About Entitlement

About Entitlement

Bond Entitlement: Bonded warehouse facilities are subject to yearly entitlement. Yearly entitlement is allowed based on production capacity of capital machinery and previous year’s performance (i.e. export and usage of raw materials) of the bonder. However, direct exporters in the RMG sector are not required to have annual entitlement. They can import inputs/raw materials and related items based on the requirement of Utilization Declaration (UD) and Master LCs. Entitlement of raw materials required are determined using input-output coefficient.

Requirement of General Bond: Bonded warehouse license holders are needed to submit general bond of differing values to Customs in order to clear their consignments. Commissioner of Customs may increase the value of General Bond. At present, value of general bond for different types of bond license holders are as follows:

1. Deemed Exporter: Tk. 10,000,000
2. Direct exporters (Knit, Woven, Sweater): Tk. 30,000,000
3. Both Deemed and Direct Exporter: Tk. 20,000,000
4. Diplomatic, Duty Free and Duty paid Bond: Tk. 30,000,000

All the imported goods cleared under Bonded Warehouse license are stored at the bond holder's warehouses. In case of failure to export, importers are to pay duty charges and taxes for the rest of the goods imported. Bondholders are required to maintain bond registers and other documents. Bonded warehouses are subject to mandatory yearly audit.