Presentationon

Export Processing Zone

Prepared for

Tanvir Ahmad TorophderLecturerDepartment of Business AdministrationLeading University, Sylhet.

Prepared by

1. EPZ stands for Export Processing Zone.

2. Export Processing zones proliferated in the late 20th century.

3. Most EPZs located in developing countries.

4. EPZs employing increased from 22.5 to 43 million people in 2003.

5. The basic objectives of EPZs to enhance foreign exchange earnings and to generate employment opportunities.

6. EPZs also known as Special Economic Zones in some countries.

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BEPZA stands for Bangladesh Export Processing عZone Authority..created in 1980 ع the official body to promote, attract and facilitate foreign عinvestment in EPZs. The government adopted an 'Open Door Policy' to عattract foreign investment to Bangladesh. An EPZ is defined as a territorial or economic عenclave in which goods may be imported and manufactured.

About BEPZA:

BEPZA - Official (Executive Office)

 

 

    

Major General A T M Shahidul Islam Executive Chairman

Sayed Nurul Islam Member (Investment Promotion)

Khandaker Akhtaruzzaman Member (Engineering)

A K M Mahbubur Rahman Member (Finance)

 Md. Shawkat Nabi Secretary

Mostafizur Rahman Khan GM ( Security)

A Z M Azizur Rahman GM (Investment)

Kazi Abdul Aziz  Chief Accounts and Finance Officer

Md. Shah Alam Sarkar Chief Engineer

Md. Mehbub Ali GM (MIS)-In Charge

Akter Alam Mustafi GM (Public Relation)-In Charge 

Abdus Shukur Miah GM (Audit)

Md. Nurul Haque GM (Enterprise Service)

S. S. Kibria GM (Maintenance)

Mr. Abdullah Al-Mahbub PS to Chairman

EPZ Provides:

» Plots/factory BLDG in custom bonded area

» Infrastructural facilities» Administrative facilities» Fiscal & non-fiscal incentives» EPZ attracts : foreign & local

investment

Objective:

๏ Provide special areas where potential investors would find a congenial investment climate & free from cumbersome procedures.

๏ Promotion of foreign (FDI) & local investment

๏ Diversifiaction of export

๏ Dev. OF backward & forward linkages

๏ Generation of employment

๏ Transfer of technology

๏ Upgradation of skill

๏ Development of management

Indicative List of Industries: ๏ Backward and forward linkage Industries ๏ Textile๏ Garments and Garments Accessories ๏ Chemicals ๏ Agro-based Industries ๏ Software ๏ Woven and Knitted Fabrics ๏ Optical Goods ๏ Leather Products and Foot-Wear ๏ Electronic Products ๏ Medical and Biological Instruments ๏ Toys ๏ Engineering Products ๏ Head-Wear ๏ Pharmaceutical Products ๏ Plastic Moulded Products๏ Industries based on new uses of Jute ๏ Precious stones ๏ Cutting/Polishing of Precious and Semi ๏ Jewellery ๏ Household Fittings and Equipment ๏ Laboratory Ware ๏ Horological Instruments ๏ Aircraft Instruments ๏ Scientific Measuring Instruments ๏ Musical instruments๏ Do-it-yourself Tools and Equipment ๏ Printing and Publishing ๏ Printing and Copying Equipment & Accessories

NB: This list is not exhaustive, only indicative.

Brand Products made in Bangladesh EPZs

๏ NIKE

๏ REEBOK

๏ LAFUMA

๏ GAP

๏ BROUKS

๏ J.C. PENNY

๏ WALMART

๏ KMART

๏ WRANGLER

๏ ADIDAS

๏ FALCON(USA)

๏ EDIE BAUYER

๏ EAGLE

๏ RELEIGH (UK)

๏ EMMILEE

๏ FREE SPIRIL (UK)

๏ MILES (GERMANY)

๏ AMERICAN EAGLE

SETTING-UP FIRMS IN EPZsBangladesh allows foreign investment in EPZs in convertible foreign currencies with the option of establishing public or private limited companies, or sole proprietorship or partnership undertakings. Industries allowed to be established in EPZs are classified as follows:

(a) Type A: 100 per cent foreign-owned firms, including investment by Bangladeshi nationals ordinarily resident abroad. Such as NIKE, REEBOK, ADIDAS.

SETTING-UP FIRMS IN EPZs (continued)

(b) Type B: Joint venture projects between foreign and Bangladeshi

entrepreneurs resident in Bangladesh. Such as Brooks, JC Penny, Falcon.

(c) Type C: 100 per cent Bangladeshi entrepreneurs resident in Bangladesh.

Such as EMMILEE, Konka.

INCENTIVES OFFERED IN EPZ Fiscal incentives • Tax holiday for 10 years;

• Exemption of income tax on interest on borrowed capital;

• Relief from double taxation subject to bilateral agreements;

• Complete exemption from dividend tax

• Exemption of income tax on salaries

• Duty-free import of machinery;

 

Non-fiscal incentives

• Project expansion and product diversification without permission;

• Off-shore, local and international banking facilities;

• Freedom from national import policy restrictions;

• Expeditious import of raw materials on a documentary acceptance basis;

• Back-to-back letter of credit for the import of raw materials

Facilities• Secured and protected industrial area;

• Land and factory buildings for

rent;

• Electricity, telecommunication,

gas and water facilities;

• Export and import permits

issued in one day;

• Work permits for foreign nationals;

CUSTOMS REGULATIONS FOR EPZ

The customs procedure relating to export from or import into EPZs to or from any country outside Bangladesh is regulated by Bangladesh Bank .

The list of items allowed to be purchased from the Bangladesh tariff area in local currency for use in EPZs includes:

 

EXPORTS FROM EPZ

Sales of Bangladesh goods against payment in

foreign currency are treated as exports.

Concerning the repatriation of export procedures.

exports made from EPZs must be declared to

Customs using export forms .

as per conditions of export letter of credit/

export agreement will be treated as valid documents

air waybill and other title documents of export

consignments

Imports to EPZEPZ enterprises must submit six copies of an import declaration.

The import declaration will be registered in the

customs station.

Then, five copies of the declaration will be

handed over to the importer or authorized agent.

The import declaration will be endorsed as

"Passed out of Customs Control" by an authorized

officer.

The goods will be escorted from the port to the EPZ enterprises without examination.

LABOUR ISSUES IN EPZ BEPZA is vested with the responsibility to administer labour matters for all enterprises located in EPZs. Minimum wages in EPZs are set as follows:

Minimum wages (monthly)

Apprentice/trainee US$ 22.00

Unskilled US$ 38.00

Semi-skilled US$ 45.00

Skilled US$ 63.00

Other benefits include conveyance allowance, house rent, medical allowance and festival bonus.

Why Invest in Bangladesh EPZ?

•LAW & ORDER SITUATION INFRASTRUCTURE FACILITIES

REDUCTION OF LEAD TIME COST OF DOING BUSINESS •FRIENDLY POLICY OF GOVT

INCENTIVES WIN – WIN VENTURES

EPZ-Comilla EPZ-Ishwardi EPZ-

Karnaphuli EPZ-Mongla

EPZ-Dhaka EPZ-Uttara EPZ-Adamjee EPZ-Chittagong

Bangladeshi EPZs at a glance

View EPZ's Location in map>>

Madamee EPZ

Karnaphuli EPZ

Dhaka

Uttara

Adamjee

Chittagong

Comilla

Ishwardi

Karnaphuli

Mongla

Contact Information:Bangladesh Export Processing Zones Authority (BEPZA) BEPZA COMPLEX, HOUSE: 19/D, ROAD: 6, DHANMONDI R/A,DHAKA, BANGLADESH.Phone :   +880 2 8650058

Chittagong Export Processing Zone (EPZ-CTG) South Halishahar, Chittagong.Phone:   +880 31 741446

Dhaka Export Processing Zone (EPZ-DAK) Ganakbari, Savar, Dhaka.Phone:   +880 2 7789002

Mongla Export Processing Zone (EPZ-MON) Mongla, BagerhatPhone: +880 04662 75199

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Contact Information:Comilla Export Processing Zone (EPZ-COM) Airport Area, ComillaPhone: +880 081 77055

Ishwardi Export Processing Zone (EPZ-ISD) Ishurdi, PabnaPhone: +880 07326 63962

Uttara Export Processing Zone (EPZ-UTR) Shongalshi, NilphamariPhone: +880 0551 61586 

Adamjee Export Processing Zone (EPZ-ADM) Adamjee Nagar, Siddirgang, NarayangangPhone: +880 2 7692938

Karnaphulai Export Processing Zone (EPZ-KAR) Karnaphuli, Chittagong Phone: +880 31 2501469

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Overview of EPZ (2011)

Name of EPZ

No. of industries Investment

(m US$)Export (m US$) Employmen

t

Manufacturing

Underimplementation

Chittagong

161 15 801.8612,384.1

21,55,12

1

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 1,935.8623,548.7

1282,39

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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

2010-11 313.23 117.69

2011-12 ( March,12) 264.68 2382.38

Growth (2010-2011) 41%

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