WT/TPR/S/270 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs-related measures  
1. Bangladesh Customs works under the umbrella of  the National Board of Revenue (NBR), the 
apex body for direct and indirect tax revenue in Ba ngladesh and is part of the Internal Resources 
Division (IRD) under the Ministry of Finance.  The Customs wing of the NBR formulates policy concerning levy and collection of customs du ty and customs-related taxes/charges, and 
administration.   
2. The importance of a simplified process for both export and import has long been recognized 
by policymakers in Bangladesh, which has led to th e adoption of various trade facilitation measures 
over time.  Both the current Export Policy (2 009-12) and Import Policy Order (2009-12) emphasise 
the need to reduce bottlenecks in the process of conducting international trade.
1  In addition, the 
Customs Act lays down the powers and responsibiliti es of the Customs Authority in completing the 
processes and procedures involved at various stag es of export and import.  The Government also 
proposes various tariff related measures when the national budget for a certain fiscal year is 
announced in the parliament.  These are further suppl emented by Statutory Regulatory Orders (SROs) 
which are issued on ad-hoc basis betw een national budget announcements.   
(a) Customs reform  
3. The NBR is undertaking a comprehensive orga nizational renewal programme that seeks to 
put in place an efficient, effective, fair and r esponsive tax regime which is benchmarked against 
international best practice.2  The reform programme covers inco me tax, VAT and customs duties and 
will review and modernize both tax policy (tax la ws and statutory rules) and tax administration 
(business process, organizational design, HR policies, taxpayer services, etc.).  Customs modernization is considered necessary to achie ve the three major objectives of the Bangladesh 
customs:  introduce speedy customs clearance th rough automation of the process;  ensure 
transparency in the customs clearance process as we ll as in revenue collection activities; and extend 
the maximum possible facilities to the trade communities.  
4. The programme seeks to improve the policy c ontent and framework of the Customs Act, 1969 
in the context of the national vision of Bangladesh.  First, this includes provision for full implementation of the Revised Kyoto Convention (R KC) to which Bangladesh has decided to accede; 
the authorities maintain that 90% of the provision s of the General Annex of the RKC have been 
implemented.  Second, Bangladesh has decide d to implement the WCO SAFE Framework of 
Standards, and a WCO diagnostic te am has submitted an analytical report to the NBR;  Third, the 
introduction of Authorized Economic Operators (AEO ) and the Single Window (SW) system is under 
active consideration at the NBR;  with UNCTAD' s assistance, the NBR is preparing to introduce 
ASYCUDA World by June 2013, which is expected to expedite the introduction of AEO and a full-
fledged SW system;  Fourth, tariff-rationalization efforts are on-going to promote investments and 
prevent misdeclarations, and eliminate distortions through (i) maintaining the same duty rate for 
products within the same HS heading, (ii) simplifying the First Schedule to remove unnecessary HS codes, and (iii) creating specific HS codes for products with voluminous trade. 
                                                      
1 Hossain and Rahman (2011). 
2 National Board of Revenue (2011).  Bangladesh WT/TPR/S/270 
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5. Since April 2011, an alternate dispute resolu tion (ADR) system in order to expedite 
settlement of disputes relating to tax and custom s issues has been in operation.  Three ADR 
mechanisms are in place, dealing with income tax cases; local indirect tax (incl. VAT and excise duty) 
cases, and import-tax-related cases.   
6. On the implementation side, the modernization of the Customs Act also envisages improved 
risk-management techniques, de-congestion and faster  turn-around times at port facilities for customs 
clearance, remote centralized pre-arrival processi ng of duty payment and customs clearance with 
intelligent selection methods for full audit and ve rification in high-risk cases.  The proposals will 
streamline the tariff structure and bring the customs statute and practice in line with international 
practices.  The customs modernization programme will incorporate information and communication 
technology (ICT) for better compliance in all its land,  air and sea ports.  This includes evaluating the 
practice of preshipment inspection (PSI) and its gradual phase out.  PSI adds to the cost of doing business in Bangladesh and reduces the competitiveness of national businesses as similar costs are not 
imposed on businesses of neighbouring countries.  Th e replacement of PSI will entail training of the 
customs officials in current valuation techniques.   
(b) Trade facilitation  
7. The Customs Act, 1969, was amended in 2001 in line with the Revised Kyoto Convention in 
order to harmonise customs procedures.  Risk-based  clearance has been introduced on a limited scale 
in customs houses through green, yellow and red ch annels.  In particular, customs clearance of 
passenger baggage in airports has been simplified, and more than 95% of passengers pass through the 
green channel without any intervention and delays by Customs. 
8. Significant progress in computerisation of customs procedures has been made in recent times.  
The latest version of ASYCUDA, i.e. ASYCUDA++, has been put in place in  Dhaka Customs House, 
Chittagong Customs House (CCH), Benapole Custom s House, Monga Customs, and the Export 
Processing Zone.  As already noted, the NBR is planning to upgrade the system into ASYCUDA World in 2013.  Direct traders input (DTI) has been introduced in Dhak a Customs House and CCH 
but some of the functions are s till conducted manually.  The authorities note that while computerised 
Bill of Entry and Bill of Export modules allow im porters and exporters or their authorised C&F 
agents to enjoy the benefits of online submission of customs declarations (DTI), other papers are 
required to be submitted physically  to the Customs offices to enable them to manually check the 
declaration with the entries in the import general manifest. 
9. Chittagong is the main seaport in Bangladesh th rough which more than 90% of the country's 
trade passes.  Productivity of the port has been low due inter alia  to reliance on manual operations and 
delays in loading and unloadi ng ships for various reasons.
3  However, the Chittagong Port Authority 
(CPA) operationalized its container management sy stem (CTM), which has facilitated automation of 
import operations.  The CCH was automated in 200 8 in cooperation with the Chittagong Chamber of 
Commerce and the Customs Brokers Association to en able the users of CCH to use online facilities.  
The continuity andenvisaged benefits of automation, however, remain to be seen as it is yet to be fully 
operationalised. 
10. In 2009, Customs installed four container scanners at the Chittagong port to detect 
contraband/illegal shipments and weapons, aimed at ensuring security while facilitating legitimate 
trade.  The turn-around time at Chittagong port has, according to the authorities, improved due to 
various measures, including privatization of port-handling operations, introduction of modern 
handling equipment and introduction of CTMs.  The turn-around time of container ships in 
                                                      
3 Uzzaman and Yusuf (2011), pp 29-42.  WT/TPR/S/270 Trade Policy Review 
Page 32 
  
Chittagong port is now under three days, which compares well with other efficient ports in 
neighbouring countries.  
11. The port of Chittagong clears 40% of bills of entr y in two working days or less.  The number 
of bills of entry taking seven days or more for cl earance has been reduced from 26 to 21%.  The target 
is to clear all bills of entry in less than two days with the exception of good s that need to be fully 
inspected for customs purposes.  A selectivity syst em has also been implemented at the port of 
Chittagong, where shipments are screened against pr e-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 insp ection, "yellow channel" imports that undergo a 
full documentation check, and "red channel" imports  that account for 10% to 12% of the total and 
receive full documentation and physical inspection.  A post-audit system is also under development to 
verify the accuracy of green channel and yellow cha nnel clearances.  The Government plans to extend 
the system to include both imports and exports and to implement the system at other customs offices.   
12. Most Customs Notifications are published in the National Gazette  and Statutory Regulatory 
Orders (SRO) in compliance with GATT Article X.  The Government consults with the private sector 
and studies proposals from that sector particularly  prior to the annual budget preparation.  
13. In the absence of testing facilities at customs houses, samples of food and chemical items are 
required to be sent to the Bangladesh Standards and Testing Institute (BSTI).4  However, BSTI is not 
yet scientifically equipped to undertake all sample t esting and samples often need to be tested in 
public universities or Bangladesh Council of Scientif ic and Industrial Research (BCSIR).  An upgrade 
of existing testing facilities, including the devel opment of new facilities at major customs houses to 
check the physical and chemical attributes of impor ted consignments, would fa cilitate the detection of 
false declarations and potential revenue leakage.  
(c) Import procedures   
14. Over the last decade, measures have been ta ken to simplify import and export procedures by 
reducing the number of signatures needed for clear ance of consignments a nd frequency of inspection 
of the goods being traded.  
15. While 25 signatures were required for clearance of import and export consignments in 1999, 
in 2002 the number was reduced to five and Custom s is trying to further reduce the procedure and 
release time by automation.  Since 2002, custom s officials physically inspect only 10% of import 
consignments, before which date 100%  were inspected.  As a result of the introduction of automation, 
the average processing time for clearance of goods fr om Customs has been reduced to one day for 
about 70% of consignm ents for import and three to four hours or less for export.  It may be noted here 
that apart from a very small number of entrepreneur s, almost all the exporte rs and importers rely on 
clearing and forwarding agents (CFAs) to deal with customs clearance. 
16. Documents generally required in Bangladesh fo r importation comprise:  bill of lading, cargo 
release order, certificate of origin , commercial invoice, customs import declaration, packing list.  The 
import process in mostly automated for the four ma jor customs houses in the country that cover 90% 
of import cargo, with some degree of manual processing at the rest.  Once the Import General Manifest is submitted online by the shipping agent,  the nominated CFA completes the bill of entry 
                                                      
4 As per the Import Policy Order 2009-12, all food items are required to have test certificates of 
radioactivity levels from the competent authority of the exporting country.  The IPO also requires the testing  of 
food items by the BSTI and the Bangladesh Council of Sc ientific Research (see Sectui on 15 of chapter 4 of the 
IPO 2009-12). Bangladesh WT/TPR/S/270 
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from their own premises.  Most CFAs use the au tomation service for customs clearance.  Necessary 
documents such as bill of lading, commercial invoice, packing list, etc. are then taken to the customs 
house to facilitate assessment of the declaration.  By this time, the container has been unloaded from 
the vessel and moved to the customs warehouse.  Upon satisfactory assessment (including inspection, 
if required), the necessary duties are paid and in a few hours the container (or goods from the 
container) can be moved out of the port area to the importer's premises.  
17. It used to be the case that if a dispute aro se with regard to classification, valuation or 
importability, it could take months to resolve, with layers in decision making, frequent physical 
inspection and the manual system contributing to the delay. Introduction of PSI  improved the situation 
to some extent, and the Customs department has undergone significant transformation during the 
review period.  The Customs Act has been modified  to reduce the discretionary powers of officials 
and tariff rationalization, and HS code simplificati on at the 8-digit level, which have helped reduce 
misdeclaration.  Assessment co mmittees in customs stations try to rapidly settle disputes over 
classification and the introduction of an ADR m echanism is also a promising development.   
(ii) Preshipment Inspection (PSI) 
18. Introduction of the PSI system in Bangladesh  has reduced the inconveniences faced by 
importers at import clearance.  PSI verifies unit prices and examines and re ports the quantity and 
quality of exports before they are sent to the importi ng country.  In terms of trade facilitation, PSI can 
create more efficient administrations by controlling over- or under-invoicing of imports, misclassification of imports, under-collection of taxes on imports, misappropriation of funds, and 
compliance with national regulations.  One of the ru les guiding PSI in Bangladesh limits the physical 
examination of shipments by customs to 5% of the total of all shipments, while the rest undergo documentation checks only.  Introduction of the PSI scheme has also reduced customs point delays.  
Physical inspection of consignments has been  reduced from 100% in 1999 to around 10% currently, 
significantly helping importers. 
19. In Bangladesh, Customs agencies depend on Preship ment Inspection performed by four firms:  
Bureau Veritas, Intertek Testing, Société Géné rale de Surveillance S.A. (SGS), and Overseas 
Merchandise Inspection Company (OMIC) operating in different countries of origin.  The PSI 
programme is used to verify the description, quan tity, classification and valuation of the goods being 
exported to Bangladesh and to issue a Clear Report of Findings.  It is claimed that the programme improves revenue collection and ensures accurate reporting on the declarations
5 and reduces cargo 
clearance time by 1-2 days on average.  Howe ver the programme has been controversial with 
thousands of disputes pending in the courts c oncerning classification and valuation of imports.  
20. Although PSI is often necessary to provide so me assurance on the quality/quantity of the 
shipment, and thus may promote international trade, it adds to the cost of trading.  According to the 
authorities, the import cost of PSI is around 1% of  the import value of the goods and a PSI phase-out 
has begun.  As of mid-2010, NBR took a large num ber of product categories (such as goods attracting 
zero duty rate, goods attracting specific duties, and goods attracting 5% duty) out of the purview of the PSI system.  The approach is to gradually encourage customs officials to assume greater 
responsibility before the PSI system is completely  phased out, due on 31 December 2012 after expiry 
of existing contracts with the PSI agencies. 
                                                      
5 Financial Express , "Review of pre-shipment inspection in Bangladesh", 18 November 2007.  Viewed 
at:  http://www.thefinancialexpress-bd.com/more.php?news_id=17515.   WT/TPR/S/270 Trade Policy Review 
Page 34 
  
(iii) Customs valuation 
21. Bangladesh adopted the WTO Agreement on Custom s Valuation (ACV) in February 2000, as 
scheduled6 and Section 25 of the Customs Act, 1969  was amended to reflect this change.7  Since then 
the tariff value regime (i.e. minimum impor t prices) has been virtually phased out.8  Customs 
valuation rules are followed in assessing all impo rt consignments, whether the consignment in 
question is subject to PSI or not.  The ACV is a pplied to both PSI and non-PS I consignments and in 
the post-PSI phase, valuation will be  based on the transaction value.  
22. In most cases, customs valuation is carri ed out by the Assessing Officers (Principal 
Appraiser/Superintendent/Revenue Officer).  Where disputes arise on valuation or declaration issues, 
the file may be dealt with at a higher level. 
(iv) Tariffs and other charges 
(a) Revenue aspects  
23. Trade tax revenues, still significant in Banglad esh, will continue to decline.  Further 
liberalization, including through regional and bilatera l agreements, mean that the trend will continue.  
However, although government revenue  is gradually becoming less de pendent on trade -related taxes, 
they still account for about 35% of the total (Table III.1).  The share of import duties in overall trade 
taxes has declined from 21.6% to 14.6% during the review period, reflecting the reduction of customs 
duties through liberalization.  A ccording to the most recent data provided by the NBR, in FY2010/11, 
the share of different trade taxes in customs revenue was as follows:  customs duty 41%, VAT on 
imports 44% and supplementa ry duty on imports  15%. 
Table III.1 
Structure of trade tax revenue, 2005/06 - 2010/11 
(Tk billion and %) 
                   2005/06 2006/07 2007/2008 2008/09 2009/10 2010/11a 
Tax revenue (Tk billion) 361.8 392.5 480.1 555.3 639.5 760.5 
as % of GDP 8.7 8.3 8.8 9.0 9.2 9.7 
(% of total tax revenue) 
Trade-related taxes 42.2 39.9 41.3 37.6 35.8 35.4 
VAT on imports 16.3 16.1 17.7 16.5 16.1 15.7 
Import duty 21.6 20.8 20.0 16.8 14.9 14.6 
Supplementary duty on imports 4.3 3.0 3.7 4.2 4.8 5.1 
 
a Estimates.  
Source:   Bangladesh authorities;  Central Bank of Bangladesh (various issues), Annual Report .  Viewed at:  
 http://www.bangladesh-bank.org.  
24. In meeting the revenue challenges from trade liberalization, the Government has made 
improvements in the collection of domestic taxes, in particular VAT and income tax.  As a result, the 
                                                      
6 In May 1995, Bangladesh notified the WTO, of its decision to delay application of the provisions of 
WTO Agreement on Customs Valuation. 
7 Notification No. 57-Law/2000/1821/Customs, 23 February 2000. 
8 The previous valuation regime, Section 25(7) of the Act empowered the Government to fix tariff 
values for the purpose of levying customs duty for a number of imported products;  that is, wherever tariff 
values are available, they replace the lo wer invoiced price.  At the time of  the previous Review of Bangladesh, 
in 2000, the tariff value schedule incl uded 977 tariff lines at the eight-digit  HS level, accounting for 15% of total 
tariff lines.   Bangladesh WT/TPR/S/270 
 Page 35 
 
 
share of income tax and VAT in total tax reve nue collected by NBR has increased from 40.1% in 
FY2005/06 to 51.2% in FY2010/11.  In addition, NBR is:  creating an effect ive valuation database 
that may serve as a guide towards assessing the corr ectness of valuation declarations; establishing an 
appropriate risk management system to limit re venue leakage;  and developing an efficient post-
clearance audit system, as well as tackling delays in the settlement of court cases. 
(b) Overview of border taxes 
25. Considerable progress has been made on trade a nd exchange liberalization in the past 20 
years.  Reform measures have included tariff cuts and rationalization, remova l of trade-related QRs, 
and no further need for import licences.  Unde r SAFTA, Bangladesh has made commitments to 
reduce duty on products (other than those on the sensitive list) to 0-5% by 2016 and reduced its 
sensitive list from 1,234 HS lines to 993 HS lines on 1 January 2012.  
26. However, as the World Bank has highlighted, overall protection at the border may be 
considered to be higher than MFN tariffs.9  In addition to customs du ties, the use of not fully 
transparent protective levies has incr eased in recent years, resulting in  an estimated increase in their 
average value from 3.2% in FY1996 to 12.9% in FY2012, virtually as high as the MFN tariff, and 
increasing by six percentage points since FY2009.  As a result, the average nominal rate of 
protection10 in Bangladesh may well be among the highest in the world, according to the World Bank, 
at over 26% in FY2012, compared to 20% in FY 2009.  The resulting anti-export bias works against 
the emergence of new exports and the expansion of export activities to non-enclave areas.  The export base is heavily concentrated in  the readymade garment (RMG) sector, which accounts for 75% of 
merchandise exports, where the extent of the anti-export bias appears lower.  
(c) Tariff structure  
27. While average MFN tariffs declined marked ly from 70.6% in FY1992 to 28.7% in FY1996 
and further to 14.9% in FY2012, they remain am ongst the highest in the region.  Tariffs are ad 
valorem  with few exceptions and are levied on the c.i.f. value of imports.  The classification of the 
customs tariff is based on the HS 2007 nomenclature.  In 2012, there are 6,106 tariff lines classified at 
the HS eight-digit level (compared to 6,637 in 2006).  According to the authorities, the four-tier 
customs tariff structure remains unchanged.  Du ties on basic raw materials, capital machinery and 
parts, intermediate goods and finished products ar e 5%, 3%, 12%, and 25%, respectively.  The 0% 
rate on commodities like rice, wheat, onions, pulses,  edible oils, seeds, fertilizers, medicines and 
cotton has been kept unchanged.   
28. The average applied MFN tariff has been reduced  slightly from 15.5% at the time of the 
previous review to 14.9% currently (Table III.2).  The average rate for agricultural products continues 
to be higher than for industrial imports; and tari ff escalation, an industrial policy objective remains 
pronounced and unchanged over the review period.  The dispersion of nominal tariff protection has increased since the previous review and internationa l tariff peaks remain at over 42% of all tariff 
lines.   
                                                      
9 See World Bank (2011), p.8 and (2012b), p.2.  
10 NRP = non-linear sum of tariffs:  unweighted tari ff average + unweighted average of para-tariffs 
(regulatory duty, supplementary duty and VAT) as calculated by the World Bank. WT/TPR/S/270 Trade Policy Review 
Page 36 
  
Table III.2 
Tariff structure, 2005/06 and 2011/12  
  MFN applied SAFTA 
2005/06 2011/12 2011/12 
Bound tariff lines (% of all tariff lines) 17.4 17.8 
Simple average rate 15.5 14.9 11.7 
Agricultural products (HS 01-24) 19.6 19.4 14.1 
Industrial products (HS 25-97) 14.7 13.9 11.2 
WTO agricultural products 18.0 17.8 13.1 
WTO non-agricultural products 15.1 14.3 11.5 
ISIC 1 - Agriculture, hunting and fishing 17.1 16.9 12.4 
ISIC 2 - Mining 9.8 10.4 6.0 
ISIC 3 - Manufacturing 15.5 14.8 11.7 
Manufacturing excluding food processing 14.8 14.0 11.3 
First stage of processing 14.9 15.0 10.6 
Semi-processed products 14.4 13.4 10.7 
Fully processed products 16.3 15.6 12.6 
Domestic tariff "peaks" (% of all tariff lines)a 0.0 0.0 0.0 
International tariff "peaks" (% of all tariff lines)b 42.1 42.6 41.9 
Overall standard deviation of tariff rates 8.8 9.3 8.3 
Coefficient of variation of  tariff rates 0.6 0.6 0.7 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
Duty-free tariff lines (% of all tariff lines) 7.5 4.3 7.7 
Non- ad valorem  tariffs (% of all tariff lines) 0.1 0.3 0.1 
Nuisance applied rates (% of all tariff lines)c 0.0 0.0 0.0 
Number of lines 6,637  6,106  6,106  
Ad valorem  6,631  6,086  6,102  
Per cent of total tariff lines 99.9 99.7 99.9 
Duty-free lines 495 260 469 
Non- ad valorem   6 20 4 
Specific 6 20 4 
Compound 0 0 0 
Alternate 0 0 0 
Memo: 
WTO agriculture 18.0 17.8 13.1 
Animals and products thereof 22.3 22.2 14.5 
Dairy products 25.0 23.5 20.7 
Fruit, vegetables and plants 20.6 20.2 14.7 
Coffee and tea 22.0 21.8 16.3 
Cereals and preparations 14.1 13.2 10.3 
Oil seeds, fats and oils and their products 10.3 10.0 7.2 
Sugars and confectionary 25.0 19.4 16.4 
Beverages, spirits a nd tobacco 25.0 25.0 22.8 
Cotton 4.0 3.3 1.9 
Other agricultural products n.e.s. 12.5 12.6 9.0 
WTO non-agriculture 15.1 14.3 11.5 
Fish and fishery products 23.5 23.4 16.0 
Minerals and metals 14.0 13.7 10.2 
Chemicals and photographic supplies 12.2 11.2 8.7 
Wood, pulp, paper and furniture 16.6 15.7 13.0 
Textiles 20.4 19.7 16.8 
Clothing 24.0 24.5 19.6 
Leather, rubber, footwear and travel goods 14.9 14.8 10.7 
Non-electric machinery 8.7 6.7 5.4 
Electric machinery 14.7 13.6 11.5 
Transport equipment 16.3 16.7 16.0 
Table III.2 (cont'd) Bangladesh WT/TPR/S/270 
 Page 37 
 
 
  MFN applied SAFTA 
2005/06 2011/12 2011/12 
Non-agricultural articles n.e.s. 14.6 13.2 10.6 
Petroleum 16.7 16.0 15.4 
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: The 2005/06 tariff is based on HS02 nomenclature and the 2011/ 12 tariff is based on HS07.  Ca lculations for tariff averag es, 
 domestic and international peaks, exclude specific rates. 
Source: WTO Secretariat calculations , based on data received by the Bangladeshi authorities.  
29. The limited coverage of tariff bindings ( 17.8% of tariff lines) and a gap of up to 
157 percentage points between the average bound and applied MFN tariff rates continue to present a 
marked degree of unpredictability to the tariff re gime and provide considerable scope for the 
authorities to raise applied rates within the tari ff bindings (Table III.2).  The difference between 
average applied and bound rates remains much highe r for agricultural products than for industrial 
products.  Whereas 100% of agricultural tariff lin es (WTO definition) are bound, only 2.7% of 
industrial tariff lines are bound (Table III.3).  The non-agricultural bound lines are at several rates 
ranging from zero to 200% with a marked concentration at 20%, 30% and 40%.  
Table III.3 
Tariff summary, 2011/12  
  MFN applieda Final bound TTIb 
Avg. Range Avg. Range %age 
bound Avg. Range 
Overall average 14.9 0-25 172.4 0-200 17.8 54.5 0-830.1 
HS01-24 19.4 0-25 191.0 15-200 79.9 54.8 0-598.8 
HS25-97 13.9 0-25 92.7 0-200 4.1 54.5 0-830.1 
WTO agriculture 13.1 0-25 192.3 15-200 100.0 54.6 0-598.8 
Animals and products thereof 14.5 0-25 196.5 50-200 100.0 42.4 0-59.2 
Dairy products 20.7 5-25 167.3 30-200 100.0 61.2 29.5-90 
Fruit, vegetables and plants 14.7 0-25 191.8 30-200 100.0 44 0-90 
Coffee and tea 16.3 12-25 187.5 50-200 100.0 69.3 37.8-151.7 
Cereals and preparations 10.3 0-25 194.1 50-200 100.0 56.8 0-598.8 
Oil seeds, fats and oils and their 
products 7.2 0-25 194.6 50-200 100.0 30.8 0-105.4 
Sugars and confectionary 16.4 0-25 191.7 50-200 100.0 62.2 3.6-151.7 
Beverages, spirits and tobacco 22. 8 25-25 200.0 200 100.0 285.1 59.2-598.8 
Cotton 1.9 0-5 200.0 200 100.0 20.3 0-29.5 
Other agricultural products n.e.s. 9.0 0-25 189.3 15-200 100.0 30.6 0-90 
WTO non-agriculture 11.5 0-25 38.8 0-200 2.7 54.5 0-830.1 
Fish and fishery products 16.0 0-25 45.0 30-50 1.8 47.7 0-90 
Minerals and metals 10.2 0-25 39.5 0-50 1.1 45.4 0-151.7 
Chemicals and photographic 
supplies 8.7 0-25 53.7 5-200 3.3 40.5 3.6-151.7 
Wood, pulp, paper and furniture 13.0 0-25 38.9 15-50 3.2 51.4 3.6-151.7 
Textiles 16.8 3-25 37.5 10-50 0.7 75. 3 6.7-151.7 
Clothing 19.6 12-25 n.a. n.a. 0.0 123.5 37.8-151.7 
Leather, rubber, footwear and travel 
goods 10.7 0-25 3.0 3 0.6 51.4 8.6-128.6 
Non-electric machinery 5.4 0-25 46.4 3-125 5.0 33.4 3.6-151.7 
Electric machinery 11.5 0-25 44.1 3-50 2.7 43.2 5-151.7 
Table III.3 (cont'd) WT/TPR/S/270 Trade Policy Review 
Page 38 
  
  MFN applieda Final bound TTIb 
Avg. Range Avg. Range %age 
bound Avg. Range 
Transport equipment 16.0 0-25 20.1 3-50 3.7 107.2 3.6-830.1 
Non-agricultural articles n.e.s. 10.6 0-25 21.7 15-50 6.7 47.2 3.6-213.4 
Petroleum 15.4 5-25 n.a. n.a. 0.0 49.1 24.5-90 
n.a. Not applicable.  
a Based on custom duties only. 
b Total tax incidence (TTI) includes custom duties, supplementa ry duties, VAT, advance income taxes, regulatory duties and 
 advanced trade VAT. 
Note: Calculations exclude specific rates.  Calcula tions on bindings are based on the 2011/12 tariff schedule. 
Source:   WTO Secretariat calculati ons, based on data received by the Bangladeshi authorities.  
30. The average tariff level for live animals and pr oducts, prepared foods, textiles, clothing and 
footwear, and articles of stone continues to consid erably exceed the MFN average applied rate, while 
the rates for mineral products, chemicals and chem ical products, hides and skins, machinery, and 
precision instruments remain relatively low (Chart III.1). 
0.02.55.07.510.012.515.017.520.022.525.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source: WTO Secretariat calculations, based on data provided by the Bangladeshi authorities .Per centChart III.1
Average applied MFN tariff rates, by HS section, 2005/06 and 2011/12
01   Live animals & products  
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.Average 2005/06
(15.5%) Average 2011/12
(14.9%)
MFN 2005/06 MFN 2011/12
 
31. The 2005 Industrial Policy set explicit objectives on tariff escalation, stipulating that the duty 
structures of imported raw materials, intermed iate goods and manufactured goods will be set at 
gradually escalating rates.  Thus, in 2011/12, th e average MFN tariff applied to primary products was 
15%, compared with 13.4% for se mi-processed goods, and 15.6% fo r fully processed products, which 
is very similar to the situation at the time of the previous review.  Tariff escalation remains particularly pronounced in the textiles and leather,  wood and wooden furniture , chemicals, and basic 
metals sectors; average tariffs on finished produc ts in these industries are at least twice as high as 
those on raw materials. Bangladesh WT/TPR/S/270 
 Page 39 
 
 
 Tariff concessions  
32. Duty concessions and general exemptions to the applied MFN tariff rates are provided in 
accordance with Section 19 of Customs Act on a cas e-by-case basis through gazette notification.  
Bangladesh seems to maintain some 20 concessionary categories with rates ranging from zero to 15% 
subject to certain terms and conditions.  There are three types of tariff concessions:  those on imports 
of capital machinery and spares/parts by registered  industrial consumers, including export-oriented 
industries;  those targeting exporters;  and those provided for a specific use or user (i.e. end-use 
provisions) such as the dairy and poultry, pharmaceuti cal, leather and textile industries.  At present, 
the NBR provides special exemptions on the following products:  capital machinery;  raw materials of 
medicine;  poultry medicine, feed and machinery;  defence stores; chemicals of leather and leather 
goods;  private power generation unit;  textiles raw ma terials and machinery;  solar power equipment;  
relief goods;  goods for blind and physically disabled people;  imports by embassies and the UN.   
33. On the export side, apart from tariff exempti ons for imports of capital machinery and parts11 
available for 100% export-oriented industries, c oncessions are provided to facilitate exports of 
import-dependent Bangladeshi producers for the purpo se of facilitating exports.  These include duty 
drawback and special bonded warehouses, whereb y import duties paid on inputs used in the 
manufacture of finished products are refunded or exem pted.  Exemptions from customs tariffs are also 
granted on imports destined for export-processing zones. 
 Specific duties 
34. All but 20 HS eight-digit tariff lines (six at the time of the previous review) are subject to ad 
valorem rates.  The authorities indicate that specific duties are used inter alia  to thwart the tendency 
for under-invoicing and to minimize disputes betwee n traders and the customs authority resulting 
from such practices.  This also allows importers to  predict their duty incidence in absolute terms, 
which is believed by the authorities to be desirabl e for trade and industry, especially when prices go 
up in the international market.  A specific duty on some essential commodities is imposed to reduce 
the tax burden on these commodities or minimize th e impact of customs duty on the price in the 
domestic market due to price fluctuation.  Specific duties are levied on:  cement clinkers; petroleum 
bitumen;  vessels and other floating structures for breaking up;  ferrous waste and scrap;  iron and non-alloy steel ingots;  semi-finished products of ir on or non-alloy steel;  and nonmonetary gold.  
 Tariff preferences 
35. Bangladesh grants tariff preferences under:  the Asia Pacific Trad e Agreement (APTA) 
(formerly the Bangkok Agreement);  the South Asian Preferential Trading Arrangement;  South Asian 
Free Trade Area (SAFTA) (as from 2006);  and the Global System of Trade Preferences.  The 
authorities note that no figures are available on the share of imports subject to tariff preferences.  Product coverage and preferential margins vary from one agreemen t to another.  Under SAFTA, 
Bangladesh has reduced its tariffs by around 50% fro m the applied rate of January 2006 and the 
average applied SAFTA rate is currently 11.7%, comp ared to the average applied MFN rate of 14.9% 
(Chart III.2).  Tariff lines subject to above average ra tes include:  prepared foods, textiles and articles, 
footwear, transport equipment a nd miscellaneous manufacturing.  
 
                                                      
11 Since 2007, export oriented industries have to pay a 1% tariff on capital machinery and parts thereof, 
which was completely exempted earlier.  WT/TPR/S/270 Trade Policy Review 
Page 40 
  
(7.5%)
n.a.n.a.(22.3%)
n.a.(28.1%)(42.1%)
(4.3%) (10.4%)(16.2%)
(0.0%)(25.2%)
n.a.(42.6%)
02505007501,0001,2501,5001,7502,0002,2502,5002,7503,000
Duty free 3% 5% 6% 12% 13% 25%
Not applicable.
Figures in parentheses indicate the share of total lines.   Totals do not add up to 100% as no tariff rates were provided 
for 0.1% and 0.6% of the tariff lines, respectively, for 2005/06 and 2011/12 (i.e. those that have specific tariff rates).
WTO Secretariat calculations, based on data provided by the Bangladeshi authorities.Number of tariff linesChart III.2
Distribution of MFN tariff rates, 2005/06 and 2011/12
Tariff rates (%)
n.a.
Note:
Source :MFN 2005/06
MFN 2011/12
 
 Rules of origin  
36. Bangladesh applies Standard Rules of Origin (SOR s) when rules of origin are not specified in 
RTAs to which Bangladesh is a party.  At present, rules of origin are specified in SAPTA, SAFTA 
and APTA and accordingly are not applicable fo r imports under these agreements. Under SORs, the 
general rule is that the minimum local value- added must be 50% of the f.o.b. value.   
(v) Other charges affecting imports  
37. Additional charges are applied in the form of advance income tax and partly discriminatory 
internal taxes, including supplemen tary duty and regulatory duty (Table III.4).  As noted previously, 
through the use of other charges overall protection ha s been estimated by the World Bank to be about 
twice MFN tariffs and this has increased in recent years.  Similarly, a 2010 report of an NBR Task Force on tariff rationalization concluded that average tariffs declined slightly during the review period 
but other levies, in particular supplementary duties, play a significant role in protection.  According to 
the report, the anti-export bias of the tariff structure remains strong and the tariff regime unfriendly to 
the export diversification agenda.   Bangladesh WT/TPR/S/270 
 Page 41 
 
 
Table III.4 
Tariff and other duties on imports, 2005/06 and 2010/11 
 2005/06 2010/11 
Ad valorem  rate 
(%) Coverage (% of 
tariff lines) Ad valorem  rate 
(%) Coverage (% of 
tariff lines) 
Customs tariff 0-25.0 99.9 0-25.0 99.7 
Other charges     
Infrastructural development surcharge 4.0 96.2 .. .. 
Advance income tax 3.0 100.0 5.0 95.1 
Value-added tax 15.0 88.3 15.0 87.1 
Advance trade VAT 1.5 92.3 3.0 91.7 
Supplementary duty 20.0-350.0 15.8 20.0-500.0 17.8 
Regulatory duty 12.0 1 tariff line  5.0 42.4 
 
.. Not available. 
 
Source:  WTO Secretariat, based on information provided by the Bangladeshi authorities. 
38. During the review period, the Government has continued to rely on additional charges for 
protection as well as revenue purposes, partially offse tting cuts in customs duties.  They cover about 
17% of tariff lines and account for up to an estimated 45% of total nominal protection.  The 
infrastructural development surcharge was withdrawn in 2007.  The main levies are:  
 VAT 
39. Value-added tax (VAT) and advan ce trade VAT (ATV):  VAT is levied at a single rate of 
15% on all imports and domestically  produced goods.  In the case of imports, valuation is based on 
the c.i.f. value plus import duty and, in some ca ses, supplementary duty.  Exports are zero-rated;  
VAT paid on imports used in the manufacture of expo rts is refunded.  Due to the limited capacity of 
the tax administration in collecting VAT on imported item s for trade at retail level, the tax is collected 
at the import stage. 
 Supplementary duty (SD) 
40. The widespread use of SDs, which have become  a key instrument of trade policy, is a cause 
for concern.  In FY2012/13, SDs cover 1,267 tariff lines, up from 1,110 tariff lines in 2010 and from 
356 tariff lines in FY2003 (Table III.5).  As per the VAT Act 1991, SDs are aimed at discouraging 
imports of luxury goods and pro duction and supply of goods and services considered undesirable on 
social, moral, religious or health grounds.   WT/TPR/S/270 Trade Policy Review 
Page 42 
  
Table III.5 
Supplementary duties by product groups, 2009/10 and 2012/13 
Description of products 2009/10 2012/13 
Number of 
tariff lines Average NPRa Number of 
tariff lines Average NPRa 
Alcoholic beverages 17 56.8 16 n.a. 
Tobacco and tobacco-related products 11 144.7 9 n.a. 
Fire arms and ammunition 20 113.2 15 n.a. 
2-stroke 2/3 wheel vehicles  and their engine, body, and 
parts 12 205.5 22 n.a. 
Motor vehicles 76 179.5 113 n.a. 
Other SD items, where domestic production exists 784 65.8 416 n.a. 
Other SD items, with no domestic production 190 69.9 676 n.a. 
Total 1,110 77.3 1,267 n.a. 
 
n.a. Not available.  
a Nominal Protection Rate. 
Source : 2009-10 tariff line and NPR data provided by the Ad Interim Report of the NBR Task Force on Tariff 
 Rationalization (dated 11 February 2010), entitled:  Structure of Customs Tariffs Imperative of  Rationalization, 
 p.14.  Report viewed at:  http://xa.yimg.com /kq/groups/19207362/710104351/name/Tari ffs_Rationalization.pdf.  
 No NPR figures for 2012-13 provided by NBR.   
41. Maximum protection rates with SDs of 250% or more apply mainly to alcoholic beverages, 
cigarettes and luxury cars (Table III.6).  Accordi ng to the Government, SDs on vehicles means that 
the total tax burden for a vehicle with  large cylinder capacity can exceed 800%.  
Table III.6 
SD rates on vehicles FY2012/13 
Particulars of the Vehicle Supplementa ry Duty (%) Total Tax Burden (%) 
Cylinder capacity up to 1,500 cc 45 129 
Cylinder capacity up to 1,501 cc to 1,800 cc  100 213 
Cylinder capacity up to 1,801 cc to 2,000 cc  150 290 
Cylinder capacity up to 2,001 cc to 2,750 cc  250 445 
Cylinder capacity up to 2,751 cc to 4,000 cc  350 599 
Cylinder capacity over to 4,000 cc  500 830 
Microbus of cylinder capacity up to 1,800 cc 30 105 
Microbus of cylinder capacity up to 1,801 cc to 2,000 cc 60 152 
CKD vehicle, station wagon a nd jeep (except 3 wheelers) 
up to 2,000 cc  
30  
105 
CKD vehicle over 2,000 cc 45 129 
 
Source : Minister of Finance, Budget speech 2012-13, p. 102.  
42. While these duties are like excise taxes and are, in principle, trade neutral (i.e. the same rates 
apply to imports and similar domestically produced goods), this is not always the case in practice.  
SDs constitute a tool for levying additional tari ffs on any imported goods, as and when deemed 
appropriate by the authorities.  However, essentia l and non-luxury goods, including raw materials and 
intermediates, are also subject to SDs.  Levied on the landed value of goods plus customs duty, but 
excluding VAT, supplementary duties have a cascadi ng effect;  protection rates rise more with higher 
customs-duty rates.   
43. The Budget Speech 2011/12, for example, contained a proposal to protect domestic industries 
and save foreign exchange by increasing SDs on im ports of fabrics and RMG articles from 20% to 
45% and a significant increase in SDs on cars (double cabin pick-ups) from zero to up to 500% was 
proposed which would have positive implications for both revenue generation and traffic congestion.  
SD on chewing tobacco has been raised from 10% to  30% in order to help bring down consumption. Bangladesh WT/TPR/S/270 
 Page 43 
 
 
 Regulatory duty 
44. Regulatory duty:  A regulatory duty has been applied as an interim measure since 2000/01.  
According to the authorities, against the backdr op of gradually decreasing customs duties, a 5% 
regulatory duty has been imposed on commodities ha ving a 25% customs duty except those enjoying 
concessionary rate facilities with a view to protec ting local industry and ensuring revenue growth.  
Regulatory duties remain unchanged in FY2012-13.  
 Advance Income Tax 
45. The advance income tax is levied on all comme rcial importers, at the rate of 5% (since 
July 2011) of the c.i.f. value of imports.  This  tax is creditable for corporate tax purposes, which 
means that it does not constitute an additional levy on imports as long as corporate (or personal) taxes 
payable are sufficient to be offset by the tax.  If the importer operates on a commercial basis, the tax deducted at the import stage will be deemed to be fi nal settlement of his tax liability.  If the importer 
benefits from a tax holiday, there is a legal pr ovision to seek exemption from deduction of tax at 
source.  Exemption from advance income tax is granted for, inter alia :  certain imports by members of 
parliament;  by bonded-warehouse licensees;  tempor ary imports;  and imports of capital machinery 
benefiting from concessionary rates of import duty.    
(vi) Import licensing, restrictions and prohibitions  
46. In its most recent notification to the WTO
12, Bangladesh reiterated that it abolished its import 
licensing system in 1984 and, accordingly, no im port licence is required for any imports into 
Bangladesh.  Although import licences, per se , are not required for any imports into Bangladesh, in 
addition to the standard LCA import procedure, a permit, clearance, prior permission or approval may 
be required for a number of im ported products.  Such a requirement implicitly imposes import 
licensing.  Many of the clearance requirements for items on the restricted list are on health or safety grounds and therefore seem to be "automatic".  Howe ver, there is a requirement that crude soya bean 
oil and methanol/methyl alcohol can only be im ported by recognized industrial units.  Such 
restrictions are imposed to avoid misuse of these products.  In the case of second-hand clothing, there 
is no restriction on the overall quantity of imported items.  
47. The control list of Import Policy Order (IPO)  2009-12 contains the banned and restricted 
items (Table AIII.1).  The content of this list h as been amended through several SRO/Public Notices.   
48. The banned list generally includes two categories of products:  those that run counter to the 
religious and social morals of the Bangladeshis ("non-trade reasons"), for instance, swine products 
and drugs;  and items that directly compete with locally produced goods ("trade reasons"), although 
the authorities note that no items on the banned list directly compete with locally produced goods.  
49. Restricted items are importable subject to the conditions specified in the Order, which take 
the form of non-automatic import licences and authorizations.  Restricted items are controlled for social, religious, health, environmental, security or tr ade reasons.  They can be classified generally as:  
(i) products that require a certificate, prior permission or clearance from the relevant authorities;  
(ii) products that can be imported only by register ed industrial consumers, including export-oriented 
ready-made garments, hosiery and specified tex tile industries operating un der the bonded warehouse 
system, the pharmaceutical (allopathic) industries, and foreign exchange hotels, within the import 
entitlement specified in their IRCs;  (iii) state-tr ading products, including arms and ammunition, that 
                                                      
12 Notification under Article 7.3 of the Agreement on Import Licensing Procedures in WTO document 
G/LIC/N/3/BGD/4, 5 October 2007. WT/TPR/S/270 Trade Policy Review 
Page 44 
  
can be imported only by government-designated firms;   and (iv) products required to meet certain 
conditions.  Bangladesh has withdrawn all trade related restrictions imposed for BOP reasons.13 
(vii) Contingency measures  
(a) Anti-dumping and countervailing measures 
50. The Finance Act of 1995 introduced regulations  and procedures for examining dumping and 
subsidy complaints, by amending Section 18 of the Customs Act, 1969.  As noted in the previous 
report, legislation was passed to bring the provisi ons on anti-dumping and countervailing actions into 
conformity with the WTO Agreements on Implemen tation of Article VI of the GATT 1994 and on 
Subsidies and Countervailing Measures.  The Bangladesh Tariff Commission (BTC) conducts 
dumping and subsidies investigations.  
51. An application for an investigation, whethe r for an anti-dumping or countervailing measure, 
must be made in writing to the BTC by or on behalf of a domestic industry.  The BTC must terminate 
the investigation within one year of issui ng a public notice, and submit its findings and 
recommendations to the Government.  Provisional an ti-dumping or countervailing duties, no greater 
than the margin of dumping or of the subsidy rate , may be imposed within 60 days of initiation and 
applied for a period of six months , extendable by three months.  
52. No investigations have been  initiated on anti-dumping or countervailing measures during the 
review period.  The previous TPR report noted that lack of technical expertis e and financial resources 
both by the administration and industries, as we ll as lack of authenticated data essential for 
submission of an application, made it difficult to in itiate investigations.  The authorities note that this 
is still the case. 
(b) Safeguards actions 
53. A provision on safeguards was introduced in 1995 by amendments to Section 18 of the 
Customs Act, 1969.  Rules regarding the impositi on of safeguard measures were introduced in 
June 2010.   
(viii) Government procurement  
(a) Government procurement reform  
54. In 2002, the World Bank estimated that th e annual volume of public procurement in 
Bangladesh was around US$3 billion.  In subsequent years this figure has increased along with the 
growing trend in development outlays.  Current ly, it is estimated that annual expenditure on 
procurement of goods, works and services in the pu blic sector accounts for 20%-24% of the annual 
national budget and 70%-90% of the development budget.  Government agencies like the Roads and 
Highways Department (RHD), Local Government a nd Engineering Department (LGED), Bangladesh 
Water Development Board (BWDB), Rural Electrifi cation Board (REB), Public Works Department 
(PWD), Power Development Board (PDB) etc. cons titute about 70%-80% of the total volume of 
public procurement.  Allocation of public fund s for procurement alone constitutes a significant 
amount in terms of government spending.   
55. The Public Procurement Reform Project Phase II (2007), funded by the World bank, builds on 
a 2002 project to support procurement reforms by im proving quality through better management and 
                                                      
13 See WTO notification document WT/BOP/N/64 of 20 April 2007. Bangladesh WT/TPR/S/270 
 Page 45 
 
 
monitoring.14  It aims to strengthen procurement management at the sectoral level, create a sustained 
programme of developing skilled procurement pr ofessionals, and introduce electronic government 
procurement in target agencies and the Central Pr ocurement Technical Unit (C PTU) on a pilot basis.  
It is also designed to create greater awareness of an  efficient public procurement system by engaging 
civil society, think tanks, and the private sector.  The project targets four agencies of key sectoral 
ministries chosen for the size of their annual procurement spending:  Roads and Highways Department, Local Government Engineering De partment, Rural Electrification Board, and 
Bangladesh Water Development Board.
15  
56. Since 2009, according to the World Bank there has been some backsliding on procurement 
reforms, including an end to the requirement for pr ior qualifications for bidding on small contracts.  
The Government had initially s ought 40 changes, but these demands were significantly reduced 
following the consideration of objections raised  by the Central Procurement Technical Unit, 
development partners including th e Bank, and other stakeholders.16  According to the authorities, the 
World Bank will focus support on implementation and monitoring of the procurement law in key 
sector ministries, electronic bidding (e-procurement ), and social accountability mechanisms, including 
operation of a recently-established Public -Private Stakeholders Committee.  
(b) Legal and policy framework  
57. Following the 2002 Country Procurement Assess ment Report (CPAR) recommendations, as a 
first step towards procurement reform, the G overnment established the Central Procurement 
Technical Unit (CPTU) within the Implementation,  Monitoring and Evaluation Division of the 
Ministry of Planning. The CPTU formulated and in troduced a unified procurement system through:  
the Public Procurement Regulations (2003), the Pr ocedures for implementation of PPR-2003 and the 
Public Procurement Processing and Approval Proce dures to guide the implementation process.  CPTU 
also released a series of Standard Tender Templates (STDs) for national and inte rnational tendering.   
58. In 2006, the Public Procurement Act (PPA) w as passed by Parliament; Public Procurement 
Rules (PPR) were formulated, and both the Act and Ru les were issued in the country with effect from 
January 2008.  The law and the regulations cont ain most features of international good public-
procurement practices.  In addition, the CPTU has developed a critical mass of procurement 
professionals, trained over 1,800 staff, and has been  piloting an automated procurement performance 
tracking system.  All of these actions are contri buting to building confidence among people about the 
country's own procurement system.  As per Secti on 67 of the PPA 2006, the CPTU is entrusted with 
                                                      
14 The World Bank carried out a country procurem ent assessment review in collaboration with the 
Government.  The Country Procurement Assessment Repor t (CPAR) released in 2002, identified procurement 
as the single most important issue affecting public sector performance, with large scope for improvement to 
ensure better value for money.  It also identified weaknesses in the procurement system which included:  
absence of a sound legal framework governing public sector procurement;  complex bureaucratic procedures;  lack of adequate professional competence of procurement staff, poor bidding documents and bid evaluation 
process, and ineffective administration of contracts;  and the absence of an adequate mechanism for ensuring 
transparency and accountability.  Shortfalls in core gove rnance, including inefficienci es in public procurement 
practices, poor financial management, corruption, and quality  of civil service, have led to low expectations for 
public services in Bangladesh.  It has contributed to the high cost of doing business that, in turn, has deterred rapid private sector development.  The report recommended the establishment of a public procurement policy 
unit, reform in the public procurement process and enhancing procurement management capacity. 
15 According to the author ities, substantial progress has been ma de under this project which may be 
viewed at the relevant website:  http://www.cptu.gov.bd/Progresstask.aspx. 
16 Wescott and Breeding (2011). Tran sparency International Banglades h finds that mismanagement of 
development projects is one of the main reasons behind Bangladesh's position in the corruption perceptions index (CPI) as one of the most corrupt countries in the world.  WT/TPR/S/270 Trade Policy Review 
Page 46 
  
all responsibilities regarding procurement performan ce and compliance monitoring of the Act and the 
Rules.  A review panel mechanis m has been also introduced for se ttling the complaints and appeals 
lodged by aggrieved tenderers. 
59. The Rules establish public procurement pro cessing and approval procedures, including the 
bid evaluation committee, checklist, and a timetab le for the procurement procedures.  The time 
required for awarding contracts has been reduced ; competition and publicity have increased, and 
complainants are encouraged to address any shor tcomings in the process.  A six-tiered training 
programme has been successfully rolled out, and 5, 000 staff trained.  A procurement performance 
monitoring system is being piloted in four govern ment bodies comprising 60%-70% of the value of all 
government procurements.  E-procurement was intr oduced in 2011 with the development of e-GP 
Guidelines and has been implemented in four ma jor agencies:  Water Development Board (WDB), 
Local Government Engineering Department (LGE D), Rural Electrification Board (REB), and the 
Roads and Highways department (RHD).  In time, it will be rolled out to other procuring entities of 
the Government.  Bidders are required to register  with the e-GP system through the e-GP portal 
hosted by the CPTU in order to take part in the bidding.  
60. Companies that violate the procurement rules risk being blacklisted, and between 2009 and 
2010, more than 50 bidders were excluded from the bidding process for violating procurement rules.  
According to Transparency International17, despite the Public Procurement Act 2006, the private 
sector has reportedly continued to engage in malp ractices in the procurement process.  In 2010, the 
Government established a 27-member watchdog body , the Public-Private Stakeholders Committee 
(PPSC), in order to monitor the public proc urement process and ensure transparency and 
accountability.  The PPSC is a high-powered committee headed by the Planning Minister and the DG 
of CPTU acts as secretary.  The committee is expect ed to annually evaluate the overall impact of the 
Public Procurement Act.  The Government publish es a debarment list on the CPTU website, on which 
companies also can find tender advertisements , standard tender documen ts, public procurement 
regulations and acts.  
61. Bangladesh is not a signatory to the WT O Plurilateral Agreement on Government 
Procurement.  
(c) Procurement methods 
62. Regarding the main procurement methods fo r goods and works procurement, the Open 
Tendering Method (OTM) is considered the prefer red method over the others, e.g.  Request for 
Quotation Method (RFQM);  Direct Procurem ent Method (DPM);  Limited Tendering Method 
(LTM);  Two-Stage Tendering Methods (TSTM) & Single Stage Two Envelope Tendering Method 
(SSTETM) which a Procuring Entity (PE) can adopt w ith proper justification of sufficient grounds 
and approval of the Head of Proc uring Entity.  In the case of international tendering, the local 
manufacturer/producer obtains a price preference of 7.5% in case of works and 15% in the case of 
goods, compared to international competitors with  the same conditions.  Regarding development 
financing by Development Partners (DP's), as per the provision of the Financing Agreement, DP's 
guidelines are also followed for procurement proc essing.  For intellectual and professional service 
procurement, quality and cost-based selection (QCBS) and fixed budget selection (FBS) are the 
preferred methods.   
                                                      
17 Transparency International (2009), p. 249. Bangladesh WT/TPR/S/270 
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(ix) Trade-related operations of state enterprises and state-trading (as defined in GATT 
Article XVII) 
(a) Overview 
63. State involvement in the economy has remained  prominent with inefficient/loss-making state-
owned enterprises operating in several trade-related areas due, inter alia , to slow progress in the 
privatization process.  Thus Bangladesh's public sector extends beyond the central Government, 
comprising a large state-owned enterprise (SoE) sector  and a dominant public financial sector.  SoEs 
operating in traditional utilities, infrastructure, trade and the manufacturing sector account for more than 20% of public sector employment (Table III.7).  In addition to being a drain on public resources 
through a range of subsidies and c ontingent liabilities, they also ex ert considerable influence on the 
economy through the supply of vital inputs a nd services and their pricing policies.   
64. Subsidy costs in Bangladesh are increasing rapi dly, mainly due to higher domestic demand 
and rising import-related costs of heavily subsidized products—namely fuel, electricity, and fertilizers. Currently, broad subsidies are used to  shield consumers from the full impact of price 
movements.  For the largest ones, they are initially ab sorbed in the financial positions of large SOEs - 
namely Bangladesh Petroleum Corporation (BPC , fuel), Bangladesh Power Development Board 
(BPDB, electricity), and Bangladesh Chemical Indus tries Corporation (BCIC, fertilizers).  Operating 
losses for these SOEs are, in turn, covered by loans from state-owned commercial banks, direct 
budget transfers, and/or net lending by Government (effectively transfers).  Major reforms to these 
SOEs are urgently needed to contain costs.  Acco rding to the IMF, although below-market pricing has 
contributed significantly to their poor financ ial state, some losses also stem from operating 
inefficiencies
18.  
Table III.7 
Non-financial public  enterprises, 2012 
Sector Number of 
enterprises Name of enterprise 
Industry 6 Bangladesh Textile Mills Corporation (BTMC);  Bangladesh Steel & Engineering Corporation 
(BSEC);  Bangladesh Sugar & Food Industries Co rporation (BSFIC);  Bangladesh Chemical 
Industries Corporation (BCIC);  Bangladesh Forest  Industries Development Corporation (BFIDC);  
Bangladesh Jute Mills Corporation (BJMC) 
Power, gas, and 
water 5 Bangladesh Oil, Gas & Mineral Resources Cor poration;  Bangladesh Power Development Board 
(BPDB);  Dhaka Water and Sewerage Authority (WASA);  Chittagong Water and Sewerage Authority 
and Khulna Water and Sewerage Authority 
Transport and 
communication 7 Bangladesh Shipping Corporation (BSC);  Banglades h Inland Water Transport Corporation (BIWTC);  
Bangladesh Road Transport Corporation (BRTC) ;  Chittagong Port Authority;  Mongla Port 
Authority;  Mongla Dock Worker's Management Board;  Bangladesh Land Port Authority 
Trade 3 Bangladesh Petroleum Corporation (BPC);  Bangl adesh Jute Corporation (BJC);  Trading Corporation 
of Bangladesh (TCB) 
Agriculture 2 Bangladesh Fisheries Development Corpor ation (BFDC);  Bangladesh Agriculture Development 
Corporation (BADC) 
Table III.7 (cont'd)
                                                      
18 IMF (2011), p. 9. WT/TPR/S/270 Trade Policy Review 
Page 48 
  
Sector Number of 
enterprises Name of enterprise 
Construction 5 Rajdhani Unnayan Kartipaksha (RAJUK) ;  Chittagong Development Authority (CDA);  Rajshahi 
Development Authority (RDA);  Khulna Develo pment Authority (KDA) and National Housing 
Authority 
Services 17 Bangladesh Muktijoddha Kalyan Trust;  Bangladesh Film Development Corporation (BFDC);  
Bangladesh Parjatan Corporation (BPC);  Bangl adesh Small and Cottage Industries Corporation 
(BSCIC);  Bangladesh Civil Aviation Authority;  Bangladesh Inlan Water Transport Authority 
(BIWTA);  Rural Electrification Board (REB);  Bangladesh Export Processing Zone Authority 
(BEPZA);  Bangladesh Handloom Board;  Bangl adesh Sericulture Board;  Bangladesh Water 
Development Board (BWDB);  Bangladesh Tea Boar d;  Bangladesh Telecommunication Regulatory 
Commission (BTRC);  Export Promotion Bureau (EPB);   Bangladesh Sericulture Research Institute;  
Bangladesh Bridge Authority and Bangl adesh Energy Regulatory Commission 
 
Source : Monitoring Cell, Finance Division. 
65. SOE losses were reduced significantly in FY2006 and FY2007 due in part to the closure of 
large state-owned enterprises such as the Adamjee Ju te Mill, one of the world's largest jute mills 
employing 25,000 workers, as part of a reduction in the number of state enterprises in manufacturing, 
which declined from 121 in FY2001 to 82 in FY2009.  During the period under review, the Government has initiated the process to privatize an additional 22 SOEs, one of which has been 
privatised and two are awaiting appr oval.  In addition, the Government corporatized the state airline 
(Biman) and Bangladesh Telcom. 
(b) Trade issues 
66. The public sector is the country's largest im porter as most government agencies, autonomous 
organizations, and public sector corporations import  directly through public tenders.  Currently 
imports by government-sector agents, including th e Trading Corporation of Bangladesh (TCB), 
government and semi-government, and nationalized indus tries, are substantial although the authorities 
did not provide an estimate of their share in total imports.   
67. Bangladesh's major public sector or state-owned direct importers are:  Bangladesh Chemical 
Industries Corporation;  Bangladesh Steel & Engineering Corporation; Bangladesh Oil, Gas and Mineral Corporation or Petrobangla;  Bangladesh Sugar & Food Industries Corporation;  Trading 
Corporation of Bangladesh;  Bangladesh Power Deve lopment Board;  Rural Electrification Board;  
Dhaka Electric Supply Authority and the Water and Se wage Authority.  Exclusive import rights have 
been maintained for certain state firms or certain categories of goods.  
68. At present, the TCB is mandated to carry out import, export, and occasionally sales, to deliver 
essential commodities at a fair price at times of econom ic distress or exceptional circumstances;  the 
authorities indicate that its import activities have been reduced.   
(c) State-trading  
69. Bangladesh has not  notified the WTO of any state-trading activities undertaken by entities 
within the meaning of Article XVII:4(a) of the GATT 1994. 
(x) Transit measures 
70. Bangladesh is neither a landlocked country nor  an immediate neighbouring country of a 
landlocked country.  However, Bangladesh has two seaports at Chittagong and Mongla, and two 
countries, Nepal and Bhutan, in this region are landlocked, offering great potential to provide 
effective and efficient transit facilities for them to access the sea.  Nepal and Bhutan have also shown Bangladesh WT/TPR/S/270 
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keen interest to use Bangladeshi seaports for th eir international trade.  Bangladesh has trade and 
transit agreements with Bhutan and Nepal, but  operational modalities are yet to be finalized. 
71. India, Bangladesh and Nepal have not acceded to the international transit conventions like the 
TIR Convention or the ATA Convention.  Bangladesh and India have a bilate ral agreement in place 
since 1972.  The agreement provides for "mutually beneficial arrangements for the use of their 
waterways, railways and roadways for commerce between the two countries and for passage of goods 
between two places in one country through the territory  of the other."  Accordingly, India has been 
enjoying transit facilities through wa terways under the Protocol on Inland Water Transit and Trade, in 
addition to some consignments usi ng waterways and roads.  There is also an agreement between the 
two countries to use Mongla and Chittagong sea ports for transit cargo.  Lack of infrastructure 
facilities is the major drawback for a fully fledged transit operation. 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures  
72. The Export Policy 2009-12 simplified export pro cedures by allowing exports without a letter 
of credit (L/C) to proceed on the basis of a purch ase contract, agreement, purchase order or advance 
payment.  Exports of all kinds of products are allowed without an  L/C on the basis of consignments or 
advance cash payments.  Other documents require d for export transactions include the EXP Form 
(issued by the executing bank), invoice, packing list, and bill of lading/airway bill.   
73. Additional export approval may be required fo r certain products:  urea fertilizer can be 
exported with the prior approval of the Ministry of Industries;  entertainment programs, music, drama 
and films can be exported in the form of CDs, DVDs , etc. subject to "no objection" from the Ministry 
of Information;  Petroleum and petroleum produc ts produced from natural gas (including naphtha, 
furnace oil, lubricant oil and bitumen) can be exported under "no objection" from the Energy and Mineral Resources Division;  Chemical products listed in Schedules 1, 2 and 3 of the Chemical Weapons (Control) Act 2006 are contro lled by Section 9 of the Act.  In the case of export of products 
for which quality-control certificat es are needed, the exporter submits  to the customs authorities the 
required certificate issued by the appropriate authority.    
(ii) Export taxes, charges, and levies 
74. In 2010/11, export duties were applied to tob acco and tobacco products (10%), cotton waste 
(25%), and ceramic building bric ks (25%) in order to discourage production of these products.  
According to the authorities, brick production is not environmentally friendly and tobacco production 
occupies land needed for essential crops.  Duty on th e export of cotton waste is intended to encourage 
the use of cotton waste in Bangladesh.  
(iii) Export prohibitions, restrictions and licensing  
75. Goods subject to export prohibition are listed in the current Export Policy (Table III.8).  
According to the authorities, the ban on exports of agricultural commodities and manufactured goods 
is in place mainly for reasons of health, eco-balance, security, archaeol ogical value, or maintenance of 
adequate domestic supply.  Exports of certain items (e.g. wheat, onions, unprocessed shrimps, raw 
hides, and blue leather) remain prohibited, to ensure adequate domestic supply; and exports of 
fertilizer produced by a state-owned plant also remain  restricted.  According to the Export Policy, the 
Government, showing appropriate reasons, can authorize the export of prohibited goods.  WT/TPR/S/270 Trade Policy Review 
Page 50 
  
Table III.8 
Lists of export-prohibited and conditional export products, 2012 
A. List of export-prohibited products 
All petroleum and petroleum products except those produced from natural gas (such as naphtha, furnace oil, lubricant oil, bitum en, 
condensate, MTT ,and MS).  However, this prohibition shall not apply to the export of petroleum and LNG as shares of the foreig n 
investment companies under the product-sharing contracts 
Any passenger going abroad shall be allowed to carry as accompanied baggage, in exce ss of his or her personal goods, US$200 wor th of 
goods, which are neither export-pr ohibited nor included in the list of conditiona l export.  In this case, no facilities/incenti ves like duty 
draw back adjustment, subsidy etc. shall be awarded 
Jute and "Shan" seeds 
Wheat 
Any kind of live animals, animals organs or hide/skin of wild animals as mentioned in the Wildlife (Protection) Ordinance 1973 
(President's Ordinance No. 23, 1973, Revised in 1974), except the species mentioned in the first list of the Ordinance 
Fire arms, ammunition and related materials 
Radioactive materials 
Archaeological relics 
Human skeleton, blood plasma, or anything produced of human beings or human blood 
All types of pulses (except processed ones) 
All shrimps except chilled, frozen and proce ssed ones (SRO No. 60-L/ 76, 14 February 1976) 
Onions (SRO No. 250-L/77, 13 August 1977) 
Sweater shrimps of 71/90 count or smaller,  except the species Harin/harina and Chaka including sea species PUD.  Cooked shrimp (SRO 
No. 345/L/83, 20 October 1983) 
Cane, wood, wood logs/thick pieces of wood (ex cept handicrafts made from these materials) 
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 except KAFCO can be e xported with the prior approval of the Ministry of Industries 
Entertainment programmes, music, drama, fi lms, documentary films etc. can be exporte d in the form of audio cassettes, video cas settes, 
CDs, DVDs etc. subject to "no objecti on" from the Ministry of Information 
Petroleum and petroleum products pr oduced from natural gas (such as naphtha, furn ace oil, lubricant oil, bitumen, condensate, M TT and 
MS) can be exported under "no objection" from the Energy and Mineral Resources Division 
Chemical products enlisted in schedules 1, 2, 3 of Chemical Weapons (Control) Act,  2006 will be controlled (exported or prohibi ted to 
export) by Section 9 of the ACT 
 
Source : Ministry of Commerce, Export Policy 2009-12. 
76. The overall ban on exports to Israel remains in place.  
77. Re-exports (i.e. export of imported goods in their original or unprocessed form) remain 
banned.  Re-exports are allowed when there is at l east 10% value addition and change in the quality or 
size of the product, or in both. 
78. There are no export licensing requirements per se , although an export certificate may be 
required from the relevant authorities for certain products.  
(iv) Export subsidies  
79. The Export Policy notes that the Government may provide subsidies (cash incentives) as 
alternatives to duty drawback a nd bonded-warehouse facilities for e xport-oriented local textiles and 
readymade garment industries, the rate of the incen tive to be decided by the Government.  These cash 
incentives are designed to, inter alia,  help promote export diversification while using locally produced 
inputs, and to cover the costs of handling, processi ng, upgrading, and freight  charges (domestic and 
international transport) and/or in lieu of duty drawback and bonded warehouse facilities. Bangladesh WT/TPR/S/270 
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80. Partly in reaction to the shock of global recessi on, the Government increased the rate of cash 
incentives/subsidies for jute goods from 7.5% to 10%, for leather goods from 15% to 17.5% and for frozen shrimp and other fish from 10% to 12.5%.  The revised rates were applicable for shipments 
during the period April to June 2009.  The revised  rates were kept in place for FY2009-10, and in 
FY2010/11 the previous rates were restored , except for jute goods (Table III.9).  
Table III.9 
Cash incentives and export subsidies of selected products, 2012  
(F.o.b. value) 
Product Rate of subsidy/cash incentives (%) 
Textiles  5 
Frozen shrimp and other fish 10 
Leather goods 15 
Hogla  15 
Agricultural and agri-processed goods 15 
Potatoes 15 
Bicycles  10 
Bones  20 
Jute  20 
Hatching eggs from poultry a nd day-old chickens  10 
Light engineering products 15 
Liquid glucose (Ishardy EPZ) 5 
100% halal meat 4 
Finished leather 3 
Crust leather 20 
Ship export 10 
PET bottle flakes 10 
 
Source:  Board of Investment. 
(v) Duty and tax concessions   
81. An array of measures, including concessional ta riffs, a duty drawback system, special bonded 
warehouses, and export processing zones (EPZs) continue  to mitigate the adverse impact of tariffs, 
other border charges, and restrictions on the competitiveness of import-dependent exporters.  
According to the current Export Policy, industri es exporting at least 80% of their production are 
considered as export-oriented industries and are en titled to receive bank loans and other financial 
benefits.  Industries exporting at least 80% of th eir production are permitted to sell their remaining 
20% of products in the domestic market, subject to  payment of duties and taxes.  Direct subsidies 
(cash assistance) to exporters of certain items (incl uding fruit, vegetables, textiles, and clothing), soft 
loans for export finance purposes, a currency rete ntion scheme, and a 50% tax relief on income 
generated by any export business, are also availabl e.  As a result, the import and export regimes 
remain complex. 
(a) Duty exemption and drawback   
82. The Duty Exemption and Drawback facility provi ded to exporters by the Government enables 
a business to claim, within six months of exports, th e duties and taxes paid on  raw materials used in 
the production process.  Apart from imported raw ma terials, businesses are entitled to duty exemption 
and drawback on taxes paid on utilities and, in so me cases, on the fuel consumed in the production 
process.  
83. Under the duty drawback system, exporters are refunded the duties and indirect taxes they 
have paid on imported inputs.  Du ty may be refunded in three ways:  a) actual drawback, b) notional 
drawback, and c) flat rate drawback.  Due to fewer complications and ease of operation, the flat rate 
system is the preferred method of refund.  There are also two other ways of making such refunds: 
individual and fixed drawback systems.  The i ndividual drawback system refunds the duties and WT/TPR/S/270 Trade Policy Review 
Page 52 
  
indirect taxes paid by the firms, while the fixe d drawback system refunds the estimated duties and 
indirect taxes that enter the cost of production of exports according to a pre-set schedule.  Governance 
and efficiency problems in administering customs clearance and tax concession schemes continue to add to import costs and reduce the level of the nominal rate of drawback.  
84. Eligible exporters can claim th eir drawback by filing their claim with the Duty Exemption 
and Drawback Office (DEDO), under the authority of  the National Board of Revenue.  The Customs 
Act, 1969 and the VAT Act, 1991 govern the process. 
(b) Special bonded warehouses  
85. Special bonded warehouses (SBWs) allow 100% ex porters and "deemed" exporters to import 
and stock inputs duty free.  The warehouse facility is administered by the NBR, which issues a licence 
to operate an SBW and monitors the inventory th rough the use of import and export passbooks and a 
pre-tabulated input-output system.  SBWs have been a critical factor in the development of 
Bangladesh's garment exports.  Bonded warehouse f acilities remain availabl e for import-dependent 
export-oriented industries and deemed exporters.  According to Export Policy 2009-12, the NBR will examine whether bonded warehouse facilities can be exte nded to all export-oriented industries.  The 
bonded warehouse licensing reform, implemented in May 2008, was initiated through the introduction 
of common rules for bond licensing.  The rules simp lified the procedures relating to the granting of 
new bond licences and introduced a uniform licensing system and procedure for all types of bond licences.  The rules also incorporated a penalty pr ovision in order to reduce revenue leakage through 
misuse of the bond facility.   
(c) Tax concessions  
86. Under the Income Tax Ordinance 1984, a 50% rebate is provided on taxable income 
generated from any export business.  Like other e ligible industrial enterprises, export-oriented 
industries are accorded a tax holiday of five to seven years.  All 100% export-oriented RMG 
industries are subject to the 0.60% tax at source on the export proceeds if not enjoying a tax holiday.  
This is deemed as final settlement of tax liabilit y.  Industrial units set up in Bangladesh between 
1 July 1977 and 30 June 2012, may opt for accelerat ed depreciation on machinery or plant at the 
following rates:  for the first year 50%;  second year 30% and third year 20%.  
87. 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 
(clearing and forwarding) customs brokers' services, telephone, telex, fax, gas/electricity bills (80% 
refund), insurance premiums and shipping agents' commission/bills.  
(vi) Economic zones (EZs) and export processing zones (EPZs) 
88. An important development during the review pe riod is the establishment of economic zones.  
At present, the country's eight EPZs employ around 295,000 people, and total exports from such specialised zones was estimated in FY 2010/11at US $2.8 billion or about 17% of total exports and 
total FDI at US$222 million.  While EPZs have ha d some success in attracting investment and in 
contributing to exports, their impact remains modest  in the amount and type of exports, investments, 
and employment.  The impact of the smalle r BSCIC (Bangladesh Small & Cottage Industry 
Corporation) industrial estates is even more limite d, with their main achievement being employment 
for 96,000 workers. 
89. It is expected that the new economic zones c ould be a major driver of economic growth and 
job creation, and these zones could be a major fact or to lift Bangladesh to middle-income-country Bangladesh WT/TPR/S/270 
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status by 2021.  The 20 planned economic zones are e xpected to generate 1.5 million new jobs once in 
operation, and around 85% of the count ry's exports by 2021 and will a ttract new investments worth up 
to US$2.5 billion.  Currently, the Government is  implementing the new EZ regime with support from 
the World Bank and the U.K. Department for In ternational Development.  The objective of 
developing the (special) economic zones, rather than  the EPZs, is to promote domestic entrepreneurs 
as they contribute to revenue generation and job creation. 
(a) Economic zones  
90. The Bangladesh Economic Zone Act (BEZA) 2010 h as been enacted to facilitate setting up 
the EZs.  Under the BEZA Act and Rules, privat e sector companies are allowed to develop and 
operate EZs with 100% ownership.  The Government  and private entrepreneurs may jointly develop 
and operate EZs on a PPP-basis.  Under the draft Bangladesh Economic Zones Rules 2012, the private 
sector will be allowed to establish infrastructure and services, and companies located in the zones will 
be permitted to sell their products in the local  market as well as export products abroad.  
91. The organizational structure of the Economic Zone Authority has been finalized and the 
framing of relevant rules and regulations is under wa y.  Economic zones are expected to trigger the 
development of backward regions as well as the grow th of industry and agriculture.  Only economic 
zones will be established under the Act and the development of physical infrastructure, 
communications, power and energy supplies will be ensured by the Government, as well as the zone 
developers.  In the absence of any order to th e contrary, the existing EPZs and BSCIC industrial 
estates will continue to operate for the time being.  
92. The Government is contemplating opening up fi ve economic zones in 2012-13 to gear up the 
industrialisation of the country.  It has no immediate plan to expand the number of export processing zones.  Initially, the Government is planning to immediately establish at least one economic zone in 
each division to scale up industrialization and empl oyment generation, and will establish 20 such 
zones across the country by 2021.  Such initiative aims at minimizing discrimination between factory 
operators inside or outside the export processing zones (EPZs). 
93. Regarding funding arrangements, three types of EZs  may be established:  (i) government EZ;  
(ii) private EZ;  and (iii) economic zones run unde r the concept of public-private partnership where 
the Government will provide the required land, in frastructure and utilities and will allow the private 
sector to own, develop and manage the economic z one.  Besides export, the manufacturers inside the 
EZs will be allowed to sell their produce in the lo cal market which is not allowed in case of EPZs.  
The idea of economic zones differs from the concep t of Export Processing Zone (EPZ), as the former 
offers freedom to investors to cater to the need s of both domestic and global markets instead of 
concentrating on export markets. 
(b) Export Processing Zones 
94. Regarding the legal framework , the Bangladesh Private Export Processing Zones Act, 1996, 
allows the establishment of private EPZs, in wh ich factories and other facilities are operated by 
private investors.  The Bangladesh Export Pro cessing Zones Authority (BEPZA) is the sponsoring 
agency that approves all projects located in public EPZs.  The BEPZA provides infrastructure 
facilities, administers tax incentives, issues work pe rmits for foreign nationals, and administers labour 
matters for all enterprises in the EPZs.   
95. 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 WT/TPR/S/270 Trade Policy Review 
Page 54 
  
market upon payment of customs duties and other taxes.  They are also permitted to purchase goods 
from the domestic tariff area.19  Imports and exports to/from EPZs are outside the purview of the 
import and export regulations and therefore free fr om import policy restric tions, tariffs and other 
duties, and the control list.  Industrial units locat ed in the EPZs also enjoy a 2-year tax holiday 
followed by 50% reduced rate for the third and four th years and a 25% rate for the fifth year, with 
effect from 1 January 2011. 
(vii) Export finance, insurance, and guarantees 
96. According to the World Bank, lack of diverse trade financing and financial arrangements was 
identified as a hindrance to overall trade, and in pa rticular to promoting exports.  The provision of 
trade finance support is important for lowering risks for exporters, and is par ticularly important during 
the initial stages of exporting as well as during pe riods of macroeconomic uncertainty.  The World 
Bank considers that more attenti on could be paid to facilitating fi nancing arrangements for exporters 
and importers.  Under the existing regulatory fra mework, export-oriented industrial enterprises 
operating under the bonded-warehouse system can open Back-to-Back Letters of Credit (BBLCs) on a 
usance basis against an export LC for input procur ements.  The BBLC is generally opened in such a 
way that import payment can be settled out of r ealized export proceeds.  Exporters can 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 US$500 million 
to refinance banks for payments made by them against input procurements.
20  The rate of interest on 
an EDF loan is Libor+2.5% and under the programme an exporter can obtain an EDF loan not 
exceeding US$10 million.  In respect of post-shipme nt finance, banks suppor t exporters to make 
export proceeds available through negotiation/purch ase of export bills.  Under the existing banking 
framework, exporters enjoy preferential treat ment in terms of access to finance. 
97. The Export Credit Guarantee Scheme (ECGS), c overing 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:  (i) offering guarantees to ba nks to enable exporters to obtain better loan 
facilities at the pre- and post-shipment stage;  (ii)  providing a range of credit risk insurance cover to 
exporters against losses resulting from both commerc ial and non-commercial risks in respect of goods 
sold to foreign buyers on credit. 
(viii) Export promotion and marketing assistance 
98. The Export Promotion Bureau (EPB), administered by a board with members from both 
public and private sectors, is a semi-autonomous institution under the Ministry of Commerce, responsible for export promotion in Bangladesh.  Th e EPB's activities also include the formulation 
and review of the Export Policy (including export  incentives and facilities), dissemination of trade 
information through its Trade Information Centre , product development for export, organization of 
trade fairs and national training programmes.  In Bangladesh, the Board of Investment (BOI), located 
under the Prime Minister's Office (PMO), is th e principal private investment promotion and 
facilitation agency to increase overall export and trade.  The Bangladesh Export Processing Zone 
Authority (BEPZA) is the official organ of govern ment (under the PMO) to promote, attract and 
                                                      
19 The BEPZA is responsible for issuing a pass book specifying the annual entitlement of imports from 
the domestic tariff area for EPZ industr ial units;  according to th e authorities, however, the pass book is not used 
as they deem it unnecessary. 
20 According to FE Circular no.25 (2009), banks se ttle import payments through their own sources and 
later apply to the EDF section of the BB for refinance, which releases funds accordingl y.  BB does not deal with 
directly with exporters. Bangladesh WT/TPR/S/270 
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facilitate investment in Export Processing Zones (E PZs).  The Bangladesh Foreign Trade Institute 
(BFTI) is also involved in export promotion. 
99. Export promotion is coordinated at the inter- government-agency level th rough meetings with 
all concerned parties under the chairmanship of the Commerce Minister.  Also, The National 
Committee on Export Promotion, headed by the Prim e Minister, still exists to review the export 
situation at (long) intervals, and provides necessary recommendations. 
100. According to the Export Policy 2009-12, an Export Promotion Fund (EPF) provides support 
to producers/exporters of new and non-traditi onal items for purposes of product development and 
market diversification.  According to the authorities,  the EPF has so far not been very effective.  The 
fund includes, inter alia :  venture capital at lower rates of interest;  assistance in obtaining foreign 
technology and consultancy for produ ct development and diversification;  assistance in setting up 
marketing missions abroad and participating in inte rnational fairs;  assistance in establishing sales and 
display centres abroad and extending warehousing fac ilities;  assistance for participation in overseas 
training programmes on product development and mark eting with a view to developing technical 
skills and marketing expertise;  and assistance for any other activity related to product and market 
development.  The fund is administered by the EPB.  
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Business and investment climate  
101. As discussed above, the need for trade facilita tion reforms, particularly in the areas of 
customs and transportation, remains a key constrai nt.  Cumbersome customs procedures, combined 
with high nominal protection rates, an ineffi cient duty drawback scheme and infrastructure 
bottlenecks at the port, as well as gas and energy constraints and high transport costs, result in a high 
export bias.  This explains to a considerable extent  Bangladesh's failure to di versify its exports beyond 
garments, which account for over three-quarters of all exports. 
102. Nevertheless, Bangladesh wants to advance to become a middle-income country by 2021.  
The private sector has been the driver of Banglad esh's economic growth, and the goal of becoming a 
middle-income country with gross national income of US$976 and higher has to be through private-
sector-led growth.  In order to achieve this , Bangladesh needs an improved business-enabling 
environment, which is recognized by all donors opera ting in Bangladesh and the Government itself.  
Bangladesh has been working on improving Doing Business indicators and a multi-donor advisory facility, the Bangladesh Investment Climate F und (BICF), has been established to advise the 
Government of Bangladesh on creating a better bus iness operating environment that will design and 
implement business-friendly policies, laws, and regulations and strengthen institutions that implement 
them.  
103. A Regulatory Reform Commission (RRC) was es tablished in 2007 w ith a mandate to 
eliminate redundant regulations and streamline existing ones.  The RRC is now defunct and 
improvement of the investment climate is an on-going task of the BOI.  
104. Almost all of the Commission's 58 recommendati ons have been implemented, including:  
simplification of duty drawback and exemption systems and capital machinery import clearances;  streamlining of bonded warehouse licensing system;  pr epublication of laws, ru les and regulations on 
the government website for public consultation;  introduction of an automated business registration 
system in 2009 coupled with process improvements, wh ich has led to a reduction in the time taken to 
register a business from around 30 days in 2008 to under 7 days, with a fast track system allowing 
one-day registration;  start of work on an e-registry of all 174 laws and 9,000 Gazette  notifications;  WT/TPR/S/270 Trade Policy Review 
Page 56 
  
introduction of automation at Chittagong Customs, re ducing clearance processes from 42 to 6 steps 
with most imports now cleared within 3 days (ver sus 32 in 2008) and 90% of exports cleared within 
1 day (as opposed to 32 in 2008);  Bangladesh h as made business start-up easier by eliminating the 
requirement to buy adhesive stamps and further enhancing the online registration system;  also, 
Bangladesh has made involving lawyers in company registration optional, eliminating one procedure 
and reducing the cost by US$100;  the corporate income tax rate has been cut from 40% to 37.5%, while the capital gains tax rate has increased from 5%  to 15%;  the time needed to register property 
has been cut by almost half through reform s at the Municipal Deed Registry Office.  
105. In an important development, the Government  recently passed the Competition Act 2012, 
which is intended to maintain and promote competiti on, to prevent, control or eliminate restrictive 
agreements or arrangements among enterprises or a buse of dominant positions of market power.  A 
number of large SoEs have contributed to anticom petitive behaviour in several sectors, such as jute, 
textiles and sugar, and monopolies exist in many  others including railways, telephony and other 
public utility services.  A Competition Commission will be formed and its  terms of reference 
determined under this Act.  
(ii) Taxation and tax incentives  
106. Bangladesh's internal tax system remains characterized by a low but improving overall level 
of taxation relative to GDP, heavy but declin ing reliance on indirect taxes (tariffs, VAT, 
supplementary duties, excise taxes, etc.), and extens ive use of specific exemptions and generalized tax 
incentives, particularly for investment. 
107. Since government revenue is still heavily de pendent on trade-related taxes, a concern 
associated with further tariff liberalization is the pos sible reduction in tax revenue and its effect on the 
budget balance.  The authorities are aware that if i ndirect taxes were applied uniformly on domestic 
production and imports, it would both reduce the anti- trade bias and increase government revenue by 
widening the tax net.  Efforts are under way to in crease revenue from direct taxes, an alternative 
source of revenue, despite the limited number of taxpayers. 
108. Bangladesh offers a wide range of open-e nded tax incentives, notably tax holidays and 
accelerated depreciation.  As indicated in the pr evious Review, the inevitable outcome is that 
marginal effective tax rates can vary substantially  by sector, which constitute a potential impediment 
to the efficient allocation of domestic resources.  In particular, the tax authorities do not publish in 
English detailed information on the amounts of tax revenue forgone, nor do they systematically 
evaluate the impact and effec tiveness of such incentives.    
109. Experience elsewhere suggests that tax incentives,  particularly tax holidays, are seldom cost-
effective.  Publication of estimates of tax reve nues forgone in the form of tax expenditure accounts 
along the lines of practices in many OECD countries,  together with studies evaluating their cost-
effectiveness, would enhance tr ansparency and contribute to a more effective tax policy in 
Bangladesh.  Elimination of incentives found to be ineffective would permit a broadening of the tax 
base, thus allowing lower tax rates across the boa rd, and lower tariffs, without necessarily involving 
any loss in total tax revenues;  the outcome would be a more market-oriented tax system aimed at 
taxing income from investment in a more neutral fashion.   Bangladesh WT/TPR/S/270 
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(iii) Standards and other technical requirements 
(a) Standards 
110. The Ministry of Industries is responsible for leading and facilitating the legal and technical 
institutional framework for national standards,  quality and conformity assessment.  The main 
institutions are the Bangladesh Standards and Testing Institution (BSTI) and the Bangladesh 
Accreditation Board (BAB) along with an planne d new regulatory body to enforce mandatory 
technical regulations.  
111. BSTI, the national standardization body, formulat es national standards for all products except 
pharmaceutical products, enforces compliance with standa rds, and certifies the quality of products for 
local consumption, export or import.  The BSTI Council, the highest decision-making organ of the 
institution, consists of representatives from diffe rent ministries, business chambers, scientific 
organizations, and universities.  As of 2012, there were 3,498 standards in Bangladesh, of which 155 
compulsory standards are in force.  Testing and certification procedures for compulsory standards are 
the same for domestic and importe d products.  In exercising the power conferred by the Bangladesh 
Standards and Testing institution Ordinance 1985, BSTI  develops national standards for products and 
services.   
112. Bangladesh has notified the WTO of its acceptanc e of the Code of Good Practice of the WTO 
Agreement on Technical Barriers to Trade.  No further notification has been received.  BSTI is Bangladesh's WTO TBT national enquiry point.  It  has an internal committee on WTO affairs and 
participates in the working groups on WTO agreements  in the Ministry of Industries and Ministry of 
Agriculture.  BSTI works on the implementation of the TBT Agreement.  
113. The main policy objectives in the area of standards and technical regulations are the 
harmonization of national standards with international standards a nd the adoption of international 
standards.  As of today, international standa rds adopted by BSTI include 1368 International 
Standardisation Organisation (ISO) Standards a nd 163 International Electrotechnical Commission 
(IEC) standards.  Bangladesh is a member of the ISO 1974, and in 2001 becam e an affiliate member 
of IEC.  According to the Government, the st andards and quality of manufactured products and 
exports will be maintained and furt her improved by enhancing TBT assurance capacities.  To that end, 
the BSTI is being strengthened in the areas of quality assurance, accreditation and certification. 
114. Bangladesh is upgrading its quality infrastructur e to international level by collaborative 
efforts with the newly operational Bangladesh Accreditation Board.  Under the Bangladesh 
Accreditation Act (2006), the Bangladesh Accr editation Board (BAB) was established as an 
autonomous organization and now f unctions under the administrative control of the Ministry of 
Industries with the task of developing an accreditation process in Bangladesh (Box III.1).  During the review period, the BAB develope d relevant rules and regulati ons and initiated an awareness 
programme for stakeholders, academia, la boratories and conformity assessment bodies.
 WT/TPR/S/270 Trade Policy Review 
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Box III.I:  Bangladesh Accreditation Board 
Bangladesh Accreditation Board (BAB) wa s established under the Ministry of Industries in November 2006 through an 
Act passed by parliament.  It is an au tonomous organization mandated to upgrade th e quality assurance infrastructure and 
conformity assessment procedures in Bang ladesh.  It offers accreditation to di fferent types of c onformity assessment 
bodies in line with inte rnational standards.  
BAB is empowered to accr edit Testing and Calibration Laboratorie s (ISO/IEC-17025), Medical Laboratories (ISO-
15189), Inspection Bodies (ISO/IEC-17021), Personnel Cert ification (ISO/IEC-17024) and Product Certification 
(ISO/IEC Guide 65).  It is responsible for framing policie s and approving rules-regulations for accreditation, and 
establishing multilateral recognition arrangements (MLA) with  regional and international accreditation bodies.  It 
undertakes training programmes, semina rs-symposiums, proficiency testing and harmonization of standards.  
Currently, accreditation arrangements are managed at the global level by the Au stralia-based International Laboratory 
Accreditation Co-operation (ILAC) in the area of labor atory and inspection accreditation, and the Canada-based 
International Accreditation Forum (IAF) in the fields of ma nagement systems, products, se rvices and personnel.  Both 
these organizations work together and coordinate efforts to promote accreditations and conformity assessments 
throughout the world.  The logo of IAF carries the slogan, "Certified Once, Accepted Everywhere".  
The board obtained Associate Membership of Asia Paci fic Laboratory Accreditation Co-operation (APLAC) in 2007, 
affiliate Membership of International Laboratory Accredit ation Co-operation (ILAC) in 2010 and Associate Membership 
of Pacific Accreditation Co-operation (PAC) in 2011.  It has al ready started extending accreditations to some laboratories 
in the country and expects to widen its activities soon in lin e with the vision for a Digital Bangladesh of the present 
government.  The Board hopes to obtain full membership of  both ILAC and IAF (International Accreditation Forum) 
within a short time, which will greatly facilitate exports of Bang ladeshi products both in the regional and international 
markets.   
The laboratories, certification bodies a nd inspection agencies which evaluate pr oducts, management systems or personnel 
against specific standards conformity assessment bodies examine whether products are fit and safe for consumption and 
meet standards, codes of prac tices, or regulatory requireme nts.  Unsafe, unhealthy or e nvironmentally harmful products 
can be prevented from entering the market through conformity assessments.  Accreditation is a complementary tool for 
ensuring that the assessors are credible and reliable.  Accreditation agencies independently evaluate the conformity 
assessment bodies against accept ed standards in order to ensure their in tegrity, impartiality and competence.  The 
governments, procurers and consumers can have confidence in  the calibration and test results, inspection reports and 
certifications provided through the application of national and international standards.  
Source : Dr. Helal Indhin Ahmed, Joint Secretary to th e government, Financial E xpress, 1 July 2012, p.6.  
 
(b) Sanitary and phytosanitary (SPS) standards 
115. Regarding the legal framework,  sanitary standards in Bangladesh are governed by the Pure 
Food Ordinance 1959, as revised by Food Safety Ordinance 1994;  and the Pure Food Rules.  Phytosanitary standards in Bangladesh are governed  by the Destructive Insects and Pest Rules 1966 
and the Plant Quarantine Act 2011.  Formulation of rules under the Plant Quarantine Act, 2011 is under way. Sanitary and phytosanitary standards are also governed by other legal instruments, 
notably:  Bangladesh Diseases of Animal Act, 2005 and Bangladesh Diseases of Animal Rules, 2008, 
Bangladesh Animal and Animal Product Act, 2005, Ba ngladesh Fish and Animal Feed Act, 2010 and 
Bangladesh Animal Slaughter and Meat Quality Control Act 2011.   
116. The following Acts and Rules regulate SPS meas ures in the fisheries sector for both the 
export market and for domestic consumption:  Fish and Fish Products (Inspection & Quality Control) 
ordinance, 1983;  Fish and Fish Products (Insp ection & Quality Control) Rules, 1997 (Amended in 
2008);  Fish Feed and Animal feed Act, 2010;  Fish Feed Rules, 2011;  Fish Hatchery Act, 2010;  Fish 
Hatchery Rules, 2011. Bangladesh WT/TPR/S/270 
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117. SPS matters are handled by the Ministries of  Agriculture, Health, and Fisheries and 
Livestock.  Briefly, the SPS-related activities of those ministries are:  
 Ministry of Agriculture  
118. To prevent the introduction of quarantine pests or limit the entry of regulated non-quarantine 
pests with imported plants and pl ant products, and other regulated articles, the MoA is implementing 
the import regulatory systems through the Plant Quarantine Wing under the Department of Agriculture Extension.  In case of exports, requireme nts of the importing country are also met.  MoA 
activities comprise: 
 For the import of regulated articles:  (a) issuance of Import Permit which contains 
phytosanitary requirements for concerned  co mmodities;  (b) compliance with Destructive 
Insects and Pests Rules, 1966 amended up to July, 1989 and Plant Quarantine Act, 2012;  
(c) activities at the point of entry includi ng:  documentation check, verification of 
consignment integrity, phytosanitary inspection, sampling, testing and treatment (if required),  
detention of consignment.  
 For the export of  regulated articles:  (a) insp ection prior to export;  (b) testing and treatment 
(if required);  (c) inspection of fields in th e growing season prior to export;  (d) certification 
of the origin of the consignment to be a pest -free production site, area of low pest prevalence 
(ALPP). 
119. Since 2009, the MoA has been implementing a programme to improve quarantine capacity, 
including the development of ten quarantine laborator ies for identification of pests and diseases and in 
some cases for detection of seed-borne diseases.  In respect of capacity building, training for 
laboratory personnel has been organized, as well as training on quarantine rules and regulations and 
inspection procedure for quarantine personnel and also for exporters and importers.  During the 
review period, the MoA revised the Destructive In sects and Pest Rules 1966, leading to approval in 
Parliament of the Plant Quarantine Act 2011. 
120. Plant protection activities at the national level are under the Director of the Plant Protection 
Wing of the Department of Agricultural Extensi on under the Ministry of Agriculture.  The Plant 
Protection Wing is also the National Plant Protec tion Organization of Bangladesh (NPPO) responsible 
for implementing the standards of the International Plant Protection Convention. 
121. Bangladesh has 26 plant quarantine stations/entry points, three of which are located in three 
international airports, two in seaports, one in a rive r port, one in an ICD (Inland Container Depot), and 
the other 19 quarantine stations are located in 19 border land ports.  Any plants or plant products 
imported into the country are subject to quarantin e.  The consignee importing any plants and plant 
products has to submit his/her documents for check ing before release of the consignment.  The 
authorized officer first checks whether the commod ity arriving in the country meets the phytosanitary 
requirements.  If the commodity does not meet the requirements, the Quarantine Officer may send the 
commodity back to the shipper/rej ect entry/destroy it or may allow entry, subject to treatment.  Any 
plants or plant products whether meeting the Phyto sanitary requirement or not must be inspected by 
the plant quarantine officials before release of the consignment. 
 Ministry of Health and Family Welfare (MOHFW) 
122. In Bangladesh, the MOHFW in collaboration with other ministries and organizations, is 
responsible for the SPS measures of the country.  The MOHFW and the Ministry of Livestock are WT/TPR/S/270 Trade Policy Review 
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working together for prevention and control of human  and animal exotic diseases in the country that 
are transmissible through international trade a nd commerce (e.g. human cases of avian influenza 
which is related to fowl trade).  Bangladesh has adopted International Health Regulation (2005) (IHR 
2005) of the World Health Organization (WHO) regard ing ship sanitation at ports of entry (POE).  
The procedures include environmental sanitation, ship inspection, and deratting at POE.  The 
regulation is in place for the international shipme nt that includes transportation, and loading and 
unloading of hazardous items (biological, chemic al, etc.) at POE.  The MOHFW is working 
intensively to assess core capacity at POE to ascertain the requirements for health and safety 
measures.  
123. The Institute of Public Health (IPH) of the Mi nistry of Health and Family Welfare (MOHFW) 
is responsible for the quality of food available in Bangladesh.  The Public Health Laboratory (PHL) is 
responsible for checking the quality of food in order to protect the consumer from unsafe, adulterated 
or contaminated food as per Pure Food Ordinance,  1959 and Pure Food Rules, 1967.  The Pure Food 
Ordinance and Pure Food Rules contain 107 items of notified food, specified in:  (1) milk and milk 
products;  (2) edible oils and oil products;  (3) sweetening agents;  (4) cereals and their products;  
(5) starchy foods;  (6) non-alcoholic beverages;  (7 ) spices;  (8) fruits, vegetables, and miscellaneous 
products;  (9) tea and coffee;  (10) bakery and confectionary products;  (11) iodized salts;  and 
(12) canned food.  Food samples received from Sanitary  Inspectors of different fields are sent to the 
PHL of IPH for testing.  If the samples indicate a dulteration, the PHL reports it to the Civil Surgeon 
for legal action against the owner of the food samp les in accordance with Section 44 of Pure Food 
Ordinance, 1959. 
124. The MOHFW and a number of other ministries and agencies are involved in the process of 
formulating and implementing trade and trade-related policies that are related to human health.  To 
this effect, the MOHFW has taken the initiative to  develop a framework for trade and investment 
including roles and areas of responsibility.   
 Ministry of Fisheries and Livestock (MFL) 
125. The MFL's SPS activities relate to both fisheries and livestock.   
Livestock 
126. Laboratories of the Department of Livestoc k Services (DLS) can carry out microbial and 
limited toxicological analyses.  It issues interna tional veterinary certificates for export of animal 
products and bi-products as and when necessary a nd also gives permission for import of day-old 
chicks and of pet animals usually based on the in ternational veterinary certificates given by the 
competent authority of the respective exporting country and other accompanying certificates.  Sometimes the DLS will inspect a consignment befo re giving permission.  The reason for limited 
inspection is the nonexistence of animal quarantine stations and insufficient manpower of the DLS.  
According to the authorities, the establishment of an  animal quarantine service is at the final stage of 
approval. 
127. The Bangladesh Diseases of Animals Act, 2005, the Bangladesh Animal and Animal Product 
Quarantine Act, 2005, and the Bangladesh Wildlife (Preservation) (Amendment) Act, 1974 are the 
three main legal instruments for keeping Banglad esh free from HPAI/H5N1 in animals and enables 
the control and eradication of the disease in case of an outbreak.  Moreover, the Bangladesh Penal 
Code (BPC), Bangladesh Customs Act, 1969, and Im ports and Exports (Control) Act, 1950 Section 
3A, are used for quarantine and import bans.   Bangladesh WT/TPR/S/270 
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128. According to the Bangladesh Diseases of Animal Act, 2005, HPAI/H5N1 is a notifiable 
disease.  The Wildlife Act makes killing, catching, po aching and illegal trade of wildlife a punishable 
offence.  While these legal instrume nts are in place, they are not fu lly implemented or enforced. The 
main constraint is appropriately -trained personnel, and financial resources to fully implement these 
laws.  Overall, the livestock policy notes that while  laws and regulations are essential for high quality 
service delivery and quality assurance of products for trade, some are in place but the overall regulatory framework and implementa tion capability remain inadequate.  
Fish 
129. For fish and fish products, SPS standards are governed by Fish and Fish Products (Inspection 
and Quality Control) Ordinance, 1983 and Fish and Fish Products (Inspection & Quality Control) 
Rules, 1997 (Amended in 2008).  As per EU require ments the Department of Fisheries (DoF) has 
proposed amendments to the Fish and Fish Produc tion (Inspection & Quality Control) Rules, 1997 
and amended 2008, includi ng all SPS standards.   
130. The Fish Inspection and Quality Control (FIQC)  section of the Department of Fisheries is 
responsible for inspection of exportable fish and fi sh products.  The DoF has a fish inspection and 
quality control section headed by one Principal Scien tific Officer (PSO), in charge of several units 
responsible for checking the quality of exportable fi sh and fish products throughout the value chain 
from raw materials at farm to finished products at processing plants.  Exportable fish and fish 
products are harvested, collected, transported, preserved, processed and packed as per the Fish 
Inspection and Quality Control (FIQC) rules and re gulations, and the importing country's standards.  
If the products comply with the standards and re quirement of FIQC Rules and those of importing 
country, a Health Certificate is issued by the comp etent authority of Department of Fisheries.   
131. In the context of Bangladesh, the number of Rapid Alert System for Food and Feed 
(RASFF)
21 notifications has dropped significantly duri ng the review period from 50 in 2009 to 7 in 
2010, and 6 in 2011, to none in the first quarter of 2012.  As a consequence of repeated RASFF 
notifications concerning Bangladeshi fresh water prawn being contaminated (with nitrofuran 
metabolites especially semicarbazide) in May 2009,  Bangladesh imposed a six-month voluntary ban 
on the export of fresh water prawns to EU markets.  As a result of a series of corrective measures and 
being confirmed about the source of the contaminant,  the Government decided to lift the self-imposed 
ban on exporting fresh water prawn to EU market s in December 2009.  Moreover, the Government, 
with support from the DoF, Bangladesh Frozen Food Exporters Association (BFFEA), Fisheries 
Product Business Promotion Council (FPBPC), Joint In stitute of Food Safety and Nutrition (JIFSAN), 
and other stakeholders, undertook a number of measures to prevent contamination of shrimp and fish.  
Currently, pre-export tests of fish, shrimp and fish ery products are conducted in four laboratories in 
Dhaka, Khulna & Chittagong.  
132. A number of exports critical to Bangladesh would benefit from the development and 
enforcement of clear standards.  Exports of f ood and pharmaceuticals to regional and high-income 
markets require high standards.  The prospect for growth in Bangladesh's e xport of shrimp and other 
frozen foods to EU markets would also depend on development of their SPS standards.  The 
inspection capacity of the Department of Fisheries and the capacity of the private sector to apply the 
required standards and meet those of the EU SPS affect the export of these items.  
                                                      
21 The RASFF was put in place to provide food and feed  control authorities in the EU with an effective 
tool to exchange information about measures taken in response to serious risks detected in relation to food or feed. WT/TPR/S/270 Trade Policy Review 
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133. Bangladesh has faced ongoing challenges in me eting standards for its fish exports, in 
particular to the EU market, which is the larg est importer of Bangladesh shrimps (accounting for 
nearly 50% of exports).  Following a five-mont h EU ban on the imports of frozen shrimp from 
Bangladesh in 1997, on the grounds of non-complian ce with the EU's Hazard Analysis Critical 
Control Point (HACCP) regulations, exporters and th e Government have made major investments in 
infrastructure to ensure HACCP compliance in the e xport-oriented shrimp sector.  Training has been 
undertaken to achieve international technical and sanitary standards co mpliance and sanitation 
inspection activities have been strengthened.      
(c) Labelling requirements  
134. To protect the interests of the consumer and to maintain a standard labelling system, the 
Government has promulgated The Bangladesh Standards of Weights & Measures (Packaged 
Commodities) Rules, 2007 under the Weights and Measures Ordinance, 1982.  Accordingly the 
following declarations have to be  made on every package:  name and address of the manufacturer and 
packer;  common or generic name of the product with all ingredients;  net weight;  date of manufacture and date of expiry;  retail price of the package.  
(iv) Trade-related aspects of intellectual property rights (TRIPS) 
135. As discussed in the past two Reviews, Banglad esh has an existing framework of intellectual 
property (IP) law, dating from the pre-independence er a,.  The Government continues to work actively 
to update and modernize these laws to make them  more relevant and effective for the needs of 
Bangladesh today; it is progressively bringing its laws in line with the WTO TRIPS Agreement and 
other international commitments but, in doing so, is increasingly focused on integrating the reform 
and updating of its IP laws and administration w ithin national economic and social development 
strategies.  The National Industrial Policy 2010 r ecognized, for the first time, the importance of the 
protection of intellectual property rights (IPRs) in  industrial development and building technological 
capacity.
22  Some attention has also been paid to bol stering creative and design-based industries and 
branding for local products such as textiles.23   
136. This policy stance – considering national de velopment priorities in conjunction with 
implementation of international IP standards – is reiterated in Bangladesh's TRIPS Council 
submission of its priority needs for technical a nd financial co-operation, wherein it recognizes the 
need to develop an IP policy, strengthen existin g legal frameworks, and encourage capacity-building 
through investment in institutional and administra tive infrastructure, and training for policy makers, 
enforcement agencies, and users.24  In identifying priority needs, this submission outlines a number of 
the broader interests that drive IP policymaking,  including scarce private sector research efforts and a 
reliance on public sector research facilities, which li mit the potential for innovation and creation, with 
implications for major industrial sectors such as jute, readymade garments and pharmaceuticals.  It 
also identifies a shortfall in technology transf er, and limited institutional linkages between local 
research institutions and international partners, a notable exception being the agricultural research 
                                                      
22 Ministry of Industries (2010). For example it is stated that "All types of steps will be taken for 
development and presentation of intellectual property in respect of creation and expansion of intellectual industry." (Ministry of Industries, 2010, Chapter 12:  Industrial Technology, para. 12.3). 
23 Priority Needs for Technical and Financial Cooperation, Communication from Bangladesh, WTO 
document IP/C/W/546, 23 March 2010, (hereinafter IP/C /W/546), as required in WTO document IP/C/40, 
30 November 2005, at pages 8 and 12.  See also the handicraft and fashion program reported in International 
Trade Forum Magazine , "Brac-Aarong:  Financing and Promoting the Creative Industries", Issue 3/2009.  
Viewed at:  http://www.intracen.or g/Brac-Aarong-Financing-and-Promo ting-the-Creative-Industries/. 
24 WTO document IP/C/W/546, 23 March 2010. Bangladesh WT/TPR/S/270 
 Page 63 
 
 
area.  As an LDC Member, Bangladesh has been give n an extended time-limit, until July 2013, for the 
full implementation of the provisions of the TRIPS Agreement, other than those relating to national 
treatment and most-favoured nation treatment.25  Bangladesh is also a beneficiary of the TRIPS 
Council decision extending until 2016 the transition period during which LDCs do not have to protect 
or enforce patents and undisclosed info rmation relating to pharmaceuticals.26  
137. Much of the current IP legislation dates from the pre-independence era (Table III.10).  In 
2008, the European Commission and the World Inte llectual Property Organization launched a three-
year project to modernize Bangladesh's IP laws a nd assist the country in its efforts to maximize the 
economic, social, and cultural deve lopment benefits of IP protection.  The project envisioned, 
amongst other things, streamlining IP administrative institutions for effective delivery of services and 
promoting IP awareness in key sectors including un iversities, R&D institutions, small and medium-
sized enterprises (SMEs), creative industries and the business community.  It also promoted IP 
teaching and education through fellowships, course development and linkages with WIPO's distance 
learning programmes.  The project budget was €1,220, 000, of which €1,100,000 was contributed by 
the EU.27  The project was completed in mid-2011.   
Table III.10 
Terms of intellectual property rights pr otection in Bangladesh, January 2012  
IPR Main legislation Du ration of protection Minimum duration of 
protection under TRIPS Comments 
Copyrights Copyright Act, 2000;   
Copyright Rules, 2006 Life of author plus 
60 years  Life of author  plus 
50 years  
Related rights  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  
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 Amendment extended 
to 20 years.  Draft 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 None None Unlimited Draft bill prepared  
Trade marks Trademarks Act, 2009, 
and Trade Marks Rules, 
1963  7 years from date of 
registration, renewable 
for 10-year periods 
thereafter At least 7 years, 
renewable indefinitely  
Layout designs of 
integrated circuits None None 10 years from first 
commercial exploitation Amendments provide 
for 15 years.  Draft bill 
not yet circulated  
Undisclosed information None None No specific period  
 
Source:  WTO Secretariat, based on information pr ovided by the authori ties of Bangladesh. 
                                                      
25 Decision of the Council for TRIPS of 29 November 2005, Extension of the Transition Period Under 
Article 66.1 for Least-Developed Country Members (WTO document IP/C/40, 30 November 2005).  The WTO 
Ministerial Conference in December 2011 invited the TRIPS Council "to give full consideration to a duly 
motivated request from Least-Developed Country Members for an extension" of this transition period. 
26 General Council Decision of 8 July 2002 (WTO document WT/L/478, 12 July 2002). 
27 Council for TRIPS, Technical Co-operation Activities: Information from Members - European 
Communities (WTO document IP/C/W/539/Add.7, 24 February  2010), at p. 10.  This may have been revised to 
€1.6 million as reported in IP/C/W/546, para. 31. WT/TPR/S/270 Trade Policy Review 
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138. Bangladesh has been a member of the World Intellectual Property Organization since 1985.  
It became a member of the Paris Convention for the Protection of Industrial Property Rights in 1991 
and of the Berne Convention for the Protection of Literary and Artistic Works in 1999.  Accession to 
other international treaties (such as the Patent Cooperation Treaty (PCT), the WIPO Copyright Treaty 
(WCT) and the WIPO Performances and Phonogram s Treaty (WPPT)) is still under consideration. 
139. During the period under review, Bangladesh became a signatory to the Nagoya Protocol on 
Access and Benefit-sharing in September 2011.  The Na goya Protocol is relevant to the work of the 
TRIPS Council in examining the relationship be tween the TRIPS Agreement and the Convention on 
Biological Diversity (CBD).  This work was undertak en pursuant to the mandate of the provisions of 
the 2001 Doha Ministerial Declaration, and reiterate d in the 2005 Hong Kong Ministerial Declaration, 
relating to "outstanding implementation issues"  identified by developing countries.   
140. Although LDCs are currently exempt from TR IPS notification requirements, Bangladesh 
notified changes in its copyright regime to the TRIPS Council in 2008, the second time it had done 
so.28 
(a) Industrial property 
141. Trademarks are by far the most important i ndustrial property right used in Bangladesh in 
terms of the number of applications filed, especially by residents.  In this section patents, industrial 
designs, trademarks, and geographical indications  are taken up in turn, as in previous TPRs. 
 Patents 
142. The Patents and Designs Act, 1911 and the Pate nts and Designs Rules, 1933 provide for the 
protection of patents and industrial designs.  The Bangladesh Department of Patents, Designs, and 
Trademarks has announced that draft versions of a new Patents Act, 2012 and a new Industrial 
Designs Act, 2012 are being scrutinized by the DPDT.  These draft bills are scheduled to be finalized 
and passed into law within the time limit prescribed  by the TRIPS Agreement.  According to the 
authorities, in the new draft Patent Act, the period of protection is 20 years instead of 16 years; patents for agrochemicals will not be given un til 30 June 2013; and patents for pharmaceuticals will 
not be given until 1 January 2016.  The Industrial Designs Act 2012 has been scrutinized by the 
DPDT and is yet to be referred to the Ministry of  Industries for stakeholder comments.  In the new 
draft, the scope for publication inviting opposition as to the industrial design applied for, has been 
incorporated, as well as a provision allowing the registered proprietor of the industrial design to file an application for renewal even after expiration of the stipulated time.   
143. Under the Patents and Designs Act of 1911, i nherited from colonial period, patents are 
granted for any inventions, including those that are chemical compounds and pharmaceutical 
compositions or new processes for their manufacture.  Inventions that are considered to be against 
national law or morality, and life-forms such as plants are not protected.  According to the authorities, only the pharmaceutical compositions and new pr ocesses for the manufacture of chemical compounds 
is protected.  
144. In line with the flexibility granted to LDCs until 2016 under th e 2002 General Council 
Decision
29, the Department of Patents, Designs, a nd Trademarks suspended the granting of 
pharmaceutical patents through an administrative orde r in 2008.  Bangladesh, like other LDCs, needs 
                                                      
28 WTO document IP/N/1/BGD/2, 11 April 2008;  see also WTO document IP/N/1/BGD/1, 
24 June 2002.  
29 General Council Decision of 8 July 2002 (WTO document WT/L/478, 12 July 2002). Bangladesh WT/TPR/S/270 
 Page 65 
 
 
to have a "mail-box" under Article 70.8 of the TR IPS Agreement and this is said to have been 
instituted.  However, the administrative suspension a nd the "mailbox" need to be incorporated into the 
law, which has, according to the authorities,  been done for pharmaceuticals and agrochemical 
compounds.30  A draft law for the protection of plant vari eties and farmers' rights is reported to have 
been prepared at the Ministry of Agriculture and is awaiting approval.31 
145. Statistical information obtained from WIPO indicates that between 1998 and 2010 patent 
applications by both Bangladeshi residents and non -residents increased (Table III.11).  As can be 
expected in all net technology-importing countries, pa tent filing by non-residents far exceeds those by 
residents.  However, it must be noted that in 20 10, residents filed about 15% of the total patent 
applications, which is a significant proportion for an LDC, even though the base is low.  The 
Government of Bangladesh states that these are not break-through inventions due mainly to lack of 
adequate investment into R&D both by the private and public sectors, with the possible exception of 
the agriculture sector.32  Figures subsequently provided by the authorities, show that in 2011 there 
were 11,645 trademark applications, 1,297 design applications and 306 pa tent applications.  
Table III.11 
IP applications for trade marks, industrial designs,  and patents, and patents granted, 1998 and 2005-10 
 1998 2005 2006 2007 2008 2009 2010 
Trade mark applications        
Resident 3,204 3,372 5,171 5,002 0 7,447 7,857 
Non-resident 1,351 1,252 1,280 3,230 0 1,859 2,374 
Total 4,555 4,624 6,451 8,232 0 9,306 10,231 
Industrial designs applications        
Resident 649 900 1,040 748 473 954 853 
Non-resident 33 107 60 71 38 38 43 
Total 682 1,007 1,100 819 511 992 896 
Patent applications        
Resident 32 50 22 29 60 51 55 
Non-resident 184 294 288 270 278 227 287 
Total 216 344 310 299 338 278 342 
P a t e n t s  g r a n t e d         
Resident 14 21 16 27 1 27 20 
Non-resident 126 161 146 269 36 104 79 
Total 140 182 162 296 37 131 89 
 
Source:  WTO Secretariat, based on WIPO data. 
146. In terms of technology sectors covered, more than  half of patents filed are in the fields of 
optics, pharmaceuticals, environmental technology and biotechnology.33  The predominance of patent 
filing in the pharmaceutical and biotechnology sector is not surprising.  The Government has recently 
released the draft of an Industrial Biotechnolog y Action Plan to promote this sector, which has 
implications for many sectors, including in th e fields of environment and health technologies.34  This 
                                                      
30 See WTO document IP/C/W/546, 23 March 2010, p. 9.  Countries subject to a transition period are 
still 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 application has to  be examined by reference 
to the prior art that was disclosed when the application was first filed (i.e. the invention had to be assessed whether it was "new" as of that earliest date).  If the a pplication is successful, product patent protection must be 
granted for the remainder of the patent term co unted from the filing date of the application. 
31 WTO document IP/C/W/546, 23 March 2010, p. 10. 
32 WTO document IP/C/W/546, 23 March 2010, page 2, paragraphs 6-8. 
33 WIPO online information, "Statistical Country Profile s:  Bangladesh (last updated December 2011)".  
Viewed at:  http://www.w ipo.int/ipstats/en/statistic s/country_profile/.  
34 Ministry of Industries (undated).  WT/TPR/S/270 Trade Policy Review 
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action plan, and a draft Strategic Road Map to Implement Biotechnology Policy 201235, both address 
IP within the broader context of extrac ting benefits from research capacity.  
147. Bangladesh holds the unique position of being the only LDC with significant manufacturing 
capacity in the pharmaceutical sector.  Banglades h also exports a wide range of pharmaceutical 
products with total exports of US$27 million in 2010.  Its exports peaked at US$47 million in 2008 
from a low base of just US$4 million in 2001.  Howeve r, imports of pharmaceuticals have also risen 
from US$125 million in 2001 to US$389 million in 2010.36  While available estimates vary as to the 
overall scale of the domestic pharmaceutical market, it seems unlikely that, to cite one view, over 
95% of Bangladesh's pharmaceutical needs are met by domestic firms37 or that, of the top 
ten pharmaceutical companies in Bangladesh, onl y one is a foreign company, Sanofi-Aventis.38  It is 
said that major domestic companies like Square, Beximco and Incepta have  expanded their product 
portfolios to include a variety of therapeutic classes, dosage forms, an d technology-intensive 
specialized products.39  However, a more conservative view may be that Bangladesh mainly has the 
capability to make formulations from active pharmaceu tical ingredients (APIs) and that the few that 
can make APIs from scratch may have obtained these technologies from Indian firms.40  
Export-intensity of even these top firms may be  very low, less than 5% of total production.41  With the 
LDC exemption on implementation of TRIPS phar maceutical patent protection until 2016, 
Bangladeshi business sees opportuniti es to become an even more significant exporter of generic 
medicines to countries with insufficient pharmaceutic al manufacturing capacity to meet their needs.42  
148. It is important to note, however, that while  the TRIPS extension will last until 2016, steps 
could be taken to ensure that a domestic pharmaceu tical industry is sustainable beyond this period.  
Investing in technology transfer for the pharma ceutical industry, particularly in building API 
manufacturing capabilities, is essential to ensuring that  the domestic industry sustains growth and 
ensures competition to keep prices low as foreign firms begin to apply for patents after the waiver period terminates.  Firms could also follow diverse strategies: competing internationally in the market 
for low-cost generic products, focusing on the domes tic market, or building a stronger innovative and 
technology adaptation base domestically with a view to higher value exports in the longer term: given 
the right policies, each of these options would appear to be feasible. 
149. Unlike the case of patents, industrial-design pr otection seems to be sought overwhelmingly by 
local residents.  Small and medium enterprises (SMEs) account for over 96% of all industries in Bangladesh, and appear to be significant users of the IP system.   
150. Bangladesh has a sizable textile industry, which could be a major user of industrial design and 
other IP protection.  In 2010, Bangladesh held its first International Conference on Textile and 
Apparel (ICTA), with a focus on innovation and knowledge -sharing in textile technologies.  Such 
initiatives encouraging innovative capacity in key sect ors would ensure sustainable growth for the 
                                                      
35 Ministry of Science and Information and Communication (2011).  Document to be placed before the 
National task force on Biotechnology of Bangladesh for final approval. 
36 Taken from the WTO Statistical Database.  Viewed at:  http://stat.wto.org/StatisticalProgram/ 
WSDBViewData.aspx?Language=E. 
37 Azam and Richardson (2010) 
38 Hassan (2008).  
39 Dinar Standard , "Beximco Pharmaceuticals leads Ba ngladeshi Pharmaceutical Exports", 
5 October 2009.  Viewed at:  http ://dinarstandard.com/oic-trade/bexim co-pharmaceuticals-leads-the-way-for-
bangladeshi-pharmaceutical-exports/ (l ast visited 30 January 2011). 
40 Sampath (2007), pp. 19-20.  
41 Ibid, p. 37. 
42 Hassan (2008).  Bangladesh WT/TPR/S/270 
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industry even after the LDC transition period ends.43  Ensuring sustainability through technology 
transfer and, equally, building absorption capacity is essential. 
 Trade marks 
151. Trade marks are protected under the newly en acted Trademarks Act, 2009 (which replaced 
the Trade Marks Act, 1940) and the Trade Marks Rul es, 1963.  According to the authorities, this new 
legislation brings Bangladesh's trademark regime  in line with TRIPS requirements.  The most 
significant change in the law is the introduction of  service mark protection.  The service sector is 
increasingly becoming the core of the Bangladeshi ec onomy, accounting for over half of the country's 
GDP and demonstrating a steady growth rate ove r the last decade.  Protection of service marks 
represents a significant step forward that should be nefit not only big-name service providers with 
recognizable service marks, but domestic provi ders as well.  Domestic telecom provider 
Grameenphone, for example, synced its logo with that of its parent company Telenor in 2006 in an effort to benefit from favourable brand identity.
44  Also, protection of well-known marks and the 
registration of collective marks have been incorporated in the law.  
152. The Trademark Office began accepting applications to register service marks on 
15 February 2008.  These can be filed under the 10th edition Nice Classification for Services in classes 
35 to 45.45  Under the new legislation, applications for registration of all trademarks must be filed 
with the official Trademark Registry, under the Ministry of Industries, and after examination are advertised in the Trade Marks Journal .  If the trademark application is uncontested, a registration 
certificate is issued after 150 working days, unde r Section 20(3) of the Trademarks Act 2009.  The 
registration grants an exclusive right to the proprie tor to use the registered  marks for seven years, 
which may be renewed for further periods of 10  years (a reduction from the 15 years previously 
allowed).  
153. The authorities also indicate that a draft of th e Trademarks Rules, 2011 is due to be sent for 
vetting to the Ministry of Law, Justice, and Parlia mentary Affairs.  It will then go to the Cabinet 
Division for necessary approval.  
 Geographical indications 
154. Although no legislation currently exists re garding the recognition and protection of 
geographical indications, a draft (in Bengali) Geogr aphical Indications Act, 2011 is available on the 
Ministry of Industries website
46 and awaits stakeholder input and parliamentary approval.  
155. The draft legislation could pave the way for Bangladesh to benefit from GI protection, 
especially in areas such as  agricultural and food products, textiles and leather.  The current lack of a 
                                                      
43 Bangladesh Textile Today , "A New Era of Knowledge Based Te xtile-Garment Community Starts", 
2010.  Viewed at:  http://www.textiletoday.com.bd/index.php?pid=magazine&id=27.  
44 Grameenphone Press Release, "Grameenphone launch es new, refreshed logo", 16 November 2006.  
Viewed at:  http://www.g rameenphone.com/about-us/media-center/ press-release/2006/179/grameenphone-
launches-new-refreshed-logo (last visited 27 January 2012). 
45 The International (Nice) Classifi cation of Goods and Services for the Purposes of the Registration of 
Marks was established by the Nice Agreement, 1957.  Although Bangladesh is not a member of the Nice 
Agreement, it is among the countries that use the Nice Classification despite not being a party to the Agreement. 
(WIPO online information.  Viewed at:  http://www.wi po.int/classifications/fulltext/nice/ennpre.htm.  Last 
visited 30 January 2012).  
46 Available only in the local language at Ministry of Industries online information.  Viewed at:  
http://www.moind.gov.bd/index.php?option=com_conten t&task=view&id= 525&Itemid=588 (last visited 
26 January 2012). WT/TPR/S/270 Trade Policy Review 
Page 68 
  
GI regime could place Bangladesh at a disadvantag e compared to neighbouring countries, such as 
India, that have established GI frameworks47, especially since Article 24.9 of the TRIPS Agreement 
states that WTO Members have no obligation to respect and protect a GI that is not protected in its country of origin.
48  
(b) Copyright and related rights 
156. Copyright is protected by the Copyright Act,  2000 as amended by the Copyright (amendment) 
Act, 2005.  In the period since the last Revi ew, the Copyright Rules, 2006 have replaced the 
Copyright Rules, 1967.  The main changes are: inclusion of definitions (Act, Copyright Society, Record, etc.); inclusion of a provision for application for registration of Copyright Society in the 
second schedule; provision to increase fee payable under  the copyright in the second schedule.  Under 
the current legal framework, copyright protection fo r published literary, dramatic, musical and artistic 
works is for the life of the author plus 60 years (p reviously 50 years);  for films, records, government 
works, works of international organizations and photographs, it is 60 years from the date of 
publication;  and for broadcasts, the term is 25 y ears of reproduction from the next calendar year of 
the first fixation (i.e. inscription on a physical substratum).
49   
157. The Copyright (amendment) Act, 2005 covers, inter alia,  the total or partial use or 
reproduction of any computer programme as well as all mechanical, electro-mechanical, electric, 
magnetic, electro-magnetic, digital, optical or any other information-processing technology or system. 
158. As set out in the Berne Convention, copyright  protection in Bangladesh is automatic upon 
creation of an eligible work.  Consequently, copy right registration in Bangladesh remains optional;  
those who wish to register can file an application with the Copyright Office under the Ministry of 
Cultural Affairs.  The registration certificate is  granted within 37 days of application. 
159. Bangladesh is well-known in South Asia and around the world for its creativity in 
contemporary literature, music, and art.  As alre ady recognized, its artistic culture could reap 
significant benefits from a strong copyright regime.  For example, there have been past cases of 
alleged theft of Bangladeshi music and Members of the WTO have legal recourse in such cases.50  
Similarly, Bangladeshi contemporary art has received attention in recent years.51  In 2007-08, 
                                                      
47 See, for example, the controversy caused by India's GI protection of Jamdani saris, Nakshikatha, and 
Fazli mangoes ( Financial Express , "Commerce ministry to start formalities".  Viewed at:  
http://www.thefinancialexpress-bd.com/more.php?news_ id=109932&date=.  Last visited 23 January 2012). 
48 "There shall be no obligation under this Agreement to protect geographical indications which are not 
or cease to be protected in their coun try of origin, or which have fallen in to disuse in that country."  TRIPS 
Agreement, Article 24.9. 
49 It is interesting to note the interplay between the rule of reciprocity of copyright under the Berne 
Convention and Bangladesh's increase of protection periods beyond TRIPS minimum standards.  Countries such 
as neighbouring WTO member India, which also has a 60 year protection period, can choose to apply only the 
shorter foreign term to works from countries that have a shorter term of protection.  By increasing its protection 
period, Bangladesh ensures that its works continue to benefit from extended terms of protection in applicable 
countries. 
50 See the case study at WTO online information, "M anaging the challenges of WTO participation:  
Case study 3:  Rock 'n Roll in Bangladesh:  Protecting Intellectual Property Rights in Music".  Viewed at:  
http://www.wto.org/english/res_e/books p_e/casestudies_e/case3_e.htm.  Later published in WTO (2005).  
51 Bangladeshi artists received Olympic Fine Arts me dals at the 2008 Beijing Olympics.  Further, 
Bangladeshi artists have displayed their works in prestigious galleries and exhibitions all around the world, 
including, for example, the Venice Bien nale.  See further World Fine Art online information.  Viewed at:  
http://www.worldfinear t.com/Saleem2/;  New Age , "Portrait of a nature artist".  Viewed at:  Bangladesh WT/TPR/S/270 
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Bangladesh exported over Tk 400 million worth of works of art, making it the 21st largest export item 
in that year.52  It has been observed, however, that the l ack of an effective regulatory framework has 
until recently been a detriment to th ese domestic copyright-related industries.53  A WIPO-sponsored 
survey identified the benefits of more appropr iate protection of traditional cultural expressions, 
including musical works, handicrafts and textiles.54  The Bangladesh Government has approved a 
project for US$3 million to improve the Copyright Office, and UNICEF has agreed to grant US$26,000 for the dissemination of IP knowledge.
55  
(c) Enforcement 
160. The Government of Bangladesh recognizes that  enforcement of IPRs is important for 
encouraging innovation and creation, technological de velopment, promotion of fair competition and 
protection of consumer rights.  D espite improvements, the Government admits that enforcement is  
behind the desired level.56  
161. As mentioned above, Bangladesh enjoys a transition period up to July 2013.  It is not clear 
what legislative changes need to be made during this  period to make the laws consistent with Part III 
of TRIPS on enforcement.  In terms of border me asures, it appears that its Customs Act of 1969 has 
some measures to protect against imported goods infr inging trademarks and industrial design, but not 
copyright.57   
162. The general level of public awareness on IP-re lated matters is quite low.  The EU-WIPO 
Modernization Project, as well as other efforts by the Ministries of Industries and Cultural Affairs 
target this issue through, inter alia,  national and regional seminars on the intellectual property system, 
and dissemination of technical information to local administrators, scientists, technologists, 
manufacturers and industrialists.58  In continuing efforts to improve IP awareness, Bangladesh 
observes WIPO's World IP Day every year with the di rect involvement of senior government officials.   
163. Another significant factor is enforcement infrast ructure. Specialized courts for resolving IP 
cases are absent, although this is not a TRIPS requirement under Article 41.5 of the TRIPS Agreement.  The infringement of intellectual propert y rights can be challenged in the domestic courts 
and rights holders, both foreign and domestic, can f ile a suit.  An appeal against the lower court 
decision can be brought to the Appellate Court.  Th e Copyright Office, however, runs a quasi-judicial 
court in its office.  The Copyright Board, the Re gistrar of the Copyright Office, or any designated 
official of the Department of Patents, Designs a nd Trademarks can also hear cases with respect to 
registrations granted to rights holders.  Any person aggrieved by any final decision or order by the 
Copyright Board may appeal to the High Court Division of the Supreme Court. IP offices have weak 
links with IP enforcing agencies, particularly cust oms, police and the judiciary.  The Department of 
Patents, Designs and Trademarks and the Copyri ght Office only maintain records of complaints 
lodged by aggrieved parties.  The Bangladesh Inte rnational Arbitration Centre has been set up with 
the participation of the Dhaka Chamber of Comme rce and Industry, and the Metropolitan Chamber of 
                                                                                                                                                                     
http://newagebd.com/newspaper1/timeout/27615.html;  and Bangladesh Pavilion, Venice Biennale 2011 online 
information.  Viewed at:  http://www.venicebiennale-ba ngladeshpavilion.org/ (last visited 30 January 2012).  
52 See Bangladesh Bureau of Statistics (2010).  
53 International Intellectual Prop erty Alliance (2008), p.159.  
54 Huda (2009).  
55 See WTO document IP/C/W/546, 23 March 2010, para. 32.  
56 See WTO document IP/C/W/546, 23 March 2010, paras. 18-19. 
57 See WTO document IP/C/W/546, 23 March 2010, p. 11. 
58 Ministry of Industries online informati on.  Viewed at:  www.moind.gov.bd/. WT/TPR/S/270 Trade Policy Review 
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Commerce and Industry but needs to be made fully functional.  Formal and intensive training is 
necessary for effective administrativ e and judicial capacity building.59 
164. Penalties for infringement of registered patents and industrial designs range from to Tk 5,000 
to Tk 10,000.  According to Section 73 of the Trade Marks Act, 2009, for infringement of the trade 
mark, the maximum penalty is two years' imprisonme nt and/or fine of Tk 200,000.  For subsequent 
offences, imprisonment may extend to three years and the fine may be raised up to Tk 300,000.  The 
fine is not fixed by the Minister/Ministry but by  the Court after judicial process.  For copyright 
infringement, imprisonment is six m onths to four years and a fine of Tk 50,000 to Tk 200,000.  For 
films, the penalty for infringement is higher, namely imprisonment of one to five years and a fine of 
Tk 100,000 to Tk 500,000.  In pursuance of Section 15 of the Customs Act, 1969, upon complaint by 
the affected person, the customs authority, in coop eration with the IPR regulatory authorities, can 
inspect, seize, and detain shipments of any counterfe it or pirated materials.  Necessary amendments to 
Section 15 of the Customs Act were made in FY 2011/12 budget in order to incorporate all the 
provisions needed to ensure enforcement of IPR issues. 
165. Despite the presence of these punitive provisions, Ba ngladesh continues to be criticized for its 
lack of effective enforcement.  Piracy levels remain high, especially with respect to books, computer 
software, motion pictures, CDs/DVDs, and audio and video-cassettes.  The impact is felt not only by 
foreign rights holders, but also by Bangladeshi nati onals, with some evidence of piracy being the 
direct cause of bankruptcy and closure of local companies in copyright-related industries.60  So far no 
study has been concluded on rate of piracy in Bangladesh.  However, as per the report of Singapore-
based Business Software Alliance (BSA) the rate of  computer software piracy in Bangladesh is 
relatively high.  In 2011 a Copy right Taskforce concluded eight dr ives in the presence of police, RAB 
and other members of the taskforce to prevent piracy.   
166. There are, however, a few cases of IPR enforcement that provide hope that the system is 
changing (even if incrementally) for the better.  For example, when Kraft Foods, Inc., which has the 
trademark for the drink concentrate Tang® in Bangladesh since 1987, sought a judicial injunction 
against a local company which was attempting to market "Ibnsina Orange Tang";  it was successful in 
its efforts to have the offending goods seized and the infringement stopped.  Following the challenge, 
the Trademark Registry has refused to grant any applications attempting to infringe upon the Kraft 
trademark.61 
167. Bangladesh, in its priority needs for technical  and financial co-operation, submitted to the 
TRIPS Council in March 2010, proposed specifi c projects worth US$71.04 million for fully and 
effectively implementing the TRIPS Agreement.  Th ese projects include review of existing laws and 
regulations, specialized training for officials, auto mation of IP offices, setting up an IP Institute or 
Knowledge Centre in the private sector, strengthening the capacity of the public sector R&D institutions, and the integration of all IP offices under one Bangladesh IP Office.
62  Bangladesh has 
continued to play an active role in promoting th e coordination of follow-up to this needs-assessment 
process, hosting a regional symposium in 2010, and contributing to a series of Geneva-based 
coordination workshops.   
 
 
                                                      
59 See WTO document IP/C/W/546, 23 March 2010, para. 19-24. 
60 International Intellectual Property Alliance (2008), p. 159. 
61 Financial Express , "Intellectual Property:  Status of Bangladesh", 14 April 2011.  Viewed at:  
http://www.scribd.com/doc/56384442/Inte llectual-Property-Status-of-Banglades h (last visited 27 January 2012). 
62 See WTO document IP/C/W/546, 23 March 2010, p. 7.