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.

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 BCCCI will be pleased to advise you and introduce you to BEPZA.

source: BEPZA

Incentives & Facilities

Fiscal Incentives

1. 10 years tax holiday for the Industries to be established before 1st January, 2012 and Industries to set up after 31st December, 2011 tax holiday period will be:

Tax exemption period                    Rate of tax exemption
First 02 years (1st and 2nd Year)              100%
Next 02 years (3rd and 4th Year)               50%
Next 01 years (5th Year)                            25%

2. Duty free import of construction materials
3. Duty free import of machineries, office equipment & spare parts etc.
4. Duty free import and export of raw materials and finished goods
5. Relief from double taxation
6. Exemption from divident tax
7. GSP facility available
8. Accelerated depreciation on machinery or plant allowed
9. Remittance of royalty, technical and consultancy fees allowed
10. Duty & quota free access to EU, Canada, Norway, Australia etc.
Non – Fiscal Incentives
1. 100% foreign ownership permissible
2. Enjoy MFN (most favored nation) status
3. No ceiling on foreign and local investment
4. Full repatriation of capital & dividend
5. Foreign Currency loan from abroad under direct automatic route
6. Non-resident Foreign Currency Deposit (NFCD) Account permitted
7. Operation of FC account by ‘B’ and ‘C’ type Industries allowed.
1. No UD, IRC, ERC and renewal of Bond license
2. Work permits issued by BEPZA
3. Secured and protected bonded area
4. Off-Shore banking available
5. Import on Documentary Acceptance (DA) basic allowed
6. Bank of Back L/C
7. Import and Export on CM basis allowed
8. Import from DTA (Domestic Tariff Area)
9. 10% sale to DTA (Domestic Tariff Area)
10. Customs clearance at factory site
11. Simplified sanction procedure
12. Sub-contracting with export oriented Industries inside and outside EPZ allowed
13. Relocation of foreign industries allowed
14. Accords Residentship and Cityzenship
15. One Window same day service and simplified procedure.

Year-wise Investment in EPZ

Year                             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                        211.99                   1804.46
2010-11                        313.23                    2117.69
2011-12 ( March,12)     264.68                   2382.38
Growth (2010-2011)                                       41%

source: BEPZA


Name of EPZ                  No. of industries                   Investment (m US$)     Export (m US$)          Employment
Manufacturing   Under implementation
Chittagong              161                         15                           801.86                         12,384.12              1,55,121
Dhaka                      98                          06                            738.41                        10,259.24                 78,985
Comilla                    26                          18                            122.33                              497.18                   9,040
Mongla                    06                          06                                2.66                                 65.09                     152
Uttara                      08                          04                              10.19                                   5.68                   4,023
Ishwardi                  08                           11                              31.09                                 27.08                  4,407
Adamjee                 21                            27                           110.98                               143.35                 14,163
karnaphuli               23                           27                            118.34                               166.97                 16,501
Total                       351                        114                          1,935.86                           23,548.71             282,392

source: Bangladesh Economic Review-2011 (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