MKT417.

Export & Import Policy of Bangladesh

Course Instructor: SyA
Prepared by: K. M. Iftezar Sayeed 073 214 303

11 October 2011

North South University

Export Policy:
The aim of the he Export Policy 2009-12 recognized the need for expanding export, increasing the productivity of export-oriented industries and facilitating the overall development of the export sector through capacity building of local export-oriented industries. Bangladesh Exports: Commodities Garments

Frozen fish and seafood Jute and jute goods Leather Bangladesh Trade: Export Partners United States: 24% Germany: 15.3% United Kingdom: 10% France: 7.4% The Netherlands: 5.5% Italy: 4.5% Spain: 4.2%

Five Business Promotion Councils are already in place under public-private partnership to enhance the capacity and awareness of the exporters and mitigate the supply constrains paving the way for enhanced uninterrupted supply of export products. The scope of these councils will be gradually expanded. Export statistics of the last few years reveal that export earnings have witnessed growths of 15.69%, 15.87% and 10.23% during export years 2006-07, 2007-08 and 2008-09 respectively. The highlights of the export policy are primarily to support the growth of the following industries: 1. Agro-products and agro-processed products; 2. Light engineering products (including auto-parts and bicycles); 3. Footwear and leather products; 4. Pharmaceutical products;

5. 6. 7. 8.

Software and ICT products; Home textile; The Sea-bound Ship Building Industries; and Toiletries Products.

Besides these industries few other industries have been included in the Special Development sector, They include: b) crushed and finished leather production; c) frozen fish production and processing; d) handicrafts; e) electric and electronic products; f) fresh flower and foliage; g) jute and jute products; h) hand-woven textiles from hilly areas (pahari taat bostro); i) uncut diamond; j) producing herbal plants, medicine and medicinal products; k) ceramic products and melamine; l) plastic products; and m) furniture industries. The government promised to make export documentation, financing and servicing much easier for these industries mentioned above. The Export Policy 2009-12 has been formulated by representatives from the main industries/trade associations, chambers, research organizations, respective Ministries, Divisions and organizations so to ensure the sustainability of the export growth during the policy period. It is expected that this Export Policy will play the pioneering role in employment generation and poverty alleviation through burgeoning growth of our export. The Asia-Pacific Trade and Investment Report (APTIR) said that it expects Bangladeshs export to grow 15% annually, one of the reasons being that India recently allowed duty-free and quotafree exports of 46 garment items will also boost Bangladesh's exports there.

Import Policy Bangladesh's imports stood at nearly $32 billion in fiscal 2010-11, up 35 percent from last year. Imports grew in all major sectors from consumer items to intermediate goods, industrial raw materials, capital machinery and petroleum products. Trade gap has widened to nearly $9 billion because of the much larger import base, creating a pressure on the declining balance of payments that is now more than $500 million negative. industrial raw materials, capital machinery and machinery for miscellaneous industries accounted for more than 54 percent of the country's imports for fiscal 2010-11. Import of intermediate goods was nearly $2 billion or 7 percent of the total imports. Import of petroleum and petroleum products, which is growing rapidly on additional demand to run rental power plants, constituted more than 10 percent of the total import values. Import of consumer goods was not far behind -- about $3.5 billion or 12 percent of the total imports.

Major imports of Bangladesh:

Machinery and equipment Chemicals Iron and steel Textiles Foodstuffs Petroleum products Cement

Bangladesh Imports: Partners China: 15.8%

India: 15.7% Kuwait: 8.1% Singapore: 7.6% Japan: 4.4%

The government has update the registration and license renewal fees of importing companies which looks like this:
Category First Second Third Fourth Fifth Sixth Value Ceiling of annual import Tk. 1, 00,000.00 Tk. 5,00,000.00 Tk. 15,00,000.00 Tk. 50,00,000.00 Tk. 1,00,00,000.00 Above Tk.1,00,00,000.00 Initial Registration fees Tk. 1,800.00 Tk. 3,000.00 Tk. 4,800.00 Tk.9,500.00 Tk. 17,500.00 Tk. 23,000.00 Annual renewal fees Tk. 1,700.00 Tk. 2,300.00 Tk. 3,500.00 Tk. 6,700.00 Tk. 11,000.00 Tk. 17,000.00

But as experts predict, Bangladesh will face constraints as it imports a major portion of its food from India and other countries and as global agricultural prices are increasing. The government is also deciding on cutting its subsidies further on oil imports thereby triggering the chance of a massive inflation in the country.

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.

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.