How import duty is calculated in Bangladesh
Customs first finds the assessable value (AV): the CIF value (cost + insurance + freight) converted to taka at the customs exchange rate, plus a landing charge. Every duty is then worked out in a fixed order:
- Customs duty (CD) = AV × CD rate (0%, 1%, 5%, 10%, 15% or 25%).
- Regulatory duty (RD) = AV × RD rate.
- Supplementary duty (SD) = (AV + CD + RD) × SD rate.
- VAT = (AV + CD + RD + SD) × VAT rate, usually 15%.
- Advance income tax (AIT) = AV × AIT rate.
- Advance tax (AT) = (AV + CD + RD + SD) × AT rate.
The sum is the total tax incidence (TTI). Finished consumer goods commonly carry a TTI of 58% or more of AV; basic raw materials and capital machinery are much lower.
Example
Goods of $10,000 FOB + $800 freight, insurance 1%, at ৳122/$: CIF ≈ ৳13,30,776 and AV with 1% landing ≈ ৳13,44,084. At CD 25%, RD 3%, VAT 15%, AIT 5% and AT 5% the TTI comes to about ৳7,87,600 — 58.6% of AV.
What you get back
- VAT and AT are claimable as input tax credit in your Mushak-9.1 return if you are VAT-registered.
- AIT is adjusted against your final income tax.
- CD, RD and SD are a real cost and belong in your product cost.
Find your exact rates
Rates depend on the 8-digit HS code of the product and change every budget. Look up your HS code in the Bangladesh Customs operative tariff, then type the rates into the calculator.
Eleven POS
elevenpos.online