BEZA permit must for EZ units to sell goods locally

Staff Correspondent | Published: 03:16, Jan 09,2018

 
 

Factories located at the economic zones will need to obtain local sales permit (LSP) from the Bangladesh Economic Zone Authority to sell finished goods in the local market for consumption.
Factories will also have to receive local procurement permit (LPP) from BEZA to enjoy duty and tax free benefits at purchasing raw materials and semi-finished goods from local market under the bonded warehouse scheme of the National Board of Revenue.
The revenue board on Thursday issued a gazette notification in this connection amending its standing order on the Customs (Economic Zones) Procedures-2017.
Customs officials on Monday told New Age that NBR amended the order to facilitate factories at collecting raw materials from domestic market and selling finished products in the domestic market.
They said that in the original order the NBR allowed duty-free raw materials import benefit to only export-oriented enterprises as the government planned the zones for export-oriented factories.
Later, BEZA opened the zones also for domestic industries and commercial enterprises.
According to the NBR’s amended order, manufacturing or processing units will have to apply to BEZA for obtaining LPP to procure raw materials and semi-finished materials from domestic market without paying applicable duty and taxes against bond licence for further processing and export or domestic sales.
Generally, only advance trade VAT and advance income tax was applicable on local procurement. There was also no VAT on many raw materials particularly agricultural outputs while there were very few products on which supplementary duty was applicable in domestic purchase.
BEZA will provide the permit to applicants after examining the applications.
It shall determine the quantity to be approved in an LPP on the basis of approved list of raw materials or semi-finished materials, according to the order.
Customs officer will conduct customs procedures after getting the copy of LPP from the enterprise.
In the same way, BEZA will provide LSP to manufacturing or processing units for sales of finished or semi-finished goods for home consumption.
Earlier in October, the NBR amended the Bangladesh Economic Zone Warehousing Station Rules relaxing the provision related to sales of finished products in the local market.
With the LSP, factories will now be able to sell their products in the local market after paying duties and taxes applicable only on raw materials imported under the bonded warehouse facility.
Previously, duty and taxes were applicable on finished goods.
On the other hand, factories, that will procure raw materials from domestic market, will have to pay only VAT on raw materials and finished goods during selling those in local market.
Bangladesh Economic Zone Authority is working to establish 100 EZs, both public and private, across the country by 2030. A number of private EZs have already started production activities at factories.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images