade in Services and RTAs  
4.105.   Bangladesh's GATS commitments cover less than 10% of all services subsectors. Its 
schedule of specific commitments covers tourism and tourism -related services (five -star travel and 
lodging services) and telecommunications.97 Bangladesh has MFN exemptions in relation to 
international telecom services.98 Its SAFTA RTA deals with trade in services too (Section 2.3.2).  
4.4.3   Financial services  
4.106.   During the review period, despite a slowdown in growth, the financial services' contribution 
to GDP rose slightly from 3.6% in 2011/12 to 3.9% in 2017/18 (Table 1.2). The sector's total assets 
rose from BDT  10,891.8 billion in 2011/12 to BDT  21,826.2 billion in 2017/18. Total assets in the 
banking secto r increased from BDT  1,539.0 billion in 2011/12 to BDT 3,203.1 billion in 2017/18. The 
financial sector includes: the Bangladesh Bank (the Central Bank); scheduled banks ; various 
cooperative banks; non -bank financial institutions (NBFIs); micro finance ins titutions (MFIs); 
insurance companies; credit trading agencies; and the Stock Exchange. In addition, the financial 
system comprises three  broad fragmented sectors, in accordance with their degree of regulation: 
the formal sector; the semi -formal sector; an d the informal sector.99 The formal sector includes all 
regulated institutions, such as banks, NBFIs, insurance companies, capital market intermediaries 
like brokerage houses, merchant banks, etc., and MFIs. The semi -formal sector includes those 
institutions which are regulated b ut do not fall under the jurisdiction of the Bangladesh Bank such 
as, the Insurance Authority, the Securities and Exchange Commission, and any other enacted 
financial regulator. This sector is mainly represented by specialized financial institutions, such as the 
House Building Finance Corporation (HBFC), the Palli Karma Sahayak Foundation (PKSF), Samabay 
Bank, Grameen Bank, etc., and non -governmental organizations (NGOs).100 The informal sector is 
composed of shadow banking entities and activities of other fi nancial intermediaries that are 
unregulated or less regulated.  
4.107.   Since the last Review, policies to establish stable financial markets and service systems 
include the 7th FYP 2016 –20. According to the Plan, the Government strives to: expand access to 
financi al services to the underserved, including micro and household enterprises now operating in 
the informal market, and deepen the financial markets by introducing relevant products; introduce 
a Core Banking Solution (CBS) in all state -owned commercial and spe cialized banks; establish a Real 
Time Gross Settlement (RTGS) system for the banking sector; and develop strategy and implement 
identified measures for better supervision of state -owned banks.101 Furthermore, the Plan envisions 
that the Bangladesh Securities  Exchange Commission would establish a separate clearing 
corporation for speedy settlement after trade (Section  4.4.3.1). The capacity of the Insurance 
Development and Regulatory Authority would be strengthened through providing manpower and 
promulgating r elevant rules and regulations (Section  4.4.3.2). A separate Credit Information Bureau 
(CIB) for microfinance would be established.  
4.108.   As part of its financial inclusion policy, the Bangladesh Bank has taken different initiatives, 
such as: "mandating banks" to  open at least 50% of their branches in rural areas; introducing mobile 
financial services in 2011, to facilitate access to financial services by previously unserved and 
underserved citizens; introducing agent banking in 2013, to provide banking services i n remote 
areas; introducing an automated cheque clearing process, thereby reducing processing time by two 
days per cheque; introducing electronic fund transfer, to facilitate Internet banking and online fund 
                                                
96 UNCTAD (2016), Services Policy Review: Bangladesh .  
97 WTO documents GATS/SC/8, 15 April 1994; and GATS/SC/suppl.1, 11 April 1997.  
98 WTO document GATS/EL/8, 11 April 1997.  
99 Bangladesh Bank online information. Viewed at: https://bb.org.bd .  
100 Bangladesh Bank online information. Viewed at: https://bb.org.bd .  
101 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
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  transfer; and establishing an RTGS system in Oct ober 2015 for the banking sector (57 banks are 
connected with the system).102  
4.4.3.1   Banking and finance  
4.109.   The banking sector continued to expand; the net domestic assets of the banking system 
increased from BDT  438,280.8 crore in June 2012 to BDT  749,379.1 crore in June 2017.103 During 
the same period, net foreign assets of the banking system increased from BDT  113,384.8 crore to 
BDT 266,697.0 crore.104 During the review period, according to data from the authorities, there has 
been an increase in FDI inflows in to th e banking sector, from USD  136.47 million (2012) to 
USD 278.86 million (2017) (Table A1.5).  
4.110.   The banking sector consists of banks, NBFIs, and the stock market. It includes state -owned 
commercial banks (SOCBs), state -owned specialized development banks (SDB s), private commercial 
banks (PCBs), foreign commercial banks (FCBs), NBFIs, the Investment Corporation of Bangladesh 
(ICB), the House Building Finance Corporation (HBFC), and the Bangladesh Securities and Exchange 
Commission (BSEC). As at June 2017, 57 sc heduled banks were operating in Bangladesh, of which 
6 were SOCBs, 2 were SDBs, 40 were local PCBs, and 9  were FCBs.105 In addition, six non -scheduled 
banks are operating in Bangladesh: Bangladesh Palli Shanchay Bank; Ansar VDP Unnayan Bank; 
Karmasangsthan B ank; Grameen Bank; Jubilee Bank Ltd.; and Probashi Kalayan Bank. NBFIs also 
provide finances to the industrial, commercial, housing, transportation, and information technology 
sectors. According to the authorities, as at December 2017, NBFIs (with 255 bran ches) with total 
capital reserves of BDT  115.1  billion included: 3 government -owned entities, 19 privately -owned 
local companies, 2  owned by local and foreign governments, and 10  joint ventures with foreign 
participation.  
4.111.   MFIs remain the dominant players in rural financial markets and, as at June 2017, 
784 licensed micro -finance institutions operated a networ k of 17,120  branches, with 
29.9 million  members.106 
Role of central bank  
4.112.   The Bangladesh Bank is the de jure  autonomous regulatory body for the country's  monetary 
and financial system (Section 1.2.3.1). It  performs all the core functions of a typical monetary and 
financial sector regulator, and a number of other non -core functions, such as: formulation and 
implementation of monetary and credit policies; re gulation and supervision of banks and NBFIs, and 
promotion and development of domestic financial markets; management of the country's 
international reserves; issuance of currency notes; regulation and supervision of the payment 
system; acting as banker to the Government; money laundering prevention; collection and 
furnishing of credit information; implementation of the Foreign Exchange Regulation Act; and 
managing a deposit insurance scheme.107 Its general supervision and strategic direction is entrusted 
to a nine-member Board of Directors, which is headed by the Bangladesh Bank's Governor.  
Institutional setting and supervisory board  
4.113.   The institutional setting remained unchanged since the previous Review. The Bangladesh 
Bank continues to supervise banks and financial institutions via: on -site supervision by, inter alia , 
formulating and implementing strategies, and on -site planning by pr oducing assessment reports, 
ensuring compliance with laws and regulations, cooperating with banks and financial institutions; 
and off -site supervision, including regularly supervising, monitoring, and analysing the operations 
and review of periodic financi al reports of banks and financial institutions to ensure compliance with 
                                                
102 Financial inclusion has become one of the strategic instruments for achieving Sustainable 
Development Go als (SDGs), including the  7th FYP goals.  Viewed at: 
https://opinion.bdnews24.com/2018/06/21/bangladesh -shows -the-way-for-financial -inclusion/ . 
103 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
104 Ministry of Finance  (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
105 Bangladesh Bank online information. Viewed at: https://bb.org.bd .  
106 Ministry of Finance (2017), Bangladesh Economic Review 2017, Economic Adviser's Wing Finance 
Division, December.  
107 Bangladesh Bank  online information. Viewed at: https://bb.org.bd/aboutus/index.php .  WT/TPR/S/385 • Bangladesh  
 
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  regulatory requirements and safe and sound banking practices. Since 2012, the Bangladesh Bank 
introduced an online reporting system for foreign exchange transactions, known as Dash Bo ard. The 
Integrated Supervision System is also in place, as a web -based monitoring tool which is integrated 
with the existing multi -fold supervision mechanism of the Bangladesh Bank.  
Regulatory framework  
4.114.   During the review period, several changes were made to the regulatory framework governing 
banking activities.108 In 2016/17, the Bangladesh Bank undertook the task of restructuring the banks 
and the financial market, to develop a banking system in line with international standards, and to 
stabilize its overal l financial base. As a result the Bangladesh Bank, inter alia : introduced liquidity 
indicators, a liquidity coverage ratio (LCR), and a net stable funding ratio (NSFR), developed in line 
with Basel -III requirements; developed a reporting format, the Compre hensive Risk Management 
Reporting (CRMR), to make the banking risk management system more resilient and updated; and 
undertook regular monitoring of fraud/forgery, after the implementation of the Self -Assessment of 
Anti-fraud Internal Control, to strengthe n the internal audit system. In 2018, the Parliamentary 
Standing Committee enacted the Bank Company (Amendment) Bill, 2018; its amendments allow up 
to four members of a family to be on a bank's board of directors, and raise the tenure term of 
directors fro m six to nine years.109  
4.115.   To improve financial market infrastructures, to improve the regulatory and supervisory 
capacity of the Bangladesh Bank, and to extend long -term financing to the manufacturing sector, 
between 1 July 2015 and 31  March  2021, a Financial  Sector Support Project (FSSP) is being 
implemented, with the assistance of the International Development Association (IDA).110 The total 
approved cost of the project is BDT  2,751 crore (USD  350 million), of which the IDA is to provide 
BDT 2,358 crore (USD  300 million) and the Bangladesh Bank, BDT  393 crore (USD  50 million).  
4.116.   To expedite the settlement of disputes related to loan recovery of banks and financial 
institutions, in 2017, banks were advised to speed up the recovery of the defaulted loan, and to 
resolve legal cases through Alternative Dispute Resolution (ADR), in accordance with the Finance 
Loan Court Law Artha  Rin Adalat Ain, 2003 (as amended in 2010). In this context, banks are provided 
necessary consultations/instructions from time to time. In 20 16, in light of the Bank Company Act, 
1991, the Company Act, 1994, the Financial Reporting Act, 2015, and Principle 27 of the Basel 
Committee Core Principles, Guidelines on External Audit of Banks was being prepared jointly by the 
Bangladesh Bank and the M inistry of Finance.111  
4.117.   According to the authorities, by September 2018, the authorities had signed 68  MoUs, with 
several exchanging information related to money laundering and terrorist financing.  
Market access  
4.118.   Foreign banks established in Bangladesh must be either a locally incorporated entity or a 
branch of a foreign bank . 
Prudential regulations and capital adequacy requirements  
4.119.   In December 2014, the Bangladesh Bank issued revised Guidelines on Risk Based Capital 
Adequacy (Revised  Regulatory Capital Fram ework for Banks in line with Basel III), and adopted a 
roadmap with an action plan to implement these Guidelines between January 2015 and January 
2020.112 According to the Guidelines, banks scheduled in Bangladesh should maintain minimum 
                                                
108 Ministry of Finance (2017), Bangladesh Economic Review 20 17, Economic Adviser's Wing Finance 
Division, December.  
109 Financial Express  online article,  Bangladesh Bank in the yardstick of CBI , 23 September  2018. 
Viewed at: http://thefinancialexpress.com.bd/public/index.php/views/bangladesh -bank-in-the-yardstick -of-cbi-
1511448910 .  
110 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
111 Online information viewed at: 
https://www.bb.org.bd/aboutus/regulationguideline/draft/ex_audit_bank20160919.pdf .  
112 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  capital in relation to their risk profile, determine their strategies against their potential risks, and 
preserve adequate liquidity to address any unexpected risk in the future. The main objectives of this 
policy are to promote a more shock -absorbent and resilient banking se ctor, and to prepare banks to 
deal with financial crises arising in the banking sector in the future. Under this policy, banks must 
maintain a sufficient capital buffer against various risks. In addition to increasing the quality of 
capital, Basel III incr eased the level of capital that banks must hold. As per the Guidelines, banks 
are expected to maintain a minimum total capital ratio of 10%, while Tier -1 capital should be at 
least 6%. Under Basel III, banks had to build up an additional capital conservati on buffer of 0.625% 
in 2016 and 2.5% in 2019.113  
4.120.   SOCBs are monitored under an MoU.114 With the goal of improving the quality of credit 
management and strengthening the internal control system of the four SOCBs (So nali Bank Ltd., 
Janata Bank Ltd., Ag rani Bank Ltd., and Rupali Bank Ltd.), guidelines are being provided by the 
Bangladesh Bank to ensure proper implementation of the internal control and compliance of the 
respective banks. In addition, monitoring of two  specialized banks (Bangladesh Krishi Bank and 
Rajshahi Krishi Un nayan Bank) has also been undertaken since FY 2006/07 under the MOU.  
4.121.   According to the IMF, in 2017, the authorities continued to implement the Capital Market 
Development Master Plan, with the support of the Asian Development Bank, and hav e made progress 
in including better regulations and demutualizing the Stock Exchange (Section  4.4.3.2).115 National 
Savings Certificates (NSCs) play an important role in ensuring social security for many people, 
including women, pensioners and low -income households. Their issuance still represents an obstacle 
to capital market development. The authorities have  adopted policies for an effective capital market, 
by mobilizing savings and supporting investment and growth. These reforms include institutional 
capacity -building, adoption of rules and regulations, knowledge sharing events, training 
programmes, and help ing small investors in the capital market. In addition, in 2017, an approved 
reform plan included creating a database of existing investors, and linking them to the investors' 
National Identity Cards, which would improve monitoring and reduce misuse.  
4.122.   The SOCB's, which represent about a quarter of total banking system assets, continue to 
suffer balance sheet weaknesses, with high NPL ratios. The NPL ratio in the banking system increased 
during the review period, from 6% in 2011/12 to 10% in 2016/17.116 The SO CBs showed much 
higher NPLs than the PCBs and the FCBs; in 2017, the SOCBs' NPL ratio was almost five  times higher 
than that for the PCBs.117 In addition, the SOCBs' capital adequacy ratio (CAR) is much lower than 
that of the PCBs and the FCBs. The SOCBs' CA R had attained about 11% in 2013, above the minimum 
requirement of 10%, and 8.47% in 2017. However, i n 2018, the ratio decreased, to below 6%. In 
contrast, the PCBs' CAR has been relatively stable and above the minimum CAR requirement.118 The 
poor performanc e of the SOCBs in terms of NPLs and CAR during the review period have also led to 
poor profitability indicators. Both return on assets (ROA) and return on equity (ROE), two standard 
indicators of profitability, show weak performance in the SOCBs.  
4.123.   The rela tively small, albeit varying, interest spreads between lending rates and the 
remuneration of deposits remain in place. Between January 2012 and January 2018, Bangladesh's 
bank interest rate spread (the difference between the average borrowing and lending r ates in 
nominal terms) dropped from 5.63% to 4.41% (Chart 4.2). Changes in the spread are an indicator 
of profitability developments, as the spread is where the bank makes its money. The weak financial 
performance of the SOCBs can be partly linked to a rel atively low interest rate margin.119 While the 
                                                
113 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
114 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Econ omic Adviser's Wing Finance 
Division, December.  
115 IMF (2018), IMF Country Report No. 18/158 , Bangladesh. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2018/06/08/Bangladesh -2018-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-45959 . 
116 IMF (2018), IMF Country Report No. 18/159 , Bangladesh. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2018/06/08/Bangladesh -Selected -Issues -45960 .  
117 IMF (2018), IMF Country Report No. 18/158 , Bangladesh . Viewed at:  
https://www.imf.org/en/Publications/CR/Issues/2018/06/08/Bangladesh -2018-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-45959 .  
118 IMF (2018), IMF Country Report No. 18/159 , Bangladesh.  Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2018/06/08/Bangladesh -Selected -Issues -45960 .  
119 IMF (2018), IMF Country Report No. 18/159 , Bangladesh. Viewed at: 
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  SOCBs' average deposit rates have been only slightly lower than the PCBs' rates, their average 
lending rates have been lower by about 2%, resulting in a much lower (by about one third) interest 
rate margin. Give n their ownership status and perceived government backing, the SOCBs attracted 
deposits at lower costs than the PCBs (including government deposits and deposits by SOEs); 
however, this did not translate into higher profitability, as their lending rates are  even lower, 
compared to the PCBs' rates.120  
Chart 4.2 Interest rate spread (%), January  2010 to July  2018  
 
Source:  International Monetary Fund, IFS online information.  
4.124.   The capital shortfall in some banks, accumulated NPLs in SOCBs, and weakening corporate 
governance across the board have affected the stability of the financial sector. The Government's 
reform strategy to address the banks' losses and improve operations en tails improved governance, 
gradual recapitalization, credit growth limits, and automated financial reporting. In this regard, these 
banks are being recapitalized in a phased manner, and the compliance of the state -owned banks 
with their MOUs with the Bangl adesh Bank is also being closely monitored. Furthermore, the 
authorities recognize the need to streamline the legal framework for loan recovery, given the 
longstanding NPLs, and proposals to that effect are being considered, including modifications to the 
Bank Companies Act (see above). Moreover, the Bangladesh Bank has appointed observers to banks, 
to ensure governance of the banking companies. At present, 14 observers have been appointed in 
14 different banks. Reviewing the minutes of different committees  (Board, Executive Committee 
(EC), audit) has been performed by the Department of Off -Site Supervision (DOS) of the Bangladesh 
Bank, to ensure corporate governance, and compliance with the Bank Company Act, 1991 and other 
regulations and guidelines in maki ng various decisions. All banks have been categorized, based on 
their capital adequacy, quality of assets, quality of management, earnings, liquidity, and sensitivity 
to market risks (CAMELS) rating, to determine their overall strength, quality and governa nce. A 
comprehensive risk management guideline has been issued, with a view to creating an international -
standard risk management environment for mitigating overall risks and ensuring governance in the 
banking system.  
4.125.   According to the authorities, during the review period, strong monitoring of liquidity 
management via the Structural Liquidity Profile (SLP), implementation of the Liquidity Ratio (LCR 
and NFSR) under Basel -III, monitoring of large loan defaulters and top -20 defaulters, 
implementation of Base l-III CAR, monitoring of loan concentration, and large loan exposure of the 
banking companies has been undertaken.  
4.4.3.2   Securities  
4.126.   The primary issues and secondary trading of equity securities of the capital market take 
place through two stock exchanges: the Dh aka Stock Exchange (DSE) and the Chittagong Stock 
                                                
120 IMF (2018), IMF Country Report No. 18/159 , Bangladesh. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2018/06/08/Bangladesh -Selected -Issues -45960 .  
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  Exchange Limited. According to the authorities, the clearing and settlement functions are also 
conducted by the Stock Exchanges but the establishment of a separate clearing and settlement 
company is in the process. The Central Depository Bangladesh Limited (CDBL), for the safe custody 
of securities, is in place. As at September 2018, the DSE Market Capitalization stood at 
USD 48.33  billion. The instruments in these Exchanges are equity securities (shares), d ebentures, 
corporate bonds, mutual funds, and treasury bonds. The capital market is regulated by the 
Bangladesh Securities and Exchange Commission (BSEC). The Stock Exchanges are registered as 
public limited companies whose activities are regulated by the Securities and Exchange Ordinance, 
1969; the Bangladesh Securities and Exchange Commission Act, 1993; the Companies Act, 1994; 
the Demutualization Act, 2013; and the Securities and Exchange Rules, 1987, along with its Article 
of Association, rules and regu lations, and demutualization scheme.  
4.127.   According to the authorities, the BSEC prepares drafts of capital market -related acts, 
formulates rules and regulations, and approves by -laws regarding Exchanges, depositories, or any 
other self -regulatory organization s in the capital market. It is also entrusted with the responsibility 
of ensuring the proper implementation and compliance of those issuers, Stock Exchanges, 
depositories, market intermediaries, persons or institutions related to the capital market. The 
government securities market consists of tradable and non -tradable securities. Non -tradable 
securities include NSCs (Section 4.4.3.1), and Sanchayapatras and Sanchayabonds, which are only 
for retail investors.  In 2013, the BSEC became a full signatory of the  International Organization of 
Securities Commissions (IOSCO) MOU, and was elevated to the 'A' category of regulators.  
4.128.   During the review period, regulatory developments to the capital market included: the 
Bangladesh Securities and Exchange Commission (Rese arch Analysis) Rules, 2013, for recognition 
of research analysts, and controlling the function of research analysis; the Bangladesh Securities 
and Exchange Commission (Alternative Investment) Rules, 2015, to introduce venture capital funds, 
private equity funds, and impact funds; the Bangladesh Securities and Exchange Commission (Public 
Issue) Rules, 2015, which were subsequently amended in 2017 by repealing the Rules of 2006 to 
widely cover public offering processes, such as book -building methods, online a pplication processes, 
detailed disclosure requirements, etc.; the Framing of the Bangladesh Securities and Exchange 
Commission (Exchange Traded Fund) Rules, 2016, to introduce the exchange traded fund as a new 
product of mutual funds; the Bangladesh Securi ties and Exchange Commission (Qualified Investor 
Offer by Small Capital Companies) Rules, 2016, to introduce a separate public issue process for 
small capital -based companies; the Bangladesh Securities and Exchange Commission (Development 
of Investors Educ ation and Training) Rules, 2016, to introduce a nationwide financial literacy 
programme, to establish the Bangladesh Academy for Securities Market, etc.; the Bangladesh 
Securities and Exchange Commission (Market Maker) Rules, 2017, to ease the registration  process, 
and to broaden the scope of market -making by designated client, operation and others; the 
Bangladesh Securities and Exchange Commission (Clearing and Settlement) Rules, 2017, to 
introduce an independent clearing and settlement company separate fr om the Exchange; the 
Bangladesh Securities and Exchange Commission (Substantial Share Holding, Acquisition, Takeover) 
Rules, 2018, governing the introduction of substantial acquisition in cash and other -than-cash forms, 
in the Exchange and separate from th e Exchange platform, through negotiated deals; the Corporate 
Governance Code, 2018, for listed companies, repealing the earlier corporate governance guidelines 
of 7 August 2012; the Notification on Financial Reporting and Disclosure Requirements for the Li sted 
Companies, 2018; the Dhaka Stock Exchange (Listing) Regulations, 2015, to accommodate the 
listing requirement of securities other than corporate issuers, exchange recommendation processes 
before the IPO, disclosure requirements, etc; and the Chittagon g Stock Exchange (CSE) (Listing) 
Regulations, 2015.121  
4.129.   In 2016, the BSEC issued an order regarding the dissemination of price -sensitive 
information, and a notification exempting PPP companies from the obligations of approval of the 
Commission for capital ra ising.122 The PPP companies were also exempted from the obligations of 
becoming public limited companies and being listed on stock exchanges before fund raising. In 
addition, since 2015, foreign -owned companies and joint venture companies with foreign 
invest ments are exempted from the obligation to become a public limited company and a listed 
company.  
                                                
121 BSEC online information . Viewed at : http://www.sec.gov.bd/home/laws . 
122 Ministry of Finance (20 17), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  4.130.   In 2017, the BSEC took steps to improve regulatory oversight, including installing a modern 
surveillance system, the Instant Market Watch, that provides real -time connectivity with exchanges 
and depository institutions. As a result, the market abuse detection capabilities of the BSEC have 
increased significantly.123 A new mandatory Corporate Governance Code for listed companies was 
introduced in August 2012, and w as revised as the Corporate Governance Code in 2018. Additionally, 
a Notification was issued on Financial Reporting and Disclosure Requirements for listed companies 
in 2018. Demutualization of both the DSE and the CSE was completed in November  2013, to 
separate ownership of the Exchanges from trading rights. In addition, a tribunal was established to 
expeditiously resolve capital market -related criminal cases. All these reforms target a disciplined 
market with better infrastructure, so that entrepreneurs ca n raise capital and attract foreign 
investors. Non -resident individuals and institutional investors are eligible to buy Bangladesh 
Government Treasury Bonds (BGTBs) through a non -resident foreign currency account or a 
non-resident investor's taka account m aintained with a commercial bank of Bangladesh. In 
March  2017, the Government relaxed investment rules, making it possible for foreign investors to 
use local currency to invest in local companies through the purchase of corporate shares.124 The DSE 
has attra cted some foreign portfolio investors to the country's capital market, and the volume of 
foreign investment has gradually increased as a share of total market capitalization. According to 
the authorities, the volume of foreign investments in capital market s increased during the review 
period, from BDT  19.04 billion in 2012 to BDT  114.48 billion in 2017 (latest data available).  
4.4.3.3   Insurance  
4.131.   In 2017, the insurance industry market size increased from USD  1.1 billion in 2012 to 
USD 1.5 billion.125 The total assets  of the insurance industry gradually increased during the review 
period, from USD 3.7 billion in 2011/12 to USD  5.8 billion in 2017/18.126 Bangladesh is exposed to 
a variety of risks (weather -related); however, insurance penetration is particularly low. Acco rding 
to the 7th FYP 2016-20, the vast majority of the population remain untapped by the insurance market 
across product segments (life and non -life). The low insurance penetration, with about 
17.1 million  policy holders in 2014, compares unfavourably with  other South Asian countries.127 The 
current penetration rate in the insurance market is 0.55%; however, the Government has targetted 
increasing the penetration rate to 4% by 2021.128  
4.132.   As at January 2017, the sector comprised 78 companies operating under the I nsurance 
Act, 2010, of which 32 were life insurance companies, including 1 foreign company and 
2 state-owned companies; and 46 were general insurance companies, including 1 state -owned 
company.129 Insurance companies provide: life insurance; general insuranc e; reinsurance; micro -
insurance; and Takaful ( a cooperative system of reimbursement or repayment ) or Islamic insurance. 
The sector remains small but is gradually expanding, with FDI inflows in the insurance sector 
increasing from USD  7.2 million in 2012 to USD  35.3 million (2017) (Table A1.5).  
4.133.   In 2017, initiatives to improve the private sector insurance industry and the tw o state -owned 
insurance corporations (Shadharan Bima Corporation (SBC) and Jiban Bima Corporation (JBC)) were 
undertaken. These include the Bangladesh Insurance Sector Development Project (BISDP) in 2018, 
with the objective of improving the capacity and ef fectiveness of the Insurance Development and 
Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA). During the review 
period, the state -owned general insurance sector growth rate shifted from 11.5% in 2012 to -7.7% 
in 2017 (June), while pr ivate-owned insurance decreased from 38.6% in 2012 to 20.85% in 2017 
                                                
123 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December . 
124 Bangladesh country Commercial Guide online information. Viewed at: 
https://www.export.gov/article?id=Bangladesh -6-Financial -Sector . 
125 Ministry of Finance, Financial Institutions Division, 2018.  
126 Ministry of Finan ce, Financial Institutions Division, 2018 . 
127 World Bank (2017), Bangladesh Insurance Sector Development Project .  
128 Ministry of Finance, Financial Institutions Division, 2018.  
129 Viewed at: 
https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/List_of_Insurance_Compani
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  (June). For state -owned life insurance, growth accelerated from 11.5% in 2012 to 34.73% in 2017 
(June), whereas for private insurance it shifted from 4.5% in 2012 to -7.94% in 2017 (June) .130 
Policy and institutional setting  
4.134.   During the review period, Bangladesh's insurance policy and institutional framework 
remained unchanged. In  2011, the IDRA, under the Ministry of Finance, replaced the Chief Controller 
of Insurance as the regulator of th e insurance industry, in line with the Insurance Development and 
Regulatory Authority Act, 2010 (see below).131 Its main responsibilities are: inspection, supervision 
and direction of business; inquiry and investigation of insurance institutions; developing new 
policies; controlling the fund and investment; maintenance of the solvency margin and determining 
the proposed premium rate; settlement of disputes or claims, and providing the procedure for 
preparing actuarial reports. The IDRA provides registration a nd certification of insurers, re -insurers, 
and mediators; and renewal, amendment, removal, withholding or cancellation of such registration.  
Regulatory framework  
4.135.   The regulatory framework of the sector remained largely unchanged during the review 
period. It includes: the Insurance Act, 1938; the Insurance  Rules, 1958; the Insurance 
(Amendment) Ordinance, 1984; the Insurance Regulations, 1990; the Insurance Ordinance, 2008; 
the Insurance Act,  2010; and the Insurance Development and Regulatory Authority Act,  2010. The 
Asian Reinsurance Corporation Act was implemented as from 2013, in connection with the Insurance 
Corporation Act, 1973; and Labour Acts, 2006 and 2016 guide workers' compensation insurance. 
According to the authorities, five new rules and 13 reg ulations were published in the government 
gazette, and implemented.  
Market access  
4.136.   The regulatory framework does not distinguish between domestic and foreign insurance 
firms. Both local and foreign companies, in the life insurance or non -life insurance indu stry, must 
apply to the IDRA to obtain a registration certificate to run insurance business in Bangladesh. In 
terms of life insurance companies registered in Bangladesh, the minimum capital requirement is 
BDT 30 crore, of which 60% is covered by the sponso r shareholders and 40% by the public. For life 
insurance companies incorporated outside Bangladesh, the minimum required capital is also BDT  30 
crore. The minimum capital requirement for non -life insurance companies registered in Bangladesh 
is BDT  40 crore , of which 60% is paid by sponsor shareholders and 40% by the public. Similarly, for 
non-life insurance companies incorporated outside Bangladesh, the minimum required capital is 
BDT 40 crore.  
Prudential regulations and CAR  
4.137.   The legislation stipulates tha t foreign companies need a minimum of BDT  100 crore for a 
joint venture with a local company to form a life insurance company, while local entrepreneurs need 
a minimum of BDT  30 crore to form a life insurance company.132 In addition, the IDRA requires 
foreig n insurance firms to own at least 50% of the total paid capital of the BDT  100 crore in the joint 
venture company.  
4.138.   As at 2018/19, publicly traded insurance companies are subject to corporate income tax at 
a rate of 37.5% (previously 40%, since 2013). Non -publicly traded companies are subject to 
corporate income tax at a rate of 40% (42.5% prior to 2018/19) (Section 3.3.1.1.3). Taxes are 
withheld from premiums paid overseas, for both insurance and reinsurance.  
Reinsurance  
4.139.   Under the Insurance Cooperation A ct, 1973, 50% of the re -insurable general insurance 
business is required be re -insured with the state owned SBC; the remaining 50% may be re -insured 
                                                
130 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
131 IDRA online information. Viewed at: http://www.idra.org.bd/ .  
132 Daily Star  online information , "Foreign insurers backtrack from Bangladesh entry ", 22 July 2016. 
Viewed at: https://www.thedailystar.net/business/foreign -insurers -backtrack -bangladesh -entry-1257394 .  WT/TPR/S/385 • Bangladesh  
 
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  either with the SBC or with any other insurer, whether in Bangladesh or outside of it.133 The IDRA 
may reques t, in writing, that any re -insurer, if required, submit necessary information regarding the 
availability of sufficient money and assets to meet the demand for the policy.  
4.4.4   Telecommunications  
4.140.   According to the authorities, the contribution of telecommunicati ons to GDP rose from 2.41% 
in 2011/12 to 2.52% in 2017/18; between 2011/12 and 2016/17, its share increased by 45.9%. 
During the review period, the number of mobile subscribers rose from 86.6 million in 2012 to 
136.0  million in 2017 (June), with the majori ty (132.8 million) using private mobile phone 
companies' SIM cards.134 In 2017, more than 1 million people were employed, directly or indirectly, 
in the mobile phone sector. Moreover, the sector remains a large VAT and other taxes revenue 
provider. The numbe r of Internet users has also increased, from 28.4 million in 2012 to 73.3 million 
in 2017 (June).135 However, the number of fixed phone subscribers decreased, from 1  million in 
2012 to 0.6 million in 2017 (June).136  
4.141.   As at 2017, there were five (state -owned) public limited companies in the telecommunication 
services, including: Bangladesh Telecommunication Company Limited (BTCL); TeleTalk Bangladesh 
Limited; Bangladesh Submarine Cable Company Limited (BSCCL); Telephone Shilpa Sangstha Ltd. 
(TSS); and Banglades h Cable Shilpa Limited (BCSL) (Section 3.3.5).137 As at June 2017, there were 
five main mobile operators: Grameen Phone Ltd. (private domestic, 38%; and foreign -owned 62%), 
Banglalink Digital Communications Limited (100% foreign -owned), Robi Axiata Limited ( 100% 
foreign -owned), Pacific Bangladesh Telecome Limited (Cntycell) (private domestic 55%; foreign -
owned 45%), and Teletalk Bangla desh Ltd (Teletalk) (100% state -owned).138  
Policy and institutional framework  
4.142.   Vision 2021 (Section 2.2.3) includes strategic po licies for developing a digital Bangladesh, 
to strengthen and use ICT capacity, skills and services. The 7th FYP 2016 –20 intends to provide 
affordable telecommunication services, to empower citizens.139 Its main objectives in this area 
include: installation and development of the telecommunication network; production of 
telecommunication commodities and equipment; expansion of the mobile network; expansion of 
value -added services; and supply of high -frequency voice and data bandwidth.  
4.143.   In 2014, the Ministry o f Posts and Telecommunications and the Ministry of Information 
Communication Technologies were integrated into the Ministry of Posts, Telecommunications and 
Information Technology. Its main areas of responsibility include: broadband policy and programmes; 
postal and telecommunications policies and programmes; spectrum policy management; national 
policy issues relating to the digital economy; and content policy relating to the information economy. 
Its Posts and Telecommunications Division (PTD) oversees: the  BTRC; the BTCL; and the mobile 
operator Teletalk Bangladesh.140  
                                                
133 Daily Sun  online information , "Overseas Insurance Relating to Public Projects in Bangladesh",  
9 September 2018. Viewed at: https://www.daily -sun.com/printversion/details/334667/2018/09/09/Overseas -
Insurance -Relating -ToPublic -Projects -in-Bangladesh -. 
134 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
135 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
136 Ministry of F inance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
137 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
138 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
139 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . 
140 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Econom ic Adviser's Wing Finance 
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  Regulatory, operational and investment framework  
4.144.   During the review period, the main regulatory framework in the telecommunications sector 
remained unchanged. It includes the Telecommunication s Act, 2001 (last amendment in 2010). In 
2015, the Directives on Service and Tariffs were issued, regulating the BTRC to complement other 
laws and the Regulatory Frameworks of the Commission. The Directives were focused on: systems 
and services; tariffs an d charging; promotional activities; and market communications.  
4.145.   Upon the request of the BTRC, a service provider is required to submit the business report 
and/or information regarding any service/offer (regular, converted regular, new, value -added, 
premium  rate, promotional, etc.) and its market communications.141 Furthermore, the service 
provider is also required to share information about its annual gross revenue with the Commission 
as to remit payments with the Government (the Commission) in the form of li cence fees, taxes, 
universal service contributions, etc.  
Number portability  
4.146.   Bangladesh introduced number portability in 2018. In 2017, the BTRC handed over the 
mobile number portability licence to the joint venture firm Infozillion BD Teletech Consortium Limited 
through a bidding process. The licence acquisition fee was BDT  10 crore, and the company must 
share 15% of its revenue with the Government as from the second year of implementation. The 
company started its commercial operations in October 2018.  
Tariffs 
4.147.   Under the Directives on Service and Tariff, 2015, all tariff structures must comply with the 
cost model provided by the BTRC. The tariff of any service which lies beyond the approved tariff 
structure shall require the prior approval of the Commission . VAT, where applicable, is added to the 
tariff/price/fee/charge.142 According to the authorities, every mobile service is associated with a 5% 
supplementary duty, 15% VAT, and an additional 1% surcharge on the overall price. There is 15% 
VAT on broadband In ternet access. While IT exporters are entitled to a tax rebate, Internet service 
providers are not permitted such a rebate, which also contributes to the high cost of Internet use. 
In 2008, the BTRC had a fixed floor price of BDT  0.25 per minute for on -net calls (same network) 
and BDT  0.60 for off -net calls (different network), as well as a BDT  2 ceiling on domestic mobile 
voice tariffs. In August 2018, telecom operators also introduced the minimum uniform call rate of 
BDT 0.45 per minute, and retained the ceiling of BDT  2. In terms of fixed phone lines, in 2008, the 
Commission had fixed a floor price of BDT  0.10 per minute for on -net calls and BDT  0.40 for off -net 
calls, as well as a ceiling of BDT  2; this remained unchanged in 2018.  
Universal service oblig ations  
4.148.   Bangladesh adopted universal service obligations (USOs) in November 2011, including: voice 
services (individual mobile cellular services as part of the universal service definition); and Internet 
services (broadband as part of the universal service definition).143 Other services included in the 
universal service/access definition are: telecentres; schools, at the sub -district and union level; 
health centres, at the sub -district and union level; emergency services; and services for the 
impaired/elderly.  Operators under universal access/service obligation include: network/facilities -
based operators; and incumbent fixed line operators. Since the last quarter of 2011, the operators 
have been contributing 1% of their gross revenue to a USO fund, on a quarter ly basis. The amount 
had reached BDT  1,070.47  crore as at September 2017.144 It seems that the Commission kept the 
money as a bank deposit because of the absence of any initiative from the Government to use it.   
4.4.5   Transport  
4.149.   According to the authorities, the contribution of the transport sector to GDP decreased 
slightly, from 8.56% in 2014/15 (only data available) to 8.02% in 2017/18. The transport sector 
                                                
141 BTRC (2015), Directives on Service & Tariff 2015 , March.  
142 BTRC (2015), Directives on Service & Tariff 2015 , March.  
143 ITU (2017), Bangladesh Profile Information . 
144 Viewed at: https://lirneasia.net/2018/01/bangladesh -worse -nepal -disbursing -universal -service -
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  employed 8% of total service sector employment in 2015/16 (Chart 4.1). T he transport system of 
Bangladesh consists of roads, railways, inland waterways, ports, maritime shipping, and air 
transport.  
4.150.   The institutional framework remains unchanged, and is entrusted to the following 
four ministries: the Ministry of Road Transport and Bridges; the Ministry of Civil Aviation and 
Tourism; the Ministry of Shipping; and the Ministry of Railways. A National Integrated Multimodal 
Transport Policy (2013), approved on 26  August  2013 and covering all modes of transport, was put 
in place to i mprove connectivity. The authorities have expanded the role of PPP investments, through 
a regulatory and institutional framework. A PPP office was set up to provide institutional support and 
identify potential projects.  
4.4.5.1   Shipping  
4.151.   The volume of cargo traffic  in the main ports (Chittagong and Mongla Port) increased from 
82.10  tonnes in 2012 to 182.39 tonnes in 2017. Bangladesh's national flag merchant fleet capacity 
increased from 975,300 deadweight tonnes (dwt) in 2010 to 1.85 million dwt in 2017.145 The fleet 
consisted of bulk carriers, oil tankers, and general cargo and container ships, reflecting the structure 
of merchandise exports. The state -owned Bangladesh Shipping Corporation (BSC)  remains 
operational (Section 3.3.5); between 2011/12 and 2016/17, its car ried cargo rose by 83.6%, its 
owned vessels were reduced from 13 to 3, and its chartered vessels rose from 23 to 34.146 As at 
November 2018, the BSC was operating four owned vessels and, according to the authorities, four 
vessels are going to be added to the  fleet in February 2019.   
Policy, regulatory and institutional framework  
4.152.   To ensure maximum use of waterways as efficient, environmentally -friendly and secure 
communication, policies are adopted to ensure modern port management, safe and uninterrupted 
movem ent of water vessels, the development of human resources, and the provision of efficient and 
affordable water transport services.147 The 7th FYP 2016 -20 objectives include: reducing port induced 
semi-trailer truck traffic, by developing wider intermodal rail  and river connectivity; enhancing 
already -saturated container storage port yard facilities, by developing existing dilapidated 2.3  km 
general cargo berthing (GCB) facilities at Karnaphuli into a modern gateway terminal of international 
standard, that can play a key role in boosting the nation's trade and commerce, and regional 
connectivity; developing the Chittagong Port as "climate resilient" against sea level rise (SLR) and 
land subsidence; maintaining and improving the navigability of channels, through capital dredging 
and regular maintenance dredging; increasing the container handling capacity, through the 
expansion of terminal/yard facilities, the acquisition of modern container handling equipment, and 
the procurement of harbour crafts and vessels to e nsure improved operating systems; setting up 
cargo distribution centres by PPPs; involving the private sector in port management and port 
development infrastructure; and improving institutional capability, through training, planning, safety 
and environment al management control in the ports.148  
4.153.   The Bangladesh Flag Vessel (Protection) Ordinance, 1982 continues to provide that at least 
40% of the sea-borne cargoes  relating to the country's foreign trade be carried by Bangladesh -flag 
vessels.149 The implementation  of this Ordinance is jointly monitored by DG Shipping, the 
Department of Shipping (DOS), the Department of Food, the BADC, and the state -owned Bangladesh  
                                                
145 UNCTAD online Maritime Profile Data. Viewed at: 
http://unctadstat.unctad.org/CountryProfile/MaritimeProfile/en -GB/050/index.html .  
146 BBS (2018), 2017 Statistical Year Book Bangladesh , Table 7.37, May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B 2017.pdf . 
147 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
148 General Economics Division (2015),  7th Five-Year Plan FY2016 -FY2020: Accelerating Growth, 
Empowering Citizens . 
149 The ordinance wa s promulgated in 1982 to protect the interest of the state -owned BSC, when foreign 
trade in Bangladesh was much smaller than what it is today.  Flag vessel protection has reportedly not played 
any positive role in increasing local flag vessel business in th e last 35  years. Md. Asraful Alam  and Md. Golam 
Zakaria  (2016), Flag Vessel Protection Law in Bangladesh: A Critical Analysis , published in Vol. 5 Issue 9 of the 
International Journal of Innovative Research and Development , August. Viewed at: 
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  Chemical Industries Corporation ( BCIC) (Section 3.3.5). As at November  2018, there was no 
container s hip under the Bangladesh flag. Foreign -flag vessels carry cargo to and from Bangladesh 
through waivers. The number of waivers increased from 2,500  in 2012 to 3,500 in 2018 (up to 
October). A limited quantity of bulk, petroleum or chemical cargo is carried by Bangladesh -flag 
vessels, which carry less than 40% of sea -borne goods. The remaining percentage of cargo is 
shipped by foreign -flagged vessels. C argo for carriage by a third -country -flag vessel is allowed only 
when there is no available national -flag ve ssel or flag vessel of the trading country.  
4.154.   The Ministry of Shipping remains responsible for ensuring the safety of inland, coastal, and 
fishing ocean -going vessels of Bangladesh, and foreign vessels calling at ports. It also protects the 
trade interests o f the Bangladeshi vessels. Organizations/agencies working under the Ministry of 
Shipping include: the Bangladesh Inland Water Transport Authority (BIWTA); the Bangladesh Inland 
Water Transport Corporation (BIWTC); the Chittagong Port Authority (CPA); the M ongla Port 
Authority (MPA); the Bangladesh Land Port Authority (BLPA); the DOS; the BSC; the 
Marine  Academy, Chittagong (MA); the National Maritime Institute, Chittagong (NMI); the National 
River Conservation Commission (NRCC); and the Payra Port Authority  (PPA).  
4.155.   Under the DOS, the Mercantile Marine Office carries out the registration and regular safety 
survey of fishing vessels, coastal vessels and foreign -going Bangladesh -flagged vessels. It is also 
delegated to undertake port state control inspection of  foreign -flagged vessels calling to Bangladesh. 
In addition, it ensures the safety of inland, coastal, fishing, and ocean -going vessels of Bangladesh 
and foreign vessels calling at Mongla Port.  
4.156.   The BLPA, a statutory regulatory body whose remit is to expedi te and facilitate export -import 
activities though land ports located at land and inland water (river) boundaries with India, Nepal, 
Bhutan and Myanmar, has so far declared 23 land ports, of which only 10 are operational.150 
Benapole, Bhomra, Burimari, Akhaur a, and Nakugaon land ports are operated by the BLPA, while 
Sonamosjid, Hilli, Teknaf, Banglabandha and Bibirbazar land ports are operated on a Build Operate 
Transfer (BOT) basis.  
Port services  
4.157.   Bangladesh continues to be mainly served by the state -owned and -operated Chittagong and 
Mongla Ports (Section 3.3.5); in 2016/17, the former accounted for 90.7% of total cargo, of which 
91.6% related to imports.151 In 2017, the annual growth of trade conducted through Chittagong Port 
was between 12% and 14%.152 Consid ering the economic importance of Chittagong Port, the 
Government undertook projects to add more dynamism in its operating activities, such as: 
reconstruction of Service Jetty -1 near the Dock Office (July  2018); increasing navigability of the 
Karnaphuli Riv er from Sadarghat to Bakalia Char, by capital and maintenance dredging (project 
initiated in May 2017 and to be completed by June 2021); construction of a New -Mooring Overflow 
Yard (initiated in January 2018 and to be completed by June  2019); construction of Patenga 
Container Terminal (initiated in January 2017 and to be completed by June  2019); procurement of 
equipment for a new -mooring container terminal (initiated in January  2014 and to be completed by 
June 2019),  
4.158.   Turn-around time at Chittagong Port, th e time it takes between the arrival of a vessel at the 
port and its departure (frequently used as a measure of port efficiency), increased to 2.83  days in 
2017 from 2.52 days in  2012. The dwelling time of containers, the time taken for exports inside the 
terminal gates to be loaded onto a ship, or imports onto a truck or train, decreased from an average 
of 16.05 days in 2012 to 11.15 days in 2017.153  
                                                
150 BLPA online information.  Viewed at:  
http://bsbk.portal.gov.bd/sites/default/files/files/bsbk.portal.gov.bd/page/1da6d5ad_5287_4dc7_8146_03262
60b1894/overview%20(Nov%2717).pdf . 
151 BBS (2018), 2017 Statistical Year B ook Bangladesh , Table 7. 43, May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.go v.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B2017.pdf . 
152 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
153 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  4.159.   Bangladesh's second -largest container port, Mongla Port, was developed into a modern 
facilitated seaport. In 2017, it had the capacity to berth 35 ships at a time, using 6  jetties, 6 mooring 
buoys, 16 anchorages, and 7 private company jetties.154 Efforts to revamp and improve port 
processes, including the acquisition of 30 more pieces of container -handling equipmen t such as 
cranes and straddle carriers, were to be completed in 2018.155 In addition, in 2018, the authorities 
have developed and are implementing several other projects at Mongla Port, including: dredging at 
the outer bar of the Mongla Port Channel; dredgin g at the outer bar of the Pashur River Channel; 
capital dredging Projectat Mongla Port so that coal -laden vessels can travel through it to Rampal 
Power Plant; introduction of a Vessel Traffic Management and Information System; and improvement 
of the naviga bility of the River Rout e from Mongla to Paksi, via Chandpur, Mawa and Goalanda.  
4.160.   According to UNCTAD, Bangladesh's liner shipping connectivity index (LSCI) increased from 
8 in 2012 to 10.8 in 2017; China had the highest score, at 158.8 in 2017 (156.2 in 2 012).156  
4.4.5.2   Air transportation  
Air transportation services  
4.161.   Between 2012 and 2016, the number of passengers carried in Bangladesh rose from 
2.2 million to 3.8 million, whereas freight dropped dramatically from 152.32 million tonne -km to 
53.98 million tonne -km (see below).157  
4.162.   As at May 2015, Bangladesh was served by a total of 29 airlines, with the state -owned 
national carrier, Biman Bangladesh Airlines, being a relatively sizeable player in the market, 
controlling 31% and 21% of all weekly seats and flights, re spectively.158 Domestic flights 
represented 33% of all weekly seats, and 19  other countries could be reached non -stop from 
Bangladeshi airports. The United Arab Emirates remains the dominant international market, being 
served by Air  Arabia, Emirates and Bima n, with 70 weekly flights from international airports in 
Dhaka, Chittagong, and Sylhet. According to the authorities, in 2017/18, 95.3% of cargo movement 
and 73.55% of passenger transport by Biman were international.159  
4.163.   The Civil Aviation Authority of Bangl adesh (CAAB) maintains and operates aerodromes, air 
traffic, air navigation and communication services and facilities. All other aviation -related ground 
services and facilities are also regulated by the CAAB, for safe aircraft operation within the territor ial 
air space of the country. At present, it operates three international airports, seven domestic airports, 
and two Short Take -Off and Landing (STOL) airports.160 
4.164.   The main regulatory framework governing the sector is the Civil Aviation Act, 2017 
(Act No. 18 of 2017) and Civil Aviation Authority Act, 2017 (Act No. 03 of 2017).  
4.165.   The domestic market is reserved for all Bangladeshi Air Operator Certificate (AOC) holders, 
and cabotage rights are not granted to foreign airlines. In addition, Bangladesh applies Int ernational 
Air Transport Association (IATA) slot allocation, and is a member of the International Civil Aviation 
                                                
154 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
155 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
156 The LSCI is generated from five components: (a) the number of  ships; (b) the total 
container -carrying capacity of those ships; (c) the maximum vessel size; (d) the number of services; and 
(e) the number of companies that deploy container  ships on services from and to a country 's ports.  UNCTAD 
online information. Viewed at: http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=92 .  
157 ICAO online , Civil Aviation Statistics of the World and ICAO staff estimates . Viewed at: 
https://www.indexmundi.com/facts/bangladesh/air -transport . 
158 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
159 BBS (2018), 2017 Statistical Year Book Bangladesh , Tables 7.27 and 7.28, May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B2017.pdf . 
160 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
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  Organization (ICAO), and applies ICAO principles to fees and charges. Furthermore, all airlines must 
submit their fares to the CAAB.  
4.166.   Bangladesh  has continued to pursue greater integration of its aviation into international 
markets, to improve its connectivity, through the conclusion of air service agreements (ASAs). As 
at November  2018, Bangladesh maintained 53 bilateral ASAs, of which 26 had bee n formally signed 
and 27 had been initiated. During the review period, one ASA with Austria was signed (Table  A4.1). 
Most of Bangladesh's ASAs provide for fifth freedom rights, and the majority also allow for the 
designation of multiple airlines. All presc ribe a pre -determination clause for the setting of capacities. 
Finally, although information regarding ASA clauses relating to cooperation, withholding, pricing and 
the exchange of statistics is incomplete, when available, it points to relatively restricti ve versions of 
these clauses (i.e. no cooperation, substantial ownership and effective control withholding, dual 
approval pricing and a mandated exchange of statistics).  
Airport and auxiliary services  
4.167.   During the review period, the capacity of Bangladesh's three CAAB -owned and -operated 
international airports (Hazrat Shahjalal International Airport (HSIA); Shah Amanat International 
Airport (SAIA); and Osmani International Airport) increased significantly. In 2018, HSIA, which was 
upgraded in 2012, handled 7. 6 million passengers, and 0.32 million MT of cargo. Average aircraft 
movements per day was around 235  , and the airport could handle 12  flights per hour. The use of 
air freight has been increasing, with apparel dominating. In 2016, almost 4.7% of Banglades h's total 
exports were composed of air shipments to the European Union. However, in 2016, the United 
Kingdom, Australia and Germany began restricting direct cargo flights from Bangladesh, citing 
insufficient safety and security measures.161 The cargo sector of Biman was directly affected; in 
2016/17, the state -run carrier earned BDT  2.44 billion from its cargo business, in contrast with 
BDT 3.15 billion in 2015/16 (the year the ban was imposed).162 In response, in 2017, the authorities 
equippe d HSIA with Explosives Detection System (EDS) and Explosive Trace Detector (ETD) 
machines, to comply with EU security standards.163  
4.168.   Upgrading infrastructure remains critical for improving international competitiveness. 
The 7th FYP 2016 –20 set objectives to enhance and strengthen the operational facilities of existing 
airports and the development of new ones. The main objectives include: the expansion of the 
operational and passenger facilities at HSIA; the development of Cox's Bazar Airport into an 
internati onal airport, for the operation of wide -body aircrafts; the enhancement of cargo aircraft 
parking facilities at SAIA; the strengthening of the existing runway at SAIA; the strengthening of 
the existing runway at Osmani International Airport, Sylhet; the co nstruction of a new airport in the 
southern region of the country; the improvement of the quick communication system between the 
rivers and the coastal belt of the southern zone of the country and the capital city, especially in 
times of natural disaster; and a detailed feasibility study for the construction of Bangabandhu Sheikh 
Mujib International Airport.  
4.169.   Bangladesh Biman Corporation and its subsidiaries provide aircraft ground handling for all 
international operators (in all airports in Bangladesh); ho wever, in 2017, the authorities developed 
third-layer regulations, in the form of an Air Navigation Order (ANO), to facilitate 
national/international, government or private entities for ground handling. The policy is being 
developed, and interested entitie s may apply for ground handling licences as per the ANO. As at 
November 2018, Biman was the main maintenance service (aviation engineering) provider for 
international operators, and Biman Flight Catering Center (BFCC) was the sole provider of flight 
cateri ng services with an international -standard flight kitchen. In addition, as at November 2018, 
three flying academies were conducting flight training, and one was organizing engineering training. 
                                                
161 The international airports in Bangladesh seem to lack specific international requirements , such as air 
cargo screening using bomb detection equipment.  The Financial Express , Air cargo and Bangladesh's export 
trade , 17 April  2018. Viewed at: https://thefinancialexpress.com.bd/views/air -cargo -and-bangladeshs -export -
trade -1523978675 .  
162 The Financial Express , Air cargo and Bangladesh's export trade , 17 April  2018. Viewed at: 
https://thefinancialexpress.com.bd/views/air -cargo -and-bangladeshs -export -trade-1523978675 .  
163 The Financial Express,  Air cargo and Bangladesh's export trade , 17 April  2018. Viewed at: 
https://thefinancialexpress.com.bd/vi ews/air -cargo -and-bangladeshs -export -trade-1523978675 .  WT/TPR/S/385 • Bangladesh  
 
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  Furthermore, all air operators have their own training wing, t o provide training to their own pilots, 
cabin crews and other employees.  
4.4.5.3   Railways  
4.170.   As at 2017, railway transport comprised of 4,229.5 km of railway track, 3,143 bridges, 
460 station buildings, 1,410 passenger coaches, and 8,154 wagons. To make a dependable , 
affordable, environmentally -friendly and compatible mass -transport system, the Railway Division of 
the Ministry of Communications was transformed into a separate Ministry on 4 December 2011, and 
was allocated more resources for railway development.164 The overall performance of the state -
owned Bangladesh Railway increased during the review period, and freight increased from 
582.11  million tonnes in 2011/12 to 1,052.68 million tonnes in 2016/17.165 According to the 
authorities, there are no restrictions on for eign investment or operation.  
4.171.   Policy priorities under the 7th FYP 2016 –20 include: expansion of the railway network, to 
expand rail operations;  double -tracking of important sections and gauge unification, to overcome 
operational bottlenecks; rehabilitatio n/upgrade of existing rails, for improved speed and safety; 
construction of railway bridges and other infrastructure, for operational improvement; procurement 
of new locomotives, to improve service quality; procurement of new coaches, for passenger comfort ; 
upgrade of railway workshops and maintenance; improvement in rail speed and safety;  improvement 
in rail efficiency; and improvement in railway finances.166 According to the authorities, in 2018/19, 
the Ministry was implementing 43  development projects; inc luding the Padma Bridge Rail Link 
Project (initiated in January 2016 and expected to be complete in June  2024), and a project to 
procure 20 -meter gauge diesel electric locomotives and 150 -meter gauge passenger carriages for 
Bangladesh Railway.  
4.4.5.4   Road  
4.172.   In 20 18, the total length of the road network in Bangladesh was 21,302.08 km, of which 
18,202.06  km is paved, and is under the management of the Roads and Highways Department.167 
Of the total road network under this Department, 3,812.78 km is national highways (1 7.90%); 
4,246.97  km, regional  highways (19.94%); and 13,242.30 km, Zila roads (62.16%). During the 
review period, the road transport infrastructure has developed and, as at June 2017, 5,200  km of 
roads were paved, compared to 4,905 km in 2011/12.  
4.173.   The Bangl adesh Road Transport Authority (BRTA) is responsible for ensuring the overall 
supervision, management and control of road transport. It is also responsible for issuing registration 
and fitness certificates for vehicles, and executing other regulatory activ ities as per the Road 
Transport Act,  2018.  
4.174.   The Road Transport Act, 2018 was enacted, and replaced the Motor Vehicle Ordinance, 1983. 
In addition, the Road Fund Board Act, 2013 was enacted, to ensure proper and continuous supply 
of funds for road repair and  maintenance.  
4.175.   In 2013, an agreement was signed with the Italian -Thai Development Public Company 
Limited to construct the 46.73 km -long Dhaka elevated expressway, at a cost of BDT  8,940.18  crore 
from HSIA to Kutubkhali on the Dhaka -Chittagong highway, on a  PPP basis. Construction, including 
ramps, is ongoing, and is expected to be completed by 2020. In 2018, the authorities were 
implementing 12 road and bridge projects through PPP arrangements. The procedure of selecting 
                                                
164 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
165 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Win g Finance 
Division, December.  
166 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020 : Accelerating Growth, 
Empowering Citizens . 
167 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  investors is underway for the follow ing projects: construction of the Dhaka -Chittagong Expressway; 
and upgrading of the Madanpur -BhultaDebogram -Joydevpur road to four lanes (Dhaka Bypass).168  
4.4.6   Tourism  
4.176.   During the review period, the contribution of hotels and restaurants to GDP remained 
unchang ed, at 1% (Table 1.2); in 2015/16, they accounted for 15.1% of total employment at the 
services sector employment (Chart 4.1). As at 2014, the main source market in the sector was India, 
with 64.8% of tourists; in the same year, 119,161  international visit ors arrived in the country, 
compared to 124,943 in 2012.169  
4.177.   Tourism is in the list of entitled thrust sectors in the National Industrial Policy (2010), and 
is identified as one of the key drivers for future growth, economic diversification, and poverty 
reduction.170 It is also cited as a thrust sector under the National Intellectual Property Policy (2018) 
(Section  3.3.7). Tourism policies focus on the development of Bangladesh through employment 
generation, infrastructure development, and the ensuring of inclu sive socio -economic development 
through linkages with local populations and local government organizations, and by protecting the 
environment and natural diversity.171 According to the authorities, tourist facilities have been created 
in different tourist sp ots around the country and, on arrival, visa applications for foreign tourists 
have been facilitated. Furthermore, money exchange facilities in different tourist centres have been 
developed.  
4.178.   The policy priorities in the tourism industry in the 7th FYP 2016 –20 consist of two broad 
elements: the expansion of the fixed infrastructure, to facilitate an expanded and safe aviation 
system; and the expansion and upgrade of tourist industry facilities, comprising visa and currency 
exchange facilities, hotels, restau rants, tourist resorts, and inland transportation.172 
4.179.   In 2017, to attract foreign and local investors, seven projects were selected for 
implementation through PPPs: an integrated tourism and entertainment village, Cox's Bazar; a five -
star hotel on Zakir Hoss en Road, Chittagong; an international standard tourism complex at the 
existing Motel Upal compound of the Bangladesh Petroleum Corporation ( BPC) at Cox's Bazar; an 
exclusive tourist zone, Sabrang; a five -star hotel with other facilities at the existing Motel Sylhet 
compound, Sylhet; a five -star hotel and training centre, Khulna; and a three -star Hotel, Mongla.173 
As at November  2018, five of these projects were being implemented. The authorities have granted 
tax exemptions on imports of tourist equipment.  
 
                                                
168 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  
169 BBS (2018), 2017 Statistical Year Book Bangladesh , Table 7.48, May, Dhaka. Viewed at: 
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8
b3ab/S_Y_B2017.pdf .  
170 Bangladesh offers many touris m attractions, including three World Heritage sites, archaeological 
sites, historical mosques and monuments, historical temples made of red earth, one of the longest natural 
beaches in the world, picturesque landscapes, hill forests , wildlife , and rolling tea gardens.  
171 Viewed at: http://unctad.org/en/PublicationsLibrary/ditctncd2015d3_en.pdf .  
172 General Economics Division (2015), 7th Five-Year Plan FY2016 -FY2020: Accelerating Gr owth, 
Empowering Citizens . 
173 Ministry of Finance (2017), Bangladesh Economic Review 2017 , Economic Adviser's Wing Finance 
Division, December.  WT/TPR/S/385 • Bangladesh  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports, by HS sections and major HS chapters, 2011 -18 
HS section/ chapter  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total (USD million)  24,231.1  26,925.7  30,061.9  31,076.4  34,105.3  34,655.9  36,668.2   
(% of total exports)  
01 Live animals and products  2.5 2.1 2.2 1.9 1.6 1.6 1.4 
02 Vegetable products  0.9 1.0 1.1 0.8 0.7 0.5 0.4 
03 Fats and oils  0.1 0.1 0.1 0.1 0.1 0.2 0.1 
04 Prepared food, beverages and 
tobacco  0.7 0.9 0.8 1.0 0.9 0.9 1.2 
05 Mineral products  1.3 1.3 0.6 0.3 0.9 0.8 0.1 
06 Chemicals , and products thereof  0.4 0.3 0.3 0.4 0.4 0.4 0.4 
07 Plastics and rubber  0.4 0.4 0.4 0.4 0.3 0.4 0.3 
08 Raw hides and skins; leather, 
furskins and articles  thereof  1.8 2.1 2.5 2.1 2.0 2.0 1.4 
09 Wood, cork, straw  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
10 Pulp of wood; paper and 
paperboard  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
11 Textiles and textile articles  87.9 88.0 88.0 88.5 88.3 87.3 89.6 
61 Articles of apparel and 
clothing accessories, knitted or 
crocheted  39.1 38.9 40.1 40.0 39.2 39.7 41.4 
62 Articles of apparel and 
clothing accessories, not 
knitted or crocheted  39.6 41.0 41.4 42.0 43.2 41.5 42.1 
63 Other made -up textile 
articles; worn textile articles  4.5 3.8 3.0 3.0 2.6 2.7 2.7 
12 Footwear, headgear, etc.  1.6 1.8 2.1 2.4 2.6 2.8 2.8 
13 Articles of stone, plaster, cement  0.1 0.1 0.2 0.1 0.1 0.1 0.2 
14 Precious stones and metals, 
pearls  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
15 Base metals and articles thereof  0.5 0.5 0.4 0.4 0.3 0.4 0.4 
16 Machinery, electrical equipment  0.6 0.4 0.4 0.6 0.7 1.0 0.3 
17 Transport equipment  0.7 0.5 0.4 0.6 0.5 0.8 0.3 
18 Precision instruments  0.1 0.2 0.2 0.2 0.2 0.4 0.2 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured 
articles  0.2 0.2 0.3 0.3 0.3 0.3 0.3 
21 Works of art, collectors' pieces 
and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO calculations, based on Export Promotion Bureau of Bangladesh online information.  
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  Table A1. 2 Merchandise imports, by HS sections and major HS chapters/subheadings, 
2011 -17 
HS section/chapter/subheading  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  
Total (BDT billion)  2,942.8  3,144.3  2,822.3  3,670.7  3,869.3  4,712.5  
Total (USD million)  37,205.4  39,336.8  36,313.0  47,257.4  49,439.9  59,562.0    
(% of total imports)  
01 Live animals and products  0.8 0.8 0.9 0.9 0.8 0.8 
02 Vegetable products  4.8 4.6 5.4 6.9 6.5 7.0  
1001 Wheat and meslin  1.6 1.5 2.0 2.1 2.0 2.3 
03 Fats and oils  9.5 7.9 6.3 6.0 5.8 5.9 
04  Prepared food, beverages and 
tobacco  4.4 3.1 3.3 3.0 2.9 3.5 
05  Mineral products  10.8 11.0 8.0 13.4 12.3 13.6  
2710 Petroleum oils, other than 
crude  7.8 7.5 6.6 9.8 8.3 9.4 
06 Chemicals , and products thereof  8.7 8.8 7.0 8.2 8.1 6.8 
07 Plastics and rubber  4.0 4.2 4.3 4.6 4.2 4.3 
08 Raw hides and skins; leather, 
furskins , and articles thereof  0.2 0.3 0.2 0.4 0.4 0.4 
09 Wood, cork, straw  0.3 0.3 0.3 0.2 0.6 0.2 
10 Pulp of wood; paper and paperboard  1.7 1.8 1.6 1.8 1.8 1.7 
11 Textiles and textile articles  22.6 26.7 22.9 24.5 24.8 22.3  
5201 Cotton, not carded or 
combed  5.3 5.8 6.4 5.0 4.6 4.7 
12 Footwear, headgear, etc.  0.4 0.4 0.3 0.3 0.3 0.4 
13 Articles of stone, plaster, cement  0.4 0.4 0.4 0.4 0.4 0.5 
14 Precious stones and metals, pearls  0.0 0.0 0.0 0.0 0.0 0.0 
15 Base metals and articles thereof  7.3 7.6 7.7 7.3 7.1 7.2  
72 Iron and steel  6.7 6.8 5.7 6.6 6.2 5.9 
16 Machinery, electrical equipment  14.9 9.2 14.0 15.5 16.7 16.0 
17 Transport equipment  7.3 6.4 4.6 5.1 5.1 6.9 
18 Precision instruments  0.8 0.8 0.6 0.7 1.0 1.1 
19 Arms and ammunition  0.3 0.3 0.3 0.1 0.4 0.6 
20 Miscellaneous manufactured articles  0.7 0.8 0.5 0.7 0.8 0.8 
21 Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Not classified  0.0 4.5 11.2 0.0 0.0 0.0 
Note:  Totals differ from imports by selected origins, shown in Table A1.4 , because the totals in this table 
were taken from Bangladesh Bank online information.  
Source:  WTO calculations, based on online data from the Bangladesh Bureau of Statistics.  
 
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  Table A1. 3 Merchandise exports by selected destinations, 2011 -18 
    2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total exports 
(USD million)  24,231.1  26,925.7  30,061.9  31,076.4  34,105.3  34,655.9  36,668.2  
  
(% of total exports)  
EU-28 52.6 51.9 54.6 54.8 54.8 55.8 58.2  
Germany  15.2 14.7 15.7 15.1 14.6 15.8 16.1  
United Kingdom  10.1 10.3 9.7 10.3 11.2 10.3 10.9  
Spain  4.7 4.8 5.4 5.6 5.9 5.8 6.7  
France  5.7 5.6 5.6 5.6 5.4 5.5 5.5  
Italy 4.0 3.8 4.4 4.4 4.1 4.2 4.3  
The Netherlands  2.9 2.6 2.9 2.7 2.5 3.0 3.3  
Poland  1.4 1.6 1.9 1.9 1.9 2.3 2.6  
Belgium  3.1 2.7 3.2 3.1 3.0 2.7 2.4  
Denmark  1.7 2.0 2.1 2.1 1.9 2.0 1.9  
Sweden  1.5 1.5 1.4 1.5 1.4 1.5 1.6  
Czech Republic  0.3 0.3 0.4 0.4 1.2 1.0 1.4  
Other EU  2.0 2.0 2.0 1.9 1.7 1.7 1.7 
United States  21.1 20.1 18.6 18.6 18.2 16.9 16.3 
Japan  2.5 2.8 2.9 2.9 3.2 2.9 3.1 
Canada  4.1 4.0 3.7 3.3 3.3 3.1 3.1 
India 2.1 2.1 1.5 1.7 2.0 1.9 2.4 
Australia  1.4 1.7 1.6 2.0 2.1 1.9 1.9 
China  1.7 1.7 2.5 2.5 2.4 2.7 1.9 
Turkey  2.3 2.4 2.8 2.3 1.9 1.8 1.4 
Russian Federation  0.5 0.8 0.9 0.9 0.9 1.3 1.3 
United Arab Emirates  0.7 0.9 0.8 0.9 1.2 1.1 0.9 
Hong Kong, China  1.0 1.3 0.9 0.8 0.6 0.8 0.9 
Korea, Rep. of  0.9 0.9 1.1 0.9 0.8 0.7 0.7 
Others  9.2 9.3 8.1 8.2 8.5 9.0 7.9 
Source:  WTO calculations, based on Export Promotion Bureau of Bangladesh online information.  
 
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  Table A1. 4 Merchandise imports by selected origins, 2011 -18 
  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total imports (BDT billion)  2,809.7  2,723.3  3,165.7  3,151.8  3,138.8  3,445.8  4,350.4  
Total imports (USD million)  35,522.0  34,069.7  40,731.5  40,577.6  40,105.3  43,551.6  52,984.3   
(% of total imports)  
China  18.1 18.6 18.5 20.3 24.1 23.4 22.1 
India 13.4 14.0 14.8 14.4 13.6 14.1 16.3 
EU-28 6.1 5.7 5.8 6.0 6.5 6.5 6.8 
Singapore  4.8 4.2 5.9 5.4 4.8 5.6 5.1 
Japan  4.1 3.5 3.2 3.8 4.1 4.0 3.5 
Indonesia  3.5 3.1 2.7 3.4 3.1 2.6 3.4 
United States  2.0 1.6 2.1 1.7 2.5 2.6 3.2 
Brazil  3.4 2.3 2.5 2.3 2.4 2.7 2.7 
Malaysia  3.9 5.6 5.1 3.2 2.4 2.4 2.7 
Korea, Rep. o f 4.4 3.8 2.9 3.0 2.9 2.9 2.4 
Thailand  2.5 2.0 1.8 1.7 1.7 1.8 2.3 
United Arab Emirates  2.3 2.3 2.3 2.1 1.5 1.8 1.7 
Australia  1.8 1.4 1.5 1.3 1.4 1.6 1.6 
Saudi Arabia, Kingdom of  2.3 2.5 2.0 2.0 1.5 1.6 1.5 
Chinese Taipei  2.2 2.2 2.3 2.0 1.9 1.8 1.5 
Kuwait, State of  3.7 2.9 2.6 2.1 1.5 1.3 1.5 
Hong Kong, China  2.0 1.8 1.9 2.1 2.0 2.1 1.3 
Viet Nam  0.8 1.0 1.4 1.5 1.0 1.0 1.3 
Russian Federation  0.9 1.0 0.7 0.6 0.7 1.1 1.2 
Argentina  1.1 0.7 1.2 1.0 0.9 1.0 1.2 
Pakistan  1.4 1.4 1.3 1.2 1.3 1.1 1.0 
Canada  1.3 1.8 1.4 1.9 1.8 1.4 1.0 
Imports from Export 
Processing Zones 6.0 7.3 7.3 7.4 7.8 7.1 6.7 
Other  8.2 9.4 8.8 9.6 8.9 8.5 8.0 
Note:  Totals differ from imports by product groups, shown in  Table A1.2 , because the totals in this table 
were taken from the Bangladesh Bureau of Statistics online information.  
Source:  WTO calculations, based on Bangladesh Bank online information.  
 
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  Table A1. 5 FDI inflows by sector and origin, 2012 -17 
(USD million)   
2012  2013  2014  2015  2016  2017  
Total 1292.56  1599.16  1551.28  2235.39  2332.72  2151.56  
Agriculture and fishing  60.85  31.04  31.58  24.72  43.15  35.17  
Mining and quarrying  0 0.13 0 0 0.3 -0.08 
Power, gas and petroleum  126.63  98.88  49.76  573.6  434.31  260.37  
Manufacturing  515.21  702.05  722.87  841.23  846.81  980.24  
     Food products  74.55  40.13  59.82  125.15  86.51  107.27  
     Textiles and clothing  307.48  421.63  378.93  442.92  364.44  421.68  
     Pharmaceuticals and chemicals  20.48  33.5 41.07  30.06  43.73  30.35  
     Cement  29.33  39.06  22.12  31.3 43.95  35.94  
     Leather and leather products  15.69  28.49  38.52  23.09  25.21  70.23  
Construction  2.9 6.53 7.94 4.91 5.52 32.08  
Services  586.88  760.53  713.99  765.06  968.74  817.16  
   Trade and commerce  163.72  345.51  414.16  419.16  282.22  409.58  
     Trade  8.33 12.81  62.75  80.97  88.39  88.41  
      Banking  136.47  345.51  358.17  309.64  166.07  278.86  
     Insurance  7.23 0.01 -15.46  27.84  26.27  35.33  
   Transport, storage and communication  375.64  326.21  237.18  258.42  582.05  238.71  
     Telecommunication  374.97  324.39  226.75  254.57  572.76  229.64  
Other services  47.52  88.81  62.65  87.48  104.47  168.87  
   Computer software and IT  12.16  37 10.38  8.26 22.05  83.55  
Other sector  0.09 0 25.14  25.86  33.89  26.62  
Source:  Information provided by the authorities.  
 
 
 
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  Table A3. 1 MFN applied summary, 2018/19  
 
Number of 
linesa Average 
(%) Range 
(%) Standard 
deviation  Nuisance 
rate (%)  Duty free 
(%) 
Total  7,135 (26)  14.8 0-25 9.8 9.3 4.6 
HS 01 -24 1,538 (5)  20.3 0-25 8.7 0.0 8.1 
HS 25 -97 5,597 (21)  13.2 0-25 9.6 11.8 3.7 
By WTO category        
WTO agricultural products  1,130 (5)  18.1 0-25 9.5 0.0 9.4 
Animals and products thereof  183 21.1 0-25 8.5 0.0 6.6 
Dairy products  31 23.1 10-25 5.0 0.0 0.0 
Fruit, vegetables, and plants  376 21.3 0-25 7.6 0.0 3.2 
Coffee and tea  29 22.9 10-25 5.2 0.0 0.0 
Cereals and preparations  140 15.1 0-25 10.2 0.0 17.1 
Oil seeds, fats, oil s and their 
products  107 9.2 0-25 8.7 0.0 30.8 
Sugars and confectionary  21 (5)  25.0 25-25 0.0 0.0 0.0 
Beverages, spirits, and tobacco  50 25.0 25-25 0.0 0.0 0.0 
Cotton  6 3.3 0-25 2.4 0.0 33.3 
Other agricultural products, n.e.s.  187 12.6 0-25 9.4 0.0 12.3 
WTO non -agricultural products  6,005 (21)  14.1 0-25 9.8 11.0 3.7 
Fish and fishery products  478 23.8 0-25 5.3 0.0 4.4 
Minerals and metals  1,071 (20)  13.2 0-25 8.8 3.7 4.6 
Chemicals and photographic 
supplies  1,129  10.4 0-25 7.6 0.2 6.7 
Wood, pulp, paper, and furniture  324 15.4 0-25 9.6 0.3 7.1 
Textiles  624 19.4 1-25 8.2 1.3 0.0 
Clothing  219 24.5 10-25 2.8 0.0 0.0 
Leather, rubber, footwear, and 
travel goods  171 13.9 0-25 9.3 3.5 0.6 
Non-electric machinery  643 5.4 0-25 8.2 67.7 1.7 
Electric machinery  339 13.4 0-25 9.5 20.1 0.9 
Transport equipment  507 (1)  16.7 0-25 9.5 2.8 3.2 
Non-agricultural products, n.e.s.  468 12.5 0-25 9.7 18.8 4.9 
Petroleum  32 15.5 5-25 7.5 0.0 0.0 
By ISIC sector        
ISIC 1 - Agriculture, hunting and 
fishing  694 17.3 0-25 10.2 0.0 14.6 
ISIC 2 - Mining  107 9.4 0-25 8.1 0.0 8.4 
ISIC 3 - Manufacturing  6,333 (26)  14.6 0-25 9.8 10.5 3.5 
Manufacturing , excluding food 
processing  5,444 (21)  13.4 0-25 9.6 12.2 3.6 
Electrical energy  1 5.0 5 0.0 0.0 0.0 
By stage of processing        
First stage of processing  1,193  16.3 0-25 10.2 0.0 10.9 
Semi-processed products  2,091 (25)  12.8 0-25 8.3 0.0 3.8 
Fully processed products  3,851 (1)  15.4 0-25 10.3 17.2 3.1 
By HS section        
01  Live animals and products  675 22.7 0-25 22.7 0.0 4.7 
02  Vegetable products  568 17.5 0-25 17.5 0.0 13.2 
03  Fats and oils  53 13.8 0-25 13.8 0.0 5.7 
04  Prepared food, beverages and 
tobacco  242 (5)  21.5 0-25 21.5 0.0 5.8 
05  Mineral products  196 (4)  10.3 0-25 10.3 0.0 5.1 
06  Chemicals and products thereof  1,007  9.4 0-25 9.4 0.0 9.9 
07  Plastics, rubber, and articles 
thereof  283 14.1 0-25 14.1 2.5 0.7 
08  Raw hides and skins, leather, 
and their products  77 11.6 1-25 11.6 2.6 0.0 
09  Wood and articles of wood  127 11.7 1-25 11.7 0.8 0.0 
10  Pulp of wood, paper and 
paperboard  170 16.3 0-25 16.3 0.0 13.5 WT/TPR/S/385 • Bangladesh  
 
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Number of 
linesa Average 
(%) Range 
(%) Standard 
deviation  Nuisance 
rate (%)  Duty free 
(%) 
11  Textiles and textile articles  829 20.4 0-25 20.4 1.0 0.4 
12  Footwear, headgear, etc.  49 25.0 25-25 25.0 0.0 0.0 
13  Articles of stone, plaster, and 
cement  171 17.1 1-25 17.1 5.8 0.0 
14  Precious stones and metals, 
pearls  54 (4)  14.5 5-25 14.5 0.0 0.0 
15  Base metals , and articles 
thereof  682 (12)  13.6 0-25 13.6 4.4 2.1 
16  Machinery, electrical 
equipment, etc.  998 8.4 0-25 8.4 50.4 1.4 
17  Transport equipment  518 (1) 16.5 0-25 16.5 2.7 3.1 
18  Precision equipment  260 7.5 0-25 7.5 33.1 8.8 
19  Arms and ammunition  27 16.7 5-25 16.7 0.0 0.0 
20  Miscellaneous manufactured 
articles  142 20.0 1-25 20.0 0.7 0.0 
21  Works of art, etc.  7 19.3 5-25 19.3 0.0 0.0 
a  Figures in brackets refer to the number of tariff lines with a specific rate.  
Note:   Excluding specific rates.  
Source :  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/385 • Bangladesh  
 
- 135 - 
 
  Table A3. 2 Tariff comparison, 2018/19  
 
No. of 
lines  MFN applied  Final bounda Total tax incidencesb  
Average  Range  Average  Range  % 
bound  Average  Range  
Total  7,135  14.8 0-25 162.0  0-200 19.0 59.3 0-845.6  
HS 01 -24 1,538  20.3 0-25 184.0  15-200 70.4 62.9 0-603.9  
HS 25-97 5,597  13.2 0-25 75.4 0-200 4.9 58.4 0-845.6  
By WTO category     
       
WTO agricultural 
products  1,130  18.1 0-25 186.4  15-200 100.0  59.7 0-603.9  
Animals and 
products thereof  183 21.1 0-25 195.4  45-200 100.0  40.0 0-60.3 
Dairy products  31 23.1 10-25 155.3  30-200 100.0  60.0 33-91.4 
Fruit, vegetables, 
and plants  376 21.3 0-25 188.5  17.5-200 100.0  57.8 0-130.2  
Coffee and tea  29 22.9 10-25 189.7  50-200 100.0  77.6 38.5-130.2  
Cereals and 
preparations  140 15.1 0-25 183.5  15-200 100.0  53.2 0-603.9  
Oil seeds, fats, oils, 
and their products  107 9.2 0-25 169.7  25-200 100.0  34.0 0-338.5  
Sugars and 
confectionary  21 25.0 25-25 178.1  45-200 100.0  78.8 60.3-130.2  
Beverages, spirits, 
and tobacco  50 25.0 25-25 200.0  200-200 100.0  307.6  60.3-603.9  
Cotton  6 3.3 0-25 200.0  200-200 100.0  21.0 0-32.4 
Other agricultural 
products, n.e.s.  187 12.6 0-25 186.8  15-200 100.0  33.2 0-91.4 
WTO non -agricultural 
products  6,005  14.1 0-25 40.0 0-200 3.8 59.3 0-845.6  
Fish and fishery 
products  478 23.8 0-25 66.4 30-200 4.6 65.4 0-91.4 
Minerals and metals  1,071  13.2 0-25 32.7 0-50 2.1 53.5 0-845.6  
Chemicals and 
photographic 
supplies  1,129  10.4 0-25 49.5 12.5-200 4.7 41.8 0-215.6  
Wood, pulp, paper, 
and furniture  324 15.4 0-25 32.2 15-50 4.9 53.7 10-215.6  
Textiles  624 19.4 1-25 33.3 10-50 0.5 66.7 5-130.2  
Clothing  219 24.5 10-25 n.a. n.a. 0.0 124.5  38.5-130.2  
Leather, footwear, 
and travel goods  171 13.9 0-25 3.0 3-3 0.6 52.7 11.3-130.2  
Non-electric 
machinery  643 5.4 0-25 44.5 3-50 6.5 35.3 6.3-215.6  
Electric machinery  339 13.4 0-25 45.3 3-50 2.9 46.9 10-215.6  
Transport 
equipment  507 16.7 0-25 20.1 3-50 2.4 121.4  6.3-836.8  
Non-agricultural 
products, n.e.s.  468 12.5 0-25 23.3 15-50 9.6 49.1 5-293.3  
Petroleum  32 15.5 5-25 n.a. n.a. 0.0 52.9 32.4-91.4 
n.a.  Not applicable.  
a  Final bound calculations are based on the 2018/19 tariff schedule.  
b  Total tax incidences (TTI s) include Custom duties, supplementary duties, VAT, advanced income 
taxes, regulatory duties and advanced trade VAT.  
Note:  Excluding specific rates.  
Source :  WTO Secretariat calculations, based on data provided by the authorities.  
 
  WT/TPR/S/385 • Bangladesh  
 
- 136 - 
 
  Table A3. 3 EPZs: investment by sector, as at March 2018  
Source:  BEPZA.  
  Product  No of industries  
in operation  Investment  
(USD '000)  
Agro products  8 4,009.68  
Bags 1 16,950.77  
Caps 6 66,595.20  
Chemical s and fertilizer s 6 27,732.57  
Electronics and e lectrical goods  19 156,733.06  
Fishing reels and g olf equipment  1 41,500.45  
Footwear and leather goods  32 267,021.32  
Furniture  3 39,148.98  
Garment accessories  94 630,701.80  
Garments  118 1,734,432.87  
Knitting and other textile products . 32 312,717.56  
Metal products  11 35,999.05  
Paper products  3 4,439.20  
Plastic goods  13 72,570.30  
Power i ndustry  2 106,823.89  
Ropes  3 12,377.16  
Service -oriented i ndustries  11 48,833.51  
Sports goods  3 19,200.57  
Tents 13 134,714.44  
Terrytowel ling 17 100,933.97  
Textile s 39 663,696.54  
Toys 1 34,742.60  
Other  1 1,192.84  
Miscellaneous  36 171,444.50  
Total  476 4,704,512.83  WT/TPR/S/385 • Bangladesh  
 
- 137 - 
 
  Table A3. 4 EPZs: investment, employment, and export, July  2012 -June 2018  
Investment (US D million)  
Year CEPZ  DEPZ  MEPZ  ComEPZ  UEPZ  IEPZ  AEPZ  KEPZ  
2012 /13 133.84  68.45  3.52 21.06  20.62  5.12 29.99  45.93  
2013 /14 109.46  125.79  5.10 23.39  17.27  3.15 73.75  44.67  
2014 /15 152.02  84.02  8.27 23.41  19.89  5.42 48.51  64.81  
2015 /16  110.71  80.63  18.98  30.18  33.53  15.11  54.70  60.51  
2016 /17  90.57  70.12  6.15 29.32  24.56  20.07  50.36  51.32  
2017 /18 86.19  68.69  11.78  31.51  20.42  20.17  50.16  50.67  
Local employment  
Year CEPZ  DEPZ  MEPZ  ComEPZ  UEPZ  IEPZ  AEPZ  KEPZ  
2012 /13 8,732 2,543 91 1,937 169 0 9,857 12,240 
2013 /14 0 488 0 1,761  2,460  1,123  5,133  6,575  
2014 /15 8,194 0 182 5,347  4,864  1,129  4,084  9,167  
2015 /16  6,154 3,330  15 2,522  7,124  0 6,368  8,306  
2016 /17  2,788 2,372  491 2,676  5,025  1,003  6,663  4,511  
2017 /18 2,041  520 895 4,629  3,008  1,512  5,090  4,031  
Export (US D million)  
Year CEPZ  DEPZ  MEPZ  ComEPZ  UEPZ  IEPZ  AEPZ  KEPZ  
2012 /13 2,095.121  1,780.7  74.10  176.93  20.38  55.71  274.10  379.61  
2013 /14 2,261.619  1,937.5  77.2835  209.41  33.221  93.1657  386.23  526.85  
2014 /15 2,383.76  1,997.5  84.2649  274.63  87.995  108.263  467.37  709.74  
2015 /16  2,419.71  2,183.9  74.6572  308.33  188.8  114.737  562.91  823.28  
2016 /17  2,254.16  2,091.3  45.79  337.39  227.07  96.55  644 853.08  
2017 /18 2,443  2,203  53 409 225 132 765 979 
 
Source:  Information provided by the authorities.  
  
  WT/TPR/S/385 • Bangladesh  
 
- 138 - Table A4. 1 Bangladesh's ASAsa, as at October 2018  
Partner  Date  5thb 7thc Cabotaged Coope Designationf Withholdingg Pricingh Capacityi Statj 
Afghanistan  25.06.1975  Y N N .. S .. .. PD .. 
Austria  17.05.2018  Y N N .. M .. .. PD .. 
Australia  15.08.2008  Y N N .. M .. .. PD .. 
Azerbaijan  11.12.2014  N N N .. M .. .. PD .. 
Bahrain, Kingdom of  06.02.1990  Y N N .. M .. .. PD .. 
Belgium  20.10.1995  Y N N N M SOEC  DA PD Y 
Bhutan  04.06.1986  Y N N .. M .. .. PD .. 
Canada  20.08.2013  Y N N .. M .. .. PD .. 
China  24.07.1980  Y N N N M SOEC  DA PD N 
Egypt  12.04.1994  Y N N .. M .. .. PD .. 
France  03.07.1998  Y N N .. M .. .. PD .. 
Germany  08.12.1992  Y N N .. M .. .. PD .. 
Hong Kong, China  25.10.2000  Y N N N M PPoB DA PD Y 
Iceland  13.12.1913  Y N N .. M .. .. PD .. 
Indonesia  22.12.1992  Y N N .. M .. .. PD .. 
India 05.05.1978  Y N N N M SOEC  DA PD Y 
Iran 23.10.1991  Y N N .. S .. .. PD .. 
Iraq 28.02.1988  N N N .. S .. .. PD .. 
Italy 16.12.1980  Y N N .. M .. .. PD .. 
Japan  12.02.1980  Y N N N S SOEC  DA PD Y 
Jordan  03.08.2010  Y N N .. S .. .. PD .. 
Kenya  16.01.2008  Y N N .. M .. .. PD .. 
Korea, PDR  16.06.1976  N N N .. S .. .. PD ..  
  WT/TPR/S/385 • Bangladesh  
 
- 139 - Partner  Date  5thb 7thc Cabotaged Coope Designationf Withholdingg Pricingh Capacityi Statj 
Korea, Republic of  13.02.1979  N N N N S SOEC  DA PD Y 
Kuwait, the State of  28.04.1980  Y N N N M SOEC  DA PD Y 
Libya 13.03.1980  N N N .. S .. .. PD .. 
Luxembourg  10.12.2013  N N N .. S .. .. PD .. 
Malaysia  19.07.1978  Y N N N M SOEC  DA PD Y 
Maldives  08.02.1985  Y N N N M SOEC  DA PD Y 
Morocco  03.08.1996  N N N .. M .. .. PD .. 
Myanmar  29.08.1977  Y N N N M SOEC  DA PD Y 
Nepal  02.04.1976  N N N N M SOEC  DA PD Y 
Netherlands  03.11.1973  Y N N N S SOEC  DA PD Y 
Oman  30.04.1987  N N N N M SOEC  DA PD Y 
Pakistan  04.01.1979  Y N N .. S .. .. PD .. 
Philippines  08.09.1979  Y N N N S SOEC  DA PD N 
Poland  09.06.1997  Y N N .. S .. .. PD .. 
Qatar  31.12.1979  N N N .. M .. .. FD .. 
Russian Federation  23.08.1973  Y N N N S SOEC  DA PD Y 
Saudi Arabia, Kingdom of  22.04.1986  N N N .. S .. .. PD .. 
Serbia  09.02.1974  Y N N .. S .. .. PD .. 
Singapore  26.05.1979  Y N N .. M .. .. PD .. 
Slovak Republic  17.01.2007  Y N N .. M .. .. PD .. 
Sri Lanka  23.05.1994  Y N N .. M .. .. PD .. 
Syria 03.03.1996  N N N .. S .. .. PD .. 
Thailand  06.12.1978  Y N N .. M .. .. PD .. 
Turkey  19.02.1992  Y N N .. M .. .. PD ..  
  WT/TPR/S/385 • Bangladesh  
 
- 140 - Partner  Date  5thb 7thc Cabotaged Coope Designationf Withholdingg Pricingh Capacityi Statj 
United Arab Emirates  02.10.2017  Y N N .. M .. .. PD .. 
United Kingdom  05.07.1978  Y N N N M SOEC  DA PD Y 
United States  15.08.2013  Y N N  S .. .. FD .. 
Uzbekistan  06.07.1993  Y N N .. S .. .. PD .. 
Viet Nam  06.09.1993  Y N N .. S .. .. PD .. 
Yemen  11.11.1974  Y N N .. M .. .. PD .. 
.. Not available.  
a The term "Air Transport Agreements" is used here to refer to ASAs, MOUs, Exchanges of Notes, and other such relevant  instruments.  
b  Indicates if fifth freedom rights, even limited ones, are granted. If fifth freedom rights are subject to approval by the aer onautical authorities, they are coded 
as NOT granted.  
c Indicates if seventh freedom rights, even limited ones, ar e granted. If seventh freedom rights are subject to approval by the aeronautical authorities, they are 
coded as NOT granted.  
d Indicates if cabotage rights, even limited ones, are granted. If cabotage rights are subject to approval by the aeronautical authorities, they are coded as NOT 
granted.  
e Indicates if there are clauses allowing cooperation between airlines, e.g. code -sharing.  
f Indicates if designation is single, by an "S", or multiple, by an "M".  
g Indicates the type of withholding clause: Substant ial Ownership and Effective Control (SOEC), Principal Place of Business (PPoB), or Community of Interest 
(COI).  
h Indicates the type of pricing clause: Double Approval (DA), Double Disapproval (DD), Country of Origin (CoO), Zone Pricing (Z P), or Free Pricing (FP).  
i Indicates the type of capacity clause: Pre Determination (PD), Bermuda I (B1), Free Determination (FD), or other (O).  
j Indicates if an exchange of statistics is foreseen by the agreement.  
Source:  WTO Secretariat, based on information by t he authorities.  
 
 
__________