IRC ERC support machinery import to Bangladesh
Bringing machinery into Bangladesh starts long before the machine is loaded on a vessel. Before an importer can open a letter of credit, file a bill of entry, or clear a container at the port, the business must hold the right registrations. For machinery importers, the two registrations that matter most are the IRC, the Import Registration Certificate, and the ERC, the Export Registration Certificate.
IRC and ERC support means practical help with these registrations: checking whether your business is eligible, preparing the papers, filing the application, correcting problems, renewing the certificate when it expires, and connecting the registration to the letter of credit, the customs clearance, and any bond facility your factory uses. Without a valid IRC, a machinery import cannot move forward. Without an ERC, a factory that also exports cannot claim the export-linked facilities it is entitled to.
This guide explains what IRC and ERC are in plain words, who needs them, how they connect to LC and customs clearance, the step-by-step process for getting and keeping them, the documents needed, the common problems and how to fix them, renewal, and how to judge a good support agent. No fixed rates or fees are given here. A rate or fee is confirmed only after checking the actual shipment and its documents.
Total Import Solution, since 2016, provides import support for businesses in Bangladesh, including IRC and ERC support, customs clearance support, and delivery coordination for machinery through Chittagong Port, Pangaon port, and Dhaka Airport, to factories and warehouses in Dhaka, Gazipur, and Narayanganj.
1. What Are IRC and ERC?
IRC stands for Import Registration Certificate. It is the registration that allows a business in Bangladesh to import goods commercially. The certificate is issued by the Chief Controller of Imports and Exports, and it is linked to the business’s trade licence and tax identification. A machinery importer must hold a valid IRC before opening a letter of credit for a machine, and customs will ask for the IRC number when the bill of entry is filed.
ERC stands for Export Registration Certificate. It is the registration that allows a business to export goods from Bangladesh. A factory that imports machinery and also exports its finished products needs both certificates: the IRC for bringing the machinery in, and the ERC for sending the finished goods out. Even a factory that only imports today may need an ERC later, when it starts exporting, and planning for both at the start saves time.
The two certificates work as a pair for many machinery importers. A garment factory that imports sewing machines and exports garments needs the IRC to import the machines and the ERC to export the garments. A food processing plant that imports packaging machinery and exports processed food needs the same pair. The support work is the same in both cases: keep both registrations valid, keep the details on them correct, and keep them connected to the bank, the customs declaration, and the bond facility where one applies.
2. Why Machinery Importers Need IRC and ERC
Machinery is different from ordinary trading goods. A machine is usually a large, single purchase, often bought under a letter of credit, and it is often imported for a factory’s own use rather than for resale. That makes the registration work more important, not less, because a problem with the IRC can hold up a machine that a whole production line is waiting for.
The IRC is needed at several points. The bank asks for it when the letter of credit is opened. Customs asks for it when the bill of entry is filed. The shipping line and the port authorities work from documents that trace back to the importer named on the IRC. If the IRC has expired, or the name on it does not match the trade licence, or the address on it does not match the importer’s records, the clearance can stop while the problem is corrected.
The ERC matters for factories that export, and for factories that plan to export. Some facilities for exporters, such as bonded warehouse arrangements, are linked to the export registration. A factory that imports machinery under a bond facility needs its registration papers in order before the bond work can proceed. An agent who understands both certificates can check the whole picture at once, instead of fixing one paper and finding another problem the next day.
3. IRC vs ERC — What Each Certificate Does
The table below shows the practical difference between the two certificates, so an importer can see at a glance which one is needed for which step.
| Certificate | Full name | What it allows | Who needs it |
|---|---|---|---|
| IRC | Import Registration Certificate | Commercial import of goods into Bangladesh | Any business importing machinery or goods |
| ERC | Export Registration Certificate | Export of goods from Bangladesh | Any business exporting finished goods |
| IRC | Import Registration Certificate | Opening a letter of credit for import | The importer, through its bank |
| ERC | Export Registration Certificate | Claiming export-linked facilities | Exporters and export-oriented factories |
| IRC | Import Registration Certificate | Filing a bill of entry with customs | The importer or its clearing agent |
| ERC | Export Registration Certificate | Operating under a bond facility | Factories with bonded warehouse approval |
| IRC | Import Registration Certificate | Importing machinery for own factory use | Factory owners importing capital machinery |
| ERC | Export Registration Certificate | Sending samples and finished goods abroad | Factories with export orders |
Most machinery importers in Bangladesh need the IRC first, because the machine must be imported before production can start. The ERC follows when the factory begins to export. Both certificates must be renewed on time, and the details on both must match the trade licence, the tax identification, and the bank records. A mismatch between any of these is one of the most common causes of delay, and it is easy to prevent by checking the papers together before filing.
4. The Step-by-Step Process for IRC and ERC Support
The work of an IRC and ERC support agent follows a clear sequence. The steps below show the usual order, from the first check of the business papers to the point where the machinery is cleared and delivered.
Step 1: Check the business papers. The agent reviews the trade licence, the tax identification number, the bank account details, and any existing IRC or ERC. The name, address, and business type must be the same on every paper. A mismatch found now is easy to fix; a mismatch found at the bank or at customs is not.
Step 2: Confirm which certificates are needed. A business that only imports needs the IRC. A business that imports machinery and exports finished goods needs both the IRC and the ERC. The agent confirms the requirement before any application is filed, so no step is missed.
Step 3: Prepare the application documents. The agent prepares the application form and gathers the supporting papers: the trade licence, the tax identification, the bank certificate, the memorandum and articles of association where required, and the authorisation letter for the person who will sign. Each paper is checked against the others for matching names and addresses.
Step 4: File the application. The application is filed with the office of the Chief Controller of Imports and Exports. The agent follows up on the filing and answers any query the office raises, so the application is not left waiting.
Step 5: Receive and check the certificate. When the IRC or ERC is issued, the agent checks every detail on it: the business name, the address, the registration number, and the validity period. An error on the certificate is corrected at once, before it is used for a letter of credit.
Step 6: Connect the certificate to the bank. The agent shares the certificate details with the importer’s bank, so the letter of credit for the machinery can be opened without delay. The bank checks the IRC number against its own records, and any mismatch must be resolved first.
Step 7: Use the certificate for customs clearance. When the machinery arrives, the agent files the bill of entry using the IRC details. The certificate number, the importer name, and the consignee name must all match the shipping documents.
Step 8: Renew before expiry. The agent keeps a record of the validity period and starts the renewal before the certificate expires, so the business is never without a valid registration when a shipment is on the water.
Step 9: Keep the file updated. After each renewal or correction, the agent gives the importer a complete file: the certificate copy, the application papers, the bank correspondence, and the renewal record. Keep this file. It is the record of the registration, and it may be needed later for audit, for a new letter of credit, or for a bond facility application.
5. Documents You Need for IRC and ERC
Registration runs on a set of documents, and the IRC or ERC is one of them. If a document is missing or wrong, the application stops until it is fixed. The table below lists the documents most commonly needed.
| Document | What it is for |
|---|---|
| Trade licence | Proof the business is registered and what it does |
| Tax identification number (TIN) | The business tax record, linked to the registration |
| Bank certificate | Proof of the business bank account, from the bank |
| Memorandum and articles of association | The company formation papers, where the business is a company |
| Partnership deed | The partnership papers, where the business is a partnership |
| National ID of the proprietor or directors | Identity proof of the person signing the application |
| Authorisation letter | The letter authorising the agent to act for the business |
| Office address proof | Proof of the business address, such as a rent agreement |
| Existing IRC or ERC | The current certificate, when applying for renewal |
| Import or export history | Past shipment records, where the office asks for them |
| Bond licence | The bond facility approval, where the factory uses one |
| Factory licence or approval | Proof the factory is registered, for machinery for own use |
Keep the originals and copies together in one file for the business. Share copies with your agent before the application is filed, so any problem can be found while there is still time to fix it. The IRC and ERC deserve special care: keep the originals in a safe place, and never send the full set of originals by ordinary post.
6. How IRC and ERC Connect to the Letter of Credit
The letter of credit, or LC, is the bank’s promise to pay the supplier when the shipping documents are presented. For machinery imports, the LC is usually opened before the machine is shipped, and the IRC is part of that process.
The bank asks for the IRC when the LC is opened. The importer name on the LC must match the name on the IRC, and the IRC number is recorded in the bank’s file for the transaction. If the IRC has expired, the bank will not open the LC until it is renewed. If the name on the IRC does not match the trade licence, the bank will ask for a correction first.
The ERC connects to the LC in a different way. A factory that exports may open back-to-back LCs, where the export order supports the import of raw materials. The ERC is part of that chain, because the export registration proves the business is entitled to export. An agent who understands both certificates can check the LC papers against the registration papers before the bank filing, so the LC is not returned for correction.
The practical rule is simple: check the IRC and ERC before the LC is opened, not after. A day spent checking the registration papers can save weeks of delay at the bank, at the port, and at customs.
7. Customs Clearance and the Bond Facility
When the machinery arrives at Chittagong Port or another port of entry, customs clearance runs on the bill of entry, and the bill of entry runs on the IRC. The importer name, the IRC number, and the consignee name on the shipping documents must all match. The agent files the bill of entry, coordinates any examination, and follows up until the release order is given.
Some factories import machinery under a bond facility. A bonded warehouse is an arrangement where goods can be kept and used under customs supervision, and the facility is linked to the factory’s export registration. The ERC is part of that picture, because the bond facility exists to support export production. A factory that holds a bond licence needs its IRC, its ERC, and its bond papers to agree with each other, and the agent checks all three together.
The bond facility also affects how machinery is treated at clearance. Machinery imported for a bonded factory may follow a different clearance path from machinery imported for open sale. The agent confirms the path before the vessel arrives, so the clearance is not delayed by a wrong assumption about which facility applies.
8. Duty and Cost Factors
No fixed fee can be given here, because the cost of importing machinery depends on several factors. The main ones are listed below.
Type of machinery. Garment sewing machines, food processing machines, printing machines, packaging machines, and general industrial machinery each have different handling, examination, and documentation needs. Some machines need extra certificates or tests, which add to the cost and the time.
Weight and size of the machine. The port and terminal charges depend on how much space the cargo takes and how long it stays. A large machine in a full container is handled differently from a small machine in a shared container, and an oversized machine may need a special route and a special vehicle.
Duty and taxes. The assessed duty depends on the HS code and the declared value of the machine. The agent arranges payment where agreed, but the amount is set by customs, not by the agent. Machinery imported for a factory’s own use may be treated differently from machinery imported for sale, and the agent confirms the treatment before filing.
Port and terminal charges. The port charges for handling, storage, and release of the cargo are separate from duty. If the cargo stays at the port longer than the free period, storage charges apply, which is another reason to clear promptly. A late or wrong registration paper is one of the most common reasons cargo stays at the port too long.
Transport distance. Delivery from Chittagong Port to Dhaka or Gazipur costs more than delivery near the port, because of the distance and the road time. Heavy machinery needs a suitable vehicle and a receiving address with space to unload.
Examination. If customs selects the shipment for physical examination, there are extra handling steps. The agent should tell you when this happens and what it involves.
Always compare the total cost, including the agent’s fee, the duty, the port charges, and the delivery cost. Do not compare two quotations unless they cover the same machine, the same documents, and the same delivery address.
9. Common IRC and ERC Problems and How to Fix Them
The four problems below are the most common, and each one has a clear fix if it is found early.
Expired certificate. The IRC or ERC has a validity period, and a business that forgets to renew it cannot open an LC or file a bill of entry. The fix is to start the renewal before the expiry date, and to keep a calendar reminder for every certificate the business holds. If the certificate has already expired while a shipment is on the water, the renewal must be completed before the clearance can proceed.
Name mismatch. The business name on the IRC does not match the name on the trade licence, the tax identification, or the bank account. The fix is to correct the certificate with the issuing office, using the trade licence as the reference. Always check the name letter by letter the day the certificate is received.
Address mismatch. The address on the IRC does not match the address on the trade licence or the factory papers. The fix is the same: correct the certificate before it is used, and check the address on every paper at the same time, so one correction covers all of them.
Wrong business type. The certificate shows a business type that does not match the trade licence, for example a trading business shown as a manufacturing business, or the other way round. The fix is to file a correction with the supporting papers, and to confirm the correct type with the agent before the application is filed. A wrong business type can affect the duty treatment of the machinery, so it should never be left uncorrected.
10. Renewal and Keeping Your Registration Valid
Renewal is the part of IRC and ERC support that is most often forgotten, and the part that causes the most avoidable delay. A certificate that expires while a machine is on the water can hold up the whole clearance.
The renewal process is simple when it is started early. The agent checks the validity period, prepares the renewal application with the current trade licence and tax papers, files it before the expiry date, and confirms the renewed certificate is in hand before the old one runs out. The importer should keep a single list of all certificates, with the expiry date of each one, and share that list with the agent.
A renewal is also the right time to correct any detail that has changed. If the business has moved to a new address, or a new partner has joined, or the factory has added a new line of business, the renewal application should carry the updated details, with the supporting papers. Filing a renewal with old details only creates a new problem to fix later.
11. How to Judge a Good IRC ERC Support Agent
Not every agent is equally suited to registration work. The table below gives a practical way to compare agents before choosing one.
| What to check | A good sign | A warning sign |
|---|---|---|
| Registration experience | The agent has handled IRC and ERC applications and renewals before | The agent has never filed an IRC or ERC application |
| Document checking | The agent reviews the trade licence, TIN, and bank papers together before filing | The agent files first and checks the documents later |
| LC and customs knowledge | The agent checks the certificate against the LC and bill of entry | The agent knows the registration but not the clearance |
| Clear charges | The service fee and the government charges are listed separately in writing | The agent quotes one figure with no breakdown |
| Communication | The agent updates you at each step: filed, issued, connected to the bank | You have to chase the agent for news |
| Renewal tracking | The agent keeps your expiry dates and reminds you before renewal | The agent waits for you to notice the expiry |
| Record keeping | The agent gives you a complete file after each application and renewal | The agent keeps the documents and gives you only a receipt |
Ask the agent for a written quotation for your registration work. The quotation should list the agent’s service fee and the expected government charges separately, and it should say which steps the agent will handle.
12. Common Mistakes to Avoid
Mistake 1: Not checking the certificate when it arrives. Many importers file the IRC or ERC away without reading it. Check the business name, the address, the registration number, and the validity period the day you receive it.
Mistake 2: A name that does not match the trade licence. A name that does not match the importer’s registered name will stop the LC and the clearance. Check the spelling letter by letter against the trade licence and the tax identification.
Mistake 3: Waiting until the expiry date to renew. When the renewal is left to the last day, any query from the office can push the business past the expiry date. Start the renewal early, and keep a reminder for every certificate.
Mistake 4: Using the wrong certificate for the job. An IRC is for import and an ERC is for export. A factory that exports without an ERC, or that tries to claim an export facility with only an IRC, will be stopped. Confirm which certificate each step needs.
Mistake 5: Sending documents late. When the supporting papers arrive after the application is filed, the office has to ask for them, and the application waits. Share the papers with your agent before the filing.
Mistake 6: Losing the original certificate. The original is the proof of registration. Keep it safe, keep a scanned copy with your agent, and never send the full set of originals by ordinary post.
Mistake 7: No delivery plan for the machinery. Registration is only half the job. The machine still needs a vehicle and a receiving address ready. Plan the delivery before the release, not after.
13. How Total Import Solution Helps
Total Import Solution, since 2016, supports importers in Bangladesh with the practical work around importing, including IRC and ERC support, document checking, letter of credit coordination, and customs clearance support through Chittagong Port, Pangaon port, and Dhaka Airport. The team helps importers check the business papers, prepare and file the IRC and ERC applications, correct problems with the issuing office, connect the certificates to the bank and the bill of entry, and arrange delivery of machinery to factories and warehouses in Dhaka, Gazipur, and Narayanganj.
The approach is simple: understand the business first, check the registration papers against the trade licence and the bank records, work out the documents in writing, and confirm the certificate is valid before the letter of credit is opened and before the vessel arrives.
To discuss a machinery import, share the trade licence, the tax identification, the existing IRC or ERC if any, and the machine details, and the team will help review the registration and the clearance plan for your shipment.
Frequently Asked Questions (FAQs)
1. What is an IRC?
It is the Import Registration Certificate, issued by the Chief Controller of Imports and Exports. It allows a business in Bangladesh to import goods commercially, and it is needed to open a letter of credit and to file a bill of entry with customs.
2. What is an ERC?
It is the Export Registration Certificate, issued by the same office. It allows a business in Bangladesh to export goods, and it is needed for export-linked facilities such as a bonded warehouse arrangement.
3. Does a machinery importer need both IRC and ERC?
A business that only imports needs the IRC. A factory that imports machinery and exports its finished goods needs both. Planning for both at the start saves time when exports begin.
4. Can I open a letter of credit without an IRC?
No. The bank asks for the IRC when the letter of credit is opened, and the importer name on the letter of credit must match the name on the IRC. An expired IRC will stop the letter of credit until it is renewed.
5. Which documents are needed for an IRC or ERC application?
The trade licence, the tax identification number, the bank certificate, the memorandum and articles of association or partnership deed where required, the national ID of the proprietor or directors, and an authorisation letter for the person signing the application.
6. What happens if the name on my IRC does not match my trade licence?
The bank and customs will ask for a correction before they proceed. Check the name letter by letter against the trade licence the day the certificate is received, and correct any error at once.
7. What happens if my IRC expires while a shipment is on the water?
The clearance cannot proceed until the certificate is renewed. Start the renewal before the expiry date, and keep a reminder for every certificate the business holds.
8. How does the ERC connect to the bond facility?
A bonded warehouse arrangement supports export production, and the export registration is part of that picture. The IRC, the ERC, and the bond papers must agree with each other, and the agent checks all three together.
9. What is the difference between IRC and ERC?
The IRC is for importing goods into Bangladesh, and the ERC is for exporting goods from Bangladesh. A machinery importer needs the IRC to bring the machine in, and an exporting factory needs the ERC to send its finished goods out.
10. How long does the IRC or ERC application take?
The time depends on the office, the completeness of the papers, and whether any query is raised. Filing with complete and matching documents is the best way to avoid delay.
11. Can a certificate be corrected after it is issued?
Yes. A correction is filed with the issuing office, using the trade licence as the reference for the correct details. It is always faster to correct the certificate before it is used for a letter of credit.
12. What is the most common cause of delay in IRC and ERC work?
A name or address mismatch between the certificate and the trade licence, an expired certificate, and missing supporting papers. Checking the papers together before filing is the best way to avoid delay.
13. Do I need an ERC if I only import machinery for my own factory?
No, if the factory does not export. The IRC is the certificate needed for the import. An ERC becomes necessary when the factory starts exporting its finished goods.
14. What charges are there for IRC and ERC support?
The agent’s service fee and the government charges for the application and renewal. These should be listed separately in writing before the work starts, and no fee is confirmed until the actual documents have been checked.
15. What should I check before my agent files the application?
The trade licence, the tax identification, the bank certificate, and the authorisation letter should all show the same business name and address. Share copies with your agent before the filing, so any problem can be found in time.
16. How do I arrange IRC and ERC support with Total Import Solution?
Contact Total Import Solution by WhatsApp or email with the trade licence, the tax identification, any existing IRC or ERC, and the machine details. The team will review the registration and explain the steps for your import.
Total Import Solution — Contact Us
Total Import Solution, since 2016, provides sourcing and import support for businesses in Bangladesh, including IRC and ERC support and customs clearance support through Chittagong Port, Pangaon port, and Dhaka Airport. For a review of your registration and the clearance steps for your machinery import, contact us:
- WhatsApp: +8801977954302
- Email: info@totalimportsolution.com
- Website: totalimportsolution.com
