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C:."1"l4la ~ .,.,.. ~~U;U -'7J:

GOVERNIVIENT OF [HE PEOPLE'S REPUBLl< Ur BA,~vLt\j)ESH

•
MINISTRY OF LAW. JUS'liCE AND
PARLIAMENTARY AFFAIRS

iz~a""""::;t~•.
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THE BANGLADESH EXPORT PROCESSING

ZONES AUTHORITY ACT, 1980

(ACT N,O. XXXVI OF 1980) "

(As modified up to the 13th December, 1994)

PUNTED BY THE DEPUTY CONTROLLER, GOVERNMENT PllINTING ~ESS,

TEJGAON, DHAKA.

PuBLllBED BY THE DEPUTY CONTROLLER, BANGLADESH FORMS AND

PuBLICATIONS OFFICB, TBJOAON, DHAKA.
 TIlE BANGLADESH EXPORT PROCESSING ZONES AUTHORITY
ACT,1980

PREAMBLE

SECTlO~S

1. Short title and commencement.

2. Definitions.
3. Establishment of the Authority.
3A. General direction.
4. Head Office, etc.
4A. Objects of the Authority.
5. Board of Governors.
5A. Functions of the Board
5B. Executive Board.
6. Meetings.
6A. Consultative Committee.
6B. Post Sanction Clearance Committee.
7. The functions of the Authority.
7A. Establishment, etc., of warehouses.
8. Fund.
9. Power to borrow.
10. Power to create zones.
11. Acquisition of land for a zone.
llA. Power to exempt zones from operation of certain laws.
lIB. Committees.
12. Permission for setting up industry in the zone, etc
13. Allotment of land, etc., in a zone .

•
 (ij)
THE BANGLADESH EXPORT PROCESSING ZONES AU11IOR1TY
14. Permission to banks to operate in a zone, ACI',1980
15. Bonded facilities, etc. (ACI' No. XXXVI OF 1980)
[26th December, 1980J
16. Types of industries to be set up a zone, etc.
An Ad for the estabUsbment of the Bangladesh Export Processing ZoDes
17. Budget. Authority
18. Audit and accounts. Whereas it is expedient to make provision for the establishment of the
Bangladesh Export Processing Zones Authority for creation. development,
19. Submission of reports, etc.
operation, management and control of export processing zones and for matters
20. Appointment of officers etc. connected therewith.
It is hereby enacted as follows :-
21. Government directionv. etc. iO'l/ittelf;
1. Short title and commencement.-{J) This Act may be called the
22. Power to make rules. Bangladesh Export Processing Zones Authority Act. 1980.
(2) It shall come into force on such date! as the Government may. by
23. Power to make regulauons.
notification in the official Gazette, appoint.
24. Removal of difficulties. 2[ 2. Definitions.-In this Act, unless there is anything repugnant in the
subject or context,-
(a) "Authority" means the Bangladesh Export Processing Zones Authority
established under section 3 ;
( b) "Board" means the Board of Governors of the Authority;
(c) "Executive Board" means the Executive Board of the Authority;
(d) "Executive Chairman" means the Executive Chairman of the Board;
(e) "Prescribed" means prescribed by rules made under this Act; and
(f) "Zone" means a place or places to be specified by the Government
under section 10 as an export processing zone for the purposes of
setting up export-oriented industries.]
3. Extablisbment of the Autbority.-(l) As soon as may be after the
commencement of this Act, the Government shall, by notification in the official
Gazette, establisht an Authority to be called the Bangladesh Export Processing
Zones Authority for carrying out the purposes of this Act.
(2) The Authority shall be a body corporate having perpetual succession
and a common seal, with power to acquire. held and dispose of property, both
movablq and immovable, and shall by the said name sue and be sued.
IThis Act haa come into fo~ on the Uth Mrll, 1981, vide notification no. SRO·
HS-L/ft, dated 13-4-1981, published in the Bangladesh Gazette, Bxtra., dated 1l •.4-19fl,
page 781. .
'Substituted by ordinanCe No. Lll of 1966, I. 2, for section 2.
sT~ Export Proeesalng Zones Authority was established on the 15th APril, 1981, 'IItIe
--~- __ .1_______ _ G 'C_A_''''O' ••.• 1.1:.1."'" ,"In .h •• 1lII1.n"1.,. •••••• n&7dt8.
 3

l[3A. General direction.-{l) The general direction and administration of ~he Government may, by notification in the official Gazette, include
the affairs of the Authority shall vest in the Executive Board which may, subject in the Board any person or exclude from the Board any member with approval
to sub-section (2), exercise all powers and do all acts and things as may be of the Prime Minister.]
exercised or done by the Authority.
5~he Board.-(l) The Board=-
(2) The. Executive Board, in discharging its functions, shall act in accordance ..£EJ- shall formulate the policies for operation and management of the
wiJh the guidance, order and instructions given by the Board of Governors of ~. ,\1II1;oJ;ty and zones:
~uthority from time to time.] -1;JJ+ shall review, from time to time, the activities and performance of the
4. Head office,ctc.--( I) The Head office of the Authority shall be located at Executive Board and the zones:
Chittagongt..- - ~ay give orders or issue instructions which are deemed appropriate
(2) The Authority may establish its offices and branches at such places as it for the purpose of efficient management of the affaire; of the
may deem fit. ~ Authority and the zones.
2[4A.~ts of the Alllbority.-The objects of the Authority shall be- (2) The policies formulated, orders given and instructions issued by the Board
~ to foster and generate economic development of Bangladesh by shall be deemed to be the policies formulated, orders given and instructions
encouraging and promoting foreign investments in a zone; issued by the Government and shall be followed accordingly: and they shall not
~ to diversify the sources of foreign exchange earnings by increasing require any formal approval of any Ministry or Division dealing with the matters
export of Bangladesh through a zone 8[;]] for their ~ementation.
1I~ to encourage and foster the establishment and development. of
~ ~-( I)· There shall be an Executive Board of the
. industries and commercial enterprises in a zone in order to widen
Authority consisting of a Q1airman and three other members.
and strengthen the economic base of Bangladesh;
~o generate productive employment opportunity and to upgrade labour (:?) The Chairman of the Executive Board shall be called the Executive
and management skills through acquisition of advanced technology.] Chairman and he shall be the Chief Executive Officer of the Authority.
(3) The Executive Chairman and other members of the "Executive Board
4[5 ~ard of Gc-vemors.-(I) There shall be a Board of Governors of the shall be appomted by the GOvelIilnent and-shall hold office on such terms and
AU~ity »;hich <-[shaMsubject to provisions of sub-section (3), consist] of the conditions as the Government may determine.
following members namely :-
(4) If a vacancy occurs in the office of the Executive Chairman or if the
~hairman; Executive Chairman is unable to discharge the functions of his office on account
.j.b) Minister-in-Charge of the Ministers or Divisions dealing with of his absence, illness or any other cause, the Government shall make such
:.---- industries, commerce, finance. planning, foreign affairs. energy and arrangement for discharging the functions of the Executive Chairman as it may
ports and shipping, ex-officio; consider expedient.
~ Governor, Bangladesh Bank, ex-officio; (5) No act or proceeding of the Executive Board shall be invalid or be called
1JI-) Secretaries of the Ministries or l)ivisions dealing with industries, in question merely on the ground of any vacancy in. or any defect in the consti-
commerce, finance, planning, foreign affairs. energy, ports and tution of. the ecutive Board.
shipping and internal resources, ex-officio:
(e) Chairman of the Executive Board. who shall also be the Secretary of 6. . eetings.-(1) Same as provided in this section, the Board of Governors
?-"'--- and the Executive Board shall regulate the procedure for their meerngs.
/ the Board, ex-officio :
~) The 5[Prime M'nister], or a member, who is a Minister nominated by (2) All meetings of the Board of Governors shall be convened by the
Secretary of the Board in consultation with its Chairman and shall he held at
.
the l5[prime Minister], shall be the Chairman of the Board.
------ ----- ----- such times and places as may be determined by him .
tSection 3A was inserted by Ordinance N). LII of 1936, s. ~.
1Sectbn 4A w:ts inserted hy Ordinance NO. XLIX oC 19~4. s. 2. liThe words comma number and bracket "shall subject to provisions of
STile semi-co).)n was substituted for the full-stop at the cnd (,r clause (bl and there- sub-section (3), consist" were substituted for the words "~hl111 consis!" bv Act
after new clauses (c) and (d) were adied by Ordinance No. LlI (If 1936, s. 4. XXIJ of 1994, S.2.
'Substituted, (bid, s, S. for sectfr>as 5 a!1d 6.
.rI ••..•• A....... VVTT _~ 1 nnA ~ 2
 -er All meetings of the Executive Board shall be convened by the Executive 5

Chairman and shall be held at such times and places as may be determined by (n) Chairman, Bangladesh Small and Cottage Industries Corporation;
him.
( 0 lone member to be nominated by the Federation of Bangladesh
~ meetings of the Board of Governors shall be presided over by its Chamber of Commerce and Iudustry;
Chairman and, in his absence, by a member of the Board who is a Minister, (p) four members to be nominated by the Federation of Bangladesh
authori~ the Chairman. C~arnber of Commerce and Industries, one from among Presidents
<-(5) All meetings of the Executive Board shall be presided over by its or Chamber of Commerce and Industry of each Division;
Chairman.] ~ llf) one member to be nominated by the Authority from among the
owners or shareholders of the enterprises set up in a Zone;
1[6~ultative Committee.-(1) 2[The Executive Board shall, in the
(r) one officer of the Authority to be nominated by it who shall also be
discharge of its functions, be aided] and advised by a consultative Committee
the Secretary of the Consultative Committee; and
which shall consist of the following members :-
(S) such other members as may be nominated by the Government.
(a) one member to be nominated by the Internal Resources Division
from among its officers; (2) The '[Bxecutive Chairman] shall ex-officio be the Chairman of the
Consultative Committee.
(b) one member to be nominated by the Ministry of Industries from
~[(3)The meetings of the Consultative Committee shall be convened by its
among its officers;
Chairman and shall be held at such times and places as may be determined by
(c) one member to be nominated by the Ministry of Commerce from him.]
among its officers; sr, ( 4) ,?U meetings. of ~e Consultative Committee shall be presided over by
(d) one member to be nominated by the Export Promotion Bureau from . lHSChairman] or, ill his absence, by a member of the 4[Executive Board
among its officers; authorised by him.]
(e) one member to be nominated by the Finance Division from among (5) To constitute a quorum at a meeting of the consultative Committee not
senior bankers ; less than one-third of the total number of its members shall be present.]
(f) one member to be nominated by the Ministry of Isdustries from
~[6B. ~OD Clearance Commlttee_(l) There shall be a committee
among prominent industrialists; to be called the Post Sanction Clearance Committee.
(g) «ne member to be nominated by the Government from among indus- (2) The Committee shall consist of the following members, namely :-
trialists of each Zone; («) Executive Chairman, ex-officio, who shall be its Chariman ;
(h) Director General, Department of Industries, or his nominee; t b) Controller of Capital Issues, ex-officio ;
(i) Division Chief (Industries), Planning'Commission ; (c) Registrar of Joint Stock Companies, ex-officio;
(j) Commissioner of the Division in which a Zone is situated or. his
(d) General Manager, Exchange Cotrol Department, Bangladesh Bank
nominee ; ex-officio;
(k) Chairman of the Water Supply and Sewerage Authority within the
) an officer of the Authority to be nominated by it, who shall also b
area of which a Zone is situated ; the Secretary of the Committee.
(l) Chairman of Chittagong Port Authority or Port of Chaln a Authority
to be nominated by the Government; (3) T~e Co~itte~ shall assist the .Executive Board in matters of registratio
of comp ames, capital ISSUesand foreign exchange transactions in respect of
(m) Chairman of the body, by whatever marne called, responsible for the
and in all other matters connected with the operational needs of sanctione
development or improvement of the urban area within which a Zone
industries in a zone. '
is situated ;
#_-----_ .. _.-----
lSectbn 6A was inserted by Ordinance No. XLIX or t98~. s. S.
I substitued bY Ordinance No. LII of 1986. s, 7(b). for "Chairman of the Authority".
2 Substituted, ibid .• s. 7(0). for Sub-section (3).
23u'"titu\ed bY Ordinance N). LU or 1986, s. 7(a), for "The Authority shall, in the ) Substituted, ibid., s, 7(d}(i}, for "the Chairman".
llischarge of its functions, be aided". • Substituted, tbid., s. 7(d) (ii). for "Authority authorised by him in this behalr".
'Section 6B was inserted. ibid., s. 8.
 6 7

-![(jj) subject to the approval of the Government, to enter into any contract
(4) Same U~ provided in this sections, the Committee shull regulate IIll'
or agreement of any kind for the purposes of this Ordinance;]
procedure of its meetings;
(k) to do such other acts and things as may be necessary to be done in
Provider! that the Committee shall meet at least once in a month
connection with, or conductive to, the performance of the aforesaid
t 5) The meetings of the Committee shall be convened by its Secretary and functions.
shall be presided over by its Chairman.]
1[7A. Establishment, ete., of warehome5.-Notwithstanding anything
7. The functions of the Autbority.-The function of the Authority shall be- contained in this Act, the Authority may, if the Government so directs, set up
maintain and manage public warehouses at any place in Bangladesh to provide
e(/) to take possession of land to be acquired or requisitioned by the
customs bonded facilities in accordance with customs regulations for importation
Government for the purpose of creation and development of a zone:
into Bangladesh of raw materials, packaging materials, semi-processed goods and
J [e b) to allot land and building-spaces in a zone to investors on sale, lease accessories required or export oriented industries.)
or on rent and to allow them to mortgage the allotted lands for
raising loan from financial institutions or commercial banks;] 8. .-(1) There shall be a fund of the Authority to which shall be
e c) to provide infrastructure facilities, including buildings, utilities and credited-
warehouses; (a) grants and loans from the Government;
~rul) to process application for setting up industries withiu a Zone and (b) loans from such other sources as the Government may approve;
accord sanction in accordance with the guide lines given by the
(c) proceeds from the land allotted for setting up of industries in the zone;
Government from time to time ;)
(d) rental of buildings leased out to the industries set up in the zone;
( e) to provide customs bonded facilities in accordance with customs
( e) fees and service-charges, if any, received for services rendered;
regulations for importation into a zone of building materials for
construction purposes and packaging materials, raw materials and (f) any other sums not specified. accruing to or due to the Authority
intermediate goods for the purpose of processing for exports ; from other source.

( f) to allow import of raw-materials or semi-processed or other goods (2) The fund of the Authority shall be used to meet expenditure in connection
required for use iu the zone and export of semi-processed, processed with the functions of the Authority under its Act.
or other goods to be specified by the S[Board] in such manner as 9. Power to borrow.-The Authority may
•~* * * borrow money for
may be prescribed; carrying out the purposes of this Act.
( J<) (0assist in transportation of imported raw-materials and intermediate 10. Power to create zones.-The Government may, by notification in the
goods in bonded conditions and export of finished products; official Gazette, declare any place or places to be specified in the notification to
(h J to provide necessary banking facilities within the zone ill consultation be an Export Processisg Zone for the purposes of this Act.
with the Bangladesh Bank ; 11. Acquisition of land for a zone.-Where any land or any interest-in any
(i) to establish liaison with the port, Municipal and other authorities to land is required by the Authority for any of its purposes under this Act that lan~
make arrangement for transportation of improted raw-materials and or the interest therein mav be acquired by the Government under *Land Acqui-
intermediate goods on bonded condition and for export of finished sition Act, 1894 (I of 18'94), for the Authority and the land or interest therein
products; so acquired shall be deemed to be required for a public purpose,
(j) to sanction employment of foreign nationals in accordance with the
• 4Clause GD was insterted by ordinance No. XrJX of 1984, s. 6 (b),
guide lines given by the Government from time to time, to posts for lSection 7A was inserted by Ordinance No. XIll 1985, s, 2.
which local expertise is not available for efficient running of the aThe commas and words, "with the prior approval of tho Government," were omitted
industries in a zone ; by Ordinancc No. XLlX of 1984. s, 7.
3Sc·tion llA waS inserted by Ordinacc NO. XLIX of 1984. s. 8.
ISubstituted by ordinance N-"0~_"""",,",,-,,,.><"-O""L,-,,-9w..foJ' claus. (b)L m ~ 'sif :l c uisitio.l0! r.n n)o'JI~ PNP~rty Ordiuance. 19B ord.
 lelIA. Power to exempt Zones from operation of certain law8.- The 12. Petmission (or setting up industry in the zone, etc.-(l) A J
Government may, by notification in the official Gazette, exempt a Zone from the desiring to set up an industry in a zone shall make an application to the AU~
operation of all or any of the provisions of all or any of the following enactments in the prescribed form for permsision in that behalf.
or, direct that any such enactment or any provision thereof shall, in its application
(2) The Authority or any person authorised b)' .LL in this behalf shal
to a zone, be subject to such modifications or amendments as may be specified
receipt of an application made under sub-section (1), process it in accon
therein, namely:-
with the principle to be laid down by the 3[Board] in this behalf and shall
(a) The Stamp Act, 1899 (II of 1899) ; is satisfied that the applicant fulfils the requirements for setting up an indus!
(b) The Companies Act, 1913 (VII of 1913) ; the zone, grant him a permission in the prescribed form.
( c) The Excises and Salt Act, 1944 (I of 1944) ; 13. AUQtment of land, etc., in a zone.- The Authority may, subject to
(d) The Foreign Exchange Regulation Act, 1947 (Vll of 1947); terms and conditions as it may determine, allot, or lease out on rental ba:
otherwise; land and building spaces in a zone to a person who has been gr
(e) The Employment of Labour (Standing Orders) Act, 1965 (VIII of
permission under section 12 to set up an industry in that zone.
1965) ;
(/) The Industrial Relations Ordinance, 1969 (XXIII of 1969) ; 1[14. Permission to banks to operate in a Zone.-The Anthority may,
the approval of the Bangladesh Bank, permit banks, foreign and local, to op
(g) The Llftld Development Tax Ordinance, 1976 (XLll of 1976) ;
in a Zone and to have as their constituents persons not resident in Banglades
(h) The Income-Tax Ordinance, 1984 (XXXVI of 1984) 1[;] to accept deposits on current account or otherwise from such persons.]
1[(i) The Municipality Taxation Act, 1881 (Ben. Act IX of 1881) ;
15. BoDbd faCliUties,etc.-Notwithstanding anything contrary contain
(j) The Explosives Act, 1884 (IV of 1884) ; 4IlY other law for the time being in force, there shall not, subject to such I'..!.
(k) The Electricity Act, 1910 (IX of 1910) ; may be prescribed, be leviable--
(I) The Boilers Act, 1923 (V of 1923); (a) On any goods, including raw-materials. imported into a zone
(m) The Building Construction Act, 1952 (E. B. Act II of 1953) ; custom. duty, sales tax. octroi or excise duty or import licem
(n) The Fire Service Ordinance, 1959 (E. P. Ordinance XVII of 1959) ; permit fee or any other charges ;
(0) The Factories Act, 1965 (E. P. Act IV of 1965) ; (b) On any goods exported from a zone any duty or any other chat
(p) The Chittagong Municipal Corporation Ordinance, 1982 (XXV of 16. Types of industries to be set up in a zone, etc.-The Authority
1982).]. with the previous approval in writing of the Government, determine, from
to tme, the type of industries to be set up in a Zone.
!.![llB. Committees.-In addition to the Committees constituted under this
Ordinance, the Board of Governors or the Executive Board may, from time to '1. dget.-The Authority shall, by such date in each year as m:
time, appoint such other Committee or Committees as may be necessary to assist fixed by the Government, submit to the Government for approval a~
them in the discharge of their functions.] such form as e Gov t ma s ecif or each financial year, showin
estimatedreceipt and expenditure during that financial. year. ......-
+[Ll C. Inclusion in, or exclusion from CommiUees.-Notwithstanding 18. Audit and accounts.-( 1) The accounts of the Authority sha
anything contained ill this Act. the Government may, by order in writing, include maintained in such manner and form as may be prescribed by the Govern
in, or exclude from, the Consultative Committee or the Post Sanction Clearance
Committee under section 6A and 6B respectively or any other Committee (2) Without prejudice to the provisions of the Comptroller and Au
appointed under section 11B with the approval of the Prime Minister.] General (Additional Functions) Act, 1974 (XXIV of 1974), the accounts (
Authority shall be audited by an Auditor, being a chartered Accountant,
IThe semicol<?u W~IS s.ubstituted for the full-stop at the end of entry (h) and there-
the meaning of the Bangladesh Chartered Accountants Order, 1973 (P. 0.1
after the entries (I), (J), (k), (I), (m), (n), (0) and (p) were added by Ordinance NO. Lll of 1973), who sball be appointed by the Authority, with the prior appro'
of ]986. s. 10. the Government, on such remuneration to be paid by the Authority a~
2Sectioll I l B was inserted, ibid. , s. 11.
Government may fix.
3Substitatej ibid. , s. 12, Cor "Goverrnent", --_._----
4Sectio 11 11C was inserted by Act XXII of 1994. s, 3 lSubstituted by ordinance No. XLIX of 1984, S. 9, (or section ]4.
 11
10
22. Power to make rules.-The Government may, by notification in the
(3) The Auditor appointed under sub-section (2) shall examine the annual official Gazette, make rules for carrying out the purposes of this Act.
balance-sheet of the Authority together with the accounts and vouchers relating
thereto and shall have a list delivered to him of all books kept by the Authority ;'
23. Power to make regulations.-The Authority may, with the approval of
and shall at all reasonable times have access to the books, accounts and other
(be Government, make regulations, not inconsistent with the provisions of (his
documents of. the Authority, and may in relation to such accounts examine any
Act and the rules made (hereunder, to provide for all matters not required to be
member or officer of the Authority.
provided for by rules and for which provision. is necessary or expedient for
carrying out the purposes of this Act.
(4) The auditor shall report to the Government on the accounts examined
by him and in his report state whether, in his opinion, the books of accounts r. 1 [24. Re~fficulties.-If any difficulty arises in giving effect to the
have been properly maintained and they exhibit the true picture of the Authority's
provi~is Ordin~ll1ce, the Government· may, by order, do anything which
affairs, and in case he has called for any explanation or information from the
appears to it to be necessary for the purpose of removing the difficulty.]
Authority, whether it has been given and whether it is satisfactory.

(5) The Government, may at any' time, issue direction to the auditors
requiring them to report to it upon the adequacy of measures taken by the I~t
Authority for the protection of the interest of the Government and of the creditors
of the Authority or upon the sufficiency of the procedure in auditing the accounts
of the Authority, and may, at any time, enlarge or extend the scope of the audit I:
or direct that a different procedure in audit be adopted or that any other
examination be made by the auditors if in its opinion the public interest so
requires.

19. Submission of reports, etc.-(l) The Authority shall submit to the

Government, as soon as possible after the end of every financial year, a report
on the conduct of its affairs for that year.
(2) The Authority shall submit to the Government as such times and at such
intervals as the Government may specify-
(a) such returns, accounts, statements. estimates and statistics as may be
required by the Government;
(b) information and comments asked for by the Government on any
specific subject;
(c) copies of documents required by the Government for examination Of'
for any other purpose.

20. Appointment of officers, etc.-The Authority may appoint such officers

and other employees and engage such consultants, advisers, auditors and
contractors as it may consider necessary for the efficient performance of its
functions of such' terms and conditions as it may deem fit.

21. Government directions, etc.-[Omitted by Ordinance No. LIT of 1986,

s. 13.]