24 July 2017
BANGLADESH: FDI in Readymade Garment Sector Now Permissible Outside EPZs
The country’s readymade garment (RMG) sector is to be opened up to foreign direct investment (FDI) for the first time. Previously RMG FDI had only been permitted within the country’s export processing zones (EPZs). As yet, no date has been announced as to when this new directive will come into force.
It is, however, expected that the country’s Export Promotion Bureau (EPB) will soon be authorised to issue Utilisation Declaration (UD) Certificates to foreign-invested RMG factories operating outside the auspices of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). A UD Certificate is required for any factory looking to make use of the country’s bonded warehouse facilities, which allow wholly export-oriented businesses to import raw materials on a tax-free basis.