Amazon wants a bonded warehouse in Bangladesh

Amazon wants a bonded warehouse in Bangladesh

Amazon, the American e-commerce giant, aims to establish central bonded warehouse facilities in Bangladesh to leverage tax benefits. State Minister for Commerce Ahasanul Islam Titu disclosed this yesterday.

Minister Titu addressed these plans during a press conference at the commerce ministry in Dhaka after a meeting with a delegation from the US-Bangladesh Business Council. The delegation included representatives from Meta, Chevron, The Coca-Cola Company, and Boeing.

Amazon has sourced clothing from Bangladesh for years. Now, it plans to use the country as a transshipment hub. By bringing goods through its global supply chain and dispatching them to destination countries, Amazon hopes to reduce its tax burden.

Titu said the government will formulate a policy to support Amazon’s request. He also called for easier access to US markets for Bangladeshi products. Bangladesh is the largest importer of American cotton. Therefore, Titu demanded duty benefits on garments made from imported US cotton. This has been a longstanding demand because Bangladeshi garment exporters face a 15.62 percent duty on exports to the US.

Titu highlighted the national logistics policy adopted to facilitate e-commerce. This policy aims to establish the necessary infrastructure and strategies. The arrival of major companies indicates Bangladesh’s significant business potential. They are targeting not only Bangladesh’s 170 million people but also the 330 million people in neighboring Bay of Bengal countries.

A delegation of nearly 30 members, led by Steven Kobos, president and CEO of Excelerate Energy, met Titu. The delegation also included Atul Keshap, president of the US-Bangladesh Business Council.

Bangladesh seeks to enhance its role in global trade through these developments. By attracting big companies, the country aims to boost foreign direct investment and strengthen its economic position.

Have more queries


Contact us for a comprehensive understanding of the investment landscape in Bangladesh