Overview of the Bangladesh Tariff Handbook 2020
Bangladesh's tariff system is a multi-layer structure of Base Duty (CD), Surcharge Duty (SD), Value Added Tax (VAT), Advance Tax (AT/AIT), and Regulatory Duty (RD). In 2020, the average effective tariff rate was about 27%, relatively high by regional standards, with applicable rates ranging from 0-25% (CD) + 0-60% (SD) + 15% (VAT) depending on the HS item. It summarizes the practical information needed for Korean exporters to design an optimal tariff strategy.
Detailed Tariff Structure
The taxes imposed on imports are five types, and each rate is determined by the product's HS classification. Base Duty (CD) applies at 0-25%, Surcharge Duty (SD) at 0-60%, VAT at 15%, Advance Tax (AT 5%/AIT 3%), and Regulatory Duty (RD 3%), which are charged cumulatively.
| Duty Type | Rate | Tax Base | Purpose | Note |
|---|---|---|---|---|
| Base Duty (CD) | 0/5/10/25% | CIF value | Import protection | 4-step simplification |
| Surcharge Duty (SD) | 0-60% | CIF+CD | Luxury goods/protection | Up to 60% on vehicles |
| VAT | 15% | CIF+CD+SD | Value-added tax | Exemptions exist |
| Advance Tax (AT) | 5% | CIF+CD+SD+VAT | Pre-paid income tax | Credited against corporate income tax |
| Regulatory Duty (RD) | 3% | CIF | Additional controls | Applies to certain commodities |
Major Commodity Tariff Rates
This section summarizes effective tariff rates for major Bangladeshi import categories (knitwear/fabrics, steel, machinery, electrical and electronic goods) exported from Korea. Companies operating in Economic Zones (EZs) can receive exemptions for raw materials and machinery duties.
Customs Clearance Procedures and Practical Steps
Clearance is processed through Asycuda World in the sequence of import declaration, tax payment, inspection, and release. Average clearance time is 8-12 days at Chittagong and 5-7 days at Dhaka ICD.