Real Estate Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh

Real Estate Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh

Real Estate & Construction Law in Bangladesh – Rules & Regulations & Everything you need to know

Tahmidur Rahman, Senior Associate, Counsels Law Partners

20 Oct 2019

This post in will explain in details the Real Estate & Construction Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh | Everything about property law that you need to know and be aware of with diagrams and infographics.

 

Real Estate Law in Bangladesh 

At first let’s break down what is real estate Bangladesh before diving down towards Real Estate & Construction Law in Bangladesh . It is important to understand that Real Estate is not the same thing as personal property, and should not be confused. Personal assets include intangible assets such as investments, as well as tangible assets such as furniture and fixtures such as a dishwasher. Even renters may also claim parts of a home as personal property, provided that you have purchased and installed the property with the permission of the lessor.

What is Real Estate? 

Real estate is a property composed of land and its houses, as well as the land’s natural resources, including uncultivated flora and fauna, farmed crops and livestock, soil, and any other mineral deposits. 

 

Real Estate in Bangladesh  

Real estate is both a tangible asset and an immovable form. Definitions of real property include ground, houses and other facilities, as well as the rights to use and enjoy the land and all its amenities. Renters and leaseholders may be entitled to possess land or structures that are considered part of their house, but these rights are not, strictly speaking, considered ownership. Hence:

 

  • Real estate is real, that is, physical, land-based property and everything on it, including houses, flora and fauna and natural resources.
  • Immovable properties have three basic categories: residential, commercial and industrial.
  • Residential real estate is less costly and more viable for individuals when it comes to finance, whereas commercial real estate is more profitable and secure.
  • As an investment, real estate offers income and capital appreciation.

Jurisdiction of Real Estate Law in Bangladesh

Real Estate Development and Management Act 2010 is the authoritative act in regards to Real Estate Law in Bangladesh. In the act Section 2 explains the registration process of Real Estate Developers and their due responsibilities. (Real Estate & Construction Law in Bangladesh )

 

Registration Requirements for Real Estate Developers in Bangladesh 

If someone wants to enter the real estate market in Bangladesh for commercial purposes, the act specifies that he or she will have to submit the following documentation for registration with the agency concerned.

  • Trade License
  • Tax Identification Number (TIN)
  • VAT Registration Number
  • Credentials of experts in your company
  • Memorandum of Association, Article of Association and Certificate of Incorporation
  • REHAB Membership Registration Copy

Buying, Selling, Transferring of Real Estate in Bangladesh

Real Estate Development and Management Act 2010 is the authoritative act in regards to Buying, Selling, Transferring of Real Estate in Bangladesh Real Estate Law in Bangladesh. In the act Section 3 explains the registration of buying, selling and transferring process of Real Estate Developers and their due responsibilities. The buyer or seller can not adjust the quoted price as set out in the deal. The sum can, however, be changed later if the parties agree to jointly use better materials for the land. First, in no longer than three months, the owner will sign over the land, registry and principal deed. Additionally, if the property has any difference with respect to size or volume after sale, the price must be changed within three months of the transfer. So keep these things in mind when you buy a property next time in Bangladesh.

 All Landowners and Developers / Purchasers will not initiate or carry out construction work on the land project’s construction or development work without receiving design permission from the government’s appropriate authority such as RAJUK, CDA, KDA, RDA, etc.

“Counsels Law Partners is Considered as one of the leading firms in Property Law and Real Estate Law Firm in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

The Property Contract in Real Estate Law of Bangladesh 

For a general landlord in Bangladeh, there has to be a legal property contract for any trade. Again it’s a common thing, too. As a homeowner, he or she will obtain for his / her possession a specific portion of the apartment building. But, if the owner wants to auction off his share’s apartments, he will have to enforce an attorney’s power and give the developer the right to sell his share of the house. Instead, as a proprietor of his new apartment, he is allowed by the owner to receive one year of maintenance facility. Additionally, if any errors arise within two years of the handover, the contractor must repair the damage from their wallet.

 

Real Estate Law For Developers in Bangladesh 

Real Estate Developers have to be committed towards the enhancement and growth of the Real Estate Sector of Bangladesh. If they recognize that for sustainable long term growth of this sector, they must conduct their business with a great proficiency, equality, honesty and ethics. Out of the all the parties in the market, a real estate developer has to deal with clause VI. B of the Memorandum and Articles of Association of the Real Estate Housing Association of Bangladesh incorporated under the companies ACT, 1913 (new 1994) the most. Rules and regulations are much rigorous for the real estate developers. For example, if you want to enter the market for commercial purpose, you will have to produce the following documents as stated above to the concerned authority for registration.

How ‘Tahmidur Rahman & Counsels Law Partners Associates’ helps the purchaser of any land in Bangladesh:

Tahmidur Rahman- Counsels Law Partners, Law Firm in Dhaka assists buyers, financiers, shareholders, developers on their land-related matters like property due diligence (domain identification, encumbrance check, ground limit, permissive land usage, building development) related to ownership and occupancy, lease, stamping and registration of papers, zoning and permissible use of lands, essential ambitions.

 Legal Services Offered by Firms in Regards to Real Estate in Bangladesh

 

 

Drafting, look over & negotiating various property documents.

Legal opinion by vetting all property related documents.

Transaction support for all types of real estate schemes including due diligence and title search.

Arbitration and Litigation relating to property related disputes.

Assist and Advice on issues relating to stamp duty and registration.

Advice on matters relating to land tenures including agricultural land issues

Foreign Direct Investment in real estate.

Drafting and reviewing contract

Negotiating and litigating landlord/tenant disputes by serving Legal Notice.

 

Our real estate lawyers department has extensive experience in Bangladesh on different types of real estate ventures. Our main specialist areas cover acquisitions and divestments, selling, investments and other real estate and real estate transfers; legal aspects of residential property and landlord issues; landlords’, renters’ and homeowners ‘ privileges; real estate title; resolution of property rights claims; cost-sharing arrangements with investors and shareholders, growth and expansion financing etc.

Team Tahmidur Rahman | Counsels Law Partners additionally draws on the experience of the Business Law Practice in its practice of Real Estate & Construction Law in Bangladesh . We give guidance on organizing land co-speculation or joint venture project, raising capital, setting up a suitable business vehicle and verified loaning. CLP team assure their client rapidly assemble a multi-disciplinary group of experienced business real estate specialists to address a diverse range of real property needs.

 

 

“For a general landlord in Bangladeh, there has to be a legal property contract for any trade. Again it’s a common thing, too. As a homeowner, he or she will obtain for his / her possession a specific portion of the apartment building. But, if the owner wants to auction off his share’s apartments, he will have to enforce an attorney’s power and give the developer the right to sell his share of the house.”

 

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Employee Rights in Bangladesh and Employer Rights| Labour & Workers Law in Bangladesh| A complete Overview

Employee Rights in Bangladesh and Employer Rights| Labour & Workers Law in Bangladesh| A complete Overview

Employee Rights & Labour Law in Bangladesh – All you need to know about Employment Law 

Tahmidur Rahman, Senior Associate, Counsels Law Partners

2 Oct 2019

This post in will explain in details the Employee Rights & Labour Law in Bangladesh| Labour & Workers Law in Bangladesh| Everything about Employment law that you need to know and be aware of.

Labour/Workers in Bangladesh 

With a population of 168.1 million people, Bangladesh has a huge and cheap workforce of about 90 million, consisting of 60 million agricultural jobs (growing at one percent per year) and 30 million non-agricultural jobs (growing at six percent per annum). Industrial jobs fall mostly within non-agricultural work. All employers are required to follow federal labor laws that prescribe conditions of employment, working hours, salary levels, leave policies, health and health conditions, and insurance for injured workers. Bangladesh constitution guarantees freedom of association and the right to join unions in it’s jurisdiction of Employee Rights & Labour Law in Bangladesh.  

 

Bangladesh’s employment law is regulated by the 2006 Labor Act (“Act”) and the 2015 Labor Rules (“Rules”). The Act and Rules apply to employees (laborers) working in commercial and industrial enterprises. The laws and regulations prescribe working hours, weekly vacations, annual leave, medical leave. It also uses the company’s profits for gratuity benefits, provident funds and participation. 

 

 

Types of Workers in Bangladesh 

 

Workers employed in any institution are graded according to the type and condition of their work in any of the following classes: (a) Apprentice, (b) Substitute / Badli, (c) Casual, (d) Temporary, (e) Probationer, (f) Permanent and (g) Seasonal.

 

  1. Apprentice: As a trainee + Paid allowance only
  2. Substitute/ Badli: In the post of a permanent Worker or of a probation worker
  3. Casual: Casual in nature
  4. Temporary: Temporary in nature + finished within a limited period
  5. Probationer: In a permanent post + the period of his probation
  6. Permanent: He has completed the period of his probation
  7. Seasonal: Any work season and remain in employment up to the end of the season 

 

Conditions of Employment   

 

It is given in the 2006 Bangladesh Labor Act that any establishment may have its own service rule, but the service rule must include all the regulations specified in the Act.
The service rule will then have to be presented to the Chief Inspector. He must accept it if no change is made within 90 days of receipt.
If he does not agree, however, the aggrieved person can pursue an appeal within 30 days to the Court. The Government will then dispose of such an appeal within 45 days and the Government’s order will be final.  

 RECRUITMENT in Bangladesh (Employee Rights & Labour Law in Bangladesh): 

 No employer shall hire any worker without giving a letter of appointment to such worker and a photo identity card shall be given to each such employed worker.

 

“Counsels Law Parnters is Considered as one of the leading firms in Labour Law in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

Working Hours in Bangladesh Labour Law 

 

Some labor law regimes require legislative working time limits. Originally, it was intended to enforce hour limits to ensure a safe and healthy working environment and sufficient rest or leisure time between shifts. However, over the past century, hour limits have become increasingly seen as a way to advance the additional policy objectives of allowing workers to balance their paid work with their family responsibilities and other aspects of their lives, promoting productivity and reducing unemployment. In our country, the 2006 Labor Act lists the daily and weekly basis of working hours, with the overtime hours and their payment.

 

Under the provisions of Employee Rights & Labour Law in Bangladesh, it is brought up the working hours of a worker, such as:

 

  1. Daily Working Hour: Up to 8 hours per day.
  2. Interval for Rest or Meal:

 

Shift exceeding 6 hours: 1-hour break

 

Shift of 5 hours: 30 minutes

 

Shift of 8 hours: i) Two 30 minutes break, or ii) One 1-hour break

 

  • Weekly Working Hour: Up to 48 hours per week.
  • Overtime: Up to 10 hours per day and 60 hours per week.

 

On average 56 hours per week.

 

For road transport workers, 150 hours of overtime per year.

 

  • Night Shift: A holiday for a whole day which means 24 hours break between each night shift has to be given.
  • Limitation for Women Workers: No shift from 10.00pm to 06.00am without the woman worker’s consent.
  • Restriction on Double Employment: Double employment is not allowed for any worker.

 

Daily Limit in regards to International Standards Labour Law

 

Daily working hour limits are a feature of Conventions Nos. 1 and 30, both of which provide for an 8-hour limit on normal hours. Convention No. 47 and Recommendation No. 116 do not provide for daily limits, the 40-hour week being considered an adequate guarantee of a working day of 8 hours or less[1]. Under the international standards, daily hours can be averaged within the 48-hour week, allowing the 8-hour limit to be extended to 9 hours in industry (Convention No. 1)19 and 10 hours in commerce (Convention No. 30).

 

The Labour Act, 2006: as per section 100, 8-hour day is the daily work limit but it may not exceed 10-hour day subject to the satisfaction of section 108.

 

• Wages in Bangladesh:

 

Wages’ means any remuneration expressed in terms of money or capable of being so expressed that, if the terms of employment, expressed or implied, were met, would be payable to a worker in respect of his or her employment or work performed in that job, and includes any other additional remuneration of the aforementioned nature that would be so payable but not included-

 

o The value of any house accommodation, supply of light, water, medical attendance or other amenity or of any service excluded by general or special order of the government,

 

o  Any contribution paid by the employer to any pension fund, provident fund,

 

o Any traveling allowance on the value of any traveling concession,

 

o Any sum paid to the worker to defray special expenses entitled on him by the nature of his employment;

 

Every worker’s wages shall be paid before the expiry of the seventh day after the last day of the payable wage period.
Where any worker’s employment is terminated by retirement or by the employer, whether by retrenchment, discharge, removal, dismissal or otherwise, the wages payable to him shall be paid before the expiry of the seventh working day from the day on which his employment is so terminated according to Employee Rights & Labour Law in Bangladesh.
All salary payments shall be made on a working day.

 

How ‘Tahmidur Rahman & Counsels Law Partners Associates’ helps the Employee/Employer according to Labour Law Provisions of Bangladesh

 

At Counsels Law Partners in Gulshan, Dhaka, Bangladesh, the barristers, lawyers and lawyers are highly experienced in dealing with labor disputes. It also has experience in consulting and assisting numerous international clients, in addition to handling various issues related to employment service among domestic clients on a regular basis.

For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

 

 

Leave and Holidays in Bangladesh Labour Law

The topic of’ Leaves and Holidays’ in labor law is relevant and also fundamental. Every employee usually with a holiday is entitled to the following leaves:

  • weekly holy day
  • personal leave
  • Sick leave
  • Festival leave
  • Annual leave and
  • maternity leave with full pay as per the Maternity Benefit Act of 1939 (now abrogated). 

Casual Leave in Bangladesh:

 

Casual leave eligibility is created by circumstances such as sudden illness, minor accidents, urgent purposes. It should be obtained on prior application, unless the urgency prevents such application from being made. Section 115 of the Labor Act, 2006, allows for casual leave. It is given for ten days in a year with maximum wages and will not be carried forward into the next year.

Sick Leave in Bangladesh:

With lieu of a medical certificate sick leave is usually used. Under Section 116 of the Labor Act, 2006 No such leave shall be allowed unless a registered medical practitioner appointed by the employer or, unless such medical practitioner is appointed by the employer, after review, any other registered medical practitioner certifies that the worker is ill and needs sick leave for cure or care for such time as may be specified by the employer. These leave shall not accumulate and be carried forward into the next year. Over fourteen days in a calendar year, any worker other than a newspaper worker shall be entitled to sick leave with full wages.

The Factories Act, 1965 Sub-Section (2) of Sections 80 Provides as follows:
Every worker shall be entitled to fourteen days ‘ sick leave on half-average wages in a year.

Again, Section 16 of the Shops and Establishments Act, 1965 says that Every worker shall be entitled to sick leave With full wages for a total period of fourteen days in a year; if such leave not availed of by any worker during a calendar year may be carried forward, but the total accumulation of such leave shall not exceed twenty-eight days at any one time.

 Annual Leave with wages in Bangladesh:

Labor Act 2006 section 117 deals with annual leave. A worker who completes one year of continuous service at an institution is usually allowed to leave with Wages for a number of days measured at a certain rate during the corresponding span of twelve months. The rate for adults usually is:

 

(a) in case of a shop or commercial or industrial establishment or factory or road transport service, for every eighteen days of work ;

(b) In the case of tea plantation, for every twenty two days of work;

(c) In case of a newspaper worker, for every eleven days of work performed by him during the previous period of twelve months.

Maternity Benefit/Maternity Leave in Bangladesh

 

 

In the last few years there has been a significant increase over women’s participation in Bangladesh’s workforce. Women workers currently account for one-fourth, that is, 12.1 million, of Bangladesh’s total workforce of 49.5 million[19]. Important legal changes have also been implemented through the introduction of the Labor Act, 2006, which eliminates some ambiguities in the existing, diverse labor laws and amends occupational safety issues such as maternity benefits, health and hygiene, injury compensation, etc. 

The Labor Act, 2006 repeals three previous Maternity Benefit Acts-The Maternity Benefit Act, 1939, The Mines Maternity Benefit Act, 1941 and The Maternity Benefit (Tea Estate) Act, 1950 and combines almost all of the provisions of these Acts in Chapter IV. Section 2(xxxiv) of the Act describes maternity benefit as the sum of money payable to a woman under Chapter IV;
Section 45(1) of the Act prohibits an employer from employing a woman for the eight weeks immediately after the day of delivery. Section 45(2) prohibits a woman employee from working in any establishment for the eight weeks immediately after the day of delivery.

Section 45(2) forbids a woman employee from serving in any institution for the eight weeks immediately following the day on which she was born. Section 45(3) prohibits the use of any woman for some arduous work if she is likely to be delivered from a child within 10 weeks or if she has been delivered from a child within 10 weeks.
In Section 46 of the Labor Act provisions have been made for maternity leave of 16 weeks (8 weeks before and 8 weeks after the delivery).It has also made the provision that this benefit shall only be available to workers who have served under the owner for a minimum period of6-months prior to the notice of the probability of the delivery.

 

 

Implementation of Maternity Benefit/Maternity Leave in Bangladesh

 

 

The main purpose of having 16 weeks maternity leave was to combat hunger and to ensure that the new generation grows to be physically and mentally much healthier[20]. It was also expected to help increase the productivity and motivation of working women. Nevertheless, the reality is that many women working in the private sector are unaware of their maternity-related rights, especially those in the garment industry and in low-paid labor-intensive jobs. In fact, most non-governmental organizations and ready-made textile companies don’t even give their female employees four months of leave.

 

For queries or legal assistance in regards to Bangladesh Labour Law, please reach us at:

E-mail: [email protected]
Phone: +8801727983838

 

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Contract Agreement| Breach of Contract | A complete overview of Contract Law in Bangladesh

Contract Agreement & Breach of Contract in Bangladesh| A complete overview of Contract Agreement in Bangladesh

Tahmidur Rahman, Senior Associate, Counsels Law Partners

12 Nov 2019

This post in details will explain Contract Agreement & Breach of Contract in Bangladesh and remedies and consquences with detailed definitions and infographics, i.e will provide a complete overview of Contract Law in Bangladesh and everything you need to know about contracts and breach of contracts.

 

 

Definition of Contract in regards to Law of Bangladesh 

 

A contract is generally an agreement made between two or more parties or persons. In order for a contract to have legal effect under the Contract Act 1872, the following factors must be present:

 

Contract Agreement & Breach of Contract in Bangladesh

Breach of Contract in Bangladesh

Before we deep dive into Contract Agreement & Breach of Contract in Bangladesh, let’s clarify our knowledge about the types of Breaches in Bangladeshi Law.

There are four main types of contract breaches:

  1. Minor Breach:

    A minor contract breach occurs when a party fails to perform a part of the contract, but does not infringe the entire contract. To be considered a minor breach, the infringement must be so non-essential that any remaining contractual obligations may otherwise be fulfilled by all parties involved. A minor infringement is sometimes referred to as an unbiased infringement.

  2. Material Breach:

    A material violation of a contract is such a significant infringement, it severely impairs the contract as a whole; in addition, the infringement must make the object of the agreement fully defeated. Often, this is considered a complete violation.

  3. Fundamental breach:

    A fundamental breach of contract is exactly the same as a material breach, in that the non-breaching party is entitled to terminate the contract and claim damages in the event of a breach. The distinction is that a substantive breach is deemed to be much more egregious than a material breach; and

  4. Anticipatory Breach:

    An anticipatory breach happens when one party makes it clear to the other party, either orally or in writing, that they will not be able to fulfill contract terms. Therefore, the other party may immediately claim a contract violation and seek a settlement, such as reimbursement. Anticipatory violation may also be called anticipatory repudiation.

If a party to a contract fails or refuses to meet his / her obligations under the contract (also contains an indication of reason for non-performance) is known as the breach of contract. (Contract Agreement & Breach of Contract in Bangladesh)

 

“Counsels Law Partners Considered as one of the leading firms in Commercial Law in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

Things the innocent party can do in breach of a contract in Bangladesh

Contract terms, contracting parties rights and obligations and the effects of breach or violation of contract can be found in the 1872 Contract Act. The innocent party can lodge a claim for:

  • Specific performance of contracts
  • Compensation
  • Revocation of contracts after breach of contract

Compensatory Damage:
Upon breach of a contract, the party suffering from such breach shall be entitled to receive compensation from the wrongdoer. The Court is likely to conduct 3-tier tests in awarding the compensation as stipulated below:

  • Has there been a breach of contract? The answer is Yes.
  • Has there been a failure or injury arising from that breach? Yes should be the resolution.
  • Is the damage too remote? Answer is No.

    Final Stage: Court grants damages determining the loss number.

Now the consequences of the breach of contract and remedies available in Bangladeshi contract law.

A. Cases in which specific performance enforceable according to the Contract Law of Bangladesh

Specific performance of any contract may be imposed at the Court’s discretion-

  1. Where the act agreed to be performed is in the service of a trust;
  2. Where there is no criterion for assessing the actual damage caused by the act agreed to be performed;
  3. Where the essence of the act agreed to be performed is such that monetary compensation for its failure to perform would not be sufficient
  4. When it is probable that monetary compensation cannot be obtained for the non-performance of the act agreed to be done.

    Since the order of particular performance is voluntary, the Court is not obligated to grant such relief merely because it is lawful to do so.

The following contracts cannot be specifically enforceable-

How ‘Counsels Law Partners’ help one of the contracting party in any agreement in Bangladesh

Team Tahmidur Rahman | Counsels Law Partners Law Firm in Dhaka, Bangladesh is very astutue and outcome driven law firm, that has a vast amount of experience in dealing with contractual infringements, effects and demands for money. For legal aid or questions in regards to Contract Agreement & Breach of Contract in Bangladesh, please contact us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

 

Contracts which is not enforceable according to the Contract Law of Bangladesh:

 

  • A contract for the non-performance of which compensation in cash is an adequate relief;
  • A contract which encompasses such a minute or numerous details, or which is so dependent on the parties ‘ personal qualifications, or otherwise by its nature, that the Court can not endorse the specific performance of its material conditions;
  • A contact with the duration of which the Court can not find reasonableContract for Sale: If the seller and buyer agree to sell or buy the property at a later stage, the seller and buyer must enter into a contract for sale.
  • A agreement establishes a contractual responsibility between the buyer and the seller, and
  • A contract for sale does not change ownership of the property. A sales contract in the sub-registry should be registered.
  • A contract made by trustees either in excess of their powers of in breach of their trust;
  • A contract concluded by or on behalf of a corporation or public company founded for special purposes or by the promoters of such a company which exceeds its powers;
  • A contract whose performance involves the performance of a continuous duty stretching over a period of more than 3 years from its date; and
  • A contract in respect of which a substantial part of the subject matter is deemed to be performed by both parties

 

B. Monetary Compensation in Contract Agreement & Breach of Contract in Bangladesh

 

1. Monetary compensation for loss or damage incurred by infringement:

When a contract has been violated, the party arising from such violation is entitled to receive compensation from the party violating the contract for any loss or damage resulting from such infringement, which inevitably resulted from such infringement in the normal course of events.
This compensation shall not be provided for any loss or damage caused internally or indirectly because of the breach.

2. Compensation for violation of the contract: 
Where a penalty has been levied for infringement of the contract, where a sum is specified in the contract as the amount to be paid in the event of such infringement, or where the contract includes any other clause by way of penalty, the party complaining of the infringement is entitled to receive from the contract, whether or not the actual damage or loss has been found to have been incurred thereby. The innocent party may also demand the section interest on the amount listed above.

 

C. Contract withdrawal

 

  Any person interested in a contract in writing may sue for having it withdrawn, and such withdrawal may be permitted by the Court in the following cases–where the contract is invalid or terminable by the plaintiff; where the contract is unlawful for reasons not apparent to the plaintiff and the defendant is more to blame than the plaintiff; where there is a decree for a contract specific;

 

Contract Agreement & Breach of Contract in Bangladesh Services By Counsels Law Partners

 

At Counsels Law Partners, as the leading law firm in Dhaka, we also already supported our clients in securing the full compensation for a broken contract by means of out – of-court settlement or litigation. We will inform our clients with full clarity on the steps that need to be taken to minimize the damage caused by the breach and also enable them to obtain the best possible solution in the event of damage that has already been sustained in Contract Agreement & Breach of Contract in Bangladesh.

 

 

 

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Share Transfer Process of a Bangladeshi Company | Cost, Documents| Overview

Tahmidur Rahman, Senior Associate, Counsels Law Partners

9 January, 2020

What is ‘Share’ according to Bangladeshi Law?

The term ‘share’ is defined in Sec. 2 (1) (v) of the Companies Act of 1994, which reads as below:

  “Share means a share in the share capital of a company, and includes stock except where a distinction between stock and share is expressed or implied.”

Why a Company would like to Transfer Share in Bangladesh 

Share Transfer Process of a Company in Bangladesh can be a seamless process for both private and public limited companies. If someone (who is the company’s shareholder) wants to transfer his / her share to another person or if he / she does not want to remain the shareholder or director of this company, he / she may leave the share to someone else. Basically the existing shareholder of the company buys this particular share otherwise the new shareholder or director of this company may be involved by purchasing the transfer share. Monitoring of this activity by the Joint Stock Company Registrar and Firms (RJSC). The share allocation of the company is also a process that gets monitored by RJSC in Bangladesh.

The managers of the company may want to add experienced or veteran professional for some time to increase the business capacity of the company. The addition of a new shareholder or the company’s director is therefore a fairly conventional process. Companies generally include experienced business people in a particular area or country to increase the market and profit ratio of the company. RJSC is the only authority in Bangladesh for Company Registration, Share Transfer, Share Allotment, Wind-up and related business activities.

How to Share Transfer of a Company in Bangladesh?

In this infographics, the six steps is shown on how to transfer company shares in Bangladesh.

Shares in a company registered in Bangladesh are a movable property that can be transferred in a manner given in the company’s Articles of Association. But before proceeding with the Transferring Shares process, it is important to remember that the right to transfer shares may be restricted in a private limited company. Share Transfer Process of a Company is pretty straightforward if it’s not then.

If you want to know how to open a company in Bangladesh or about company formation click here!

  • Step by Step Process of Registering a Company in Bangladesh

Six Steps of Transferring Company Shares in Bangladesh

 

Here we have described in details (six steps), the procedure of transferring shares of a private limited company registered in Bangladesh.

 

Step1: Find out whether there was any existing restrictions against Share Transfer

 

The share transfer in a Private Limited Company can be restricted by the Articles of Association (AOA). Thus, the Articles of Association of the Company must be assessed before starting the offer exchange method. It is basic in Bangladesh that the organisation’s articles of affiliation typically contain pre-concurred methodology set out that are required to be followed for any exchange of offers in the organization.

 Limitations on right of the investors to move shares are for the most part as pre-emption. Which implies that if an investor wishes to sell a few or the entirety of his offers, such offers should initially be offered to other existing individuals from the private constrained organization at a value controlled by the Directors or the Auditor of the Company. In no current investor is intrigued, at that point portions of the Company can be unreservedly moved to an untouchable.

On the off chance that there is any limitation or extraordinary techniques, those confinement or strategy must be followed for any offer transfer.Which implies that if an investor wishes to sell a few or the entirety of his offers, such offers should initially be offered to other existing individuals from the private constrained organization at a value dictated by the Directors or the Auditor of the Company. In no current investor is intrigued, at that point portions of the Company can be openly moved to an outcast.

Hence, all the license, permits, agreement etc. should be checked for any restriction imposed on share Transfer Process of a Company. If there is any restriction, prior approval should be obtained.

 

Step 2: Notify the Board of the Directors of the Company

 

The Shareholder intending to move the offers should serve notice recorded as a hard copy to the Board of Directors of the Company about expectation to move portion of the organization. The Director may have the forces to deny enlistment of move of offers in specific situations – endorsed in the Articles of Association. The Board of Directors should hold an executive gathering and endorse the exchange of the offers. The Director ought to likewise give a declaration in this respect. 

Step 3: Paying the Price of the intended shares

Once the company has granted its approval, the price of the shares should have been paid. If both buyer and seller are local or foreign, there is no requirement for proof of payment. However, if the seller is a Bangladeshi and the buyer is a foreigner, the Joint Stock Companies and Firms Registrar (RJSC) will require a letter of bank encashment for the transfer of the share.

Step 4: Completion of Form 117

Once the company has granted its approval, the price of the shares should have been paid. If both buyer and seller are local or foreign, there is no requirement for proof of payment. However, if the seller is a Bangladeshi and the buyer is a foreigner, the Joint Stock Companies and Firms Registrar (RJSC) will require a letter of bank encashment for the transfer of the share.

“Counsels Law Partners is Considered as one of the leading firms in Company Law in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

Step 5: Payment of Stamp Duty

Stamp duty is payable on the face value of each share.

Once the Form 117 is signed, a copy of the same should be delivered to the Company.

Step 6: AMENDMENT OF THE SHARE CERTIFICATE REGISTRAR BOOKS AND ISSUANCE.

Upon completion of the above steps, the company should update its share registrar, share transfer registrar, minutes registrar, and issue a share certificate in favour of the new shareholder or modify the existing share certificate to reflect the changes.

Essential documents needed for Share Transfer of the Company

 

Essential documents needed for Share Transfer of the Company:

1. Letter from Company’s board of director approving the transfer company’s share.
2. A document indicating Number of shares to be transferred of the Company.
3.A completed (signed) Company form 117.
4. Board Resolution by the company approving the transfer of the shares; and
5.Certificate of Transfer of Shares.

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What to do When cheque dishonour or bounce in Bangladeshi Law?

What to do When cheque dishonour or bounce in Bangladeshi Law?

Cheque Dishonour or Bounce in Bangladesh – Law, Solution, Retrieve, Remedies, Punishment – A complete Overview

Tahmidur Rahman, Senior Associate 

5 Aug 2019

What to do When Cheque Dishonour or Bounce in Bangladesh? How can you take legal actions to retrieve your money? This post provides complete overview of how to deal with cheque dishonouring in Bangladesh.

Cheque Dishonour or Bounce in Bangladesh

Currently, even a business organisation in Bangladesh like many other countries, without maintaining a bank account, can not operate its daily activities. Despite the massive development in the recent past in Bangladesh of alternative delivery channels such as Internet Banking, BEFTN (Bangladesh Electronic Funds Transfer Network), RTGS (Real Time Gross Settlement) and many other aspects of digital banking, people are still comfortable enough to use checks for personal and business transactions. In the case of large-scale transactions, the use of checks is obviously the best way in our country because of security issues.

The possibility of a check being dishonoured is significantly high due to the high number of transactions through this mode. The receiver of checks must therefore have sufficient and effective legal redress, which they can consider when faced with this situation. Recently, in a case of dishonouring the test, a well-known film actor has been accused and filing these cases is almost regular occurrences with different courts across our country. People deliberately issue checks without making funds available in their bank accounts due to a lack of integrity and ethical practice. It may only seem to be a misdemeanour, it is, in fact, a serious crime.

Cheque Dishonour or Bounce – In Laws of Bangladesh

Both the government of Bangladesh and the Bank of Bangladesh have taken a number of steps to provide adequate legal remedy to protect and pull this state. The following discussion will focus on our country’s prevailing check dishonour law:

1. The most vital law enacted to provide legal remedy to such a situation is the Negotiable Instruments Act, 1881 (Act No. XXVI of 1881). Section 6 of this Act established what constitutes a cheque, stating that’ a bill of exchange drawn on a stated banker and not presented as payable other than on order.’ In addition, in the case of laws, a check was also known as an order on a borrower by a lender to pay the whole or part of a debt to another person.

2. If a check is not cleared because of insufficient funds or if the debtor who issued the check to the lender ordered his bank to dishonor the check or for any other reason, then the remedy will be under Section 138 of the above Act.

3. Section 138 of the Negotiable Instrument Act, 1881 makes it clear that, whenever a check is bounced, it is then accepted as correct until it is otherwise proved that an unscriptural guilt is created which involves punishment of a criminal nature which may include 01 (one) year of captivity or fine, which may extend to three times the value of the dishonoured check or both. In addition, the person who is regrettable also has a civil remedy under the same section, and in order to obtain the civil remedy, the person has to take some steps.

4. The first issue to be assessed by the court is whether the check has been presented to the bank for withdrawal within six months of the person being dismissed. If the check has been presented to the bank for withdrawal any time after it has been given to the regrettable person for six months, then the court will not allow the claim. Considering that the check has been submitted within a valid period of time and if it is dishonored, then pursuant to Section 138 of the Negotiable Instrument Act, 1881, the unfortunate person must send a written notice by registered post with acknowledgement due to the person who gave the check claiming the money back.

5. This notice requiring the money back must be sent within 30 days after the check has been bounced, that is, when the regrettable person has been notified that the check given has bounced due to insufficient funds or other reasons. Again, the court will not provide any redress if the notice demanding the money is not sent within the constitutive time. After the above process has been completed and the person receiving the notice does not pay back the money within 30 days of receiving the notice, the mortified person will be allowed to bring a civil claim against that person for the recovery of the money.

6. It should be remembered that the crime of dishonor of the search referred to in section 138 of the Act is considered a criminal offence. The legislation was aimed at punishing and not obtaining a due sum. Nevertheless, the section retains the possibility of restitution as the owner of the check can be paid by the court an amount of any fine recovered up to the check value. If someone wants to recover cash that has not been discovered then he or she will file a civil suit for money recovery. In reality, however, it was found that filing a criminal proceeding under s.138 was the most effective way to recover money.

 

Step by Step Process for filing a case for Cheque Dishonour or Bounce in Bangladesh

The recipient of the check may file a case against the applicant under the following conditions:

(A) Submitting the check to the bank:

The default check must be submitted to the bank for encashment within 6 months from the date it is drawn. If the check is dishonored, due to such dishonour, the bank shall give a slip.

(B) Legal Notice:

Upon obtaining a check dishonor slip from the bank, the payment application shall be made by notifying the giver of the check within 30 days by registered post. The recipient will give the money back for 30 days.

(C) Implementing Section 138

Unless, within 30 days of receiving the notice, the giver of the check fails to make the payment of the said amount of money, the receiver of the check shall file a case under section 138 of the Negotiable Instruments Act, 1881.

Now where and how to file a case for Cheque Dishonour or Bounce in Bangladesh

 

The recipient of the check may file a case against the applicant under the following conditions:

When the owner presents the check for encashment to a bank, he will bring in court the claim for check dishonor that has local jurisdiction over that bank.
The offense of check dishonor can be completed with the emphasis on certain specifics:

i) drawing of the check,

ii) presenting the check,

ii) returning the check unpaid by the drawee bank,

iv) giving written notice to the drawer of the check demanding payment of the check sum,

v) failure of the drawer to make payment within 30 days of receipt of the notice.s of receiving the notice, the giver of the check fails to make the payment of the said amount of money, the receiver of the check shall file a case under section 138 of the Negotiable Instruments Act, 1881.

Now, if the above five different acts were carried out in five different locations, one of the courts exercising jurisdiction in one of the five local areas could become the place of trial for the offense of cheque dishonour. The plaintiff may select any of the courts in whose jurisdiction any of the five components of the said offense have been made.

Essential documents you need if you would like to file a case against a dishonoured cheque in Bangladesh

Before proceeding to file a case, a complainant must keep some essential requirements in mind which are as follows:

  • The dishonoured cheque
  • Bank slip regarding cheque dishonour
  • Copy of legal notice
  • Postal receipt and acknowledgment letter of legal notice
  • Copy of newspaper where legal notice is published, if any
  • Authorization letter or power of attorney if ‘Authorized Agent’ files the case
  • List of witnesses
  • Costs of the case such as Court fee, lawyer’s fee etc.
  • Government or private legal aid if unable to bear the costs of the case
  • Intention to go for settlement with the offender to get the money.

“Tahmidur Rahman|Counsels Law Partners is Considered as one of the leading firms in Banking Law in Bangladesh”

Telegraph Bangladesh

PENALTY FOR CHEQUE DISHONOUR or Bounce in Bangladesh:

The offender who commits the dishonor of the cheque shall be punished with imprisonment for a term of up to one year or with a fine of up to three times the value of the cheque or both.

Skyscrapers in Bangladesh

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How to Submit Taxes in Bangladesh | Income Tax, Customs Duties, VAT.

How to Submit Taxes in Bangladesh | Income Tax, Customs Duties, VAT.

How to do Tax Submission in Bangladesh | Complete Overview of Income Tax, Customs Duties, VAT.

Tahmidur Rahman, Senior Associate

25 November 2019

Tax Submission in Bangladesh:

What are the process of Tax Submission in Bangladesh ( Personal Income Tax,  Corporate Income Tax, Custom Duties etc.) and what are the rules and regulations that relate to specific custom duties, supplementary duties, regulatory duties and their relationships with HS code and brand valuation and how to deal effectively with the issue? This post in details will provide a complete overview of Tax Submission in Bangladesh and will hopefully answer to your quries in regards to Tax Law in Bangladesh.

Taxation in Bangladesh 

 

In Bangladesh, the history of income tax submission dates back to 1860 when British rulers introduced it in this country under the title of the Income Tax Act, 1860. Many changes have occurred since then. Recently, taxation facilities have become one of the Bangladeshi business organization’s important and complex compliance issues. Tax levy and taxes were updated by the promulgation of the Finance Act almost every year. Tax facilities in Bangladesh are usually regulated by the 1984 Income Tax Ordinance.In Bangladesh, legal aid related to VAT, tax and customs is high in demand. Because of its complexity, particularly for businesses, new investors and entrepreneurs understanding the various formalities involving taxation is a big challenge.

With income tax in particular, different statutory requirements for e.g. income advance tax, source tax deduction, tax exemptions, tax rebate, procedures for filing annual tax returns along with their assessments, etc., and their correlation, which can be found difficult without proper knowledge. Here one by one, we will explain the procedures and regulations in regards to Tax Submission in regards to Bangladeshi Law.

Income Tax in Bangladesh 

One has to pay his or her income tax at the end of each fiscal year, and a number of Bangladesh taxpayers are doing the job quite successfully.But there are also many clashes with filing their tax returns because they have little or no idea of the process.Things seem to be rather difficult, particularly for the first time people who pay taxes.

Are you actually Suppose to Pay Income Taxes? Are you in the Bracket? Find out whether you are actually eligible for Tax Submission in Bangladesh First!

In accordance with the stipulation set out in the Finance Act, if any person earned more than Tk 220,000 during the 2013-14 income year, he / she must send his / her income return along with the source(s) of income. Nonetheless, the total non-taxable income limit will be Tk 275,000 for women and senior taxpayers aged 65 and above, Tk 350,000 for physically challenged mentally handicapped workers, and Tk 400,000 for war injured freedom fighters serving in the gazette.

The following person must also submit his / her income tax return, however, if he / she did not earn much more than the maximum limit, if he / she:

(i) resides in a municipal corporation or paurashava or divisional headquarters (HQ) or district headquarters and owns a motor vehicle including a jeep / microbus or is a member of a VAT registered club;

(ii) runs a business or profession licensed and operates a bank account;

(iii) has registered as a doctor, dentist, lawyer, income tax practitioner with a recognized professional body;

(v)     is a candidate for an office of any paurashava, city corporation, or a Member of Parliament;

(vi)     assessed to tax for any of the three years immediately preceding the income year;

(vii)     participates in a tender floated by the Government, semi- Government, autonomous body or a local authority. In addition, any registered company/Non-Government Organisation (NGO) shall file a return of its income or the income of any other person for whom the company/NGO is assessable to the authority.

 

The tax rates during the assessment year 2014-15 for individual taxpayer other than female, taxpayers of 65 years and above, differently able person, retarded employee and gazetted war-wounded freedom fighter are as follows:

Income Tax Submission in Bangladesh

Income tax submission in Bangladesh/ Income Tax Return in Bangladesh

The income tax return is something that people are required to submit each year by November 30. And by that time, you will have to update your employment, property, and income tax data through a form. The main reason is that the data submitted for a fiscal year may vary from the information submitted a year earlier.

A taxpayer has to notify the state on its current status after using a TIN. Punitive measures are also in place to avoid taxes.

Every income tax payer is entitled to receive income tax return form free of charge from tax offices or NBR i.e. National Board of Revenue website. In addition, NBR has launched online tax calculator on www.nbrtaxcalculatorbd.org to promote the assessment of their taxes by assessees. Additionally, for small businessmen, doctors and lawyers, NBR offers spot assessment. Anyone who invests Tk 1000,000 as initial capital shall pay Tk 4000 and pay Tk 2000-4000 as income tax to those doctors and lawyers who have practiced their profession for 5-10 years.

For Tax Submission in Bangladesh, each assessee shall deposit the amount to the govt after assessing the amount of income tax. Exchequer by pay order, challan treasury or online via www.nbrepayment.gov.bd and submit duly signed and verified return form along with the necessary documents to the tax circle concerned.

For details of filing system, click here or in the image below-

 

Time limit to submit the tax return in Bangladeh

Deadline for submitting a return A company / NGO shall submit an income tax return by the fifteenth day of July following the year of income or by the fifteenth day of July before the expiry of six months from the end of the year of income, before the expiry of those six months and in all other cases by the thirtieth day of September following the year of income. Nevertheless, with the permission of the Inspecting Joint Commissioner, the last date for the return can be extended by the DC of Taxes for up to six months. The state can also expand the time limit in addition to this.

Income Tax exemption in Bangladesh

Many individual classes enjoy tax holidays. For example, if you own savings certificates, invest in the stock market and have life insurance, a certain amount of your income tax will be waived.

For this purpose, income tax lawyers suggest savings tools as they are most risk-free and can be found at the National Savings Bureau, post offices, and banks.

Punishment for infringement of the tax rules in Bangladesh

An assessed person shall be guilty of an offense punishable by imprisonment for a term of up to three years, but not less than three months or for a fine or both, if he / she makes a statement in any confirmation, return or other document furnished in compliance with any provision of the ITO 1984 which is false or intentional and involves other persons.

In addition, an assessee shall be guilty of an offense punishable by imprisonment for a term that may extend to one year or a fine or both if he / she refuses to provide the return of income in due time without reasonable cause. In addition, the DC of Taxes will impose fine Tk 10 percent of the last estimated amount, but not less than Tk 1000, and will also impose fine Tk 50 late on each day.

Therefore, a person will be guilty of an offense punishable by imprisonment that may stretch to five years but may not be less than three months or fine or both if he disguises the information or intentionally gives false details of his earnings in regards to tax submission in Bangladesh .

The established income tax collection schemes are soft, complicated, time-consuming and are not yet taxpayers ‘ trouble-free. In this regard, the entire system of tax management should be effectively structured to prevent tax evasion.

Where to complain in regards to Tax Submission in Bangladesh

If you have a service allegation or other tax-related issues, you can file a written appeal to the tax commissioner detailing the problems.

The prosecutor must hold a hearing on it after receiving the petition, leading to its settlement.

If not, with his or her issues, the taxpayer should petition a jury. The person still has the option to move to the High Court as a last resort remedy in the event of a further failure to substantiate the complaint.

And last but not least, a taxpayer will know that whatever service they get is not safe. In fact, a taxpayer gets the services by paying money.

 

Value Added Tax (VAT) in Bangladesh | Tax Submission in Bangladesh

All goods except those listed in the VAT Act’s First Schedule and all services except those specified in the Second Schedule are taxable goods and services. Originally, a comprehensive list comprising the list of services subject to VAT was the Second Schedule of the VAT Act. The First and Second Schedules now list respectively statutory exemptions to goods and services. The third schedule lists the goods and services subject to additional duties (SD) and their relevant statutory rates.

NBR has now listed the number of VAT-able products and their range clarified by a Statutory Regulatory Order (SRO) at 79. For various types for VAT–Gross-Product VAT, Income-Type VAT and Consumption-Style VAT–Bangladesh has adopted the consumption-type VAT and its invoice-based credit or credit-subtractive system for calculating VAT payable by a company in each tax cycle. By applying the tax rate to each individual sale and subtracting all input taxes previously paid on sales, company calculates the tax liability according to this process.

 

Rates of Vat in Bangladesh

 

Most of the countries that implement VAT worldwide operate a single standard VAT rate. Appendix 1 indicates certain countries ‘ VAT rates with the year in which they launched VAT. In regards to Tax Submission in Bangladesh, country’s VAT legislation provides a standard rate of 15 percent for home consumption goods and services in line with best international practice and a zero rate for exports. Under the rule, all taxable goods and services manufactured and sold for sale in the country are subject to VAT at 15%. For all goods and services to be exported and deemed to be exported from the country, a rate of 0 percent applies. In practice, however, there are some other rates  that emerged from different methods

Registration of  VAT in Bangladesh 

 

All importers, zero-threshold exporters and suppliers (manufacturers, dealers, wholesalers, retailers) of all taxable goods and services with an annual turnover limit of BDT 60 millions (BDT 6 million, equivalent to US$ 80,400) and above are required to be registered under VAT. The VAT law requires a divisional VAT office to issue a certificate of registration within 2 (two) working days of receiving a request.

 

Businesses below the threshold can opt for voluntary registration of VAT in Bangladesh, in line with international practice. The amount of VAT collected shows that the majority of VAT registered persons are optionally or voluntarily registered.

One of the reasons is that while the threshold has undergone upward revision quite a few times over the past 20 years, those with their existing threshold within voluntary VAT registration could not escape the net once the threshold was increased due to administrative convenience as well as external pressure.

The study of different VAT regimes, particularly those of developing countries, suggests that in a simpler procedure, despite the distortionary effects of the different treatment between undertakings above and below the threshold, many countries tax undertakings differently and at a much lower rate.

This is done primarily because of the administrative and compliance costs, equity and competitive advantages and disadvantages of the economically involved parties. In Bangladesh, this is no exception. Section 8 of the Act provides that undertakings whose annual turnover is below the VAT threshold and for which VAT registration has not been made compulsory are entitled to pay turnover tax @ 3% of declared and approved annual turnover without the possibility of claiming input tax credit. Nevertheless, most of the taxable products listed and a number of items are not eligible for turnover tax as they are required to register VAT.

The number of businesses registered under VAT system is 480,467, which is glaringly poor as compared to the number of total businesses in the country. According to the economic census of 2001 and 2003 the total number of businesses in different sectors was 3,674, 971 of which 1,127, 613 were registered with the trade licensing authorities

 

Vat Filling in Bangladesh | Vat Submission in Bangladesh

Compliance with taxes is ensured by submitting periodic returns. In Bangladesh VAT, a registered person is required to submit a return in a tax period in accordance with section 35 of the VAT Act. Submitted in a prescribed form –(Mushak 19) in duplicate to the local VAT office within 15 days of the following month, VAT returns are normally submitted on a monthly basis, although there are provisions for quarterly and semi-annual returns for certain companies. Compliance with taxes is ensured by submitting periodic returns. In Bangladesh VAT, a registered person is required to submit a return in a tax period in accordance with section 35 of the VAT Act. Submitted in a prescribed form –(Mushak 19) in duplicate to the local VAT office within 15 days of the following month, VAT returns are normally submitted on a monthly basis, although there are provisions for quarterly and semi-annual returns for certain companies.   The Bangladesh VAT filing scenario shows a huge difference between what’s being taught in the book and what’s being done.

Although Return should be the core of all VAT activities in an ideal VAT system, namely tax liability, input tax credit, drawback, and revenue statistics, VAT returns were not given the importance they deserve in Bangladesh. Return filing rate is very low. According to the latest statistics, out of 480,467 registered VAT-payers, the number of returning units in 2009-2010 was only 77,619, i.e. 16.15% (NBR, 2011).

 

 

One of the reasons for weak return filing is that VAT is obtained at sources in the case of firms with more than 70% (estimated) registered individuals, such as construction firm, procurement provider. The lack of a culture of voluntary tax compliance is another reason for the unsatisfactory rate of return submission. Due to the lack of successful compliance, the situation is further compounded.

Until now, there has been no significant VAT system automation in Bangladesh. Although most VAT commissioners have data processing units with the VAT Information Management System (VIMS) computer program in place, returns are not processed systematically.

 

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Custom Law in Bangladesh

 

Bangladesh is implementing the Harmonized Commodity Coding System. Import ProceduresDocuments required for importation include a letter of credit authorization form, a lading or airway bill, commercial invoice or packing list, and origin certificate. For certain imported items or services, the relevant government agencies require additional certifications or import permits related to health, safety or other matters. For the public sector, reduced documentation requirements are applicable.

Foreign companies must obtain permission from the Chief Import and Export Controller and submit the following documents: photocopies of an import registration certificate; photocopies of invoices, lading bills and import permits duly certified by the bank; a copy of the General Index Register (GIR) certificate; a certified copy of the last tax order; name and description of each impairment.

The following documents must be submitted by private sector importers: certificate of affiliation to a registered chamber of commerce and local industry or professional association established in Bangladesh; proof of payment of renewal fees for import registration certificates (IRC) for the tax year; copy of tax identification number (TIN) certificate; three copies of previou proof of payment.

A new Custom Law in Bangladesh

A new customs law is likely to soon be put in parliament under which the government will have to digitalize the associated environment, said National Revenue Board (NBR) officials.

The new draft law also implements various measures in line with global trends to promote the clearance of goods planned for export and import from ports to encourage international trade, they said.

“In view of international best practices, we have drafted the new law. The latest one is more up-to-date and more pragmatic, “a senior official of the NBR said, trying to remain unnamed as he was not allowed to speak to the media.

The new law includes various measures to promote faster trade, followed by advanced economies.

One of the clauses is the Advance Cargo Declaration, which provides companies with the ability to request customs-related import documentation prior to the arrival of goods in ports.

Under a mechanism called Post Clearance Audit, the new law will also open up the scope for compliant businesses to quickly clear goods.

According to the draft, compliant and honest traders will receive a green channel for importing and exporting goods as authorized economic operators.

 

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