Epz(Export Processing Zone)

2. Presentation
on
Export Processing Zone

3. Prepared for
Tanvir Ahmad Torophder
Lecturer
Department of Business Administration
Leading University, Sylhet.

4. Prepared by

5. 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.

6.  
,  .
 
ع BEPZA stands for Bangladesh Export Processing Zone
Authority.
ع created in 1980.
ع the official body to promote, attract and facilitate foreign
investment in EPZs.
ع The government adopted an 'Open Door Policy' to attract
foreign investment to Bangladesh.
ع An EPZ is defined as a territorial or economic enclave in
which goods may be imported and manufactured.
About BEPZA:

7. BEPZA - Official (Executive Office)




Major General A T M Shahidul IslamExecutive 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

8. EPZ Provides:
»Plots/factory BLDG in custom bonded area
»Infrastructural facilities
»Administrative facilities
»Fiscal & non-fiscal incentives
»EPZ attracts : foreign & local investment

9. 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

10. 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.

11. 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

12. SETTING-UP FIRMS IN EPZs
Bangladesh 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.

13. 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.

14. 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

15. 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;

16. 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:

17. 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

18. Imports to EPZ
EPZ 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.

19. 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.

20. 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

21. EPZ-Comilla EPZ-Ishwardi EPZ-Karnaphuli EPZ-Mongla
EPZ-Dhaka EPZ-Uttara EPZ-Adamjee EPZ-Chittagong
Bangladeshi EPZs at a glance

22. View EPZ's Location in map>>
Madamee EPZ
Karnaphuli EPZ
Dhaka
Uttara
Adamjee
Chittagong
Comilla
Ishwardi
Karnaphuli
Mongla

23. Contact Information:
Bangladesh Export Processing Zones Authority (BEPZA)
BEPZA COMPLEX, HOUSE: 19/D, ROAD: 6, DHANMONDI R/A,
DHAKA, BANGLADESH.
Phone :   [phone]
Chittagong Export Processing Zone (EPZ-CTG)
South Halishahar, Chittagong.
Phone:   [phone]
Dhaka Export Processing Zone (EPZ-DAK)
Ganakbari, Savar, Dhaka.
Phone:   [phone]
Mongla Export Processing Zone (EPZ-MON)
Mongla, Bagerhat
Phone: [phone]
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24. Contact Information:
Comilla Export Processing Zone (EPZ-COM)
Airport Area, Comilla
Phone:[phone]
Ishwardi Export Processing Zone (EPZ-ISD)
Ishurdi, Pabna
Phone:[phone]
Uttara Export Processing Zone (EPZ-UTR)
Shongalshi, Nilphamari
Phone:[phone]
Adamjee Export Processing Zone (EPZ-ADM)
Adamjee Nagar, Siddirgang, Narayangang
Phone:[phone]
Karnaphulai Export Processing Zone (EPZ-KAR)
Karnaphuli, Chittagong
Phone:[phone]
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25. Overview of EPZ (2011)
Name of
EPZ
No. of industries
Investment
(m US$)
Export
(m US$) Employment
Manufacturing
Under
implementation
Chittagong 161 15 801.8612,384.121,55,121
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 27 110.98 143.3514,163
karnaphuli 23 27 118.34 166.9716,501
Total 351 114 1,935.8623,548.71282,392

26. 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%

28. -:: Question ? Please ::-