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Export Guide · Step 6 of 8
Step 6: Apply for Bonded Warehouse License (If Applicable)
If you import raw materials for export production, apply for a Bonded Warehouse License from NBR. This allows duty-free import of inputs, with reconciliation via input-output norms. Critical for RMG, leather, electronics exporters.
Export Guide — Your progress
Step 6 of 8
If you import raw materials for export production, apply for a Bonded Warehouse License from NBR. This allows duty-free import of inputs, with reconciliation via input-output norms. Critical for RMG, leather, electronics exporters.
Full Guide
The Bonded Warehouse facility is one of the most valuable incentives for Bangladeshi exporters. It allows you to import raw materials, packaging, and intermediate inputs without paying any customs duty, VAT, or supplementary duty upfront — provided these inputs are used in the production of goods that will be exported. The facility is administered by the National Board of Revenue (NBR) under the Customs Act 2023.
Bonded warehouse licensing is mandatory for: 100% export-oriented RMG factories (all BGMEA/BKMEA members), leather and footwear exporters, electronics and electrical goods exporters, pharmaceutical API manufacturers, and any company importing more than USD 100,000 worth of raw materials annually for export production. It is optional (but recommended) for agro-processors, jute goods manufacturers, and light engineering exporters.
The application process involves: submitting Form BG-1 to NBR with company documents (ERC, TIN, BIN, factory layout, environmental clearance), obtaining an Input-Output Norms (ION) certificate from the sector association (which specifies how much raw material is needed per unit of finished export), and a security deposit of BDT 5-10 lakh (refundable). NBR conducts a factory inspection to verify storage facilities, security arrangements, and accounting systems.
Once licensed, the bonded warehouse operates on an audit-based reconciliation system: you import raw materials duty-free (Form BG-3), use them in production, export the finished goods, and then file a reconciliation return (Form BG-5) within 6 months showing input consumption. Any unused raw materials must be either re-exported or duty paid. The system requires robust inventory management — most factories use ERP systems to track every metre of fabric or gram of leather.
Key compliance requirements: separate bonded warehouse area (physically secured), monthly stock reports to NBR, annual audit by NBR-appointed chartered accountant, and immediate reporting of any loss/theft. Non-compliance can result in license suspension and demand for duty payment on the unreconciled inventory.
Bonded warehouse licensing is mandatory for: 100% export-oriented RMG factories (all BGMEA/BKMEA members), leather and footwear exporters, electronics and electrical goods exporters, pharmaceutical API manufacturers, and any company importing more than USD 100,000 worth of raw materials annually for export production. It is optional (but recommended) for agro-processors, jute goods manufacturers, and light engineering exporters.
The application process involves: submitting Form BG-1 to NBR with company documents (ERC, TIN, BIN, factory layout, environmental clearance), obtaining an Input-Output Norms (ION) certificate from the sector association (which specifies how much raw material is needed per unit of finished export), and a security deposit of BDT 5-10 lakh (refundable). NBR conducts a factory inspection to verify storage facilities, security arrangements, and accounting systems.
Once licensed, the bonded warehouse operates on an audit-based reconciliation system: you import raw materials duty-free (Form BG-3), use them in production, export the finished goods, and then file a reconciliation return (Form BG-5) within 6 months showing input consumption. Any unused raw materials must be either re-exported or duty paid. The system requires robust inventory management — most factories use ERP systems to track every metre of fabric or gram of leather.
Key compliance requirements: separate bonded warehouse area (physically secured), monthly stock reports to NBR, annual audit by NBR-appointed chartered accountant, and immediate reporting of any loss/theft. Non-compliance can result in license suspension and demand for duty payment on the unreconciled inventory.
Do-This Checklist
- Confirm if your sector requires bonded warehouse (RMG = mandatory)
- Apply for Input-Output Norms (ION) certificate from sector association
- Prepare bonded warehouse physical area (secured, weatherproof)
- Submit Form BG-1 to NBR with all documents
- Pay security deposit (BDT 5-10 lakh, refundable)
- NBR factory inspection (storage, security, accounting)
- Receive Bonded Warehouse License (valid 3 years, renewable)
- Set up ERP/inventory system for input-output tracking
Common Pitfalls to Avoid
- Not applying for ION certificate first — BG-1 rejected
- Bonded warehouse area not physically separated — license denied
- Poor inventory tracking — reconciliation fails, duty demanded
- Filing BG-5 reconciliation late — penalty 2% per month of duty value
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