The Bangladesh Export Processing Zones Authority Act, 1980
An Act for the establishment of the Bangladesh Export
Processing Zones Authority.
WHEREAS it is expedient to make provision for the
establishment of the Bangladesh Export Processing Zones Authority for creation,
development, operation, management and control of export processing zones and
for matters connected therewith;
It is hereby enacted as follows:-
Short title and commencement
1. (1) This Act may be called the Bangladesh Export
Processing Zones Authority Act, 1980.
(2) It shall come into force on such date as the Government
may, by notification in the official Gazette, appoint.
Definitions
1[2. 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.]
Establishment of the Authority
3. (1) As soon as may be after the commencement of this Act,
the Government shall, by notification in the official Gazette, establish 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, hold and dispose of
property, both movable and immovable, and shall by the said name sue and be
sued.
General direction
2[3A. (1) The general direction and administration of the affairs
of the Authority shall vest in the Executive Board which may, subject to
sub-section (2), exercise all powers and do all acts and things as may be
exercised or done by the Authority.
(2) The Executive Board, in discharging its functions, shall
act in accordance with the guidance, order and instructions given by the Board
of Governors of the Authority from time to time.]
Head office, etc.
4. (1) The Head office of the Authority shall be located at
Chittagong.
(2) The Authority may establish its offices and branches at
such places as it may deem fit.
Objects of the Authority
3[4A. The objects of the Authority shall be-
(a) to foster and generate economic development of
Bangladesh by encouraging and promoting foreign investments in a Zone;
(b) to diversify the sources of foreign exchange earnings by
increasing export of Bangladesh through a Zone 4[;
(c) to encourage and foster the establishment and
development of industries and commercial enterprises in a zone in order to
widen and strengthen the economic base of Bangladesh;
(d) to generate productive employment opportunity and to
upgrade labour and management skills through acquisition of advanced
technology.]
Board of Governors
5[5. (1) There shall be a Board of Governors of the
Authority which 6[shall, subject to the provisions of sub-section (3), consist]
of the following members, namely:-
(a) Chairman;
(b) Minister-in-charge of the Ministries or Divisions
dealing with industries, commerce, finance, planning, foreign affairs, energy
and ports and shipping, ex-officio;
(c) Governor, Bangladesh Bank, ex-officio;
(d) Secretaries of the Ministries or Divisions dealing with
industries, commerce, finance, planning, foreign affairs, energy, ports and
shipping and internal resources, ex-officio;
(e) Chairman of the Executive Board, who shall also be the
Secretary of the Board, ex-officio;
(2) The 7[Prime Minister], or a member, who is a Minister,
nominated by the 8[Prime Minister], shall be the Chairman of the Board.
9[(3) The Government may, by notification in the official
Gazette, include in the Board any person or exclude from the Board any member
with approval of the Prime Minister.]
Functions of the Board
5A. (1) The Board-
(a) shall formulate the policies for operation and
management of the Authority and the zones;
(b) shall review, from time to time, the activities and
performance of the Executive Board and the zones;
(c) may give orders or issue instructions which are deemed
appropriate for the purpose of efficient management of the affairs of the
Authority and the zones.
(2) The policies formulated, orders given and instruction
issued by the Board shall be deemed to be the policies formulated, orders given
and instructions issued by the Government and shall be followed accordingly;
and they shall not require any formal approval of any Ministry or Division
dealing with the matters for their implementation.
Executive Board
5B. (1) There shall be an Executive Board of the Authority
consisting of a Chairman and three other members.
(2) The Chairman of the Executive Board shall be called the
Executive Chairman and he shall be the Chief Executive officer of the
Authority.
(3) The Executive Chairman and other members of the
Executive Board shall be appointed by the Government and shall hold office on
such terms and conditions as the Government may determine.
(4) If a vacancy occurs in the office of the Executive Chairman
or if the Executive Chairman is unable to discharge the functions of his office
on account of his absence, illness or any other cause, the Government shall
make such arrangement for discharging the functions of the Executive Chairman
as it may consider expedient.
(5) No act or proceedings of the Executive Board shall be
invalid or be called in question merely on the ground of any vacancy in, or any
defect in the constitution of, the Executive Board.
Meetings
6. (1) Save as provided in this section, the Board of
Governors and the Executive Board shall regulate the procedure for their
meetings.
(2) All meetings of the Board of Governors shall be convened
by the Secretary of the Board in consultation with its Chairman and shall be
held at such times and places as may be determined by him.
(3) All meetings of the Executive Board shall be convened by
the Executive Chairman and shall be held at such times and places as may be
determined by him.
(4) All meetings of the Board of Governors shall be presided
over by its Chairman and, in his absence, by a member of the Board, who is a
Minister, authorised by the Chairman.
(5) All meetings of the Executive Board shall be presided
over by its Chairman.]
Consultative Committee
10[6A. (1) 11[The Executive Board shall, in the discharge of
its functions, be aided] and advised by a Consultative Committee which shall
consist of the following members:-
(a) one member to be nominated by the Internal Resources
Division from among its officers;
(b) one member to be nominated by the Ministry of Industries
from among its officers;
(c) one member to be nominated by the Ministry of Commerce
from among its officers;
(d) one member to be nominated by the Export Promotion
Bureau from among its officers;
(e) one member to be nominated by the Finance Division from
among senior bankers;
(f) one member to be nominated by the Ministry of Industries
from among prominent industrialists;
(g) one member to be nominated by the Government from among
industrialists of each Zone;
(h) Director General, Department of Industries, or his
nominee;
(i) Division Chief (Industries), Planning Commission;
(j) Commissioner of the Division in which a Zone is situated
or his nominee;
(k) Chairman of the Water Supply and Sewerage Authority
within the area of which a Zone is situated;
(l) Chairman of Chittagong Port Authority or Port of Chalna
Authority to be nominated by the Government;
(m) Chairman of the body, by whatever name called,
responsible for the development or improvement of the urban area within which a
Zone is situated;
(n) Chairman, Bangladesh Small and Cottage Industries
Corporation;
(o) one member to be nominated by the Federation of
Bangladesh Chamber of Commerce and Industries;
(p) four members to be nominated by the Federation of
Bangladesh Chamber of Commerce and Industries, one from among Presidents of
Chamber of Commerce and Industry of each division;
(q) one member to be nominated by the Authority from among
the owners or shareholders of the enterprises set up in a Zone;
(r) one officer of the Authority to be nominated by it who
shall also be the Secretary of the Consultative Committee; and
(s) such other members as may be nominated by the
Government.
(2) The 12[Executive Chairman] shall ex-officio be the
Chairman of the Consultative Committee.
13[(3) The meetings of the Consultative Committee shall be
convened by its Chairman and shall be held at such time and place as may be
determined by him.]
(4) All meetings of the Consultative Committee shall be
presided over by the 14[its Chairman] or, in his absence, by a member of the
15[Executive Board authorised by him].
(5) To constitute a quorum at a meeting of the Consultative
Committee not less than one third of the total number of its members shall be
present.]
Post Sanction Clearance Committee
16[6B. (1) There shall be a committee to be called the Post
Sanction Clearance Committee.
(2) The Committee shall consist of the following members,
namely:-
(a) Executive Chairman, ex-officio, who shall also be its
Chairman;
(b) Controller of Capital Issues, ex-officio;
(c) Registrar of Joint Stock Companies, ex-officio;
(d) General Manager, Exchange Control Department, Bangladesh
Bank, ex-officio;
(e) an officer of the Authority to be nominated by it, who
shall also be the Secretary of the Committee.
(3) The Committee shall assist the Executive Board in
matters of registration of companies, capital issues and foreign exchange
transactions in respect of, and in all other matters connected with the
operational needs of, sanctioned industries in a zone.
(4) Save as provided in this section, the Committee shall
regulate the procedure of its meetings:
Provided that the Committee shall meet at least once in a
month.
(5) The meetings of the Committee shall be convened by its
Secretary and shall be presided over by its Chairman.]
The functions of the Authority
7. The functions of the Authority shall be-
(a) to take possession of land to be acquired or
requisitioned by the Government for the purpose of creation and development of
a zone;
17[(b) to allot land and building-spaces in a zone to
investors on sale, lease or on rent and to allow them to mortgage the allotted
lands for raising loan from financial institutions or commercial banks;]
(c) to provide infrastructure facilities, including
buildings, utilities and warehouses;
18[(d) to process applications for setting up of industries
within a Zone and accord sanction in accordance with the guidelines given by
the Government from time to time;]
(e) to provide customs bonded facilities in accordance with
customs regulations for importation into a zone of building materials for
construction purposes and packaging materials, raw materials and intermediate
goods for the purpose of processing for exports;
(f) to allow import of raw materials or semi processed or
other goods required for use in the zone and export of semi processed,
processed or other goods to be specified by the 19[Board] in such manner as may
be prescribed;
(g) to assist in transportation of imported raw materials
and intermediate goods in bonded condition and export of finished products;
(h) to provide necessary banking facilities within the zone
in consultation with the Bangladesh Bank;
(i) to establish liaison with the port, municipal and other
authorities to make arrangement for transportation of imported raw materials
and intermediate goods on bonded condition and for export of finished products;
(j) to sanction employment of foreign nationals in
accordance with the guidelines given by the Government from time to time, to
posts for which local expertise is not available for efficient running of the
industries in a zone;
20[(jj) subject to the approval of the Government, to enter
into any contract or agreement of any kind for the purposes of this Ordinance;]
(k) to do such other acts and things as may be necessary to
be done in connection with, or conducive to, the performance of the aforesaid
functions.
Establishment, etc., of warehouses
21[7A. Notwithstanding anything 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 customs bonded facilities in
accordance with customs regulations for importation into Bangladesh of raw
materials, packaging materials, semi-processed goods and accessories required
for export oriented industries.]
Fund
8. (1) There shall be a fund of the Authority to which shall
be credited-
(a) grants and loans from the Government;
(b) loans from such other sources as the Government may
approve;
(c) proceeds from the land allotted for setting up of
industries in the zone;
(d) rental of buildings leased out to the industries set up
in the zone;
(e) fees and service charges, if any, received for services
rendered;
(f) any other sums not specified accruing to or due to the
Authority from any other source.
(2) The fund of the Authority shall be used to meet
expenditure in connection with the functions of the Authority under this Act.
Power to borrow
9. The Authority may 22[* * *] borrow money for carrying out
the purposes of this Act.
Power to create zones
10. The Government may, by notification in the official
Gazette, declare any place or places to be specified in the notification to be
an Export Processing Zone for the purposes of this Act.
Acquisition of land for a zone
11. Where any land or any interest in any land is required
by the Authority for any of its purposes under this Act that land or the
interest therein may be acquired by the Government under the Land Acquisition
Act, 1894 (I of 1894), for the Authority and the land or interest therein so
acquired shall be deemed to be required for a public purpose.
Power to exempt Zones from operation of certain laws
23[11A. The Government may, by notification in the official
Gazette, exempt a Zone from the operation of all or any of the provisions of
all or any of the following enactments or, direct that any such enactment or
any provision thereof shall, in its application to a Zone, be subject to such
modifications or amendments as may be specified therein, namely:-
(a) The Stamp Act, 1899 (II of 1899);
(b) The Companies Act, 1913 (VII of 1913);
(c) The Excises and Salt Act, 1944 (I of 1944);
(d) The Foreign Exchange Regulation Act, 1947 (VII of 1947);
(e) The Employment of Labour (Standing Orders) Act, 1965
(VIII of 1965);
(f) The Industrial Relations Ordinance, 1969 (XXIII of
1969);
(g) The Land Development Tax Ordinance, 1976 (XLII of 1976);
(h) The Income-tax Ordinance, 1984 (XXXVI of 1984) 24[;
(i) The Municipality Taxation Act, 1881 (Ben. Act IX of
1881);
(j) The Explosives Act, 1884 (IV of 1884);
(k) The Electricity Act, 1910 (IX of 1910);
(l) The Boilers Act, 1923 (V of 1923);
(m) The Building Construction Act, 1952 (E.B. Act II of
1953);
(n) The Fire Service Ordinance, 1959 (E.P. Ord. XVII of
1959);
(o) The Factories Act, 1965 (E.P. Act IV of 1965);
(p) the chittagong municipal corporation ordinance, 1982
(xxv of 1982).]
Committees
25[11B. In addition to the Committees constituted under this
Ordinance, the Board of Governors or the Executive Board may, from time to
time, appoint such other Committee or Committees as may be necessary to assist
them in the discharge of their functions.]
Inclusion in or exclusion from Committees
26[11C. Notwithstanding anything contained in this Act, the
Government may, by order in writing, include in, or exclude from, the
Consultative Committee or the Post Sanction Clearance Committee under section
6A and 6B respectively or any other Committee appointed under section 11B with
the approval of the Prime Minister.]
Permission for setting up industry in the zone, etc.
12. (1) A person desiring to set up an industry in a zone
shall make an application to the Authority in the prescribed form for
permission in that behalf.
(2) The Authority or any person authorised by it in this
behalf shall, on receipt of an application made under sub section (1), process
it in accordance with the principle to be laid down by the 27[Board] in this
behalf and shall, if it is satisfied that the applicant fulfils the
requirements for setting up an industry in the zone, grant him a permission in
the prescribed form.
Allotment of land etc., in a zone
13. The Authority may, subject to such terms and conditions
as it may determine, allot, or lease out on rental basis or otherwise; land and
building spaces in a zone to a person who has been granted permission under
section 12 to set up an industry in that zone.
Permission to banks to operate in a Zone
28[14. The Authority may, with the approval of the
Bangladesh Bank, permit banks, foreign and local, to operate within a Zone and to
have as their constituents persons not resident in Bangladesh and to accept
deposits on current account or otherwise from such persons.]
Bonded facilities, etc.
15. Notwithstanding anything contrary contained in any other
law for the time being in force, there shall not, subject to such rules as may
be prescribed, be leviable-
(a) On any goods, including raw materials, imported into a
zone any customs duty, sales tax, octroi or excise duty or import licence or
permit fee or any other charges;
(b) On any goods exported from a zone any duty or any other
charges.
Types of industries to be set up in a zone, etc.
16. The Authority may, with the previous approval in writing
of the Government, determine, from time to time, the type or types of
industries to be set up in a zone.
Budget
17. The Authority shall, by such date in each year as may be
fixed by the Government, submit to the Government for approval a budget, in
such form as the Government may specify, for each financial year, showing the
estimated receipt and expenditure during that financial year.
Audit and accounts
18. (1) The accounts of the Authority shall be maintained in
such manner and form as may be prescribed by the Government.
(2) Without prejudice to the provisions of the Comptroller
and Auditor-General (Additional Functions) Act, 1974 (XXIV of 1974), the
accounts of the Authority shall be audited by an Auditor, being a chartered
accountant within the meaning of the Bangladesh Chartered Accountants Order,
1973 (P.O. No. 2 of 1973), who shall be appointed by the Authority, with the prior
approval of the Government, on such remuneration to be paid by the Authority as
the Government may fix.
(3) The auditor appointed under sub section (2) shall
examine the annual 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; and shall at all reasonable times have access to
the books, accounts and other documents of the Authority, and may in relation
to such accounts examine any member or officer of the Authority.
(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 have been properly maintained and they exhibit the true
picture of the Authority's affairs, and in case he has called for any
explanation or information from the 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 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 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.
Submission of reports, etc.
19. (1) 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 at 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
or for any other purpose.
Appointment of officers, etc.
20. 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 on such
terms and conditions as it may deem fit.
[Omitted.]
21. [Government directions, etc.- Omitted by section 13 of
the Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1986
(Ordinance No. LII of 1986).]
Power to make rules
22. The Government may, by notification in the official
Gazette, make rules for carrying out the purposes of this Act.
Power to make regulations
23. The Authority may, with the approval of the Government,
make regulations, not inconsistent with the provisions of this Act and the
rules made thereunder, to provide for all matters not required to be provided
for by rules and for which provision is necessary or expedient for carrying out
the purposes of this Act.
Removal of difficulties
29[24. If any difficulty arises in giving effect to the
provisions of this Ordinance, the Government may, by order, do anything which
appears to it to be necessary for the purpose of removing the difficulty.]
1 Section 2 was
substituted by section 2 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
2 Section 3A was
inserted by section 3 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
3 Section 4A was
inserted by section 2 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
4 The semi-colon (;) was substituted for the
full-stop (.) and clauses (c) and (d) were added by section 4 of the Bangladesh
Export Processing Zones Authority (Amendment) Ordinance, 1986 (Ordinance No.
LII of 1986)
5 Sections 5, 5A,
5B and 6 were substituted for previous sections 5 and 6, by section 5 of the
Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1986
(Ordinance No. LII of 1986)
6 The words,
commas, brackets and figure “shall, subject to the provisions of sub-section (3),
consist” were substituted for the words “shall consist” by section 2 of the
Bangladesh Export Processing Zones Authority (Amendment) Act, 1994 (Act No.
XXII of 1994)
7 The words “Prime
Minister” were substituted for the word “President” by section 2 of the
Bangladesh Export Processing Zones Authority (Amendment) Act, 1992 (Act No. XXX
of 1992)
8 The words “Prime
Minister” were substituted for the word “President” by section 2 of the
Bangladesh Export Processing Zones Authority (Amendment) Act, 1992 (Act No. XXX
of 1992)
9 Sub-section (3)
was added by section 2 of the Bangladesh Export Processing Zones Authority
(Amendment) Act, 1994 (Act No. XXII of 1994)
10 Section 6A was
inserted by section 5 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
11 The words and
commas “The Executive Board shall, in the discharge of its functions, be aided”
were substituted for the words and commas “The Authority shall, in the
discharge of its functions, be added” by section 7 of the Bangladesh Export
Processing Zones Authority (Amendment) Ordinance, 1986 (Ordinance No. LII of
1986)
12 The words
“Executive Chairman” were substituted for the words “Chairman of the Authority”
by section 7 of the Bangladesh Export Processing Zones Authority (Amendment)
Ordinance, 1986 (Ordinance No. LII of 1986)
13 Sub-section (3)
was substituted by section 7 of the Bangladesh Export Processing Zones
Authority (Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
14 The words “its
Chairman” were substituted for the word “Chairman” by section 7 of the
Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1986
(Ordinance No. LII of 1986)
15 The words
“Executive Board authorised by him” were substituted for the words “Authority
authorised by him in this behalf” by section 7 of the Bangladesh Export
Processing Zones Authority (Amendment) Ordinance, 1986 (Ordinance No. LII of
1986)
16 Section 6B was
inserted by section 8 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
17 Clause (b) was
substituted by section 9 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
18 Clause (d) was
substituted by section 6 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
19 The word
“Board” was substituted for the word “Government” by section 9 of the
Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1986
(Ordinance No. LII of 1986)
20 Clause (jj) was
inserted by section 6 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
21 Section 7A was
inserted by section 2 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1985 (Ordinance No. XIII of 1985)
22 The commas and
words “, with the prior approval of the Government,” were omitted by section 7
of the Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1984
(Ordinance No. XLIX of 1984)
23 Section 11A was
inserted by section 8 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
24 The semi-colon
(;) was substituted for the full-stop (.) and the entries (i) to (p) were added
by section 10 of the Bangladesh Export Processing Zones Authority (Amendment)
Ordinance, 1986 (Ordinance No. LII of 1986)
25 Section 11B was
inserted by section 11 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)
26 Section 11C was
inserted by section 3 of the Bangladesh Export Processing Zones Authority
(Amendment) Act, 1994 (Act No. XXII of 1994)
27 The word
“Board” was substituted for the word “Government” by section 12 of the
Bangladesh Export Processing Zones Authority (Amendment) Ordinance, 1986
(Ordinance No. LII of 1986)
28 Section 14 was
substituted by section 9 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1984 (Ordinance No. XLIX of 1984)
29 Section 24 was
added by section 14 of the Bangladesh Export Processing Zones Authority
(Amendment) Ordinance, 1986 (Ordinance No. LII of 1986)