Wednesday, 23 October 2013

Capital machinery, 100 % export company, develop area


An international business service company in Bangladesh
Mobile: +880 01790220729
Dhaka, Bangladesh

Concessionary Duty on Imported Capital Machinery
Import duty at the rate of 7.5% ad valorem is payable on Capital Machinery and Spares imported for initial installation or ‘Balancing, Modernization, Rehabilitation and Expansion’ (BMR/BMRE) of the existing industries. The value of spare parts should not, however, exceed 10% of the total cost and freight value of the machinery. Out of this, 7.5% rate of duty payable, export-oriented industries and industries in the under developed areas, may enjoy a further concession of the import duty in the following manner:
100% export oriented industries:
No import duty is charged in case of capital machinery and spares listed in NBR’s relevant notification. However, import duty at 7.5% is secured in the form of a bank guarantee or an indemnity bond to be returned after installation of the machinery.
Minimum 70% export oriented industries in developed areas:
Import duty at 2.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional duty at 5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.
Minimum 70% export oriented industries in developed areas:
Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the norm of a bank guarantee or cash deposit to be returned after installation of the machinery.
Other industries outside developed areas:
Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.
Other industries in developed areas:

Import duty at 7.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Value Added Tax (VAT) is not payable for imported capital machinery and spares.  Duties and taxes on import of goods which are produced locally will be higher than those applicable to import of raw materials for producing such goods.

Email: info@sfconsultingbd.com

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