NBR Clarifies Solar Power Equipment Import Rules to Ease Customs Clearance

Dhaka, August 17, 2026 — The National Board of Revenue (NBR) on Monday issued a clarification to facilitate the release of imported goods used for solar power generation, amid reports of delays and complications in the assessment of such consignments at different customs houses and land customs stations. The circular, issued under Section 266 of the Customs Act 2023, is expected to reduce procedural complications and facilitate faster clearance of equipment required for solar power generation.

☀️ Key Clarifications in the Circular

The NBR circular addressed several specific issues that had been causing delays in solar equipment clearance:

• 📜 HS Code alignment — Solar Photovoltaic/Module/Panel confirmed under HS Code 8541.43.00
• 📜 Dual notification coverage — both capital machinery and renewable energy notifications cover solar panels
• 📜 Multiple items in single Bill of Entry — importers can declare multiple solar items with appropriate CPC codes
• 📜 Solar inverter HS Code correction — HS Code 8504.40.40 (correct) vs 8504.40.90 (erroneous in June 8 notification)
• 📜 Product description prevails — over HS Code error for concessional benefits

💰 Duty Structure: Manufacturers vs Commercial Importers

The NBR clarified the duty structure for different importer categories:

• 🏭 Manufacturing enterprises — 1% customs duty only, for installing solar plants (subject to conditions)
• 🏢 Commercial importers — 1% customs duty + 7.5% advance tax + 5% advance income tax
• 📜 Advance tax adjustable — advance tax and AIT subsequently adjustable
• 📅 June 8 notification — renewable solar power generation and supply notification referenced

🚧 The Problem: Customs Delays

The clarification was issued amid reports of delays and complications in the assessment of solar equipment consignments at customs houses and land customs stations. These delays were caused by:

• 🚧 HS Code confusion — solar inverter HS Code error in original notification
• 🚧 Multiple notification overlap — importers unsure which notification benefits apply
• 🚧 Single Bill of Entry limitation — multiple solar items in single declaration unclear
• 🚧 Assessment delays — customs officials unsure of applicable duty rates
• 🚧 Consignments stuck — at customs points awaiting clarification

☀️ Strategic Context: Bangladesh Solar Power Push

The NBR clarification supports Bangladesh's broader push for solar power and renewable energy expansion — which is a key element of the government's energy diversification strategy as the country grapples with a severe gas crisis that has halted production at over 100 factories. Solar power offers several strategic advantages:

• ☀️ Domestic energy source — reduces dependence on imported LNG and gas
• 💰 Forex savings — reduces dollar demand for energy imports
• 🟢 Climate compliance — supports EU Green Deal and ESG requirements
• 🏭 Industrial application — factories installing rooftop solar for self-generation
• 🌐 LDC graduation alignment — renewable energy capacity strengthens post-LDC competitiveness

The Finance Minister has warned that the energy crisis will take at least two years to resolve — making accelerated solar deployment critical as a bridge to energy security. By reducing customs clearance delays for solar equipment, the NBR clarification directly supports faster solar plant installation — which can help factories reduce their dependence on gas-based grid electricity and captive power generation.

📊 Impact on Different Stakeholders

The NBR clarification benefits several categories of solar power stakeholders:

• 🏭 Manufacturing enterprises — can import solar equipment at 1% duty for factory rooftop solar installations
• 🏢 Commercial solar importers — can clear consignments faster with clarified duty structure
• 🚢 Solar project developers — faster customs clearance reduces project timelines
• 💰 Investors — reduced uncertainty supports solar investment decisions
• 🌐 Climate goals — faster solar deployment supports Bangladesh's renewable energy targets

The clarification also addresses a specific barrier that had been slowing Bangladesh's solar energy expansion — the administrative complexity of importing solar equipment through customs. By providing clear guidance on HS Codes, CPC declarations, and applicable duty rates, the NBR has removed a significant procedural obstacle to the country's renewable energy buildout — supporting both industrial competitiveness and climate resilience in the critical period leading up to and following LDC graduation.

For Bangladesh's manufacturing sector — which has been severely affected by gas shortages that halted production at over 100 factories — the ability to quickly import and install solar panels and inverters at reduced duty rates offers a critical alternative energy pathway. Many factories are already exploring rooftop solar installations to reduce dependence on unreliable gas supply and to achieve the ESG compliance that international buyers increasingly demand. The NBR's clarification will help these factories accelerate their solar deployment timelines by removing the customs clearance bottleneck that had been delaying equipment delivery and installation.

The clarification also supports the government's broader renewable energy targets — which include a goal of generating 10 percent of electricity from renewable sources by 2030. With domestic gas reserves declining and the energy crisis expected to persist for at least two more years according to the Finance Minister, accelerated solar deployment is not merely an environmental aspiration but a critical component of Bangladesh's energy security strategy. The NBR's proactive clarification demonstrates how fiscal policy instruments can be used strategically to support broader national priorities — in this case, aligning customs duty structures with the country's renewable energy and climate resilience objectives.