Export Processing Zones

EPZs in Bangladesh play a significant role in attracting foreign direct investment as well as in involving local investment, which jointly contribute to an overall increase in the country's volume of exports and in its earnings of foreign exchange. Foreign exchange earned through exports by EPZ enterprises reduces deficits in the country's balance of payments. A part of it is converted into local currency to be spent on procurement of goods and services from the local economy.

More than 30 countries including Japan, South Korea, Hong Kong, Thailand, Sri Lanka, China, Taiwan, Malaysia, Indonesia, Singapore, USA, UK, Australia, Canada, Germany, France, Italy, Sweden, Netherlands, Switzerland, India, and Pakistan have so far invested in different projects in the EPZs in Bangladesh. Readymade garments manufacturing units account for the largest number of units in the country's EPZs.

In order to stimulate rapid economic growth of the country, particularly throughindustrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. 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, free from cumbersome procedures.

Reason For Setting EPZs In Bangladesh

EPZs set up in Bangladesh due to various reasons Major reason among them is expedites export activities and stimulates rapid economic growth.

Some others are :

  • Enhance industrialization
  • Adopted with Open door policy i.e. Globalization
  • Attract foreign investment
  • Provide special areas where potential investor would get congenial investment climate.
  • Smooth export procedure, free from cumbersome procedures
  • Development export promotion strategy
  • More employment generation
  • Development of export oriented industries
  • Proper use of domestic available raw materials

Objective of BEPZA

  • Boost up Foreign and Local Investment
  • Accelerate Volume of Export
  • Create Job Opportunity
  • Poverty Alleviation
  • Transfer of Technology and Skill Development
  • Development of Backward and Forward Linkage Industries
  • Promote Accessories and Supportive Service Enterprises

Why Invest in EPZs of Bangladesh

  • Congenial Investment Climate
  • Industrial Friendly Atmosphere
  • Peaceful working Environmen
  • Good Infrastructure Facilities
  • Reduction of Lead Time
  • Less Cost of Doing Business
  • Better Law & order situation
  • Business Friendly Govt. Policy
  • Attractive Incentives
  • Win – Win Ventures

Bangladesh Export Processing Zones - Facilities & Incentives

EPZ Incentives (Fiscal)

  • Tax Holiday
  • Duty Free Export & Import
  • Exemption From Dividend Tax
  • Relief from double taxation
  • GSP Facility Available
  • Duty & Quota Free Access To EU (EBA), Canada, Norway, Australia, Japan

EPZ Incentives (Non Fiscal)

  • 100% Foreign Ownership Permissible
  • Enjoy MFN (Most Favored Nation) Status
  • No Ceiling On Foreign Investment
  • Foreign Currency loan from abroad under direct automatic route
  • Full Repatriation Of Capital & Dividend
  • BEPZA Accords Recommendation For Residentship / Citizenship

Other Facilities

  • No UD, IRC, ERC and renewal of Bond license
  • Work permits issued by BEPZA
  • Secured and protected bonded area
  • Off-Shore banking available
  • Import on Documentary Acceptance (DA) basic allowed
  • Back to Back L/C
  • Import and Export on CM basis allowed
  • Import from DTA (Domestic Tariff Area)
  • 10% sale to DTA (Domestic Tariff Area)
  • Customs clearance at factory site
  • Simplified sanction procedure
  • Sub-contracting with export oriented Industries inside and outside EPZ allowed
  • Relocation of foreign industries allowed
  • Accords Resident-ship and Citizenship
  • One Window same day service and simplified procedure.

List of Export Processing Zones in Bangladesh

There are currently eight Export Processing Zones in Bangladesh run by Bangladesh Export Processing Zone Authority (BEPZA):

  • Adamjee Export Processing Zone, Siddhirganj, Narayanganj
  • Chittagong Export Processing Zone, South Halishahar, Chittagong
  • Comilla Export Processing Zone, Comilla
  • Dhaka Export Processing Zone, Savar, Dhaka
  • Ishwardi Export Processing Zone, Ishwardi, Pabna
  • Karnaphuli Export Processing Zone, North Patenga, Chittagong
  • Mongla Export Processing Zone, Mongla, Bagerhat
  • Uttara Export Processing Zone, Nilphamari

If you are interested in setting up your business in an EPZ, the Bangladesh Investment Development Authority (BIDA) will be pleased to advise you and introduce you to BEPZA.

More information:

Bangladesh Export Processing Zones Authority (BEPZA) Bangladesh Investment Development Authority (BIDA)

Mode of Investment in EPZs

Govt. pursues an open door policy in matters of foreign investment in its EPZs. BEPZA is a statutory body but very different from other autonomous organization. It enjoys complete freedom of action in its decision making process. There are 3 types of investments in EPZ.

  • Investment with 100% foreign ownership (Type - ‘ A ' )
  • Joint ventures (Type-‘B’) with no limit to the extent of equity sharing by the foreign partner
  • 100% Bangladeshi ownership (Type-C) are allowed in the EPZs.

According to Bangladesh Export Processing Zone Authority (BEPZA), 60% of investment with type-A, 25% with Type-B and remaining 15% investment is with Type-C in EPZs in Bangladesh.

The manifested target to set up EPZ has been fixed up at rapid industrialization, employment of human resources, transfer of technology and foreign exchange earnings by boosting up export. With this end in view, some targeted efforts have been taken to attract foreign investment and promotion of exports through creation of special infrastructures and support service facilities, giving fiscal and non-fiscal incentives and ensure free trade environment with the EPZ.

EPZs are special enclaves, separated from the Domestic Tariff Area (DTA) by fiscal barriers and are intended to provide an internationally competitive duty free environment for export production at low cost.


  • Economy and GDP

  • Doing Business in Bangladesh

  • Investment in Bangladesh

  • Potential Sectors For Investment

  • Investment Incentives

  • Export Processing Zones

  • Economic Zones Bangladesh

  • Banks in Bangladesh

  • Important Numbers

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