According to data from the OEC1, China was Bangladesh’s leading source of imported machinery in 2023, with a total value exceeding USD 4.17 billion. This strong trade relationship is largely driven by China’s rapidly advancing industrial machinery sector, which continues to evolve through the integration of technologies such as industrial robotics and the industrial internet. These advancements have enhanced the efficiency and capabilities of Chinese manufacturing, positioning the country as a preferred supplier of machinery for Bangladesh and other developing economies.
The machinery imported from China has played a key role in developing major sectors of Bangladesh’s economy, particularly in the textile, agriculture, electronics, and pharmaceutical industries2.
However, before Bangladeshi manufacturers can acquire and deploy these machines, it is essential to understand how to import machinery from China to ensure a smooth and cost-effective transaction.
1. Finding the right machinery and supplier
Sourcing heavy machinery from China can offer significant cost advantages, but it's crucial to identify reputable suppliers to ensure quality and a smooth transaction. Online platforms and trade shows provide avenues for discovery, but a thorough vetting process is essential.
Online platforms like Made-in-China.com host a vast number of Chinese machinery suppliers. While offering convenience and a wide selection, it's important to approach these platforms with caution. Look for suppliers with a long history on the platform, high transaction volumes, and positive reviews from other buyers.
Similarly, attending international trade shows focused on machinery, such as the Canton Fair or specific industry exhibitions, will allow you to meet suppliers in person, inspect products, and even build relationships.
How to confirm the legitimacy of a Chinese supplier
Beyond initial discovery, verifying supplier credentials and conducting thorough due diligence is paramount. Some of the ways to check a potential supplier include the following:
- Check for business licenses and certifications: Request copies of their official business license and any relevant industry-specific certifications, such as ISO certifications. Make sure to verify the authenticity of these documents through official Chinese government websites or third-party verification services.
- Request references and testimonials: Ask for contact details of previous international clients and reach out to them to inquire about their experience with the supplier regarding product quality, communication, and after-sales service.
- Verify their physical address and contact information: Confirm their physical address using online maps and consider a factory visit if feasible. Ensure their contact details (phone number, email, website) are consistent and professionally presented.
- Look for participation in industry associations: Membership in recognized industry associations can be an indicator of a supplier's commitment to industry standards and ethical practices.
2. Import regulations and documentation
Generally, businesses involved in importing will need to obtain a valid Import Registration Certificate (IRC) from the Office of the Chief Controller of Imports and Exports (CCI&E) in Bangladesh.3 The IRC will generally be issued within three working days upon receiving the application.
Other documents required for import include:
- Letter of credit authorization form
- Airway bill
- Commercial invoice
- Packing list
- Certificate of origin
HS codes for machinery
Proper labelling of Harmonized System (HS) codes is fundamental for the smooth and efficient customs clearance of imported machinery into Bangladesh. These internationally standardized six-digit codes are used to classify the nature of the imported goods to determine the applicable tariff and tax.
Knowing the HS codes for goods is crucial for both Chinese suppliers and importers. Therefore, it’s essential to work with a supplier that has experience transporting goods overseas, ensuring familiarity with the process and regulations. For example, HS codes for construction machinery and equipment include:
| HS code4 | Article description |
|---|---|
| 84571000000-00-000 | Machining Centres For Working Metal |
| 84572000000-00-000 | Unit Construction Machines (Single Station) For Working Metal |
| 84314200000-00-000 | Bulldozer Or Angledozer Blades Of 84.29 |
| Export Declaration (ED) | Required by the Philippine Bureau of Customs for all outbound shipments. |
| Certificate of Origin | Confirms the country of origin, which may impact tariffs. |
| Import Permits (if needed) | Some goods require Canadian import permits. |
3. Customs clearance
Generally, the customs process for importing machinery from China into Bangladesh includes:
- Submission of documents: Once the shipment arrives in Bangladesh, the importer or their appointed customs broker should submit the required import documents to the customs authorities.
- Evaluation of duties and taxes: Customs officials will review the submitted documents for your machinery from China and determine the applicable import duties and taxes based on the declared Harmonized System (HS) code and value. Goods also have a value-added tax (VAT), which is levied on the sum of the assessable value and BCD. The current standard VAT rate in Bangladesh is 15%.5 Other taxes applied during import include supplementary duty, which is levied on non-essential goods, and advance income tax, which is calculated against the importer’s final income tax liability. This is typically calculated as a percentage of the assessable value of BCD, SD, and VAT.
- Inspection of goods (if required): Depending on the nature of the machinery and customs regulations, a physical inspection of the goods may be conducted to verify the declared information.
- Payment of duties and taxes: The importer will then pay for the assessed duties and taxes. Payment can usually be made through authorized banks or electronic payment systems.
- Issuance of release order: Once all duties and taxes are paid and the customs authorities are satisfied with the documentation and any inspection, a release order is issued, allowing the importer to take possession of the machinery.
4. Shipping and logistics considerations
Selecting the appropriate shipping and logistics options is crucial for the successful and cost-effective import of machinery from China to Bangladesh. Several factors, including the size and weight of the machinery, the urgency of delivery, and the budget, will influence this decision.
Two primary shipping options are available:
- Sea freight: This is the most common and generally the most economical mode of transportation for large and heavy machinery or equipment. Goods are typically transported in containers via cargo vessels. Shipping by sea offers various container options to accommodate different machinery dimensions. However, while costs are lower than air freight, transit times from China to Bangladesh are longer.
- Air freight: This option is significantly faster than sea freight, but it is also considerably more expensive. Air freight is generally suitable for smaller, lighter, or time-sensitive machinery components or when speed is a critical factor in minimizing production downtime.
| Feature | Sea freight | Air freight |
|---|---|---|
| Cost | Generally lower | Significantly higher |
| Speed | Slower transit times (weeks to months) | Faster transit times (days) |
| Cargo/Weight Size | Suitable for large, heavy, and oversized cargo | Best for smaller, lighter cargo |
| Suitability | Standard for most machinery imports | Ideal for urgent shipments or smaller components |
| Certificate of Origin | Confirms the country of origin, which may impact tariffs. | |
| Import Permits (if needed) | Some goods require Canadian import permits. |
It is essential to partner with a reliable logistics provider with proven experience in handling machinery shipments. Go for a logistics provider with a strong network, expertise in handling oversized or specialized cargo, and a good understanding of both Chinese and Bangladeshi customs. That way, you can reduce the risks of delays, damage, and unexpected costs, ensuring a smoother import process.
5. Payment and financing options
When engaging in international transactions for machinery imports between Bangladesh and China, several payment methods are commonly utilized:
- International wire transfer/Telegraphic Transfer (T/T)
- Escrow
- Letters of Credit (LCs)
- PayPal
- Western Union
- International credit or debit cards6
DHL Express's role in facilitating machinery imports
Proper logistics are crucial for the successful importation of machinery, especially when handling large-scale or sensitive equipment. DHL Express offers comprehensive, tailored solutions to support Bangladeshi importers in managing the complexities of cross-border shipping from China with confidence and efficiency.
DHL Express’s key services for machinery imports:
- Expert assistance with customs documentation and regulatory compliance
- Specialized handling of oversized, heavy, or high-value equipment
- End-to-end coordination with Chinese suppliers to streamline logistics
- Real-time tracking and status updates for complete shipment visibility
- Risk mitigation through professional packaging and optional cargo insurance
With its deep industry knowledge and global logistics network, DHL Express ensures your machinery shipments arrive safely, on time, and in full compliance with all relevant import regulations.
Partnering with DHL Express for seamless machinery imports
Importing machinery from China presents significant opportunities for Bangladeshi manufacturers to upgrade their production capabilities, enhance efficiency, and remain competitive in the global market. However, navigating the complexities of international trade, including supplier selection, payment methods, customs clearance, logistics, and shipping, can be a challenging task.
Partnering with a reliable and experienced logistics provider, such as DHL Express, is crucial for ensuring a seamless and efficient import process. DHL Express's expertise in customs clearance, logistics, and shipping can reduce the burden, minimize risks, and streamline the entire import journey.
Ready to simplify your machinery imports from China? Open a business account with DHL Express today to get tailored logistics solutions and expert guidance.
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