Bangladesh to Extend Bonded Warehouse Facilities to All Export Sectors in Major Policy Shift

According to reports from The Business Standard and Textile Today, Bangladesh Finance and Planning Minister Amir Khosru Mahmud Chowdhury has announced a landmark policy shift that will extend duty-free bonded warehouse facilities to all export-oriented industries. Historically, these facilities have primarily benefited the country’s dominant readymade garment (RMG) sector. The government’s decision aims to diversify the national export basket, lower the cost of doing business, and encourage non-traditional sectors.

Minister Amir Khosru highlighted that sectors such as gold jewelry and diamond cutting stand to benefit significantly from this reform. “Anybody exporting anything from Bangladesh will be given permission for bonded warehouses,” the minister stated, emphasizing the government’s commitment to creating an inclusive trade environment. This move is expected to level the playing field for smaller and emerging export sectors that previously struggled under high import duties for raw materials.

In addition to expanding access, the government plans to simplify the administrative and licensing procedures associated with bonded warehouses. Under the new framework, exporters will no longer face the administrative burden of annual license renewals. Instead, audits will be conducted only once every three to five years. This change is designed to reduce bureaucratic hurdles and prevent administrative harassment. Minister Amir Khosru reassured the business community, stating, “There will be no harassment on bond anymore. We will not allow that.”

For global buyers and local manufacturers, this policy represents a significant reduction in operational friction. By lowering import duties on raw materials used for export goods across all sectors, Bangladesh is positioning itself as a more competitive global manufacturing hub. Non-RMG sectors can now scale operations with reduced capital requirements, fostering innovation and diversification in the country’s export profile. The simplification of the licensing process is another critical component of this reform. Previously, the annual renewal of bonded warehouse licenses was a source of significant delays and administrative bottlenecks for businesses. By moving to an audit cycle of three to five years and eliminating annual renewals, the government aims to streamline supply chains and enhance ease of doing business. This policy shift is expected to attract foreign direct investment (FDI) into non-traditional sectors like high-value jewelry and precision cutting, which require secure and cost-effective storage solutions. As global supply chains continue to seek diversification, Bangladesh’s regulatory easing could make it an attractive alternative to other regional manufacturing hubs.

Industry analysts note that the readymade garment sector’s long-standing monopoly on bonded warehouse privileges had inadvertently suppressed the growth of other manufacturing sectors. By removing these barriers, the government is actively encouraging local entrepreneurs to venture into high-value, non-traditional exports. The reduction of audit frequencies to a three-to-five-year cycle is also expected to free up administrative resources for both businesses and customs officials, allowing for a more efficient oversight mechanism. Ultimately, this reform represents a comprehensive restructuring of Bangladesh’s trade infrastructure, aimed at transitioning the nation from a single-sector export economy to a diversified global trading partner.