Customs Bond License

In Bangladesh, the Customs Bond License is governed by the Customs Act of 1969. Businesses that are 100% export-oriented qualify for bond facilities, granting them the privilege to import intermediate goods and raw materials duty-free for the production of exportable goods.

Chittagong serves as Bangladesh's second Bond Commissionerate. The Regional Office there began its activities on 25/03/2001 AD. Recognizing the long-standing requirements of the business community in the country's largest industrial city, Chittagong was upgraded to a full-fledged commissionerate in August 2011. To facilitate foreign exchange earnings, accelerate exports, and boost international trade, the Government of Bangladesh extends bonded warehouse facilities to exporters. Operations related to Customs Bonded Warehouses are governed by Section 13 and Sections 74-119 of the Customs Act, 1989. For the management of Customs Warehouses, all circulars, office orders, standing orders, and directives issued by the Commissioner of Customs Bonds or the National Board of Revenue at different times are deemed equally applicable alongside the laws and rules. Office Locations: The Customs Bond Commissionerate maintains two offices: 1. Customs Bond Commissionerate, 342/1, Segunbagicha, Ramna, Dhaka. 2. Customs Bond Commissionerate, 42, M. M. Ali Road, Lalkhan Bazar, Chittagong. In other instances, the relevant Custom House or VAT Commissionerate manages the Bonded Warehouses within their jurisdiction.

Generally, bonded warehouses are categorized into two types based on the raw materials utilized, the purpose of usage, and the nature of the export: 1. Special Bonded Warehouse (SBW): This license is granted to 100% export-oriented garment industry organizations. This includes industries producing oven garments, knit garments, and sweaters. 2. General Bonded Warehouse (GBW): This license is issued to 100% export-oriented industrial establishments, excluding those in the garment industry. There are 7 (seven) types of establishments under the General Bonded Warehouse category: • 100% export-oriented latent exporters (industries manufacturing accessories like packing/cartons, labels, polybags, hangers, zippers, buttons, padding, etc.). • 100% export-oriented tanneries. • 100% export-oriented shipbuilding industry. • Home Consumption Bonded Warehouse. • Diplomatic bonds. • Bond institutions within Export Processing Zones (IACs). • 100% export-oriented covert-to-covert export organizations.

In managing bonded warehouses, the Customs Bond Commissionerate executes the following functions: • Bond license issuance. • Renewal of 100% export-oriented latent bond licenses. • Auto-renewal of 100% export-oriented garment and knit garment bond licenses. • Change of ownership of the bond license. • Approval of factory relocation applications. • Execution of General Bonds. • Annual audit. • Permanent inter-bond transfer. • No Objection Letter for Unloading Imported Goods (if General Bond is not valid). • Bank Guarantee Release (in case of latent exporter). • Bank Guarantee Release (in case of Direct Exporter). • Issuance of bond license in new format. • Lien Bank Additions.

• What is a bond license in Bangladesh? It is a Customs Bond License in Bangladesh. As per the Customs Act, 1969, 100% export-oriented businesses are eligible to receive bond facilities. This permits them to import raw materials and intermediate goods without duty for manufacturing products destined for export. • How to get bond license in Bangladesh? To obtain a Customs Bond License in Bangladesh, you must apply to the Customs Bond Commissionerate by submitting a completed application form along with the required documents and paying the necessary fees. • What is a bonded warehouse License / certificate? A bond certificate is a physical document representing ownership of a bond, issued by a Customs Bond Commissionerate under the National Board of Revenue (NBR).