HS Code 8447 Classification & Concessional 1% Customs Duty for Textile Machinery in Bangladesh

Navigating NBR Capital Machinery Concessions at Chattogram Port

Importing industrial textile machinery into Bangladesh offers significant fiscal benefits when classified properly under statutory capital equipment orders issued by the National Board of Revenue (NBR).

Statutory SRO Basis & Official Citation (Updated March 2026):

Under National Board of Revenue (NBR) S.R.O. No. 129-AIN/2023/Customs (maintained under current Bangladesh fiscal tariff regulations), industrial manufacturers holding an approved Industrial IRC (Import Registration Certificate) and registered with BIDA, BGMEA, or BKMEA qualify for the statutory 1% concessional Customs Duty (CD) on industrial circular knitting machinery under HS Code 8447.12.10.

Complete Customs Tariff Assessment on HS 8447.12.10:

| Tariff Head | Statutory Rate under SRO 129 | Commercial Rate (Non-Industrial) | |---|---|---| | Customs Duty (CD) | 1.0% | 25.0% | | Regulatory Duty (RD) | 0.0% | 3.0% | | Supplementary Duty (SD) | 0.0% | 20.0% | | Value Added Tax (VAT) | 0.0% (Exempted under SRO) | 15.0% | | Advance Income Tax (AIT) | 5.0% (Adjustable) | 5.0% | | Advance Tax (AT) | 0.0% (Industrial Manufacturer) | 5.0% |

HS Code 8447 Subheading Breakdown:

HS 8447.11.00: Circular knitting machines with cylinder diameter not exceeding 165 mm.

HS 8447.12.10: Industrial circular knitting machines with cylinder diameter exceeding 165 mm (standard 30" to 38" machines fall strictly under this classification for capital duty).

Qualifying for Concessional 1% Customs Duty (CD):

Valid Industrial Import Registration Certificate (IRC): Endorsed specifically for capital machinery rather than commercial trading.

Export-Oriented Knitwear Factory Utilization: Factories registered with BGMEA or BKMEA qualify for full statutory VAT waiver and nominal 1% customs duty.

Bill of Entry Documentation: Ensure clean correspondence between the Bill of Lading, Certificate of Origin, and packing list.