Export-Import • Customs • RMG

Customs Bond License in Bangladesh: Eligibility, Documents, Process & Benefits

For export-oriented businesses, managing the cost of imported raw materials is essential for staying competitive. Here's how a Customs Bond License helps reduce that upfront cost — and what it takes to get and keep one.

A Customs Bond License, commonly referred to as a Bond License or Bonded Warehouse License, is an authorization issued by the competent customs authority that allows eligible businesses to operate under the bonded warehouse facility.

The system enables qualifying businesses to import approved raw materials, intermediate inputs and packaging materials for authorized purposes under specified customs conditions. Instead of paying applicable import duties and taxes upfront on every eligible consignment, the license holder can receive the benefit of the bonded facility within the scope of the license and applicable regulations.

A Customs Bond License may be relevant to businesses that qualify for bonded warehouse facilities under the applicable laws and rules. Potential applicants include:

• Ready-made garment manufacturers and exporters.
• Knitwear, woven garment and sweater manufacturers.
• Textile and other eligible export-oriented manufacturing industries.
• Businesses supplying eligible inputs or products to export-oriented industries under qualifying arrangements.
• Other industries or entities specifically eligible under the applicable bonded warehouse regulations.

Prepare a complete documentation file based on the current checklist from your Customs Bond Commissionerate. Depending on business structure and industry, you may need:

Business registration & legal documents

• Prescribed Customs Bond License application form.
• Updated trade license.
• Relevant investment or industrial registration, where applicable.
• Certificate of Incorporation and Memorandum & Articles of Association (for a company).
• Identification documents of the proprietor, partners, or directors.

Tax & VAT documents

• e-TIN and applicable income tax documents.
• Relevant tax returns and supporting statements.
• VAT registration certificate and Business Identification Number (BIN).

Factory & operational documents

• Updated fire license and other safety approvals.
• Factory ownership documents or a valid rental agreement.
• Factory layout plan and machinery purchase invoices.
• Boiler certificate, where applicable.
• Utility bills and evidence of operational capacity, where required.

Banking & financial documents

• Relevant bank certificates and lien bank information.
• Evidence of financial capacity to execute the required general bond.

Supporting documents

• Industry association recommendations, where applicable.
• Affidavits and declarations required under the relevant procedures.
• Additional environmental, local authority, or regulatory approvals, where applicable.

The precise steps depend on the applicable rules and the competent licensing authority, but the process generally runs through these stages:

1. Assess eligibility — review your business category, export arrangements, factory facilities, and proposed imported inputs.
2. Prepare the application and supporting documents — keep business names, addresses, and registrations consistent across every document.
3. Submit the application to the appropriate Customs Bond Commissionerate or NBR-authorized authority, with the applicable fee.
4. Document scrutiny — the authority reviews your submission; be ready to clarify or correct any discrepancies.
5. Physical verification — an inspection of your factory layout, machinery, safety measures, and the relationship between raw materials and finished products.
6. Risk assessment and approval — the authority assesses business, operational, and revenue risk before deciding.
7. Execute the general bond and complete formalities — confirm the bond amount, validity, and security requirements with the licensing authority.

Bond entitlement determines the permitted scope or quantity of inputs that a license holder may import or use under the bonded facility, as applicable to the relevant category. Entitlement can depend on production capacity, export performance, approved inputs, and applicable input-output coefficients.

For eligible RMG exporters, Utilization Declarations (UDs) and Master LCs play an important role in determining the inputs required for export production. Other eligible industries may need to follow the applicable Utilization Permission (UP) procedures.

Receiving a license is the beginning of the compliance process, not the end. Maintaining compliance is essential to protect the business's bonded facility and avoid disputes or financial exposure.

• Maintain accurate inventory records — imported materials, warehouse receipts, consumption, wastage, finished goods, and exports.
• Monitor input-output consumption — against approved coefficients and utilization permissions.
• Reconcile imports with exports — Bills of Entry, invoices, LCs, production and export records, stock balances.
• Monitor license and bond validity — keep a compliance calendar for formalities and renewal deadlines.
• Prepare for customs audits and inspections — keep records organized and readily available.
• Investigate discrepancies promptly — unexplained shortages or unauthorized disposal of bonded goods create real customs and financial risk.

Planning to Apply for a Customs Bond License?

Start by reviewing your business eligibility, factory readiness, tax and VAT registrations, banking arrangements, and documentation requirements before submitting your application.

Find a Verified Customs Professional →