Bangladesh Export Policy 2021-24: Complete Guide for Foreign Buyers

Bangladesh Export Policy 2021-24: Complete Guide for Foreign Buyers

The Bangladesh Export Policy 2021-24, issued by the Ministry of Commerce, is the primary policy document governing the country's export regime. This comprehensive guide summarizes the key provisions that international buyers need to understand when sourcing from Bangladesh, including prohibited items, restricted exports, incentive schemes, and regulatory requirements.

Overview of the Export Policy

The Export Policy 2021-24 aims to diversify Bangladesh's export basket, reduce dependence on the RMG sector (currently 80.6% of exports), and promote emerging sectors like pharmaceuticals, IT services, and light engineering. The policy introduces several new incentive schemes, simplifies export procedures, and strengthens compliance requirements. It aligns with the government's vision of achieving $80 billion in annual exports by 2024 and $150 billion by 2030.

Prohibited Exports

The following items are completely prohibited from export from Bangladesh: arms and ammunition, narcotics and psychotropic substances, antiquities and archaeological items (without government permission), wildlife products protected under CITES, human organs, and counterfeit currency. Buyers should ensure that their sourcing categories do not fall under these prohibitions. The full list is available in Schedule I of the Export Policy document.

Restricted Exports (Require License)

Certain items can be exported only with a special license from the Chief Controller of Imports and Exports (CCI&E). These include: raw jute (during periods of domestic shortage), leather hides (during Eid-ul-Adha for domestic supply), certain agricultural products (during lean seasons), and items subject to international quotas or agreements. Buyers should check with their supplier whether any export restrictions apply to their products.

Cash Assistance (Export Subsidy) Scheme

The government provides cash assistance (direct subsidy) on exports of selected products. Current rates: jute products 7%, frozen shrimp 10%, tea 4%, rice 5%, bicycle 12%, agro-processed products 10%, leather footwear 5%, software/IT 10%, and pharmaceuticals 15%. This cash assistance is paid to the exporter's bank account within 60 days of export realization. Buyers benefit indirectly as the subsidy allows suppliers to offer 3-7% lower FOB prices.

Bonded Warehouse Facility

Export-oriented manufacturers can import raw materials duty-free under the bonded warehouse scheme, provided the finished goods are exported within 12 months. This is the most important fiscal incentive for RMG, leather, electronics, and pharmaceutical exporters. The facility requires a bank guarantee equal to the duty amount and quarterly utilization reports. Buyers sourcing from bonded warehouse license holders benefit from lower input costs, allowing suppliers to offer more competitive export prices.

Duty Drawback Scheme

Exporters who import raw materials through normal duty-paid channels can claim a refund of customs duties through the duty drawback scheme. The NBR processes drawback claims within 60-90 days through its online portal. Two methods are available: Brand Rate (actual duty paid) and All-Industry Rate (fixed rate per unit based on SION). See our detailed guide on duty drawbacks for more information.

Export Registration Certificate (ERC)

Every exporter must hold a valid ERC issued by the EPB. The ERC must be renewed annually and specifies the product categories the exporter is authorized to export. Buyers should verify their supplier's ERC at the EPB exporter database (edb.epb.gov.bd) before placing an order. An expired or invalid ERC means the supplier cannot legally export.

Certificate of Origin (CO)

The EPB issues three types of Certificates of Origin: Form A (for GSP markets including EU EBA), Form JP (for Japan under the 2026 EPA), and generic CO (for non-preferential trade). The CO is essential for buyers to claim preferential duty rates at their destination customs. The application is filed online at co.epb.gov.bd, with the digitally signed CO issued within 24 hours. Rules of origin vary by agreement — buyers should specify which CO form they need in the purchase order.

Quality and Labeling Requirements

The Export Policy mandates that all export products meet quality standards prescribed by BSTI (Bangladesh Standards and Testing Institution). Mandatory BSTI certification applies to rice, tea, sugar, pharmaceuticals, ceramics, and electrical goods. Labeling requirements include: country of origin, manufacturer's name and address, product description, net weight/quantity, and manufacturing/expiry date (for food items). Buyers should request BSTI certification copies from their suppliers.

Impact on International Buyers

For international buyers, the Export Policy 2021-24 provides a stable and transparent regulatory framework for sourcing from Bangladesh. Key takeaways: (1) most products can be freely exported with an ERC; (2) cash assistance and bonded warehouse facilities keep export prices competitive; (3) the CO process is streamlined and digital; (4) quality standards are enforced through BSTI; (5) the policy actively promotes diversification into non-RMG sectors. Buyers should work with suppliers who understand and comply with these regulations to ensure smooth export operations.

The full Export Policy 2021-24 document is available at the Ministry of Commerce website (mincom.gov.bd). For specific questions, contact the EPB at epb.gov.bd.