Export Processing Zones
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Export Processing Zones (EPZs) are export oriented industrial enclaves which provide the infrastructures, the facilities, administrative and support services for a wide variety of enterprises. Bangladesh’s highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments around the country. picture11

The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, and location free from cumbersome procedures. Businesses from 32 countries have so far invested in the existing zones.

There are currently eight zones with others due to open in the next few years.

EPZ-Adamjee EPZ-Chittagong EPZ-Comilla
EPZ-Dhaka EPZ-Ishwardi EPZ-Karnaphuli
EPZ-Mongla EPZ-Uttara

If you are interested in setting up your business in an EPZ, the Board of Investment will be pleased to advise you and introduce you to BEPZA.

More information:  BEPZA

EPZ benefits and incentives

The following are just some of the special incentives offered to businesses located in an EPZ:

  • 10 year tax holidays.
  • Concessionary tax for five years, after the first ten.
  • Duty and tax free exports from the zone.
  • Intra and inter zone exporting and sub-contracting.
  • Fully serviced plots.
  • Ready made factory buildings.
  • Available infrastructure facilities.
  • Warehouses and bonded areas.
  • Duty free import of machinery, raw materials, construction materials and spare parts.
  • Sale of 10% finished product to domestic tariff area.
  • Sale of 10% surplus raw material to domestic tariff area.
  • Sale of 10% defective finished goods and domestic tariff area items.
  • 100% backward linkage and accessories items are allowed to be sold in export oriented industries (deemed as exports).
  • Sale of old/scrap machineries in domestic market.
  • Business and administration support services.
  • Customs clearances on site.
  • Recreational amenities.

Yearwise investment to EPZ

Year Investment (million US$)
Total
Current Cumulative
2006-07 152.37 1,132.26
2007-08 302.19 1,434.45
2008-09 148.03 1,582.47
2009-10 (April) 158.11 1,740.59
Source: BEPZA

Overview of EPZ

Name of EPZ
No. of industries
Investment (m US$)
Export (m US$)
Employment
Manufacturing
Under implementation
Chittagong
157
34
751.42
10,998.03
145,578
Dhaka
95
25
686.42
8,991.51
71,423
Comilla
21
24
90.70
379.88
6,533
Mongla
08
09
4.23
43.25
221
Uttara
06
01
4.46
1.59
2,389
Ishwardi
07
21
25.49
10.80
2,075
Adamjee
15
37
80.01
143.35
8,983
karnaphuli
13
63
66.97
80.52
9,014
Total
325
215
1,709.64
20,648.92
246,216
Source:Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance

FDI Magazine's rankings

FDI Magazine of The Financial Times in March 2010 conducted a competition entitled “Global Ranking Competition of Economics Zones” based on the following nine categories of ranking:

  • Best Overall Global Special Economic Zone
  • Best Economic Potential
  • Best Cost Effectiveness
  • Best Facilities
  • Best Transportation Link
  • Best Incentives
  • Best Promotion
  • Best Airport
  • Best Port

In the competition out of 700 Economic Zones globally 200 participated in the competition. All the zones were evaluated on a 10 point scale on the basis of some set criteria. Among the top 10 of the two categories Chittagong Export Processing Zone, Bangladesh scored 3rd position in the “Best Cost Effectiveness” and also 4th position in the “Best Economic Potential” for 2010-2011.

Source: FDI Magazine