Importing goods into Bangladesh involves navigating various tax rates, customs duties, and regulations. Whether you’re importing electronics, fashion items, or other products, understanding these rules is crucial to avoid unexpected costs and delays. This article provides a detailed overview of import duties in Bangladesh, including a breakdown of VAT, import duties, and other essential information for importers.
1. Overview of Bangladesh Import Duties and Taxes
- Currency: Bangladeshi Taka (BDT)
- VAT/GST on Imports: 15% on all goods
- Duty Calculation Method: CIF (Cost, Insurance, Freight)
- Minimum Threshold: None (all goods are taxed)
- Non-Working Days: Weekends and public holidays
2. Import Duty Rates by Category
Different categories of products are subject to varying import duty rates in Bangladesh. Below is a summary:
| Product Category | Import Duty Rate |
|---|---|
| Electronics (Mobiles, Tablets, Laptops, etc.) | 2% – 10% |
| Fashion (Clothing, Watches, Jewelry, etc.) | 25% |
3. Calculating Import Costs
Import duty and tax in Bangladesh are calculated using the CIF method. This method includes the total cost of the goods, insurance, and freight. Here’s a simplified formula for calculating the total import cost:
[
Total Import Cost = Cost of Goods + Insurance + Freight ×(1 + VAT/GST + Import Duty Rate)
Example Calculation
Let’s say you’re importing a laptop with the following costs:
- Cost of Laptop: 50,000 BDT
- Insurance: 1,000 BDT
- Freight: 2,000 BDT
- Import Duty Rate: 5%
- VAT/GST: 15%
The total import cost would be calculated as follows:
Total Import Cost = (50,000 + 1,000 + 2,000) × (1 + 0.15 + 0.05)
Total Import Cost = 53,000 × 1.20 = 63,600 BDT
So, the total cost after import duties and VAT would be 63,600 BDT.
4. Chart: Import Duty Rates by Category
Below is a visual representation of the import duty rates for different product categories:
Electronics (2-10%) | ################## 10%
Fashion (25%) | ############################# 25%5. Restricted and Prohibited Items
Bangladesh has a strict list of restricted and prohibited items that cannot be imported. Some of these items include:
| Restricted Items | Prohibited Items |
|---|---|
| – Tobacco | – Drugs |
| – Alcohol | – Firearms |
| – Chemicals | – Explosives |
| – Animals | – Fresh food |
| – Plants | |
| – Seeds |
It is essential to consult the latest government guidelines before shipping to ensure compliance with these regulations.
6. Required Documents for Shipping
To successfully import goods into Bangladesh, you need to prepare and submit the following documents:
- Commercial Invoice
- Battery Statement (if applicable)
- Tax Documents
- Shipping Labels (generated by the online system)
7. Additional Costs and Considerations
- Surcharges: Deliveries to non-urban areas may incur additional costs.
- Blind Shipping Services: Available for direct customer shipments from China, reducing local handling time.
- Customer Support: Assistance available via phone, email, and social media platforms.
8. Best Practices
- Stay Updated: Regularly check the government website for updates on restricted items and duty rates.
- Use Available Tools: Utilize tools like a weight calculator, HS code lookup, and credit card forms to streamline the import process.
- Plan Ahead: Consider non-working days (weekends and public holidays) that may delay deliveries.
What Is Import Duty in Bangladesh?
Import duty in Bangladesh is a tax imposed on goods entering the country from abroad. The National Board of Revenue (NBR) is responsible for assessing and collecting import duties, which help to protect local industries and generate revenue for the government.
How Are Import Duty Rates Calculated in Bangladesh?
Import duty rates in Bangladesh are calculated based on the value of the goods, typically the Cost, Insurance, and Freight (CIF) value. Rates vary by product type and are set according to Bangladesh’s Customs Tariff Schedule.
Use this Bangladesh import duty calculator here to calculate your duty in Bangladesh.
What Are the Common Import Duty Rates for Goods in Bangladesh?
Common import duty rates in Bangladesh range from 0% to 25%, depending on the type of goods. Raw materials often have lower or zero rates, while finished goods and luxury items usually incur higher duty rates.
Are There Any Exemptions on Import Duty in Bangladesh?
Yes, certain items are exempt from import duty in Bangladesh, particularly goods for specific sectors such as agriculture, education, and health. Additionally, importers may apply for exemptions or reductions under specific government schemes to promote industry and economic growth.
How Can I Pay Import Duty in Bangladesh?
Import duty payments in Bangladesh are processed by banks authorized by the National Board of Revenue. Importers can complete payments electronically through the ASYCUDA World system, which allows for online submission and tracking of customs declarations.
What Additional Taxes Apply to Imported Goods Besides Import Duty?
In addition to import duty, goods imported to Bangladesh may also be subject to Value Added Tax (VAT), Supplementary Duty (SD), and Advance Income Tax (AIT), depending on the type of goods. These taxes are calculated separately from import duty and increase the total cost of importation.
How Do I Find the Import Duty Rate for My Products?
You can look up the import duty rate for specific products in Bangladesh’s Customs Tariff Schedule, which is available on the National Board of Revenue’s website. Importers can also consult customs agents for assistance with tariff classification.
Can I Appeal an Import Duty Assessment in Bangladesh?
Yes, if you believe your import duty assessment is incorrect, you can file an appeal with the Customs Appeals Tribunal. Provide detailed documentation and reasons for the appeal to increase the chances of a favorable outcome.
What Are the Penalties for Failing to Pay Import Duty in Bangladesh?
Failure to pay import duty may result in penalties, including fines, seizure of goods, or legal action by customs authorities. Importers must ensure that all customs duties and associated taxes are paid promptly to avoid complications.
Do Import Duty Rates Apply to Online Purchases Shipped to Bangladesh?
Yes, import duty and other taxes apply to goods purchased online from international sellers and shipped to Bangladesh. These purchases are subject to the same customs procedures and tax rates as any other imported goods entering the country.
Conclusion
Importing goods into Bangladesh requires careful planning and understanding of the applicable taxes, duties, and regulations. By staying informed and using available resources, you can ensure a smooth and cost-effective import process. Always remember to check for the latest updates on duty rates and restricted items to avoid any potential issues.