Bangladesh has significantly increased its foreign trade volume in recent years thanks to its strong production infrastructure in the textile and apparel sector. By 2025, it is crucial for companies wishing to export or import to this developing market to have detailed information about Bangladeshi customs duty rates, import procedures, and required documents.
In this article, we have compiled all the important information regarding foreign trade processes with Bangladesh for you.
How Are Customs Duties Applied in Bangladesh?
Bangladesh imposes various tax items on foreign trade transactions. In addition to customs duties, you may also encounter taxes such as VAT, Regulation Duty (RD), and Onward Trade Duty (AIT) on import transactions.
Tax Types Applied in Bangladesh:
Customs Duty (CD): 5%–25%
VAT (VAT): Generally 15%
AIT (Advanced Trade Tax): 5%
Regulatory Duty (RD): 3%–20%
Supplementary Duty (SD): 0%–100% (especially for luxury items)
These rates vary depending on the product's HS code and category.
Bangladesh Customs Duty Rates (Sector-Based - 2025)
Product Group Average Customs Duty + Additional Taxes
Electronic Products 10% - 25% (including VAT)
Textiles and Fabrics 5% - 15%
Chemicals and Dyes 10% - 20%
Agricultural and Food Products 5% - 25%
Luxury Consumer Goods 25% - 100% (including SD)
Automotive Parts 15% - 40% (including AIT and RD)
Documents Required for Importing to Bangladesh
Commercial Invoice
Packing List
Bill of Lading / Air Waybill
Certificate of Origin
Import Declaration
Product Certificates (if applicable) (For products with special regulations)
HS Code (GTIP)
Registration in the name of the importer in Bangladesh
Note: For some products, obtaining a pre-import license (Import License) is mandatory.
Free Trade and Trade Agreements with Bangladesh
Bangladesh does not yet have a direct Free Trade Agreement with Turkey. However, under the Special GSP Programs for Developing Countries (Generalized System of Preferences), products imported from certain countries may receive tax advantages.
In addition, Bangladesh pursues policies to facilitate trade with D-8 Economic Cooperation and SAARC (South Asian Regional Cooperation) countries.
Exporting from Bangladesh
Bangladesh exports are tax-free, and policies that encourage exports are implemented. Numerous support programs are available for companies operating in the textile and apparel sectors, such as tax exemptions, low-cost production, and free zones (EPZs).
Export Advantages:
No VAT on exports
Free zone incentives
High labor potential
Special export supports for the textile sector
Bangladesh Customs Practices and Tips
HS Code-Compliant Product Classification: Tax calculations are made directly based on GTIP codes.
Advanced Trade Tax (AIT): This item applies to all products and increases the total tax burden.
Online Customs Systems: Bangladesh has shifted its focus towards digitalization in recent years, and import declarations can be submitted online through the ASYCUDA World system.
License Requirements: An import license is mandatory for pharmaceuticals, food, and some technology products.
Advantages and Challenges of Foreign Trade with Bangladesh
Advantages:
Extensive textile supply chain
Low production and labor costs
Export incentive policies
Strategic port access (Chittagong, Mongla)
Things to Consider:
The tax system is complex and multilayered
Customs clearance can be time-consuming
High regulatory duty rates (especially for luxury goods)
Working with local partners simplifies transactions
Conclusion: The Bangladeshi Market is an Emerging Opportunity
Bangladesh, with its low production costs and growing domestic market, offers great potential for companies seeking foreign trade. However, customs duty rates and import procedures must be carefully managed. For companies wishing to import by 2025, accurate product classification, document preparation, and strong relationships with local business partners will be crucial.