The United States and Bangladesh in brief

The United States is Bangladesh's largest single-country export market. Provisional Export Promotion Bureau data put exports to the US at USD 9.04 billion in 2025-26, up 4.09 per cent, out of total merchandise exports of about USD 48 billion. Bangladesh Bank figures reported by the Dhaka Tribune show USD 3.01 billion of remittances from the US in the same year.

Bangladesh has no US preference scheme to rely on: its US GSP benefits were suspended in 2013, and the US GSP programme lapsed at the end of 2020. A reciprocal trade agreement was signed in February 2026 but was not in force at the time of writing, and press reports say a 10 per cent Section 301 duty has applied to Bangladeshi goods since 24 July 2026.

Check the tariff position before pricing contracts.

For American buyers, lenders and investors, the legal questions are usually about getting paid and getting money out: letters of credit and guarantees, enforceable dispute clauses, withholding tax and Bangladesh's foreign exchange rules. For Bangladeshi-American families, they are about land, inheritance and running a case from abroad.

Investing from the US: treaty protection and money flows

The Bangladesh–United States bilateral investment treaty was signed on 12 March 1986 and entered into force on 25 July 1989, according to UNCTAD. Whether it protects a given investor depends on its definitions of investor and investment and on its dispute clause, so test the holding structure against the text before committing money. A US company holding shares in a Bangladeshi subsidiary is the typical case to check.

Bangladesh's Foreign Private Investment (Promotion and Protection) Act 1980 promises fair treatment, compensation for expropriation and transfer of capital and returns, but gives no consent to international arbitration. Bangladesh is a party to the ICSID Convention, so an investor-state claim needs a treaty in force or an ICSID clause in a contract.

The Invest Bangladesh Act 2026 (Act No. 104 of 2026), in force from 20 August 2026, merged BIDA, BEZA and the PPP Authority into Invest Bangladesh; industrial projects register under section 28. Authorised dealer banks remit dividends to non-resident shareholders without prior Bangladesh Bank approval.

FEID Circular No. 01 of 8 March 2026 lets share-sale proceeds leave without approval in set cases, but real estate and liquidation proceeds still need approval.

Tax: the 2004 income tax convention

The Bangladesh–United States income tax convention was signed in Dhaka on 26 September 2004 and is on the National Board of Revenue's list of agreements. Its text caps Bangladesh tax on dividends at 10 per cent where the beneficial owner is a company owning at least 10 per cent of the voting stock, and at 15 per cent otherwise. Royalties are capped at 10 per cent.

Interest is capped at 10 per cent, or 5 per cent where a bank or other financial institution, including an insurer, beneficially owns it, or where it arises on a credit sale of equipment or merchandise. Interest derived by either government or a listed instrumentality, such as the Export-Import Bank of the United States, is exempt.

The convention entered into force on 7 August 2006, when the two governments exchanged instruments of ratification, and its withholding provisions apply to amounts paid or credited from 1 October 2006, according to the US Treasury.

Relief is still not automatic: the treaty rate applies only on an NBR certificate under section 119(2) of the Income Tax Act 2023, so apply before the first payment and check the current domestic rates in the Finance Act 2026.

Contracts and arbitration

The United States and Bangladesh are both parties to the 1958 New York Convention, which has been in force for Bangladesh since 4 August 1992 without reservations. An award made in the United States is a foreign award in Bangladesh.

It is enforced under section 45 of the Arbitration Act 2001 on an application to the District Judge's court in Dhaka, wherever the assets are, with the authenticated award, the arbitration agreement and certified translations (s.45(2)-(3)).

Enforcement can be refused only on the section 46 grounds, which follow Article V of the Convention. In July 2026 the High Court Division confirmed that the enforcing court cannot review the merits, and in February 2026 it held that the application must be filed within three years of the award (Limitation Act 1908, article 182).

Since the Commercial Courts Act 2026, arbitration applications go to a commercial court where one has been set up, so check which court applies.

A US seat such as New York has one cost at home. Under the Larger Bench decision in Accom, a Bangladeshi court cannot grant interim relief under section 7A while a foreign-seated arbitration is running; relief comes only at enforcement. Where the Bangladeshi party's assets are the real target, consider a Dhaka seat, emergency arbitration, or security such as a bank guarantee before the dispute starts.

Enforcing US court judgments

A money judgment from the United States is not directly enforceable in Bangladesh. Section 44A of the Code of Civil Procedure 1908 allows direct execution only of money decrees from the superior courts of a reciprocating territory notified in the Gazette, and no notification covering the United States has been confirmed.

The usual route is a fresh suit in Bangladesh on the judgment, brought within six years (Limitation Act 1908, article 117).

A US judgment is treated like any other foreign judgment; federal and state court judgments are in the same position. Enforcing a Bangladeshi judgment in the United States depends on the law of the state where enforcement is sought, so take US advice there.

In that suit the foreign judgment is conclusive on matters it directly decided between the same parties, unless a section 13 exception applies: the court lacked jurisdiction, the judgment was not on the merits, it rested on an incorrect view of international law or refused to recognise Bangladeshi law where applicable, the proceedings breached natural justice, it was obtained by fraud, or it upholds a claim founded on a breach of Bangladeshi law.

A certified copy raises a presumption of jurisdiction (s.14).

Where the defendant's assets are in Bangladesh, suing here from the start, or agreeing arbitration, is often quicker than winning abroad and suing again. Commercial disputes listed in section 2 of the Commercial Courts Act 2026 go to the commercial courts.

Each party may ask for time at most three times before the final hearing (s.9(5)), and an appeal to the High Court Division lies only against the final judgment, within 60 days (s.6).

Documents and powers of attorney from the US

The United States has been a party to the Apostille Convention since 1981 and did not object to Bangladesh's accession. Since 30 March 2025, US public documents need only an apostille, from the Secretary of State of the issuing state or, for federal documents, the US Department of State, plus a translation where needed. Some Bangladeshi offices still expect a mission seal, so ask first.

Use the Bangladesh mission for your state: the Embassy in Washington or the Consulates General in New York, Los Angeles or Miami. Each signatory appears in person. Bring the mission's form, two photographs each of principal and attorney, the original power and one copy, proof of ownership, Bangladeshi identity documents and a US passport, green card or driving licence. Washington attests only special powers for a specific purpose.

If you cannot attend, Washington and Los Angeles accept a power notarised in the US and authenticated by the state Secretary of State. New York charged USD 55 for the first five pages plus USD 5 for each extra page in October 2026, and says the attested power is valid for three months, so send it to Dhaka for Ministry of Foreign Affairs attestation at once.

A power signed abroad follows Form 3 of the Power of Attorney Rules 2015 and must be sent to Bangladesh within six months of attestation (rule 10(4ka), from February 2025). After arrival, the Ministry of Foreign Affairs in Dhaka must attest it within two months and the Collector must stamp it within three (rule 10(5); Stamp Act 1899, s.18).

An irrevocable power to sell, mortgage or develop land must be registered (Power of Attorney Act 2012, s.6(1)); rule 10(5)(ga) allows four months from arrival to file it.

Family, property and inheritance

Bangladeshi Americans who remain Bangladeshi citizens buy, inherit and sell land in Bangladesh as residents do, usually through a relative or agent holding a power of attorney. Before any purchase, check the record of rights (khatian) in each survey series, mutation into the seller's name, land development tax receipts, the chain of registered deeds and any pending suits.

A sale takes effect only by a deed registered under the Registration Act 1908.

On a death, banks and companies usually ask for a succession certificate before releasing deposits, shares or other debts, and land passes under the personal law of the deceased. Co-owners who cannot agree can bring a partition suit. If someone occupies family land without right, the remedies are a suit for recovery of possession or an injunction, and sometimes a criminal complaint.

Act early: limitation periods and delay can weaken a claim.