The import of cosmetic product in Bangladesh are regulated as per the the Import Policy Order, 2015-18 (IPO). IPO is issued under the provision of “Imports and Exports (control) Act 1950”
Further, it is also regulated by Drugs Act, 1940 and rules made thereunder.
1. GENERAL FDI POLICIES
Eligibility Criteria and Entry routes for Investment
Except the prohibited/controlled goods, all other goods are importable freely subject to payment of customs and other duties.
Rule 3 of IPO provides as following –
“Import of goods under this order shall be regulated as follows:
(a) unless otherwise specified in this Order, the goods banned for import mentioned in the list of controlled goods shall not be importable: Provided that, those goods which are importable subject to fulfillment of certain conditions shall be importable on fulfillment of those conditions;
(b) except the goods specified in sub-clause (a), all other goods are importable freely.”
As per the applicable law, if the business of the Company i.e. importing and selling cosmetics products in Bangladesh does not fall under prohibited sector or controlled under the sector requiring government approval for investment, in that case it can be interpreted that the company is eligible for importing freely without requirement of approvals.
2. LICENSE & REGISTRATION REQUIREMENT
Import Registration Certificate
The Ministry of Commerce requires registration of each importer. Certain restricted goods may be imported only by authorized users. An importer wishing to import commercial goods into Bangladesh you should apply through OLM to get Import Registration Certificate (IRC).
Commercial importers and private industrial consumers (with the exception of those located in EPZs) must register with the Chief Controller of Imports and Exports (CCIE; http://www.ccie.gov.bd/) within the Ministry of Commerce, who issues import registration certificates (IRC). IRC are issued by the office of Chief Controller of Imports and Exports(CCI & E)
Membership of Recognized Chamber of Commerce and Industry and Trade and Association
As per Chapter 9, Clause 29, all importers shall obtain membership from a recognized Chamber of Commerce and Industry or membership from the concerned trade organization formed on all Bangladesh basis representing his own trade.
The cosmetics importers shall register themselves with the following Association –
Bangladesh cosmetics and Toiletries Importers Association, Address – 63-F, Lake Circus (4th floor) Kalabagan, Dhaka-1205. Tel: 9113219 Mob: 01713-115170
Certificate of Conformity
Imports of cosmetics require a certificate of conformity for import customs clearance purposes evidencing that the goods meet Bangladesh conformity standards. Health and beauty products require a certificate of conformity. The Government of the People’s Republic of Bangladesh, through the Ministry of Commerce has issued an order regulating the import of regulated products to maintain quality as per Bangladeshi Standards of products entering in Bangladesh market. Regulated shipments must be tested in an accredited laboratory and the test reports must be in compliance with the applicable Bangladesh standards (BDS). A Certificate of Conformity confirms this compliance and expedites Customs clearance.
Products not accompanied by a Certificate of Conformity may be subject to post landing examination and testing resulting in a delay in clearance.
For cosmetics that come into contact with the human body, a Halal Certificate that contains animal by-products is required.
Bangladesh Trade Portal (BTP)
The Bangladesh Trade Portal (BTP) is an official source of all regulatory information relevant to traders who wish to import goods into Bangladesh or export to other countries. The Ministry of Commerce of the Bangladesh Government has established the Portal in order to improve the predictability and transparency of the country’s trading laws and processes.
The Portal is also a one-stop point for information relating to export from and import into Bangladesh.
The businesses shall require the above stated licenses for operating his business in Bangladesh. The importer and the distributor can also take guidance of BTP for for clearer understanding if import of cosmetics and its distribution.
Classification and Value – Customs duty is payable on imported goods as a percentage of their declared value. The rate of duty payable on goods imported into Bangladesh varies according to the commodity and the country of origin. Commodities are classified using the 8-digit Harmonized System (HS) Code which is maintained and, from time to time, amended by the World Customs Organization (WCO).
The Customs or Import duty for Cosmetic set to Bangladesh is classified under Health & Beauty(CDF categories). The HS-CODE applied for the Cosmetic set is 33-7-90-0-0. The tax is applied on the total sum of item cost, insurance cost and shipment cost.
Rate of Tax – General import duty is 25%. The average VAT rate applicable in Bangladesh is 0.15%.
The company shall be charged the above taxation rates for import in Bangladesh.
3. OTHER LEGAL COMPLIANCES
The IPO provides for labelling requirements of the imported goods.
1. In all cases of import, “country of origin” shall be mentioned clearly on the package and container of goods.
2. The name, address and ETIN or TIN, BIN of the importer shall be inscribed or printed in indelible ink on, at least two per cent of the largest packet, cover, timed package, sack pack, wooden box or other packets containing the imported good.
In addition to this, other labelling requirements stated by the government shall also be applicable.
Products standards are regulated by Bangladesh Standards & Testing Institution (BSTI). Generally, the quality of the product is first tested and determined at BSTI. BSTI takes into account all the factors including the process, measurements and system by which the product is created. BSTI tests the quality and makes sure that the product is compliant with all the legal boundaries of substances used, production method and whether it is fit for import or export amongst other things.
Cosmetics companies need to obtain license from BSTI before their products are sold in the market.
The Companies shall make sure that it complies with the above requirements as per the laws applicable to it.