Payment against imports is generally permissible only under cover of irrevocable letters of credit. Advance payments for imports require approval by the Bangladesh Bank, which is normally given only for specialised or capital goods. The taka is freely convertible on the current account. Trade General Import licenses are not required for any imported items except those on the restricted list. Samples of no commercial value are admitted duty free.
Samples having commercial value are liable to normal duty.
Customs duties are levied on all imports except raw cotton, certain textile, agricultural and irrigation machinery, animal feeds used in the poultry and dairy industries, and certain drugs and medical equipment. Excise duties have been abolished on all items except on manually prepared cigarettes, bank accounts, and textiles. Certain products are exempt from the value-added tax. The private objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. Two EPZ's one in Chittagong and the other near Dhaka are now operational.