Duty Exemption and Drawback Office

The Government of Bangladesh has announced a number of supportive inducements for enhancing exports. Along with other facilities like bonded warehouse benefits, cash incentive and duty-exemption, exporters are also allowed to claim duty drawback. Except a very few exemption, Duty Drawback is entitled to those who are not enjoying the bonded warehouse and cash incentive facilities.

Duty Drawbacks are allowed on the duties and indirect taxes paid for inputs and utilities for export. Exporters and deemed exporters can claim drawback against duties paid on the goods/services or raw materials in the form of VAT, import duty, supplementary duty and other duties and also the VAT paid on the utilities. They may also get drawback on gas and electricity consumed at the stage of production of goods exported. Embassies, High Commissions, Diplomats, UN System Organizations and other Organizations of diplomatic status notified by the National Board of Revenue get drawback on the amount of VAT (Value Added Tax) and SD (Suplimentary Duty) if any paid against their official local purchases.

Eligible exporters can apply for drawback at the Duty Exemption and Drawback Office, which works under the authority of the National Board of Revenue. The Customs Act, 1969 and VAT Act, 1991 govern the process. Chapter VI of the Customs Act 1969 provides many of the guidelines, since the promulgation of the VAT Act, 1991 drawback can also be claimed under Section 13, Rules 28, 29, 30, 31, 32, 32(a), 33 and 34. There are also some additional SROs that guide the process in detail.