Bangladeshi businesses including the readymade garment factories located at the Economic Zones (EZs) have obtained Local Sales Permit (LSP) from the Bangladesh Economic Zone Authority (BEZA) to sell finished goods in the local market for consumption.
Factories will also receive Local Procurement Permit (LPP) from BEZA to enjoy duty- and tax-free benefits at purchasing raw materials and semi-finished goods from the local market under the bonded warehouse scheme of the National Board of Revenue (NBR).
NBR, the central authority for tax administration in Bangladesh, issued a gazette notification in this connection amending its standing order on the Customs (Economic Zones) Procedures-2017, last week.
One of the customs officials told the reporters that the NBR amended the order to facilitate factories at collecting raw materials from the domestic market and selling finished products in the domestic market.
He said that in the original order the NBR allowed duty-free raw materials import benefits to only export-oriented enterprises as the Government planned the zones for export-oriented factories. Later, BEZA opened the zones also for domestic industries and commercial enterprises.
According to the NBR’s amended order, manufacturing or processing units including the readymade garment factories will have to apply to BEZA for obtaining LPP to procure raw materials and semi-finished materials from domestic market without paying applicable duty and taxes against the bond license for further processing and export or domestic sales.
However, earlier in October 2017, the NBR amended the Bangladesh Economic Zone Warehousing Station Rules relaxing the provision related to sales of finished products in the local market.
Bangladesh Economic Zone Authority (BEZA) is working to establish 100 EZs, both public and private, across the country by 2030. A number of private EZs have already started production activities at factories.