CD, RD, SD, VAT, AIT, AT and TTI Explained: Bangladesh Import Taxes

Open any page of the Bangladesh customs tariff and you will see a row of abbreviations next to every HS code: CD, SD, VAT, AIT, RD, AT and TTI. New importers often treat them as one combined "duty", but each one is a separate tax with its own purpose, its own base and different rules about whether you can get it back. Here is what each one means in practice.

CD – Customs Duty

Customs Duty is the basic import duty, charged on the assessable value (CIF value plus a 1% landing charge). In Bangladesh it is set in a small number of bands. In broad terms:

• 0% or 1% for many capital machinery items and basic raw materials;
• 5% for other primary raw materials;
• 10% to 15% for intermediate goods;
• 25% for most finished consumer goods.

The exact rate depends entirely on the 8-digit HS code, so always check the specific line in the HS code directory rather than assuming a band.

RD – Regulatory Duty

Regulatory Duty is an additional protective duty, also charged on the assessable value. It is used to protect local industry or to discourage particular imports. In the FY 2025-2026 tariff a 5% RD appears on a large share of lines, but many codes carry none, so check the specific code. RD is reviewed in every budget, so a product that had no RD last year may have it this year.

SD – Supplementary Duty

Supplementary Duty applies to goods the government wants to discourage or treats as luxury items, such as cars, cigarettes, some cosmetics, air conditioners and certain food products. It ranges from a few percent to several hundred percent on items like large-engine cars.

SD is charged on assessable value + CD + RD, so it compounds on top of those duties. On a high-SD product this is where most of the tax comes from.

VAT – Value Added Tax

VAT at import is charged on assessable value + CD + RD + SD. The standard rate is 15%, though some goods carry a reduced rate or are exempt.

For a VAT-registered business, import VAT is generally not a final cost: it can be claimed as input tax against the VAT you charge on your own sales, subject to the conditions in the VAT and Supplementary Duty Act.

AT – Advance Tax

Advance Tax (formerly called Advance Trade VAT) is collected at import on the same base as VAT. It is an advance payment of the VAT that will be due when the goods are sold in the local market. In the current tariff it is 3% on many finished goods and 0% on a large number of raw materials and inputs. A VAT-registered importer can normally adjust AT in the VAT return, and registered manufacturers importing their own raw materials are often exempt.

AIT – Advance Income Tax

AIT is an advance payment of income tax collected at the port, charged on the assessable value. Most imports carry 5% AIT, while some essential goods carry a lower rate or none.

In most cases AIT is credited against your annual income tax liability. However, for some commercial imports the law treats tax collected at import as a final settlement of tax on that income, which means it cannot be refunded. Ask your tax adviser how it applies to your business.

TTI – Total Tax Incidence

TTI is not a separate tax. It is the sum of all the taxes above, expressed as a percentage of the assessable value. Because VAT and AT are charged on top of CD, RD and SD, the TTI is usually higher than the simple total of the rates.

For example, the most common combination for finished goods (CD 25%, RD 5%, VAT 15%, AT 3% and AIT 5%) has rates that add up to 53%, but its TTI is 58.40%. TTI is the fastest way to compare two HS codes or two products, and it is the number to use when you budget for a shipment.

How the bases fit together

• Charged on the assessable value: CD, RD, AIT
• Charged on AV + CD + RD: SD
• Charged on AV + CD + RD + SD: VAT, AT

Once you know these three bases, you can reproduce any assessment yourself. Our step-by-step guide on how import duty is calculated works through a full example.

Which taxes are a real cost?

• CD, RD and SD are final costs. Treat them as part of the price of the goods.
• VAT and AT are usually recoverable by a VAT-registered business that sells through VAT-able supplies.
• AIT is usually creditable against income tax, but final for some imports.

This is why two importers can pay exactly the same amount at the port and still end up with very different costs.

Where to check the rates

Rates change with every national budget, usually announced in June and effective from 1 July, and sometimes mid-year through SROs. Our tariff search and HS code directory show the current FY 2025-2026 rates for every code, and the import duty calculator turns them into taka for your shipment.