Customs Act 2023 Bangladesh: What Importers and Exporters Need to Know in 2026

Customs Act 2023 Bangladesh: the framework in 2026

The Customs Act 2023 Bangladesh enacted to replace the Customs Act 1969 is now the statute that governs every container landed at Chattogram, every consignment cleared at a land port and every bonded warehouse in the country. It keeps much of the architecture importers know, including assessment, release, warehousing, penalties and appeals, but restructures it around modern customs procedures: electronic filing, a statutory Bangladesh Single Window, Authorised Economic Operators, audit after release, advance rulings and a dedicated chapter on alternative dispute resolution.

This guide explains what the Act requires in 2026 and how it works in practice. It covers the transition from the 1969 Act, valuation and the date that fixes duty rates, payment deadlines and interest, AEO status and deferred payment, post-clearance audit, advance rulings, warehousing and bonds, the Single Window, offences and limitation periods, ADR and the appeal route to the Customs, Excise and VAT Appellate Tribunal and the High Court Division. It also covers the amendments made by the Finance Ordinance 2025 and the Finance Act 2026, and recent High Court Division decisions on customs disputes.

Summary: The Customs Act 2023 (Act No. 57 of 2023) repealed the Customs Act 1969 on commencement and now governs import and export clearance in Bangladesh. It codifies AEO status, audit after release, advance rulings, the Bangladesh Single Window and ADR for valuation disputes, and sets a three-month window for the first appeal and ninety days for the Tribunal. The Finance Ordinance 2025 and Finance Act 2026 have already amended it.

Key point: There is no time limit for a demand based on a false statement or document, while other duty demands must issue within three years of release. Declarations, valuation evidence and classification positions should therefore be documented as if they will be examined years later.

At a glance

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Table of Contents

Customs Act 2023 Bangladesh: the framework in 2026

The Customs Act 2023 is Act No. 57 of 2023. Its long title describes it as an Act to repeal the Customs Act 1969 and make a new Act by updating and modifying it. It came into force on a date appointed by the government by notification in the official Gazette, and section 269 repeals the 1969 Act as soon as the new Act commences.[1] By 2026 it is the prevailing customs statute: authoritative tax guides describe the import of goods as governed by the Customs Act 2023 read with its rules and regulations.[2]

The Act is written in Bangla. Section 268 provides for an authentic English text, which the government published through SRO No. 441-Law/2025, dated 9 November 2025, in the Gazette of 13 November 2025.[1] That text already incorporates amendments made by the Finance Act 2024 (Act No. 5 of 2024) and the Finance Ordinance 2025 (Ordinance No. 28 of 2025), so foreign investors and their advisers can now work from an official English version.[1] Where the two versions differ, the Bangla text prevails, and any important position should be checked against it.

Overriding effect and the bar on civil suits

The Act has overriding effect over other laws, and section 252 bars civil suits against decisions on the levy, imposition, exemption, assessment or realisation of customs duties or taxes, or against decisions of customs officers.[1] The practical consequence is that customs disputes run through the statutory appeal chain, not the ordinary civil courts. The High Court Division has also refused to entertain a writ petition where the Commissioner of Customs could have used the statutory appeal and showed no violation of fundamental rights, mala fides or want of jurisdiction.[6]

Transition from the Customs Act 1969

Section 269 contains broad savings. Acts done and measures taken under the 1969 Act are deemed to have been done under the new Act so far as consistent with it. Pending matters are disposed of as far as possible under the new Act, but cases pending under the old Act are disposed of as if it had not been repealed. Taxes and dues outstanding under the old Act remain recoverable, unexpired time limits for applications, appeals or revisions continue to run, and rules, orders and notifications issued under the 1969 Act continue in force until replaced, so far as consistent with the new Act.[1]

A provision added by the Finance Act 2024 makes every reference to the Customs Act 1969 in other laws, rules, notifications and documents read as a reference to the Customs Act 2023, and every reference to an old section as a reference to the corresponding new provision.[1] That matters for SROs, bond licences, contracts and letters of credit that still cite the old numbering.

Older disputes continue to be decided under the 1969 Act. In May 2026 the High Court Division decided customs appeals and a writ petition concerning bills of entry filed between 2013 and 2023 under the old provisions, including the 1969 Act's penalty table and its section 196D appeal to the High Court Division.[6] [7] [8] For any dispute under the Customs Act 2023 Bangladesh or its predecessor, the first step is to identify which Act governs the transaction.

What changed under the Customs Act 2023 Bangladesh

The new Act reorganises the law into twenty-seven chapters. The most significant structural changes for traders are the chapters on electronic records and payment, customs guarantees, declaration and release of goods, clearance and audit after release, temporary importation, inward and outward processing, transit, alternative dispute resolution, and appeals and revision.[1] Several concepts that sat in rules, orders or practice under the 1969 regime now have a statutory footing.

• Electronic filing: the National Board of Revenue may specify documents and payments that may be made electronically, and the ICT Act 2006 applies to them.
• Authorised Economic Operators: a statutory basis for trusted-trader status and mutual recognition with other countries.
• Audit after release: express powers to audit records at a trader's premises, and to appoint professional auditors.
• Customs and advance rulings: binding rulings on classification and origin before import.
• Bangladesh Single Window: a statutory platform and commissionerate for certificates, licences and permits.
• Alternative dispute resolution: a chapter allowing valuation disputes to be settled by negotiation.

Each of these is summarised below with the practical points that matter for importers and exporters.[1] Our wider overview of customs law in Bangladesh places the Act alongside the VAT and income-tax rules that also apply at import.

Valuation and the date that fixes the duty

Transaction value

Valuation is where most disputes under the Customs Act 2023 Bangladesh begin. Section 27, as substituted by the Finance Ordinance 2025, makes the value for assessment the actual price paid or payable, or its nearest ascertainable equivalent, at which such or like goods are ordinarily sold in international trade under fully competitive conditions between unrelated parties where price is the sole consideration. The value of imported goods is then assessed under the valuation rules.[1] Those rules are still the Customs Valuation (Determination of Value of Imported Goods) Rules 2000, issued by SRO 57-Law/2000/1821/Cus, which follow the WTO Valuation Agreement and its hierarchy of methods.[4]

Under those rules, transaction value includes commission and brokerage other than buying commission, packing costs, royalties and licence fees and indirect payments related to the sale. If it cannot be used, the fallback methods apply in order: identical goods, similar goods, deductive value, computed value and a residual method. For imports from related parties, transaction value is accepted where the relationship did not influence the price or where test values support it.[2] Group importers should align transfer-pricing and customs documentation so that one does not undermine the other.

Tariff and minimum values

The government may still fix tariff values or minimum values for ad valorem duties, although goods declared above that value are assessed on the declared value.[1] The Finance Act 2026 moved in the direction of the trader: international valuation reports from notified sources are to be considered, officers must state reasons when they reject transaction value, ISO-certified private laboratories may carry out chemical testing, and the manufacturer's invoice value is to be accepted for brand-new electric vehicles.[3] Our guide to customs valuation in Bangladesh explains how to challenge an uplift.

Which day's rate applies

Duty, value, classification, origin and exchange rate are fixed by reference to the date the goods declaration is registered under section 83, or, for goods cleared from a warehouse for home consumption, the registration date of that declaration; in other cases, the date of payment applies.[1] The exchange rate is the average rate over the thirty days before the last working day of the third week of the preceding month, fixed by the Board.[1] Section 31 confirms that a withdrawn exemption applies even if the sale contract or letter of credit was concluded earlier, so contract prices should allocate the risk of duty changes.[1]

Payment, interest, refunds and deferred payment

The Customs Act 2023 Bangladesh payment rules are strict. Duties, taxes and charges are payable within ten days of notification unless the notice gives another date. Late payment attracts simple interest at one per cent a month, counted for no more than twenty-four months, and dues outstanding after clearance also carry one per cent a month. Both rates were set by the Finance Ordinance 2025.[1] A refund claim for duty paid by inadvertence, error or misconstruction must be made within three years of payment, or of final assessment where duty was paid provisionally.[1]

The import bill is wider than customs duty. Total tax incidence typically combines customs duty, regulatory duty, supplementary duty, VAT, advance income tax and advance tax. VAT, advance tax and advance income tax can generally be credited or adjusted, while customs, regulatory and supplementary duty are a cost to the importer.[2] Exemptions can also change quickly. VAT of 7.5 per cent was imposed on ship imports in December 2024, for example, and waived in September 2025 for ocean-going vessels above 5,000 DWT.[9] [10] See our guide to import duty in Bangladesh for a worked calculation.

Authorised Economic Operators

Section 97 allows the Board to grant AEO status to a person established in Bangladesh that has complied with the Act and rules and meets compliance and risk criteria. AEOs may use simplified customs formalities, and the government may enter into international agreements for reciprocal recognition of AEOs established abroad.[1] Under section 35(2), an AEO may request deferred payment of duties and taxes on released goods against sufficient guarantee for up to fourteen days after release.[1]

Eligibility and benefits

The Authorised Economic Operator (Recognition and Operation) Rules 2024, issued by SRO No. 217-AIN/2024/67/Customs dated 4 June 2024, replaced the 2018 rules. They raised the authorised and paid-up capital thresholds for applicants other than logistics operators to Tk 300 million and Tk 100 million, require a minimum import or export turnover of Tk 100 million over three years for non-manufacturers, open eligibility to logistics operators that have handled an average of at least 500 consignments over three years, and require NBR-approved software.[2] Benefits include release pending chemical test results on provisional assessment, fast-track assessment and inspection, round-the-clock release and minimum green-channel clearance percentages.[2]

2026 reforms

The Finance Act 2026 abolished the requirement to submit an audit report with an AEO application and raised the minimum green-channel automated clearance rates from 20 to 40 per cent for Class (a), from 30 to 60 per cent for Class (b) and from 50 to 80 per cent for Class (c).[3] For high-volume importers, AEO status is now one of the most valuable compliance investments available under the Customs Act 2023 Bangladesh regime. TRW's customs AEO practice advises on applications and audits.

Audit after release

Chapter XIII pairs clearance with audit after release. Any customs officer may, subject to the Act, enter premises where records are kept and audit their adequacy and integrity or particular transactions, whether the records are on paper or electronic. Officers have full and free access to land, buildings, books, records and accounts in the custody of the licensee, importer, exporter or any other person, may take extracts and copies, and may not enter a private dwelling without consent or a warrant.[1] The Board may also appoint professional auditors or audit firms, who are treated as customs officers for this purpose.[1]

Section 246 requires licensees, importers and exporters to keep business records, and post-clearance audit is where weak records turn into demands.[1] The time limits make the point. An ordinary demand for duties must be issued within three years of the relevant date, usually the release of the goods, but there is no time limit for a demand based on a false statement, information or document, and short-levies of Tk 4,000 or more caused by negligence, mistake or misinterpretation can also be demanded.[1] For exporters in bonded regimes, the Finance Act 2026 introduced deemed completion of audit for direct export-oriented garment businesses that meet specified conditions.[3]

Advance rulings and customs rulings

Section 258 empowers the Board to make customs rulings, on application, on a reference by a Commissioner or of its own motion, on the application of the Act, tariff classification, duty rates or valuation in a specific situation. Any person may apply for an advance ruling on the classification and origin of goods before import. Rulings bind the applicant, the person concerned and all customs officers.[1]

In practice, an application must be filed at least sixty days before import or the filing of the bill of entry, with a fee of Tk 2,000, and the ruling is valid for thirty-six months.[2]

Advance rulings on classification have been available since 2 June 2016 under the Customs Ruling (Advance) Rules 2016, and Bangladesh Customs maintains a database of rulings issued.[5] The value of a ruling shows in litigation. In Hakkani Motors Ltd v Customs, Excise and VAT Appellate Tribunal, decided on 13 May 2026, a crane declared under one heading was finally assessed under another after an NBR classification ruling, and the importer's appeal against encashment of its bank guarantee failed.[8] An advance ruling obtained before shipment would have fixed the position at the outset.

Warehousing and bonds

Chapter XVI allows imported goods to be placed in a warehouse without payment of import duties and taxes, subject to a general bond fixed by the Commissioner of Customs (Bond) and, if required, a bank guarantee not exceeding the duties leviable. The bond survives transfer of the goods, although a transferee may give a fresh bond.[1]

Bond licences are available to fully export-oriented units, deemed export-oriented units, and diplomatic, duty-free and duty-paid entities. A licence is granted for three years and renewed for three years at a time, with a licence fee of Tk 1 million and a renewal fee of Tk 30,000, and the holder executes a general bond of Tk 10 million to Tk 50 million depending on the business.[2] The Finance Act 2026 withdrew one-time bonding capacity, treated warehouse capacity as bonding capacity, raised the general bond for central bonded warehouses from Tk 10 million to Tk 50 million and allowed ten more industries without bonded warehouses to import raw materials duty-free against a bank guarantee.[3]

The courts have drawn a line between technical breach and revenue loss. In Green World Fashion Ltd v Customs, Excise and VAT Appellate Tribunal, decided on 13 May 2026 under the 1969 Act, bonded fabric had been used to make garments that were exported with the necessary permissions and whose proceeds were realised through the banking system. The High Court Division held that a duty demand on those imports was illegal, and it replaced a penalty of Tk 9 lakh and redemption fine of Tk 1 lakh with a penalty of Tk 50,000.[7] Our guide to bonded warehouses in Bangladesh explains licensing and reconciliation.

Free Trade Zones

The Finance Act 2026 introduced Free Trade Zones into the Customs Act 2023 Bangladesh framework. No bonded warehouse licence is required in a Free Trade Zone, trading, packing and re-packing are allowed alongside manufacturing, and raw materials may be imported duty-free, with duty paid only when finished goods are sold into the domestic tariff area. Import for re-export or trans-shipment may also be permitted.[2] [3]

Electronic systems and the Bangladesh Single Window

Section 175 authorises the government to establish the Bangladesh Single Window, an electronic platform for certificates, licences and permits for import, export, warehousing, transit and trans-shipment. It is operated by a Bangladesh Single Window Commissionerate headed by a Commissioner of Customs and including representatives of the issuing agencies; the Board may also constitute a standing committee, chaired by the NBR Chairman, to supervise it. Traders must file the information and documents electronically as the Board prescribes.[1]

The system is now fully operational. Users register their Business Identification Number on the platform, and from 1 July 2025, certificates, licences and permits from nineteen organisations, including DGDA, EPB, BEZA, BEPZA, BSTI, BIDA and BKMEA, became mandatory through the Single Window for import and export clearance.[2] Bangladesh Customs also lists ASYCUDA World among its electronic services.[5] Under sections 14 to 16, electronic submissions and payments specified by the Board are valid, and the ICT Act 2006 applies to them.[1]

Agents, offences and penalties

No person may act as an agent for customs business at a customs station without a licence, and an agent's acts are presumed to be done with the principal's knowledge and consent. An agent is not liable to repay a short-levy that did not result from its own wilful act, negligence or default.[1] Importers should therefore manage C&F agents as carefully as their own staff.

Section 171 sets out offences and penalties in a table. For a false statement or false documents under section 33, the importer faces either a penalty of between one and two times the duties and taxes evaded, together with confiscation of the goods, or, on conviction, imprisonment of up to five years, a fine of the same amount, or both.[1] The Finance Ordinance 2025 reduced several penalty bands, in some cases from between two and four times to between one and two times the relevant amount.[1] Except in fraud cases, no fine or confiscation order may be made unless the show-cause notice is issued within three years of the offence.[1]

Alternative dispute resolution under the Customs Act 2023 Bangladesh

Chapter XXV allows an importer or exporter to apply for ADR in a qualifying dispute, whether the dispute is with the customs authority or pending before the Commissioner of Customs (Appeal), the Appellate Tribunal, the High Court Division or the Appellate Division. ADR must be initiated before the adjudication or appeal process is complete. The Board may designate offices to process applications and appoint facilitators.[1]

The scope is deliberately narrow. Qualifying disputes are those on customs valuation of imported goods, or fines related to valuation and classification. ADR is excluded for fraud and criminal cases, seizure or confiscation of prohibited, restricted or smuggled goods, money-laundering allegations, classification disputes, and alleged evasion by misdeclaring description, quantity or HS code, forged documents, breach of import and export policy, or breach of bonded warehouse conditions.[1] The procedure, timetable and effect of a settlement are left to rules.[1] For a straightforward valuation uplift, ADR can be the fastest route. For a classification dispute or any allegation of misdeclaration, the appeal chain is the only route.

Appeals: Commissioner (Appeal), Tribunal and High Court Division

The appeal structure is the part of the Customs Act 2023 Bangladesh regime that most often decides whether a dispute is worth fighting. It has three tiers, each with its own deadline.

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First appeal

A person aggrieved by a decision of an officer below the rank of Commissioner may appeal to the Commissioner of Customs (Appeal) within three months of being informed of it, extendable by two months for sufficient cause. The appellant is entitled to be heard, and any order increasing a penalty or demanding more duty requires prior notice. The appeal must be decided within two years, extendable by six months; if it is not decided in that time, it is deemed allowed.[1]

Pre-deposit

Where the goods have left customs control, an appeal against a duty demand or penalty requires a deposit of ten per cent of the duties and taxes demanded or, where none apply, ten per cent of the fine. For penalties, fifty per cent may be deposited with a bank guarantee for the balance, and the appellate authority may waive the deposit for undue hardship. Interest under section 32 continues to run on unpaid amounts unless the appeal succeeds.[1]

The Customs, Excise and VAT Appellate Tribunal

The Customs, Excise and VAT Appellate Tribunal hears appeals against orders of a Commissioner, Commissioner (Bond) or Director General (Duties Exemption and Drawback) acting as adjudicating authority, and against certain first-appeal orders. Its members are drawn from senior officers of the customs and excise cadre and from serving Additional District or Sessions Judges.[1]

An appeal must be filed within ninety days of receiving the order, extendable by sixty days for sufficient cause, and the respondent may file cross-objections within forty-five days. The filing fee is Tk 300 where the amount in dispute is Tk 1 lakh or less and Tk 1,200 above that. The Tribunal must decide within two years, failing which the appeal is deemed allowed, and it may grant a stay or interim order.[1]

Valuation and rate disputes go to a special bench of at least two members, while smaller cases can be decided by a single member. The Tribunal has civil-court powers over discovery, attendance of witnesses, production of documents and commissions.[1]

High Court Division

The Commissioner or the other party may appeal to the High Court Division within ninety days of the Tribunal's order, and the appeal is heard by a bench of at least two judges. Time taken to obtain a copy of the order is excluded when computing these deadlines.[1] Sums due under the Tribunal's order remain payable while the appeal is pending.[1] The statutory route should be used: in May 2026 the High Court Division dismissed as not maintainable a writ petition by the Commissioner of Customs, Chattogram, against a Tribunal order that could have been appealed.[6] Our tax disputes practice handles customs appeals at every tier.

Comparing the main dispute routes

The table summarises the options open to an importer facing a customs demand. On a phone, scroll it sideways.

Practical guidance for importers and exporters

• Fix classification early: use an advance ruling for any product whose HS code is open to argument, at least sixty days before shipment.
• Document value: keep contracts, invoices, payment records, royalty and commission arrangements and transfer-pricing files together, because audit after release can come years later.
• Watch the registration date: duty and exchange rates are fixed when the declaration is registered, so time filings around budget changes deliberately.
• Diarise every deadline: three months for a first appeal, ninety days for the Tribunal and the High Court Division, and three years for refunds.
• Consider AEO status: the 2026 reforms make green-channel clearance and deferred payment considerably more valuable.
• Use ADR selectively: it is available for valuation disputes, but not for classification or any allegation of misdeclaration.
• Control your agent: an agent's acts are presumed to be authorised by you.

TRW's VAT and customs practice and customs and trade compliance practice advise importers, exporters, bonded units and logistics operators on compliance, audits, rulings and disputes. Our guides to import and export licensing and the 2025 VAT and supplementary duty amendments cover the related regimes.

What to watch in 2026 and beyond

Three developments will shape the Customs Act 2023 Bangladesh regime over the coming year. The first is implementation of the Finance Act 2026 reforms: Free Trade Zones, new operating rules for private ports, terminals, container depots, freight stations and air-cargo operators, and the revised warehouse licensing rules.[3] The second is rule-making under the ADR chapter, which will decide how attractive negotiated settlement of valuation disputes becomes.[1] The third is the steady move of clearance onto electronic systems through the Single Window, which will raise the standard of data quality customs expects from every trader.[2]

The decisions that matter most are taken before the goods arrive: classification, valuation evidence, the bond or AEO position and the agent's instructions. If you need a review of your customs position or face a demand, contact TRW.

Frequently asked questions

Has the Customs Act 2023 replaced the Customs Act 1969?

Yes. Section 269 of the Customs Act 2023 (Act No. 57 of 2023) repeals the 1969 Act on commencement, with savings for pending cases, dues and existing rules and notifications.[1]

Is there an official English version of the Customs Act 2023?

Yes. The authentic English text was published by SRO No. 441-Law/2025 dated 9 November 2025 under section 268 of the Act.[1]

How is customs value determined in Bangladesh?

On the transaction value basis in section 27, assessed under the Customs Valuation Rules 2000, with fallback methods applied in order where transaction value cannot be used.[1] [4]

Can I get an advance ruling on classification?

Yes. Section 258 allows advance rulings on classification and origin. Apply at least sixty days before import with a fee of Tk 2,000; a ruling is valid for thirty-six months.[1] [2]

What are the benefits of AEO status?

Simplified formalities, fast-track assessment, release pending test results, round-the-clock release, green-channel clearance and up to fourteen days' deferred payment against a guarantee.[1] [2]

How long does customs have to raise a demand?

Generally three years from the relevant date, usually release of the goods, but there is no time limit where the short-levy results from a false statement or document.[1]

Which customs disputes can go to ADR?

Disputes on the valuation of imported goods and related fines. Classification disputes, fraud, smuggling, money laundering, misdeclaration and bond violations are excluded.[1]

What is the deadline to appeal a customs order?

Three months to the Commissioner of Customs (Appeal), ninety days to the Appellate Tribunal and ninety days from the Tribunal's order to the High Court Division.[1]

Do I have to deposit part of the demand to appeal?

Where goods have left customs control, ten per cent of the duties demanded or of the fine must generally be deposited, subject to a hardship waiver.[1]

What changed for customs in the Finance Act 2026?

Free Trade Zones, relaxed AEO applications with higher green-channel rates, valuation reforms, new operating rules for private ports and depots, and revised warehouse bond limits.[3]