Many regulators, one supply chain
A single consignment moving through Bangladesh may touch customs, a port authority, an airport operator, inland waterway and road transport regulators, and the tax authority before it reaches its destination. Logistics businesses must comply with the rules of each, and changes in one place, such as a new port charge or a customs procedure, can affect pricing and contract terms across the chain.
The areas below are those we suggest transport and logistics businesses review on a regular cycle. They are general in nature and are not a list of recent changes.
Customs, ports and operating permissions
Clearing and forwarding agents, bonded warehouse operators and freight forwarders work under licences and procedures administered by customs under the NBR, with declarations processed through the ASYCUDA World system. Errors in classification, valuation or documentation can lead to penalties for both the importer and the agent.
Operators at Chattogram and other ports must keep up with tariffs and operating rules set by the Chittagong Port Authority and other port authorities. Airlines and ground handlers are licensed and regulated by the Civil Aviation Authority of Bangladesh, while vessel operators and road transport businesses deal with the relevant shipping, inland waterway and road transport authorities. Licence renewals and permit conditions should be held on a single, monitored register.
Tax and VAT positions
Transport and logistics services fall within the VAT and SD Act 2012, and the applicable treatment can differ between freight, forwarding, warehousing and passenger services. Where a logistics company pays carriers and subcontractors, it must apply income tax and VAT withholding consistently and issue the required certificates. Our VAT and Customs Services cover VAT compliance, customs advice, audits and appeals.
The Income Tax Act 2023 contains specific provisions for the income of non-resident shipping and air transport businesses, and their local agents carry related responsibilities. Our Corporate Tax Services help foreign carriers and their agents meet these obligations correctly.
Financial reporting for asset-heavy operators
Aircraft, vessels, vehicles and warehouses are frequently leased, and IFRS 16 requires most leases to be brought onto the balance sheet, with consequences for reported debt and covenants. Major overhaul costs, component depreciation and foreign currency lease liabilities also call for careful judgement.
Our Financial Statement Audits focus on these areas, giving lenders, lessors and boards confidence that the balance sheet reflects the true scale of the business’s commitments.
Companies with operations or agents in several districts should also check that local trade licences, vehicle fitness and route permits are renewed on time, since lapses can halt operations at short notice.
Related RRH services: VAT and Customs Services, Corporate Tax Services and Financial Statement Audits.