Duty and tax stack on top of each other
VAT is charged on the assessable value plus customs duty, not on the invoice value alone — a habit worth double-checking, since it's the step most often missed when estimating an import cost by hand.
Frequently asked questions
Why does the exchange rate need updating so often?
The USD-to-Taka rate moves daily and matters more to your landed cost than almost any other input here — always use the rate your bank will actually apply on settlement date, not an old or approximate figure.
What is Advance Income Tax (AIT) on imports?
A tax collected at the import stage under NBR rules, credited against your eventual income tax liability rather than being a final cost — the rate varies by product (HS code) and importer category, so confirm yours with your C&F agent or the customs tariff schedule.
Does customs duty really vary that much?
Yes — Bangladesh customs duty ranges from 0% for many raw materials and capital machinery up to 25%+ for finished consumer goods, set by HS code in the National Board of Revenue's tariff schedule. Check your specific HS code rather than assuming a flat rate.
Last updated: June 2026