The Bangladeshi government has proposed new rules requiring foreign digital platforms to register locally to increase oversight of cross-border e-commerce and improve consumer protections.
The Ministry of Commerce published the Draft Cross-Border Digital Commerce Policy 2026 for public feedback, open until August 6. The policy covers all digital commerce activities targeting Bangladeshi consumers, regardless of where the business operates.
Registration and tax rules for global platforms
Under the draft, foreign digital businesses—including major tech companies like Google, Facebook, and YouTube—must secure a Digital Business Identity (DBID) from the commerce ministry before operating or advertising in Bangladesh. They must also follow local tax laws, such as VAT and income tax.
These platforms would need to set up a registered presence in the country, changing their current offshore-based operations. While the policy does not detail penalties for non-compliance, it suggests using existing regulatory frameworks for enforcement.
This push for local registration fits with wider efforts to bring digital services under domestic legal and financial control. Other countries have taken similar steps, though global tech firms have sometimes resisted such measures.
Restrictions on gambling, fake goods, and unauthorized payments
The draft bans cross-border online gambling, betting, and lotteries, citing consumer protection. It also prohibits the sale or exchange of unauthorized gift cards, vouchers, or digital payment substitutes without Bangladesh Bank approval.
The policy further blocks the online trade and advertising of counterfeit, prohibited, or misleading products on digital and OTT platforms. The goal is to reduce fraud and ensure compliance with local laws, though how enforcement will work remains unclear.
Related: Banks struggle with World Cup finances
A Cross-Border Escrow Service, developed with the central bank, is planned to simplify transactions by integrating payment systems with global gateways. This could ease import and export payments but may require coordination with international financial networks.
Consumer protections and dispute handling
The draft requires full refunds for defective, expired, or misrepresented products, processed through the original payment method. It also introduces an Alternative Dispute Resolution (ADR) system for cross-border conflicts and expands the Central Complaint Management System (CCMS), run by the Directorate of National Consumer Rights Protection.
A Central Logistics Tracking Platform (CLTP) would link payment systems with courier networks to improve transparency. While this could help, it may also add complexity for smaller businesses.
For digital exporters, earnings from cross-border e-commerce will count as export receipts, qualifying for existing incentives. The policy supports drop shipping, entrepôt trade, and merchanting trade, while offering dedicated policy and insurance help for MSME exporters handling small shipments.
A committee led by the commerce ministry, including members from the National Board of Revenue (NBR), Bangladesh Bank, BTRC, ICT Division, e-CAB, and BASIS, will manage implementation. Success depends on balancing regulation with the challenges of enforcing rules on global platforms.
The consultation period lets stakeholders influence the final policy, though the government has not set a timeline for adoption. The changes could reshape how foreign digital businesses operate in the country, as seen in recent shifts in financial oversight under the interim government.
Leave a Reply