Foreign Tech Giants Face Ban on Digital Ads Without Local Incorporation

Foreign digital platforms will no longer be permitted to run digital advertisements in Bangladesh without establishing a locally incorporated company or registering within the country, according to the draft 'Cross-Border Digital Trade Policy 2026'. Under these new regulations, global platforms such as Facebook, YouTube, and Google cannot publish digital ads without proper local registration and must pay Value Added Tax (VAT), income tax, and all applicable duties in accordance with domestic laws.

On July 26, Sunday, it was reported that the Ministry of Commerce published the draft policy on its official website on Saturday, July 22, to gather public feedback and opinions.

According to the draft policy, foreign digital trade entities must secure a Digital Business Identity (DBID) registration under the Ministry of Commerce prior to displaying advertisements or selling products and services online. Social media and OTT platforms will only be allowed to host legitimate ads, strictly prohibiting counterfeit, illegal, or misleading products. To secure international transactions, the policy proposes launching a cross-border escrow payment system under the supervision of Bangladesh Bank. It also mandates connecting domestic banking with global payment networks, simplifying export revenue repatriation, and recording platform identities on import bills of entry or invoices.

The policy provides strategic support for Micro, Small, and Medium Enterprises (MSMEs), offering parcel-based export incentives, insurance facilities, cash incentives on digital export earnings, and policy support for drop shipping, entrepôt trade, and merchanting trade. To protect consumers, digital gambling, lotteries, and adulterated goods are banned, while mandatory full refunds for defective items, clear warranty terms, and Alternative Dispute Resolution (ADR) mechanisms are introduced. The draft expands B2B, B2C, and B2B2C trade frameworks while coordinating with NBR to review online import value limits.

Experts believe this structured policy will address long-standing revenue losses and consumer protection gaps across Bangladesh's 130 million internet users. While previous bureaucratic hurdles stalled office setups for tech giants like Meta, ICT Advisor Asif Rehan Asad stated that discussions with domestic and foreign tech firms have commenced under the new guidelines. Public feedback on the draft policy will be accepted until August 6 before finalization.

Despite a massive market of nearly 130 million internet users in the country, administrative complexities have thus far prevented Meta or Google from establishing permanent offices. ICT Advisor Asif Rehan Asad stated that the current government has initiated new discussions regarding the establishment of Meta and Google offices, and work is progressing according to established guidelines.
//DBTech/JNO/MIS//