Khosru proposes fresh provisions to Customs Act for FTZ establishment

Finance Minister Amir Khosru Mahmud Chowdhury has proposed introducing a new chapter and several provisions in the Customs Act to facilitate the establishment of Free Trade Zones (FTZs), aiming to expand trade and investment and strengthen Bangladesh's integration into global supply chains.

The proposal was unveiled today while placing the national budget of approximately Tk9.38 lakh crore for fiscal year 2026-27 in the Jatiya Sangsad (JS) this afternoon.

Under the proposed framework, goods will be allowed to enter Free Trade Zones without payment of customs duties for storage, grading, packaging, manufacturing and processing activities intended for export.

The initiative is designed to create a business environment similar to those operating successfully in many countries around the world.

The finance minister said goods from the Free Trade Zones would also be allowed to enter the domestic market upon payment of the applicable duties and taxes, ensuring revenue protection while enhancing commercial flexibility.

The proposed zones would significantly reduce supply-chain lead times for domestic enterprises, including small and medium enterprises (SMEs) and micro, small and medium enterprises (MSMEs), he said, adding, "The measure is also expected to ease working capital pressures on businesses by allowing them to source and process imported inputs more efficiently."

According to the finance minister, the initiative will help improve trade facilitation, attract investment, enhance export competitiveness and support the country's broader economic growth objectives.