Bitumen Import Duty in Bangladesh
Last updated: 2026-10-02
Bitumen Import Duty in Bangladesh: Rates, Taxes, and Landed Cost (2024–2025)
Bitumen imports into Bangladesh attract a total tax and duty burden of roughly 32–38% of CIF value, composed mainly of Customs Duty (CD), Supplementary Duty (SD), Value Added Tax (VAT), Advance Income Tax (AIT), and Advance Tax (AT). Under the National Board of Revenue (NBR) tariff schedule, importers of HS Code 2713.20.00 (petroleum bitumen) in 2024–2025 typically face CD at 10%, SD at 20%, VAT at 15%, AIT at 5%, and AT at 3% — though the exact rate depends on the tariff slab, end-use classification, and whether the consignment is cleared under an annual development program or industrial incentive.
This article breaks down the bitumen import duty in Bangladesh with real numbers, worked examples, and comparison tables so exporters, importers, and procurement teams can estimate landed cost accurately before booking a shipment.
H2: Current Bitumen Import Duty Structure in Bangladesh (FY 2024–2025)
Bangladesh applies a layered tax structure on petroleum bitumen. The five main components are:
| Tax Component | Rate (Typical, 2024–25) | Base of Calculation |
|---|---|---|
| Customs Duty (CD) | 10% | CIF Value |
| Supplementary Duty (SD) | 20% | CIF + CD |
| Value Added Tax (VAT) | 15% | CIF + CD + SD |
| Advance Income Tax (AIT) | 5% | CIF Value |
| Advance Tax (AT) | 3% | CIF Value |
| Effective Total | ~32–38% | — |
Key points:
- Rates are set by the NBR under the Customs Act 1969 and revised annually in the national budget (typically announced in June for the July–June fiscal year).
- Bitumen is classified under HS 2713.20.00 — "petroleum bitumen" — separate from asphaltites and bituminous shales.
- SD of 20% is the largest single component after VAT and is often the rate that surprises new importers.
- AIT and AT are advance payments creditable against final corporate income tax or adjustable at the end of the fiscal year.
For reference, the base price of imported bitumen delivered CIF Chittagong typically ranges from USD 480–620 per metric ton, depending on origin (Iran, UAE, Singapore, South Korea), grade (60/70, 80/100 penetration), and global crude benchmarks.
H2: Worked Example — Landed Cost of 1,000 MT Bitumen at Chittagong Port
Let's calculate the landed cost for a 1,000 MT consignment of 60/70 penetration bitumen arriving at Chattogram (Chittagong) Port. Assume CIF price of USD 550 per MT, so total CIF = USD 550,000.
Using an exchange rate of BDT 118 per USD, CIF in taka = ৳64,900,000.
| Step | Calculation | Amount (BDT) |
|---|---|---|
| CIF Value | 1,000 MT × $550 × ৳118 | 64,900,000 |
| Customs Duty (10%) | 10% × CIF | 6,490,000 |
| Assessable Value for SD | CIF + CD | 71,390,000 |
| Supplementary Duty (20%) | 20% × 71,390,000 | 14,278,000 |
| Value Base for VAT | CIF + CD + SD | 85,668,000 |
| VAT (15%) | 15% × 85,668,000 | 12,850,200 |
| AIT (5%) | 5% × CIF | 3,245,000 |
| AT (3%) | 3% × CIF | 1,947,000 |
| Total Taxes & Duties | — | ৳38,810,200 |
| Landed Cost (pre-port charges) | CIF + Taxes | ৳103,710,200 |
| Effective Tax Rate | 38,810,200 ÷ 64,900,000 | 59.8% of CIF? |
Correction on the effective rate: Because SD and VAT are applied on a cascading base, the nominal effective rate on CIF is closer to ~59% when stacked, but the headline CD+SD+VAT+AIT+AT as flat percentages of CIF = 10% + 20% + 15% + 5% + 3% = 53% nominal. The cascading effect pushes the actual outlay to approximately 55–60% above CIF in this example.
> Practical takeaway: Add roughly USD 280–330 per MT to your CIF price to estimate the true landed cost of bitumen in Bangladesh.
H2: Duty Rate Comparison — Bitumen vs. Other Petroleum Products
Bangladesh's tariff structure treats bitumen relatively favorably compared to refined fuels, which carry far higher SD. The table below compares common HS codes.
| Product | HS Code | CD | SD | VAT | Approx. Total Load |
|---|---|---|---|---|---|
| Bitumen (60/70, 80/100) | 2713.20.00 | 10% | 20% | 15% | ~53% nominal |
| Furnace Oil | 2710.19.71 | 10% | 30% | 15% | ~65% |
| Diesel / Gas Oil | 2710.19.21 | 10% | 30% | 15% | ~65% |
| Petrol (Motor Spirit) | 2710.12.10 | 10% | 45% | 15% | ~80% |
| Lubricating Oil | 2710.19.90 | 10% | 20% | 15% | ~53% |
| Asphalt (natural) | 2714.90.00 | 10% | 20% | 15% | ~53% |
Why this matters: If you're importing for road construction (LGED, RHD, or PPP projects), the SD can sometimes be reduced or exempted under a SRO (Statutory Regulatory Order) if the bitumen is procured under a government-approved development project. Always verify the applicable SRO in the fiscal year of import.
H2: Key Factors That Change Your Bitumen Import Duty
Not every consignment pays the same rate. The following factors materially shift the duty burden:
- Origin country / FTA applicability: Bangladesh currently has no FTA with major bitumen exporters (Iran, UAE, Saudi Arabia, Singapore), so Most-Favored-Nation (MFN) rates apply. SAFTA rates may apply for Indian-origin bitumen.
- SRO exemptions: Government projects, road authorities, and BOI-registered industries can apply for duty exemptions under SROs issued each budget cycle.
- End-use declaration: Bitumen imported as industrial raw material for roofing, waterproofing, or waterproofing membrane manufacturing may qualify for lower SD.
- Valuation method: Bangladesh Customs uses CIF-based valuation; under-invoicing triggers PSI (Pre-Shipment Inspection) and possible re-assessment.
- Port of entry: Duty is the same at Chattogram, Mongla, and Payra, but demurrage and port charges vary, affecting total landed cost.
- Grade and origin: Iranian 60/70 bitumen typically lands at lower CIF than South Korean or Singaporean grades, but the duty rate is identical — only the base changes.
Timeline for clearance:
- Pre-arrival documentation: 3–5 working days
- Bill of Entry submission to customs assessment: 1–2 days
- Duty payment and release: 2–4 days
- Total average clearance time at Chattogram: 7–12 working days
H2: How to Calculate Your Bitumen Import Duty Accurately
Manual calculation is error-prone because of the cascading effect. Use this formula:
```
Total Duty & Tax = CD + SD + VAT + AIT + AT
Where:
CD = CIF × CD%
SD = (CIF + CD) × SD%
VAT = (CIF + CD + SD) × VAT%
AIT = CIF × AIT%
AT = CIF × AT%
```
Common mistakes to avoid:
- Applying VAT to CIF only instead of CIF + CD + SD.
- Forgetting that AIT (5%) and AT (3%) are advance payments, not final costs — they are creditable.
- Missing the SRO applicable to your fiscal year (rates shift every July).
- Ignoring PSI charges, port handling, and demurrage, which can add USD 15–40 per MT.
Instead of building spreadsheets, importers and exporters can run scenario calculations in seconds using 6Tar's cost calculator — designed specifically for bitumen trade routes into Bangladesh and other South Asian markets.
FAQ: Bitumen Import Duty in Bangladesh
Q1: What is the current bitumen import duty rate in Bangladesh?
The standard structure for HS 2713.20.00 in FY 2024–25 is 10% CD, 20% SD, 15% VAT, 5% AIT, and 3% AT, giving an effective landed cost load of roughly 53–60% above CIF. The exact figure depends on whether your consignment qualifies for an SRO exemption.
Q2: How much does it cost to import 1,000 MT of bitumen into Bangladesh?
At a CIF price of USD 550/MT, the taxes and duties total approximately BDT 38.8 million, bringing the landed cost to about BDT 103.7 million (≈ USD 879,000) before port handling. This works out to roughly USD 880–930 per MT all-in.
Q3: Is there any duty exemption on bitumen for road construction projects?
Yes. Government-funded road projects under RHD, LGED, or PPP frameworks can apply for SD exemptions through NBR SROs issued in the annual budget. Importers must submit project approval documents and end-use certificates to claim the benefit.
Q4: How long does customs clearance take for bitumen at Chattogram Port?
Average clearance time is 7–12 working days from vessel discharge, assuming documents (Bill of Lading, Invoice, Packing List, Certificate of Origin, PSI Certificate) are complete. Delays occur if customs re-assesses value or if PSI is triggered.
Q5: Which countries supply the most bitumen to Bangladesh?
Iran, UAE, Saudi Arabia, Singapore, and South Korea are the dominant suppliers. Iran typically offers the lowest CIF (USD 480–520/MT), while Singapore and South Korea command USD 580–620/MT due to higher-grade specification and freight costs.
Calculate Your Exact Bitumen Import Cost with 6Tar
Duty rates change every budget cycle, and getting the landed cost wrong by even 5% can wipe out your margin on a 5,000 MT consignment. Instead of guessing, run your numbers through 6Tar's bitumen cost calculator — it factors in CIF, CD, SD, VAT, AIT, AT, port charges, and current NBR rates for Bangladesh in real time.
→ Try the 6Tar cost calculator now and get your landed cost in under 60 seconds.
Whether you're exporting from Iran, the UAE, or Singapore, or importing for RHD road projects, 6Tar gives you the accurate, up-to-date duty breakdown you need to quote confidently and protect your margin.