Bitumen Import Duty in Bangladesh
Last updated: 2026-10-04
Bitumen Import Duty in Bangladesh: Complete 2025 Guide
Bitumen imported into Bangladesh attracts a total tax burden of approximately 32–37% of CIF value, combining 5% Customs Duty, 15% VAT, 5% Advance Income Tax (AIT), 3% Advance Tax (AT), and 2% Regulatory Duty under the National Board of Revenue (NBR) tariff schedule. For a standard 40,000 MT bulk cargo of bitumen 60/70 at $450/MT CIF, importers pay roughly $6.1–7.0 million in duties and taxes. Since Bangladesh produces no domestic bitumen and imports 100% of its annual 700,000–850,000 MT requirement, getting these numbers right is critical for importers, traders, and infrastructure contractors.
This guide breaks down the exact duty structure, HS codes, landed cost calculations, and compliance requirements for bitumen import duty in Bangladesh as of the 2025 fiscal year.
Bitumen HS Code and Duty Structure in Bangladesh
Bitumen is classified under HS Code 2713.20.00 (petroleum bitumen) in Bangladesh's customs tariff. Most bulk bitumen enters under the "Bitumen 60/70" grade used for road construction, though modified bitumen (PMB) may fall under 2713.90.
| Tax Component | Rate | Base Calculation |
|---|---|---|
| Customs Duty (CD) | 5% | CIF Value |
| Supplementary Duty (SD) | 0% | — |
| Regulatory Duty (RD) | 2% | CIF + CD |
| Value Added Tax (VAT) | 15% | CIF + CD + RD |
| Advance Income Tax (AIT) | 5% | CIF Value |
| Advance Tax (AT) | 3% | CIF Value |
| Total Effective Rate | ~32–37% | On CIF |
Key point: AIT is adjustable against corporate income tax, and AT is adjustable against VAT liability — but both must be paid upfront at the port before release.
| Source Country | Duty Treatment | Import Volume Share (2024) |
|---|---|---|
| UAE | MFN rates apply | ~35% |
| Saudi Arabia | MFN rates apply | ~30% |
| Singapore | MFN rates apply | ~12% |
| India | SAFTA/limited concessions | ~10% |
| Malaysia | MFN rates apply | ~8% |
| Others | MFN rates apply | ~5% |
Bangladesh has no FTA with major bitumen exporters, so MFN rates apply to nearly all imports.
Landed Cost Calculation: Real Numbers
Understanding bitumen import duty in Bangladesh requires working through a full landed cost. Here's a worked example using a standard bulk parcel:
| Cost Item | Calculation | Amount (USD) |
|---|---|---|
| CIF Value | 40,000 MT × $450/MT | $18,000,000 |
| Customs Duty (5%) | 5% × CIF | $900,000 |
| Regulatory Duty (2%) | 2% × (CIF + CD) | $378,000 |
| Subtotal (Duty Paid Value) | CIF + CD + RD | $19,278,000 |
| VAT (15%) | 15% × $19,278,000 | $2,891,700 |
| AIT (5%) | 5% × CIF | $900,000 |
| AT (3%) | 3% × CIF | $540,000 |
| Total Taxes | — | $5,609,700 |
| Total Landed Cost | — | $23,609,700 |
| Effective Duty Rate | $5.61M ÷ $18M | 31.2% |
Add port handling, berthing, storage, and demurrage risk, and the realized cost often reaches $590–620/MT landed in Bangladesh versus $450–480/MT CIF.
| Cost Item | Amount (USD) |
|---|---|
| CIF Value (5,000 × $470) | $2,350,000 |
| CD + RD + VAT + AIT + AT | ~$845,000 |
| Landed Cost | ~$3,195,000 |
| Landed per MT | ~$639/MT |
Smaller parcels pay a higher per-MT rate due to fixed port charges and higher CIF premiums.
Why Bitumen Is Duty-Sensitive in Bangladesh
Bangladesh's road infrastructure boom — led by the Roads and Highways Department (RHD) and mega-projects like Padma Bridge, Dhaka Metro, and expressway expansions — has pushed bitumen demand to 800,000+ MT annually, growing 8–10% per year.
Demand drivers:
- 3,800+ km of national highways being upgraded
- Rural road connectivity programs under LGED
- Annual road maintenance requiring 250,000+ MT
- New economic zones and industrial corridors
Because 100% of supply is imported, every percentage point of duty adds $180,000 to the cost of a 40,000 MT cargo. The duty structure is therefore a major policy lever — and a major cost line for contractors bidding government tenders.
- Bangladesh Petroleum Corporation (BPC) imports a significant share via government-to-government deals
- Private importers like bulk traders supply 60%+ of the market
- Chinese contractors on EPC projects often import directly under project-specific concessions
Compliance Requirements for Bitumen Importers
Meeting bitumen import duty in Bangladesh obligations isn't just about payment — it requires documentation that can delay cargo release by days if wrong.
| Document | Issuing Authority | Typical Processing Time |
|---|---|---|
| Import Registration Certificate (IRC) | CCI&E | 5–7 working days |
| Letter of Credit / Bank Contract | Scheduled bank | 3–5 days |
| Bill of Lading | Shipping line | At shipment |
| Certificate of Origin | Exporter's chamber | 2–3 days |
| Test Certificate (ASTM D946 / AASHTO M20) | Independent lab | 3–5 days |
| Insurance Certificate | Insurance company | 1–2 days |
| PSI Certificate (if applicable) | Pre-shipment inspector | 2–4 days |
- Vessel berthing to discharge complete: 4–7 days for bulk carriers
- Customs assessment (Asycuda World): 1–3 days
- Duty payment + release order: 1–2 days
- Total typical dwell time: 8–14 days
Every extra day of demurrage costs $15,000–30,000 for a Panamax vessel — often exceeding the duty savings from any tariff negotiation.
- Bonded warehouse facility: Defer VAT until domestic sale
- Project-specific concessions: Available for government tenders via BPC
- EPZ import: Different regime for export-processing zones (limited bitumen relevance)
Market Pricing and Duty Impact on Buyers
The bitumen import duty in Bangladesh directly sets the floor price for domestic sales. Here's how the numbers flow through:
| Cost Stage | Price (USD/MT) | Price (BDT/MT) |
|---|---|---|
| FOB Gulf | $410–430 | ৳49,200–51,600 |
| CIF Chittagong | $450–480 | ৳54,000–57,600 |
| Post-Duty Landed | $590–620 | ৳70,800–74,400 |
| Domestic Wholesale | $640–680 | ৳76,800–81,600 |
| Retail to Contractor | $690–730 | ৳82,800–87,600 |
(BDT/USD assumed at 120)
| Duty Scenario | Effective Rate | Landed Cost (40K MT) | Per MT Impact |
|---|---|---|---|
| Current structure | ~31% | $23.6M | Baseline |
| 5% CD removed | ~26% | $22.7M | -$22/MT |
| VAT reduced to 10% | ~26% | $22.7M | -$22/MT |
| All duties halved | ~16% | $21.0M | -$65/MT |
A 1% reduction in the effective duty rate saves importers approximately $180,000 per 40,000 MT cargo.
FAQ: Bitumen Import Duty in Bangladesh
Q1: What is the total import duty on bitumen in Bangladesh?
The total effective tax burden is approximately 32–37% of CIF value, combining 5% Customs Duty, 2% Regulatory Duty, 15% VAT, 5% Advance Income Tax, and 3% Advance Tax. For a 40,000 MT cargo at $450/MT CIF, total taxes reach about $5.6 million.
Q2: What is the HS code for bitumen in Bangladesh?
Bitumen 60/70 is classified under HS Code 2713.20.00 (petroleum bitumen) in Bangladesh's customs tariff. Modified bitumen products may fall under 2713.90.00. The HS code determines the applicable duty rates on the NBR schedule.
Q3: Is advance income tax (AIT) refundable for bitumen importers?
Yes. The 5% AIT is adjustable against your corporate income tax liability at year-end, and the 3% AT is adjustable against VAT. However, both must be paid in full at the port before cargo release, creating a significant upfront working capital requirement.
Q4: How long does customs clearance take for bitumen imports in Chittagong?
Typical clearance takes 8–14 days from vessel berthing to release order, assuming all documents are in order. Delays in PSI certificates or lab testing can extend this to 20+ days, incurring demurrage of $15,000–30,000 per day.
Q5: Can bitumen importers get duty exemptions or concessions?
Yes, in limited cases. Government project imports via BPC may receive concessionary treatment, and bonded warehouse facilities can defer VAT until domestic sale. However, most private commercial imports pay the full standard rate with no exemptions available.
Calculate Your Exact Bitumen Landed Cost
Duty rates, port charges, demurrage, and CIF premiums vary by cargo size, source, and timing — and a 1% miscalculation on a 40,000 MT parcel costs $180,000.
Stop guessing. Use the 6Tar cost calculator to model your exact bitumen import duty in Bangladesh — input your CIF value, cargo size, port, and source country to get a full landed-cost breakdown in seconds, including CD, RD, VAT, AIT, AT, and port charges.
[→ Open the 6Tar Cost Calculator](#)