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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 read-
made 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 pass books in which their import authorizations are
validated. The issuance of a pass book is a formality for items not on the controlled or
restricted lists. Pass 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
registered 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 users.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 users. 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.
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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 administered 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).
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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 terms 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.
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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 contact 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
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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:
o Product description
o Origin country
o Certifications as to safety, RFI, possibly radiation
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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 contact
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 signing 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 contact: UNESCO Headquarters: 1, rue Miollis, F-75732 Paris Cedex 15,
France; 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
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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 admissibility 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 contact).
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 contact, 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 2001 2002 2003 2004
0 - Food and live
animals $392,968,000 $336,578,000 $355,783,000 $431,318,000
1 - Beverages and
tobacco $3,900,000 $5,411,000 $3,615,000 $25,475,000
2 - Crude
materials, inedible,
except fuels
$66,559,000 $53,850,000 $56,848,000 $116,620,000
3 - Mineral fuels,
lubricants and
related materials
$10,312,000 $7,402,000 $26,721,000 $25,453,000
4 - Animal and
vegetable oils, fats
and waxes
$427,000 $246,000 $304,000 $1,966,000
5 - Chemicals and
related products,
n.e.s.
$73,114,000 $57,622,000 $80,839,000 $18,116,000
6 - Manufactured
goods classified
$741,068,000 $659,552,000 $669,995,000 $655,433,000
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Export-Import of Bangladesh
chiefly by material
7 - Machinery and
transport
equipment
$48,716,000 $58,661,000 $51,043,000 $21,383,000
8 - Miscellaneous
manufactured
articles
$4,339,019,00
0$4,036,516,000
$4,561,486,00
0$4,501,026,000
9 - Commodities
and transactions
not classified
elsewhere in the
SITC
$5,683,000 $3,055,000 $2,721,000 $119,000
Source: International Trade Center - UNCTAD / WTO
Export Situation in Bangladesh16 | P a g e
Export-Import of Bangladesh
Export Earnings
Export growth is one of the corner stones of development strategy of the present
government. In 1991 total export earning was US$ 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$4,191 million in 1993-94. Structure of import now reflects a significant pick up of
overall economic activities. Imports of intermediate goods, industrial raw materials and
capital and miscellaneous machinery recorded increases during 1993-94 fiscal year.
Industrial raw materials which constituted 29 percent of total imports in 1990-91
increase to over 38 percent in 1993-94.
Despite satisfactory performance of the export sector the balance of trade experienced
some fluctuations owing mainly to fluctuations in the import levels. However the trade
gap which had stood at US$ 1,800 million in 1990-91 has declined to US$ 1,650 million
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Export-Import of Bangladesh
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;
• Undertaking activities for increasing export of computer software, engineering
consultancy and services;
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Export-Import of Bangladesh
• 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
members.
Frozen food exporters
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Export-Import of Bangladesh
Bangladesh Frozen Foods Exporters Association (BFFEA) has targeted Tk 10,000 crier
from exports of frozen foods by 2013.Frozen food exporters, mostly the members 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
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.
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Export-Import of Bangladesh
The Bhaluka-based farm’s Managing Director Mushtaq Ahmed told The Daily Star that
they are at the final stage of signing deals with a few importers in France, Germany,
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.
RMG stands tall in US market
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Export-Import of Bangladesh
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. Admitting 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 signing
of a Free Trade Agreement. It has been revealed that with signing of this agreement
aggregate trade between these two countries has surpassed $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 members of Bangladesh import
and export community had met with Prime Minister.
Importance of Bangladesh Export in National Economy
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Export-Import of Bangladesh
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
Export from Bangladesh 1972-73 to 2006-2007
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Export-Import of Bangladesh
1992-93
2002-03
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Export-Import of Bangladesh
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
0 - Food and
live animals $392,968,000 $336,578,000 $355,783,000 $431,318,000
1 - Beverages
and tobacco $3,900,000 $5,411,000 $3,615,000 $25,475,000
2 - Crude
materials,
inedible,
except fuels
$66,559,000 $53,850,000 $56,848,000 $116,620,000
3 - Mineral
fuels,
lubricants and
related
materials
$10,312,000 $7,402,000 $26,721,000 $25,453,000
4 - Animal and
vegetable oils,
fats and waxes
$427,000 $246,000 $304,000 $1,966,000
5 - Chemicals
and related
products,
n.e.s.
$73,114,000 $57,622,000 $80,839,000 $18,116,000
6 - $741,068,000 $659,552,000 $669,995,000 $655,433,000
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Export-Import of Bangladesh
Manufactured
goods
classified
chiefly by
material
7 - Machinery
and transport
equipment
$48,716,000 $58,661,000 $51,043,000 $21,383,000
8 -
Miscellaneous
manufactured
articles
$4,339,019,000 $4,036,516,000 $4,561,486,000 $4,501,026,000
9 -
Commodities
and
transactions
not classified
elsewhere in
the SITC
$5,683,000 $3,055,000 $2,721,000 $119,000
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
Many traveler or tourist visit another country, then decide they will import or export
products to their home country. Please submit help for people that travel the planet to
accomplish this goal in the above country.
Import Export, pier import, import opportunity, furniture import, import supplier, Asian,
dvd, business, African, food, shoes, bulletin board, street racing, dockside, cds, global,
world, car magazine, European. Customs, car accessory, table, video, international,
bank.
Analysis of market potential and development of interventions for GTZ-
PROGRESS
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
are active. Historically, jute was the main foreign exchange earner and its contribution
30 | P a g e
Export-Import of Bangladesh
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 support 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:
The highest ever turnover of Rs. 9099 crores with annual growth of 46 per
cent
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Export-Import of Bangladesh
Net profit after tax of Rs. 51 crore – (annual growth- 102 percent)
Second highest export of Rs. 1891 crore
All time high import of Rs. 6679 crore – (annual growth of 79 percent)
Highest ever domestic business of Rs. 529 crore – (annual growth - 235
percent)
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 registering a growth of 14 percent. Precious metals group
grew nearly 7 times and General Trade group registered 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 registered 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
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
32 | P a g e
Export-Import of Bangladesh
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 accounted for 64 percent of the
total turnover. Excluding bullion, total turnover at Rs.2505 crore during April-
December’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
Corporation has been able to effect exports of wheat worth Rs.240 crore and rice worth
Rs.42 crore.
Imports
33 | P a g e
Export-Import of Bangladesh
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 account
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 account also
accounted 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
Export Import policy of BangladeshAcceleration of production and expansion of trade result in growth of national wealth.
Increased production in export sectors may become the prime mover in thedevelopment
34 | P a g e
Export-Import of Bangladesh
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 down the gap between import payment and export earning.
Objectives:
The principal objectives of this policy are :
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Export-Import of Bangladesh
To achieve optimum national growth through increase of export in regional and
international market;
To narrow down the gap between the country's export earning and import
payment through achievement of the export targets ;
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;
To take the highest advantage of entering into the post Uruguay liberalized and
globalized international market;
To make our exportable items more attractive to the market through product
diversification and quality improvement;
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 ;
To simplify export procedures and to rationalize and solidify export incentives;
To develop and expand infrastructure ;
To develop trained human resources in the export sector;
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;
Enhancing technological strength and productivity and facilitating reduce cost
and attain internationally accepted standard of quality of exportable products and
thereby consolidate their competitiveness ;
36 | P a g e
Export-Import of Bangladesh
Ensuring maximum use of local raw materials in the production of export goods
and encouraging establishment of backward linkage industries;
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;
Encouraging export of new category high value added readymade garments and
also encouraging the concerned trade associations for establishment of a
Fashion Institute ;
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;
For promotion of export of shrimp: Extension and modernization of
traditional/semi-intensive method of shrimp cultivation and ensuring quality as
per buyers requirements;
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;
For promotion of export of tea undertaking programmes for establishing brand
name and developing linkage with established blending and distributing agents;
For promotion of export of agro based products: undertaking programmes for
raising quality standard and expansion of market;
For the promotion of export of electrical and electronic goods ( including
computer software and data entry) : Building and ensuring conducive
infrastructure
For the promotion of export of engineering consultancy and other services and
sub-contracting involving, in a bigger way, Bangladesh missions abroad
obtaining contracts;
Organizing regularly international trade fairs and product-specific fairs with the
country;
37 | P a g e
Export-Import of Bangladesh
Making appropriate development and expansion of infrastructure conducive to
export;
Making arrangements for necessary technical and practical training for
development of skilled manpower in the export sector;
Ensuring maximum utilization of financial and other assistance extended by the
World Trade Organization to the Least Developed Countries;
Ensuring maintenance of ecological balance and pollution-free environment in
the production of exportable goods;
Extending technical and marketing assistance for development of new products
and for finding appropriate marketing strategies;
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.
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.
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.
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.
Different aspects of the Export Policy shall be reviewed annually.
Target
38 | P a g e
Export-Import of Bangladesh
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.
Thrust Sector:
39 | P a g e
Export-Import of Bangladesh
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
Conclusion40 | P a g e
Export-Import 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 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.
Reference
41 | P a g e
Export-Import of Bangladesh
http://www.epb.gov.bd
http://www.reportbd.com/articles/31/2/Bangladesh--Export-and-Import-Overview/
Page2.html
http://www.bizbangladesh.com/export_policy_bangladesh.php
http://www.thedailystar.net/newDesign/news-details.php?nid=107142
http://www.thedailystar.net/newDesign/news-details.php?nid=106877
http://www.thefinancialexpress-bd.com/2009/09/20/79496.html
http://209.85.135.132/search?q=cache:EeHjiDYq_hAJ:www.bizbangladesh.com/a2z-
importers-list.php+what+products+Bangladesh+imports%3F&cd=1&hl=en&ct=clnk
http://www.bizbangladesh.com/a2z-importers-list.php?page=2
http://www.bizbangladesh.com/a2z-importers-list.php?page=3
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