On 19 August 2026, the National Board of Revenue (NBR) issued a clarification concerning the application of duty-free import benefits for various products linked to solar power generation projects, aiming to eliminate ambiguity in customs tariff classification and ensure consistent enforcement across all border entry points. The directive arises from recurring inquiries by renewable energy developers, EPC contractors, and foreign investors regarding the eligibility of solar panels, inverters, mounting structures, and associated electrical components for zero-rated customs duty under the existing SRO (Statutory Regulatory Order) framework. The clarification clearly delineates the product categories that qualify for duty exemption, specifies the requisite documentation for customs presentation, and establishes a precedent for future amendments to the import tariff schedule in support of Bangladesh’s renewable energy targets and climate financing commitments under international accords.
Key Takeaways
- Definitive Product Eligibility Criteria: The NBR clarification confirms that solar photovoltaic (PV) modules, solar inverters, lithium-ion battery storage systems, galvanized steel mounting structures, and certified electrical wiring and cabling integral to solar power projects are eligible for duty-free import treatment, provided they are accompanied by a manufacturer’s certificate of origin, a valid RE certificate (Renewable Energy) from the Bangladesh Power Development Board, and a project registration number issued by the Sustainable and Renewable Energy Development Authority (SREDA). Any import of these components lacking the specified documentation will be subject to the standard customs tariff rates as per the Bangladesh Customs Tariff 2024, and customs authorities reserve the right to conduct post-clearance audits to verify eligibility.
- Streamlined Documentation Protocol for Duty-Free Claims: To avail themselves of the duty-free benefit, importers must submit a unified digital dossier via the NBR’s online customs portal, comprising the project feasibility study, engineering, procurement, and construction (EPC) contract, tax identification numbers of both the importer and the project sponsor, and a commitment bond furnished by a scheduled commercial bank. The NBR has introduced an automated validation engine that cross-references the submitted documents with the SREDA database, thereby reducing manual review times and minimizing the risk of arbitrary duty assessments at the port of entry.
- Retroactive Application and Compliance Window: The clarification provides for a retroactive application window of six months from the date of publication, allowing importers who have already cleared solar-related components under provisional duty payments to file for refund or credit adjustment. However, claims must be supported by original bill of entry records, payment challans, and a duly notarized affidavit attesting to the project’s alignment with the government’s renewable energy agenda. Importers are advised to consult with qualified tax counsel to navigate the intricacies of the Input Tax Credit (ITC) mechanism under the Value Added Tax Act, as the interaction between customs duty exemption and VAT recovery involves multi-layered compliance requirements.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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