Assignment On Current Export And Import Situation In Bangladesh 10a55

Export-Import of Bangladesh

Introduction Foreign trade is of vital importance to the economic development of Bangladesh. The country's import needs are large and the imperative to increase exports is immediate. In order to finance those imports and also to reduce the country's dependence on foreign aid grants, the government, since liberation, has been trying to enhance foreign exchange earnings through planned and increased exports. The significance of foreign trade to the economy is manifest in a number of facts and figures. In 1991-92, foreign trade's contribution to government revenue was more than 37 percent; export-oriented industries' contribution to industrial value-addition was 56 percent; export industries' share of employment in the manufacturing sector was 60 percent, and the growth of export earnings was 16.09 percent. During the last decade export earnings at current dollar prices increased by 14 percent per annum. At present, major exports are raw jute, jute goods, tea, leather, frozen fish and reade garments, while major imports are capital goods, food grains, petroleum and oil, yarn and textiles.

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Export-Import of Bangladesh

Import Situation in Bangladesh Agents and Distributors: The main channel for selling goods in Bangladesh is through a local agent, i.e., an agent, wholesaler or distributor. If authorized, companies may use their local agents to service industrial consumers and bid on government contracts. More than half of Bangladesh's imports are made through tender or direct purchase by public sector corporations, government controlled corporations, and autonomous bodies. These organizations prefer to deal with local firms acting as exclusive agents or distributors of foreign manufacturers and suppliers. Foreign firms should consider hiring an exclusive agent/distributor to monitor these projects. Agent-principle agreements may be either exclusive or non-exclusive. Non-exclusive arrangements are common for commodities where brand names are not important.

Import Restrictions: The government has moved to reduce the number of items on its list of banned imports and has eliminated the need for import licenses. However, some products are still banned from importation, including certain maps, obscene materials, socially or religiously offensive items, all types of wastes, and substandard or rejected goods, as well as all imports from South Africa or Israel. All commercial importers are issued books in which their import authorizations are validated. The issuance of a book is a formality for items not on the controlled or restricted lists. books are valid for 12 months

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Export-Import of Bangladesh Import Duties: Despite some recent reductions, tariffs in Bangladesh remain high, averaging over 50 percent. At the recommendation of the World Bank, Bangladesh has placed a 100 percent tariff ceiling on most goods, with the intention of bringing the ceiling down to 60 percent in fiscal year 1993-94. A value-added tax (VAT) of 10 to 20 percent and additional fees, typically adding up to 15 percent of the cost and freight value, are also applied to imports. Duties are reduced to 2.5 percent for installation of imported machinery in less developed areas. Duties are also reduced to 2.5 percent for capital machinery and factories which use 70 percent or more indigenous materials and for imported machinery for export-oriented industries. Exemptions from duties and the import sales tax are available for a variety of goods.

Documentation: Documentation required for commercial shipments to Bangladesh include a commercial invoice, bill of lading or air waybill, an insurance certificate that must be underwritten by the Sadaran Bima Corporation or any Bangladesh insurance company, and pro forma invoice. A certificate of origin may be requested.

General import regulations and requirements Importing most goods does mot require an import license. All importers must be ed with the Ministry of Commerce. Some goods are restricted or prohibited. See lists below under heading "

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Export-Import of Bangladesh Prohibited or highly restricted imports Prior permission is required to import goods on the restricted list. Certain restricted goods may be imported only by authorized s.Imports from Serbia and Montenegro are prohibited.Bangladesh observes a boycott of Israel. Imports may not ship on Israeli flag vessels. No vessel or aircraft used for shipments to Bangladesh may call on any port in Israel. Import customs tariff Bangladesh uses the Harmonized Tariff System for tariff classification. You can search the tariff schedule here. For more information on tariff requirements please see Tariff Information (scroll down to desired country). Tariff rates are set at 10, 15, 20, and 25 percent. Certain products are exempt from duties. Additional taxes/charges which may apply: 

15 percent value-added tax



Supplemental tax on certain goods



Landing fee



Insurance charge

General import license/permit requirements Most goods do not require an import license. The Ministry of Commerce requires registration of each importer. Prior approval is required to import goods on the restricted list. Certain restricted goods may be imported only by authorized s. There are no tariff quotas on imports.

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Export-Import of Bangladesh Corn Import in Bangladesh

At present corn grown in India is high on demand in Bangladesh as per Bangladesh export, import and trade reports brought out by reputed traders and analysts in that country. As per Bangladesh trade news corn cultivated in Bihar, India is high in popularity charts in that country.

Prohibited or highly restricted imports All goods from Israel, Serbia and/or Montenegro are prohibited. Prohibited articles may include the following, in alphabetical order: artificial mustard oil, eggs (except hatching eggs), fishing nets (gillnets), grass, horror comics, lard and tallow oil, lard, live pigs, motorbikes more than three years old, nylon and polyethylene ropes, obscene and subversive literature or similar types of materials; opium, pig and poultry fat, pig hair, poppy seeds and dried posto dana, raw sugar, selected insecticides, selected petroleum products, single phase electricity meters solid or semi-solid palm oil, some kinds of cloth, tendu leaves, un-denatured ethyl alcohol (80% or higher) and other denatured spirits of any strength, used or new rags, vessels more than 15 years old, wine, woven fabrics of silk or silk waste. 5|Page

Export-Import of Bangladesh

Restricted articles may include the following, in alphabetical order: goods bearing pictures or writing which is obscene or of a religious connotation which may injure the religious feelings of any class of Bangladeshi citizens; printed material, posters, video tapes, etc. containing matters likely to outrage the religious feelings and beliefs of any class of Bangladeshi citizens; unless otherwise specified, old, second-hand and reconditioned goods; unless otherwise specified, all kinds of waste; reconditioned office equipment (i.e., photocopier, typewriter, telex, computer, phone, fax machine); Foreign exchange controls and letters of credit Exchange control is istered by the Bangladesh Bank through commercial banks and authorized financial institutions. Unless otherwise specified, all imports must be made by opening an irrevocable letter of credit. Importers are required to have Letter of Credit Authorization (LCA) forms. Commercial invoice A commercial invoice is required for every commercial shipment and should conform to the information requirements described in our definition. At least three (3) original, signed copies should be sent to the consignee or the agent thereof with the other shipping documents. The shipper should confirm the exact number of copies required with the consignee. Country of origin information should be included, unless a separate certificate of origin is requested. A pro-forma invoice is needed in advance for the required letter of credit (L/C). Each non-commercial shipment will also require a pro-forma invoice. For airfreight shipments, in most cases, the shipping documents should accompany the cargo and/or the airwaybill (AWB). 6|Page

Export-Import of Bangladesh For more information on preparing and distributing commercial invoices, see GISTnet headings: Commercial Invoice and Shipping Document Distribution Based on Specific Functional Needs. Packing list Although not always required by regulations, at least three (3) copies of the packing list should be included among the shipping documents sent to the consignee or the agent thereof is recommended to expedite customs clearance at the port of entry for all shipments containing more than one shipping unit. The packing list should clearly identify the contents of each uniquely numbered shipping package with the cargo description including the gross weight, net weight, the cubic measurement and the shipping marks and numbers. The information on the packing list must be consistent with all the information shown on the commercial invoice or pro-forma invoice. Transport document A properly prepared transport document is required for transportation purposes and as a source document for customs clearance purposes at the port of entry. For ocean cargo, three (3) copies of an ocean bill of lading are required. "To order" B/Ls are acceptable.

Certificate of origin When required by the buyer/consignee or the of a letter of credit (L/C); a shipper should consult with the customer in Bangladesh to determine the exact number of C/O copies needed. At the very least, three (3) copies should be prepared, using the general certificate of origin (CO, C/O) form that is available from a commercial printer. 7|Page

Export-Import of Bangladesh Once completed, each C/O must be signed and each signature must be notarized. Following notarization, each C/O must be certified by a recognized Chamber of Commerce. Official cargo insurance requirements Every import shipment to Bangladesh is required to be covered by shipping insurance underwritten by the Sadaran Bima Corporation or any other Bangladeshi insurance company. A copy of the insurance certificate or the insurance policy is required to be included among the shipping documents. Shipment packaging and marking requirements Exporters should consult with their customers to confirm any special packing requirements. In general, follow standard shipping practices. Each package should be marked with: contents & quantity, name & address of consignee, country of origin, port of loading, port of discharge, net weight, gross weight, cubic measurement and marks & numbers. Straw or hay used in packing must be certified to be free of insects and disease. Export packing must be strong enough to withstand weather conditions, pilferage, and rough handling during the cargo's through transportation. Packages should be uniquely numbered if there are more than one shipping unit in the consignment. Dangerous goods require the use of U.N. Performance Oriented Packaging (UN POP). Product-specific packaging/labeling requirements Exporters should confirm with their customers regarding product-specific packaging and labeling requirements. Generally, labeling must show country of origin and complete manufacturer's name and address. Specific packaging and labeling requirements apply to food, agricultural and chemical products and to other products and commodities. Obscene words or transcriptions are not permitted.

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Export-Import of Bangladesh ATA carnets ATA Carnets are not accepted. For more information on carnets see the International Chamber of Commerce website. Plants and plant products A phytosanitary certificate is required for the import of plants and most plant products. Fruits and vegetables, except potatoes, are exempt from this requirement. An additional certificate is required for leaf tobacco. Plants and plant products, including seeds, for use as food Exporters should their customers in Bangladesh for information regarding product-specific requirements. Imports of certain foodstuffs must be covered by a certificate of analysis. Animals and animal products A health certificate is required for certain animals, particularly livestock. A sanitary certificate is required for fish and fish products. Pig and poultry fat is prohibited. Eggs (except hatching eggs) are prohibited. Certain other animal products may be prohibited from import.. Food products A "radiation certificate," certifying the foods have not been exposed to radioactivity, may be required for some foodstuffs. A free sale certificate and/or certificate of analysis may be required for imports of food products. Palm oil (solid or semi-solid) and raw sugar are prohibited. Check with customer in Bangladesh for exact requirements. Pharmaceuticals Imports of drugs and pharmaceuticals require special certification. Exporters should confirm product-specific requirements with their customers in Bangladesh. A free sale 9|Page

Export-Import of Bangladesh certificate and/or a certificate of analysis may be required for imports of drugs and pharmaceuticals.

Machinery and appliances: Telecommunications equipment, radios, TVs, and RF devices Generally applicable import requirements for telecommunications equipment: 

Appliances that are connected to line power typically require testing and safety certification by an independent laboratory recognized by destination (import) country. There are also safety standards on batteries, particularly rechargeable batteries, that are shipped included in such devices.



There are two concerns regarding emissions, which also require testing and safety certification by an independent laboratory recognized by destination (import) country:



Radio frequency interference (RFI): even radios and TV receivers emit weak signals that can interfere with other devices; transmitters, including very low power devices (e.g., cell phones, portable phones) can also cause interference. There are international and/or national standards limiting spurious radio frequency emissions.



TVs and computer monitors employing cathode ray tube emit very low level gamma radiation, and are subject to maximum radiation standards. (LED and plasma screens, which have all but replaced CRT TVs, do not emit gamma radiation).



Labeling for point of sale packaging varies by import country, but typical requirements include:

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o

Product description

o

Origin country

o

Certifications as to safety, RFI, possibly radiation

Export-Import of Bangladesh o

Warnings: Require safety warnings concerning shock, and radiation if gamma radiation is emitted

o

General consumer product labeling requirements, such as required language(s), name of manufacturer or distributor and how to

o

Intellectual property (IP) protection; counterfeit and mis-branded products prohibited



Gray market goods restrictions may be in place. Importer may have to provide evidence of right to distribute within country of import, and such documentation should be provided before exportation.



Some countries now require recycling instructions on these types of products.

For these products it is very important for an exporter to check requirements with a prospective importer before concluding the product sale and certainly before shipping product.

Vehicles There are a variety of requirements that typically or may apply to the import of automobiles and other highway vehicles and parts thereof, including: 

Safety: Minimum standards and test certification of tires, brakes, electrical systems, headlights, tail lights, safety belts, and crash worthiness, fuel systems/tanks, etc.



Emissions: Maximum emission standards, a variety of chemicals, which periodically become more strict, and fuel systems/tanks that are sealed.



Operational design: There may be operational requirements such as the side of the vehicle for the driver position.

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Export-Import of Bangladesh 

Gray market goods restrictions: Importer may have to provide evidence of right to re-distribute within country of import, and such documentation should be provided before exportation.

Media containing data, including books Horror comics, obscene and subversive literature or similar types of materials are prohibited.

Artwork, antiques, cultural artifacts and collectors items As a member of UNESCO this country is a signatory of the World Heritage Convention, which defines the kind of natural or cultural sites that are to be considered for inscription on the World Heritage List. By g this Convention, each country pledges to conserve not only the World Heritage sites situated on its territory, but also to protect its national heritage. Illicit Export of Works of Art under the Convention on Cultural Property Implementation Act allows for stolen objects to be seized if there is documentation of it in a museum or institution of a state party and issues of world cultural and natural heritage are affected. The UNIDROIT (International Institute for the Unification of Private Law) Convention on Stolen or Illicitly Exported Cultural Objects of 1995 calls for the return of illegally exported cultural objects. For reference : UNESCO Headquarters: 1, rue Miollis, F-75732 Paris Cedex 15, ; tel: +33 145 681000; fax: +33 145 671690 Other products with special import requirements or restrictions Some imports are prohibited or restricted for social, economic or religious reasons. Exporters should confirm product-specific requirements with their customers in 12 | P a g e

Export-Import of Bangladesh Bangladesh. Imports

of

iron

and

steel

require

a

producer's

"certificate

of

conformity."

A "certificate of cleanliness," signed by a physician, is required for used clothing. Prohibited or highly restricted exports Generally prohibited exports: Endangered species, illicit drugs, stolen property, protected cultural artifacts. Export of the following products are generally restricted and/or controlled through various forms of export licensing, export permits and/or export authorizations which the exporter must obtain prior to export: Military weapons, ammunition, explosives; firearms; conflict diamonds and minerals; pornography as defined by the export country; products which violate national intellectual property protection law are generally prohibited (e.g., counterfeit goods, mis-branded products). Exporters should be aware that the import of these products is likely also prohibited or subject to import controls by the destination country. For these reasons it is very important for an exporter to check requirements with a prospective importer before concluding the product sale and certainly before shipping product. Cosmetics Exporters should be aware that cosmetics are import-regulated in many countries with respect to: 

Safety: A typically required import issibility document is a "free sale certificate" or equivalent issued by the government or a recognized chamber of commerce in the country of export.



Some countries ban use of certain ingredients in cosmetics.



Labeling: Ingredient must typically be listed on label along with safe application and use, known health risks and symptoms which indicate discontinuance of use

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Export-Import of Bangladesh or medical attention, and general consumer goods labeling requirements (e.g., required language(s), name of manufacturer or distributor, and how to ). 

Intellectual property: Counterfeit items and/or labeling is against the law and will often result in seizure by customs.



Gray market goods restrictions: Importer may have to provide evidence of right to distribute within country of import, and such documentation should be provided before exportation.

For these reasons it is very important for an exporter to check requirements with a prospective importer before concluding the product sale and certainly before shipping product. Textiles, apparel and other textile articles (general) Textiles and textile articles to be exported must generally meet the following criteria: 

Sanitary condition: Must be free of filth and insects



Used textile products may be restricted or prohibited.



Labeling: Varies by import country, but typical requirements for apparel and certain other manufactured products: o

Fiber content

o

Origin country

o

For consumer and general distribution end-items, required language(s), name of manufacturer or distributor and how to , care & cleaning instructions.



Intellectual property issues: Counterfeit labeled goods are generally prohibited and subject to seizure by customs.



Gray market goods restrictions: Importer may have to provide evidence of right to distribute a particular brand within country of import, and such documentation should be provided before exportation.

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Export-Import of Bangladesh For these products it is very important for an exporter to check requirements with a prospective importer before concluding the product sale and certainly before shipping product.

Bangladesh Exports by Product Section in US Dollars - Yearly Section 0 - Food and live animals 1 - Beverages and tobacco 2

-

2001

2002

2003

2004

$392,968,000

$336,578,000

$355,783,000

$431,318,000

$3,900,000

$5,411,000

$3,615,000

$25,475,000

$53,850,000

$56,848,000

$116,620,000

$7,402,000

$26,721,000

$25,453,000

$246,000

$304,000

$1,966,000

$57,622,000

$80,839,000

$18,116,000

$659,552,000

$669,995,000

$655,433,000

Crude

materials, inedible, $66,559,000 except fuels 3 - Mineral fuels, lubricants

and $10,312,000

related materials 4

- Animal and

vegetable oils, fats $427,000 and waxes 5 - Chemicals and related

products, $73,114,000

n.e.s. 6 - Manufactured $741,068,000 goods classified

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Export-Import of Bangladesh chiefly by material 7 - Machinery and transport

$48,716,000

$58,661,000

$51,043,000

$21,383,000

equipment 8 - Miscellaneous manufactured

$4,339,019,000 $4,036,516,000 $4,561,486,000 $4,501,026,000

articles 9 - Commodities and

transactions

not

classified $5,683,000

$3,055,000

$2,721,000

elsewhere in the SITC

Source: International Trade Center - UNCTAD / WTO

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$119,000

Export-Import of Bangladesh

Export Situation in Bangladesh Export Earnings Export growth is one of the corner stones of development strategy of the present government. In 1991 total export earning was US$ 1,718 million; it increased by over 47 percent and was more than US$ 2,533 million in 1993-94; during 1994-95 fiscal year the export target has been fixed at US$ 3,100 million. This along with higher remittances from abroad has helped reduce the country's debt service ratio from over 20 percent in I991, to less than 13 percent in the fiscal year 1993-94. The continued improvement in export trade was accompanied by the benign structural shift in composition of exports with non traditional items contributing increasingly higher share of total exports. The share of non-traditional items in the country's total exports which stood at 75 percent increased to 86. In respect of economic classification of export commodities, the primary as well as the manufactured items and export commodities recorded a balanced growth with their respective shares in total exports remaining more or less at the same levels. Recently a trend of increased price of raw jute is being observed in the international market. The government is determmed that restructuring of jute manufacturing industry should move apace for much needed viability and external competitiveness. There is need for requisite technological inputs to adequately exploit the potentials of this fibre. New opportunities have emerged to produce pulp from jute through chemical process. Steps are underway for production of 25,000 MT of pulp for industrial grade paper during the current jute season. Total import payments increased by 21 percent from US$ 3,470 million in 1990-91 to US$4,191 million in 1993-94. Structure of import now reflects a significant pick up of overall economic activities. Imports of intermediate goods, industrial raw materials and capital and miscellaneous machinery recorded increases during 1993-94 fiscal year. Industrial raw materials which constituted 29 percent of total imports in 1990-91 increase to over 38 percent in 1993-94.

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Export-Import of Bangladesh Despite satisfactory performance of the export sector the balance of trade experienced some fluctuations owing mainly to fluctuations in the import levels. However the trade gap which had stood at US$ 1,800 million in 1990-91 has declined to US$ 1,650 million in 1993-94. Export earnings as percentage to import payment which was about 50 percent in 1990-91, reached over 60 percent in 1993-94. Strategies The government has taken following strategies to boost export: • Simplification of export procedures and strengthening export-led co-operation through reducing regulatory role of the government; • Rationalization of the value of Taka to make the export trade more attractive; • Creation of an Export Promotion Fund (EPF) for strengthening the export activities; • Encouraging establishment of backward linkage industries through utilization of locally available raw materials; • Participation in international trade fairs, single country exhibitions and specialized fairs and sending business delegations abroad for expansion and consolidation of existing markets and creation of new markets; • Expediting BMRE of existing wet-blue producing tanneries and converting them into finished leather producing and exporting units; • Accelerating expansion of improved traditional and semi-intensive methods of shrimp cultivation for enhancing export off • Allowing import of high quality foundation-tea for blending and establishing the brand name of Bangladesh tea through marketing; • Taking measures to improve quality, increase production and expand market of exportable agricultural products; 18 | P a g e

Export-Import of Bangladesh • Undertaking activities for increasing export of computer software, engineering consultancy and services; • Expediting steps for export of labor intensive electronic and engineering products keeping in view the market requirements in the USA and other developed countries; • Promoting export of electronic components and engineering items to various countries; • Providing appropriate financing facilities for production of components of electronic and engineering items for marketing on consignment basis; • Expanding the list of products under crash programme beyond 4 products (toys, luggage and fashion items electronic and leather goods) and including 8 more items such as diamond cutting and polishing, jewelries making, stationery articles, silk, gift items, cut artificial flower & orchid, vegetables, engineering consultancy & services for export; • Organizing commodity-wise trade fairs of international standard in the country; • Developing and expanding infrastructural facilities for export trade; and • Creating product-development councils for important products. Fishery Exporters

The association is based in Cox's bazaar in Chittagong Division. Salted dried croaker, also known as jewfish, dried fish maws and shark fins are the main items exported by its . 19 | P a g e

Export-Import of Bangladesh Frozen food exporters

Bangladesh Frozen Foods Exporters Association (BFFEA) has targeted Tk 10,000 crier from exports of frozen foods by 2013.Frozen food exporters, mostly the of the BFFEA, earned Tk 3,180.80 crore in fiscal year 2008-09, 20.83 percent lower than the previous year due to the global recession. He is optimistic about the bright prospects of frozen food export and believes that the country can fetch Tk10, 000 crore from this sector. Musa said the export earnings could be increased substantially by bringing the production and processing of the fish under the latest technology. The demand for shrimp is increasing in global markets including the United States, Australia, Canada, the United Kingdom and some Asian and Middle-eastern countries. At present, farmers are producing prawn on 1.70 lakh hectares of land. To meet the increasing demand, he also suggested expansion of prawn production in Sylhet, Mymensingh, Jamalpur, Jessore, Patuakhali and Barisal. Categories: Agriculture/Agricultural Security/Agro-Products Crocs eye forex

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Export-Import of Bangladesh Four years after its inception, the country‟s first commercial reptile farm–The Reptiles Farm Ltd–in Mymensingh is now all set to make its first export of crocodiles. The Bhaluka-based farm‟s Managing Director Mushtaq Ahmed told The Daily Star that they are at the final stage of g deals with a few importers in , , Italy and Japan. They are expecting to export around 100 crocodiles aged over two years by November this year. “Export of each crocodile will fetch us Tk 75,000 and we will get a reasonable profit from the first export,” Mushtaq said hoping that his farm would earn up to Tk 35 crore from crocodile exports by 2015.During the last four years the farm expanded. The farm‟s crocodiles produced 140 hatchlings in 2007 and 240 last year. Some 400 hatchlings are expected from some 550 eggs laid this year. Categories: Small and Medium Enterprises and Cottage Industries Knit exporters The country‟s knitwear manufacturers are going to explore potential overseas markets in Africa for selling their products as a delegation is expected to visit South Africa and Botswana early next month to search for buyers there, apparel manufacturers said Friday. “We are working to diversify our export market. A delegation of knitwear manufacturers would go on a week-long visit to South Africa and Botswana on October 4,” president of the Bangladesh Knitwear Manufacturers and Exporters‟ Association (BKMEA) Md. Fazlul Hoque said. The country‟s garment export to African markets is so far very insignificant. The Export Promotion Bureau (EPB) data showed that Bangladesh exported woven and knit garments worth US$42.51 million to South Africa and $280,000 to the Botswana last financial year 2009.

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Export-Import of Bangladesh RMG stands tall in US market

Export of „Made in Bangladesh‟ readymade garments in the US market grew 7.8 per cent during the first half of 2009, which is the highest among South Asian and East Asian nations, according to a finance ministry projection. itting the fact of cheap labour Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Haq said there are other factors, which also worked behind the good performance. He said timely delivery, price and quality made Bangladesh more attractive when its rival countries pumped in billion of dollars stimulus package to halt the slide in export.

Bailout for Bangladesh Export Sector US – Bahrain export, import and trade relations have received a shot in arm with g of a Free Trade Agreement. It has been revealed that with g of this agreement aggregate trade between these two countries has sured $1.34 billion mark. This was an increase of 24 percent from 2006 when total value of aggregate US – Bahrain export, import and trade had been more than a billion dollars, which was unprecedented as well. Recently Bangladesh export sector had demanded a financial bailout package worth $434 million in form of cash subsidies. Important of Bangladesh import and export community had met with Prime Minister.

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Export-Import of Bangladesh Importance of Bangladesh Export in National Economy Along with remittances sector Bangladesh export, import and trade sector has also contributed handsomely to economic development of that country.In this time frame economy of Bangladesh has grown at a rate of 6 percent on a year on year basis. From July 2008 to March 2009 fiscal rate of growth of Bangladesh export had been 14.5 percent and aggregate value of goods and services exported in that period was $11.63 billion. However, after October 2008 Bangladesh export had been suffering owing to world economic crises that had affected markets that had been major export partners of Bangladesh.

Bangladesh Shrimp Export In recent times shrimp export industry of Bangladesh has come under considerable amount of threat because of shrimp smuggling activities going on near its Indian borders. This is a crucial sector as it is behind readymade garments as far as export stakes are concerned.

EXPORT TREND: Trend Index

Trend in Export Trade

(In product & market) 1972-73

2006-2007

Growth

No. of Product

25

154

516%

No. of Market

68

184

171%

Total Export

348

12178

3399%

Top

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Export-Import of Bangladesh Export from Bangladesh 1972-73 to 2006-2007

1992-93

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Export-Import of Bangladesh

2002-03

2006-07

% Share of Major Importing Countries of Bangladesh Exportables

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Export-Import of Bangladesh

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Export-Import of Bangladesh

Market share of major export products (2006-2007) 01.

Woven Garments

38.25%

02.

Knitwear

37.39%

03.

Frozen Food

4.23%

04.

Jute Goods

2.63%

05.

Leather

2.18%

06.

Raw Jute

1.21%

07.

Chamical Products

1.77%

08.

Tea

0.06%

09.

Other

12.28%

Regional Market Share (2006-2007) 01.

European Union (E-U)

52.26%

02.

American Region

32.74%

03.

Asian Region

8.52%

04.

Middle East Region

2.75%

05.

African Region

0.64%

06.

Ocenia Region

0.25%

07.

East European Region

0.35%

08.

Other

2.19%

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Export-Import of Bangladesh Bangladesh Exports by Product Section in US Dollars – Yearly

Section

2001

2002

2003

2004

$392,968,000

$336,578,000

$355,783,000

$431,318,000

$3,900,000

$5,411,000

$3,615,000

$25,475,000

$66,559,000

$53,850,000

$56,848,000

$116,620,000

$7,402,000

$26,721,000

$25,453,000

$246,000

$304,000

$1,966,000

$73,114,000

$57,622,000

$80,839,000

$18,116,000

- $741,068,000

$659,552,000

$669,995,000

$655,433,000

0 - Food and live animals 1 - Beverages and tobacco 2

-

Crude

materials, inedible, except fuels 3

-

Mineral

fuels, lubricants and $10,312,000 related materials 4 - Animal and vegetable oils, $427,000 fats and waxes 5 - Chemicals and

related

products, n.e.s.

6

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Export-Import of Bangladesh Manufactured goods classified chiefly

by

material

7 - Machinery and

transport $48,716,000

$58,661,000

$51,043,000

$21,383,000

equipment

8

-

Miscellaneous

$4,339,019,000 $4,036,516,000 $4,561,486,000 $4,501,026,000

manufactured articles 9

-

Commodities and transactions not

$5,683,000

$3,055,000

$2,721,000

$119,000

classified

elsewhere

in

the SITC

Source: International Trade Center - UNCTAD / WTO

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Export-Import of Bangladesh

A comparison of Export & Import

The value of imports doubled between 1971 and 1991 as compared to the value of exports. The trade deficit has declined considerably owing to an increase in exports since 1991. A closer look at the trade statistics of the country reveals that in 1989-90, imports exceeded exports by 120%. This percentage came down to 56% in 1996 and 62% in 1997. The economy of Bangladesh was once riding on jute, its major produce. In the late 1940s, its share of the world jute export market was 80%, which came down to 70% in the 1970s. Unfortunately, the trend of polypropylene products across the globe led to a setback for the jute industry of Bangladesh.

Bangladesh Import Export

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Analysis of market potential and development of interventions for GTZPROGRESS Bangladesh is one of the poorest countries in the world, and as with almost all developing countries, agriculture and related industries are very important. One of the largest industries in Bangladesh is the jute industry, in which almost 1.5 million people

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Export-Import of Bangladesh are active. Historically, jute was the main foreign exchange earner and its contribution to the national economy is still significant. In the 1950s and 60s, almost 80% of the world‟s jute was produced in Bangladesh. Due to several setbacks and the introduction of, often cheaper, substitutes the market declined and jute started to lose its dominant position. In 2000, 5% of all exports from Bangladesh consisted of jute. This figure decreased to 3% in 2004, while the world market for jute products is slowly increasing again. This gives reason for PROGRESS, which focuses on the development of Small and Medium Sized Enterprises (SME‟s) in Bangladesh, to look into the jute market. The last years the diversified jute products (JDPs) is an increasing market and offers potential, also for Bangladesh. For PROGRESS, this is an interesting market and therefore it wants to look into this market to see where possible interventions can help develop this market further. Based on this, the problem formulation for this research is: What are the market opportunities in Europe for the Bangladeshi Jute Diversified Products (JDP) industry and how should PROGRESS this industry to take advantage of these opportunities? To answer this question, the research is divided into five sub questions that each answers a part of the problem formulation. The first area of interest is the assessment of the target market.

Minerals & Metals Trading Corporation (MMTC) The MMTC is India‟s largest international trading company and the first Public Sector Undertaking to be awarded Golden Super Star status in the country. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on „bulk‟ operations, the MMTC primarily has seven core commodity groups, viz., Minerals, Precious Metals, Coal & Hydro carbon, Fertilizers, Agro, Metal and General Trading. Performance The fiscal year 2003-04 had been a landmark year for MMTC for various reasons. Highlights of the performance were as follows:

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Export-Import of Bangladesh 

The highest ever turnover of Rs. 9099 crores with annual growth of 46 per cent

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Net profit after tax of Rs. 51 crore – (annual growth- 102 percent)

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Second highest export of Rs. 1891 crore

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All time high import of Rs. 6679 crore – (annual growth of 79 percent)

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Highest ever domestic business of Rs. 529 crore – (annual growth - 235 percent)

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Return of 7.70percent on net worth – (annual growth 88 percent)

Details of MMTC‟s trade performance for the period from 2002-03 to 2004-05 (projected) is given below: Segment Wise Performance i. Exports The second highest ever export turnover of Rs. 1,891 crore was achieved during the year 2003-04. Mineral exports were to the tune of Rs. 1,419 crore as against Rs. 1,245 crore during the previous year ing a growth of 14 percent. Precious metals group grew nearly 7 times and General Trade group ed a growth of nearly 15 times over that of the previous year. ii. Imports Driven by the overall growth in all the commodity groups, the MMTC achieved the highest ever import turnover of Rs. 6,679 crore and ed a growth of 79 percent over that of the previous year. .The commodity specific annual growth was in the following order:: Fertilizers 282 percent, Precious Metals 72 percent; General Trade 67 percent, Coal & Hydro Carbon products 60 percent, Agro products 40 percent and Metal products 37 percent. Outlook 2004-05 With the strong business base that can respond to agility to changes in its operating environment and the drive to strengthen the core business and adding new ones is

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Export-Import of Bangladesh yielding results during the year 2004-05. First time in the history of the company the turnover during the period April-December 2004 crossed Rs. 110,000 crores mark as against proportionate MOU target of Rs. 4932 crores – 229 percent achievement of MOU. Performance during same period is 90 percent higher than the turnover of Rs. 5916 crores achieved during the same period last year. 

Export turnover at Rs. 2003 crores as against MOU target of Rs. 1080

crore for the April-December period – 185 percent achievement. Export is 67 percent higher than achieved during the same period last year. 

Import during the same period stood at Rs. 8777 crores and has achieved

263 percent of MOU proportionate target and which was 106 percent higher than the performance in the same period last year. All set to further improve the performance and achieve new milestones, by the end of 2004-05 it is expected that a turnover of Rs. 13,000 crores would be achieved.

Performance Total Turnover The total turnover of the Corporation during April-December‟04 amounted to Rs.6942 crore - 29 percent higher when compared to Rs.5380 crore achieved during the corresponding period last year. Import sales of bullion ed for 64 percent of the total turnover. Excluding bullion, total turnover at Rs.2505 crore during AprilDecember‟04 was 49 percent higher than such turnover achieved in April-December‟03. Exports The Corporation‟s total exports during April-December‟04 at Rs.334 crore were lower as compared to Rs.717 crore achieved during the corresponding period last year mainly due to change in the Govt. policy whereby no further quotas of food grains are being released for exports this year. Nevertheless, during April-December, 2004, the

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Export-Import of Bangladesh Corporation has been able to effect exports of wheat worth Rs.240 crore and rice worth Rs.42 crore. Imports The import sales of the Corporation during April-December ‟04 amounted to Rs.6262 crore - 37 percent higher than the import sales of Rs.4557 crore effected during the corresponding period last year. During the period under review, the Corporation effected substantial import sales of bullion amounting to Rs.4437 crore as against sales of Rs.3698 crore made during April-December‟03. This was followed by peak sales of hydro-carbons amounting to Rs.928 crore. Edible oils on STC‟s commercial also contributed significantly to the total import turnover by way of import sales of Rs.406 crore. Import sales of fertilizers on Corporation‟s own commercial also ed for a turnover of Rs.271 crore.

Fiscal Year

Total Export

Total Import

Foreign Remittance Earnings

2007-2008

$14.11b

$25.205b

$8.9b

2008-2009

$15.56b

$22.00b+

$9.68b

2009-2010(Set Target)

$17.6b

N/A

$10.87b

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Export-Import of Bangladesh

Export Import policy of Bangladesh Acceleration of production and expansion of trade result in growth of national wealth. Increased production in export sectors may become the prime mover in thedevelopment cycle in a densely populate of Bangladesh like our as this will generate employment opportunities which in turn will generate savings and investment on consequent flow of capital. The prime national objective of poverty alleviation will thus be materialised. As a first step towards reaching this goal we need to look at the country's production infrastructure.

Our export trade is featured by the dominance of a few commodities in a narrow market. Such dependence on at limited number of export items targeted a limited market is not desirable for economic development. We must, therefore, aim both at product and market diversification or else our export trade will become stagnant in the near future.

Our export trade must keep pace with the projected GDP growth @ 7% and make due contribution through increased export earning. In this exercise it is imperative to identify new thrust sectors, increased export of higher value added items, diversify product wise , ensure products quality, improve packaging, attain efficient productivity. We should aim at marketing quality products at competitive price at the correct time.

The Export Policy 1997-2002 has been designed to operate in the imperatives and opportunities of the market economy with a view to maximizing export growth and narrowing

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down

the

gap

between

import

payment

and

export

earning.

Export-Import of Bangladesh Objectives: The principal objectives of this policy are : 

To achieve optimum national growth through increase of export in regional and international market;

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To narrow down the gap between the country's export earning and import payment through achievement of the export targets ;

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To undertake timely steps for production of exportable goods at a competitive price with a view to exporting and strengthening existing export markets and making dent in new markets;

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To take the highest advantage of entering into the post Uruguay liberalized and globalized international market;

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To make our exportable items more attractive to the market through product diversification and quality improvement;

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To establish backward linkage industries and services with a view to using more indigenous raw materials, expand the product base and identify and export higher value added products ;

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To simplify export procedures and to rationalize and solidify export incentives;

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To develop and expand infrastructure ;

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To develop trained human resources in the export sector;

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To raise the quality and grading of export products to internationally recognized levels.

Strategies:

The following strategies shall be undertaken to attain the objectives of the export policy 1997 - 2001 : 

Simplifying export procedures, and helping the private sector achieve efficiency. The Govt.. desires more and more involvement of the private sector while the govt. will continue to play its facilitating role;

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Export-Import of Bangladesh 

Enhancing technological strength and productivity and facilitating reduce cost and attain internationally accepted standard of quality of exportable products and thereby consolidate their competitiveness ;

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Ensuring maximum use of local raw materials in the production of export goods and encouraging establishment of backward linkage industries;

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Participation in the international trade fairs, specialized fairs, single country exhibitions abroad and also sending out trade missions, with a view to consolidating our position in the existing market and creating new markets;

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Encouraging export of new category high value added readymade garments and also encouraging the concerned trade associations for establishment of a Fashion Institute ;

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For promotion of high value added leather and leather goods export: providing various facilities including bonded warehouse facilities for import of materials such as raw hides, pickled, wet blue, crushed and finished leather, components and chemicals etc. to 100% export oriented leather industries;

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For promotion of export of shrimp: Extension and modernization of traditional/semi-intensive method of shrimp cultivation and ensuring quality as per buyers requirements;

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For promotion of export of jute and jute goods: Undertaking extensive publicity of jute and jute goods as environment-friendly natural fibre and diversification of the uses of jute products;

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For promotion of export of tea undertaking programmes for establishing brand name and developing linkage with established blending and distributing agents;

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For promotion of export of agro based products: undertaking programmes for raising quality standard and expansion of market;

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For the promotion of export of electrical and electronic goods ( including computer software and data entry) : Building and ensuring conducive infrastructure

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For the promotion of export of engineering consultancy and other services and sub-contracting involving, in a bigger way, Bangladesh missions abroad obtaining contracts;

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Export-Import of Bangladesh 

Organizing regularly international trade fairs and product-specific fairs with the country;

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Making appropriate development and expansion of infrastructure conducive to export;

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Making arrangements for necessary technical and practical training for development of skilled manpower in the export sector;

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Ensuring maximum utilization of financial and other assistance extended by the World Trade Organization to the Least Developed Countries;

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Ensuring maintenance of ecological balance and pollution-free environment in the production of exportable goods;

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Extending technical and marketing assistance for development of new products and for finding appropriate marketing strategies;

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Taking necessary steps to assist procurement of raw materials by the export oriented industries at world price ;

Scope and General Provisions : 

This policy shall apply to the customs areas (excluding Export Processing Zones) of Bangladesh.

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This policy shall take effect from 01.07.1998 and remain in force till 30.06.2002. However, the policy shall be considered valid until the next Export Policy is announced.

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If any provision of this policy is found inconsistent with any provisions of the Imports and Exports ( Control ) Act, 1950, or of the Import Policy Order, the Ministry of Commerce shall be entitled to amend, alter or modify such provision.

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The Ministry of Commerce may, as and when necessary, amend, alter or modify any provision of the Export Policy including the export negative/restricted items.

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Different aspects of the Export Policy shall be reviewed annually.

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Export-Import of Bangladesh Target For the policy period Export targets have been set at US dollar 5020 million for the fiscal year (F.Y.) 1997-98, US dollar 5,630 million for the F.Y.1998-99, US dollar 6,340 million for the F.Y. 1999-2000, US dollar 7,175 million for the F.Y. 2000-2001 and US dollar 8,100 million for the F.Y. 2001-2002.

Export Promotion Councils/Committees;

A National committee on export has been formed. The highest level committee on export promotion, is headed by the Honorable Prime Minister and consists of the Honorable Ministers for Foreign Affairs, Finance, Commerce and Industries, Planning, Jute and Textile as well as senior government officials and representatives of important trade associations. The committee reviews the export situation, provides necessary directions and readily resolves problems.

For immediate attention and action on export related problem a task force has been formed under the chairmanship of the Honorable Minister for Commerce.

With a view to exchanging ideas with Chambers of Commerce and Industries, Exporters' Associations and private sector organizations in formulating export policy and strategies, and up lamenting policy decisions an export council has been formed.

A task force shall also be formed to recommend practical measures for export increase and monitoring the implementation of incentives and facilities of thrust sector and crash programme items.

Commodity Councils: Commodity Councils shall be formed for jute, tea, shrimp, readymade garments and leather & leather products. 39 | P a g e

Export-Import of Bangladesh

Thrust Sector:

Leather and leather goods industries, high and high value added readymade garments, computer software and agro-processing sectors have been identified as thrust' sectors in this export policy. Although the leather and leather goods sector has enormous export potential the sector has not been able, till date, to achieve desired results. On the other hand, the readymade garments sector is expected to stage a breakthrough in the export of high-priced, high value added garments of newer categories after having survived successfully the initial phase of exporting low-end garments. Like wise computer software and agro-processing sectors could not record the desired level of export through the sectors offer bright prospects for earning foreign exchange. These -four sectors have been declared, 'Thrust Sectors', in this policy to ensure priority with the following lines of actions :

Leather & Leather Goods : Leather manufacturing units shall be modernized in order to enable them to produce increased quality of finished leather out of raw hides With a view to reducing cost of production, steps shall

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Export-Import of Bangladesh

Conclusion Acceleration of production and expansion of trade result in growth of national wealth. Increased production in export sectors may become the prime mover in the development cycle in Bangladesh like as this will generate employment opportunities which in turn will generate savings and investment on consequent flow of capital. The prime national objective of poverty alleviation will thus be materialized. As a first step towards reaching this goal Bangladesh need to look at the country's production infrastructure.

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Export-Import of Bangladesh

Reference

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http://www.epb.gov.bd

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http://www.reportbd.com/articles/31/2/Bangladesh--Export-and-ImportOverview/Page2.html

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http://www.bizbangladesh.com/export_policy_bangladesh.php

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http://www.thedailystar.net/newDesign/news-details.php?nid=107142

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http://www.thedailystar.net/newDesign/news-details.php?nid=106877

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http://www.thefinancialexpress-bd.com/2009/09/20/79496.html

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http://209.85.135.132/search?q=cache:EeHjiDYq_hAJ:www.bizbangladesh.com/a2zimporters-list.php+what+products+Bangladesh+imports%3F&cd=1&hl=en&ct=clnk

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http://www.bizbangladesh.com/a2z-importers-list.php?page=2

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http://www.bizbangladesh.com/a2z-importers-list.php?page=3

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