Govt to enforce registration for foreign digital platforms to run ads in Bangladesh

The government has proposed making it mandatory for foreign digital platforms to establish a registered presence in Bangladesh before they can run advertisements or conduct online business in the country to strengthen regulation of cross-border digital commerce and improve tax compliance.

If adopted, the draft “Cross-Border Digital Commerce Policy 2026” would require platforms such as Facebook, YouTube and Google to register before publishing digital advertisements targeting local consumers in exchange for paying applicable value-added tax, income tax and other taxes.

The Ministry of Commerce published the draft policy on its website on 22 July, inviting public feedback until 6 August.

The proposed policy also calls for introducing a cross-border escrow payment system, integrating payment infrastructure with internationally accepted payment networks, mandating registration of foreign digital commerce companies and providing policy support to expand digital exports.

Under the draft, foreign digital commerce companies must obtain a digital business identity registration from the commerce ministry before advertising or selling goods and services online. After registration, they will be allowed to advertise products and services in compliance with tax, VAT and other legal requirements.

The proposed policy also states that social media and over-the-top platforms may only carry advertisements for lawful products and services. Advertisements promoting counterfeit, prohibited or misleading products and services will be banned.

To make international digital transactions safer, the government plans to launch a cross-border escrow service under the central bank’s supervision to protect both buyers and sellers.

It also proposes measures to facilitate repatriation of export earnings by registered digital businesses and simplify payments for imports.

For imported goods, customs documents, including bills of entry, bills of lading and invoices, will have to identify not only the buyer but also the digital platform or online marketplace through which the transaction was made.

The policy also seeks to help micro, small and medium enterprises enter international markets by introducing policy support and insurance facilities for parcel-based exports. Other proposed initiatives include helping businesses explore overseas markets, improve digital capabilities and meet international quality standards.

The government will also consider treating export earnings generated through digital commerce in the same way as conventional exports, making them eligible for financial incentives.

The draft also proposes policy support for private-sector investment in domestic and overseas processing centres, warehouses, drop shipping, entrepot trade and merchanting trade.

It contains several consumer protection measures to curb fraud in digital commerce. It prohibits the online sale of counterfeit, adulterated or fraudulent products, as well as digital trade involving online gambling, betting, lotteries and goods or services banned under Bangladesh’s import and export regulations.

Sellers will be required to accept returns and issue full refunds through the original payment method if customers receive defective, counterfeit, expired or non-compliant products.

Businesses must also clearly disclose their after-sales service, warranty, guarantee and refund policies. The draft also proposes introducing an alternative dispute resolution mechanism for cross-border digital transactions.

It further seeks to expand business-to-business, business-to-consumer and business-to-business-to-consumer digital trade, while coordinating with the National Board of Revenue to review online import value thresholds.