International Trade and ExportImport (Bangladesh Perspective) -Class Presentation

7/31/2019 International Trade and ExportImport (Bangladesh Perspective) -Class Presentation

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EXPORT POLICYEXPORT PROCEDURE & FORMALITIESPROSPECT & POSSIBILITIES TO BOOST UP EXPORT MARKET

(BANGLADESH PERSPECTIVE)

By

MOHAMMAD ABIDUR RAHMANID# 112-043-0-52

MUHAMMAD ASHRAF-UR RAHMAN KHALEDID# 112-056-0-52

KAZI SHARZIL-BIN-MAHBUB BONYID# 112-035-0-52

MD. ILIAS RAHMANID# 112-036-0-52

MD. JAMAL UDDINID# 112-037-0-52


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Submitted to

MD. ABU ZAFAR SHAMSUDDINInstructor, International Trade and Export Import


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EXPORT Export means outflow of Goods

and/or Services produced in

one Country, which purchase by

Government, Firms and

Individuals of other Countries.


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EXPORT POLICY

OFBANGLADESH


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Export Policy: Introduction

Acceleration of production and expansion of trade

result in growth of national wealth.

Aim to both at product and market diversification

Our export trade must keep pace with the projected

GDP growth @ 7% and make due contribution

through increased export earning. Aim at marketing quality products at competitive

price at the correct time.

To maximizing export growth and narrowing down the

gap between import payment and export earning.


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Export Policy: Objectives

To achieve optimum national growth through increase of export in regional andinternational 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 productdiversification 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.


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General Export Facilities Use of Foreign Exchange Earned from Export: Exporters can retain a certain amount of

their export earning in their foreign currency account under retention quota, the amount of

the retention to be fixed by Bangladesh Bank from time to time. Exporters can use this

foreign currency for real business purposes such as business-related foreign trips,

participation in export fairs and seminars abroad, importing raw materials, equipment or

spare parts, and setting up offices abroad.

Export Promotion Fund - There shall be an Export Promotion Fund (EPF) with EPB to

Provide capital at lower interest rates and with soft terms for production of goods.

Other Financial Facilities: The possibility of providing tax exemption and subsidy where

necessary.

Funding for Export: For import of raw materials and related inputs under

the Export Promotion Fund (EPF) and possibility to provide facilities for back-to-back Letter

of Credit for other export items besides readymade garments.

Export Credit: Commercial banks will consider, on a priority basis, providing the exporters

credit of 90 percent of the amount mentioned in the irrevocable letter of credit or in the

confirmed contract.

Continued..


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General Export Facilities

Exemption from Insurance Premium: will be made available for fire and

shipping insurance premiums at exempted rates for export-oriented industries

in the non-traditional sectors.

Incentives for Export of Non-traditional Industrial Products: 1 Incentives will be

given to the export of non-traditional and new industrial products having at

least 40% value addition during the f irst two years ,and at least 50% value

addition after the first 2 years.

Bond Facilities for Export Oriented Industries: The National Board of Revenue

will consider the possibility of providing bonded warehouse facilities to import-

dependent export industries.

Initiating brand names to fetch higher price will be encouraged.

Providing alternative incentives, instead of duty bond or duty draw-back to

export-oriented local textiles and readymade garment industries.

Easing VAT return on Export-facilitating Services

Continued..


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Reduced Air fare for the export of specially privileged products includingFruits and Vegetables: Biman Bangladesh Airlines will consider measures forreduced air fare for the export of fruits and vegetables, ornamental plants etc.

Withdrawal of Royalty for the Expansion of Cargo Facilities of Foreign Airlinesfor Export Purposes: No royalty is applied for transporting vegetables.

Research and Development

Issue of Multiple Entry Visa: Investors and importers of Bangladeshi productswill be issued multiple entry visas. For this purpose, Ministry of Commercemay send recommendations to the commercial officials of Bangladesh

Missions abroad and to the Ministry of Foreign Affairs. Promotion: Arrangement of International Trade Fairs and Single Country

Exhibitions, and Participation in other Market Promotion Activities Abroad.

Training: Strengthening Export Related Training and Foreign Trade RelatedTraining

Setting up of Permanent Fair Complex and World Trade Center.

Continued..


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Both regular and product-specific trade fairs of international standard will be

organized in Bangladesh in order to invite foreign buyers, familiarize export

products among them and thus connect buyers and sellers.

Shipment of Products: Initiatives will be taken to simplify shipment/

transportation of products.

Encouragement of Increased Use of Local Raw Materials: Bonded warehouse

facilities will be gradually reduced in order to encourage the increased use of

local raw materials by composite knit/ hosiery textiles and clothing

manufacturing units.

Establishment of Management Information System (MIS): An MIS will beinstalled in the Ministry of Commerce.

Facilities for Deemed Exports: Deemed exporters, like direct exporters, will

enjoy all export facilities including duty-draw-back. Local raw materials used for

producing exports and local raw materials used in industries/ projects funded by

foreign investments will be considered as "deemed export; and Initiatives will

be taken to consider direct sales in foreign currency without tender as deemed

export, and augment their facilities.

Miscellaneous matters

Continued..


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Product-Specific Export Facilities

Readymade Garments Industry:

Steps will be taken to reduce the "lead time for export of readymade garments by

means of improvement of port management, simplification of procedures for

releasing goods, resolving electricity problems etc.

Initiatives will be taken to set up garments villages at various places.

Assistance will be provided to improve the working environment in factories.

Initiatives will be taken to provide trainings of different tenures to the workers and

staff of the garments industries to increase their productivity. Emphasis will be given on diversification of products by improving skills.

Steps will be taken to send marketing missions abroad and organize and participate

in international trade fairs at home and abroad;

Establishment of backward and forward linkage industries will be encouraged;

Subject to the submission of bank guarantee of equivalent amount of duty for

imported raw materials, the enterprises without bond license will be allowed to

produce exportable hand-woven sweaters from natural and artificial wool outside

the bond areas.


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Frozen Fish Industry:

Cultivation of shrimp for increasing the production of shrimp maintaining ecological

balance will be encouraged;

Venture capital will be provided for producing, processing and exporting value added

products in the frozen food sector;

Necessary steps will be taken to establish Accredited Testing Laboratory of high

quality under public and private or joint initiatives.

Initiatives will be taken for research and remedial measures to improve the quality of

shrimps and protect them from diseases.

Import of indispensable machinery for quality control will be encouraged so as to

strengthen the efforts for controlling the quality of frozen food.

Steps will be taken to send marketing missions abroad, organize single country frozen

food fairs, arrange and participate in international trade fairs at home and abroad;

All possible steps will be taken to implement the Vision-2015 formulated by

Bangladesh Frozen Food and Exporters Association (BFFEA);

Etc.


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Tea Industry: Initiatives will be taken to bring fallow land within the tea states under cultivation;

Steps will be taken to rehabilitate sick tea gardens;

Measures will be taken to provide gas connection in the tea estates to bring about price

competitiveness;

All co-operation will be extended to exportable the completion of leasing procedures for tea

estates awaiting completion of such procedures;

Banks will be encouraged to provide loans with soft terms for modernization of tea factories so

as to improve the quality of tea and increase its production to help its survival in theinternational market;

For alleviating poverty, credit as well as other facilities will be provided to tea producers of small

farms;

Imported packaging materials will be allowed duty draw-back/bond facilities on FOB price to

encourage the export of packet tea.

Steps will be taken to send marketing missions abroad, and participate in international trade

fairs at home and abroad.

The possibility of popularizing brand name for marketing Bangladeshi tea will be reviewed.


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Jute Industry:

An integrated plan of action will be taken for development and

diversification of jute products to enhance the productivity of the jute

industry by strengthening research activities and undertaking certain

activities such as BMRE for some jute factories.

Obstacles impeding export of jute and jute products to different countries

will be identified and necessary remedial measures will be taken to address

those. Initiatives will be taken to popularize, through Bangladeshi Missions abroad,

the use of jute by emphasizing the environment-friendly attributes of jute;

Co-operation will be extend to entrepreneurs for participation in

international fairs and exhibitions to promote markets;

Government support will be provided in establishing design development

centers

to bring about diversity to jute products.


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Leather Industry: Sick leather industries will be allowed credit rescheduling facilities through policy support;

Initiatives will be taken to increase export through enhancing competitiveness of leather and leather

products in the internationa l market by taking measures for improving productivity and development of

products.;

Local production of import-substitute chemicals for leather processing, components for footwear and

accessories for leather industry will be encouraged. Foreign or joint venture investment in this regard will be

welcomed;

To reduce losses at collection, preservation and processing levels, awareness building initiatives and publicity

will be strengthened regarding skinning of animals, preservation, transportation of hides etc. In this case,

arrangements for separate training courses and workshops for butchers and leather traders will continue.

Initiatives will be taken through the Leather Sector Business Promotion Council involving the industrial

entrepreneurs and exporters for the overall development of this sector;

Foreign and joint venture investments will be encouraged in leather products and footwear industry;

Existing bond facilities will be further simplified and updated for 100% export oriented leather industries;

Existing duty and tax draw-back procedures will be simplified;

Assistance will be provided to the entrepreneurs for participation in international fairs and exhibitions to

promote markets;

Initiatives will be taken to establish slaughter houses in the major cities of the country with the help of

municipalities;


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EXPORT Procedures

andformalities


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Export Procedure & Formalities Registration of Exporter: The intending Exporter has to Register with CCI&E and

obtain Export Registration certificate [ERC]. The ERC number is to be used in all

places relating to Exports.

Making contract and issuing PI: As per the contract with Buyer PI is issued

with all the details of Goods/Services and the terms & conditions of the deal.

Receiving Letter of Credit/Contract: After issuance of PI, the Exporters receive

Letter of Credit/Contract.

Procurement and Shipment of Goods: After receipt of LC/Contract the Exporter

has to procure or Manufacture the contracted Goods and Ship the same. Preparation and Procurement of Export Documents: After making shipment the

Exporter has to prepare Documents i.e. Bill of Exchange, Commercial Invoice,

Beneficiarys Certificates and Procure some Documents i.e. Transport

Documents, Certificate of Origin, Insurance Policy/Certificate, Inspection

Certificate and other documents as required in the LC/Contract.

Continued.


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Export Procedure & Formalities

Submission of Documents to the Bank for Negotiation:

After preparation and collection of all documents as per

LC/Contract terms the Exporter has to submit the

Documents to the Bank for Negotiation/Payment.

Negotiation of Export Documents: As per UCP 600,

Negotiation means the purchase by the NominatedBankof drafts and/or documents under a complying

presentation, by advancing or agreeing to advance

funds to the beneficiary on or before the banking day

on which reimbursement is due to the nominated bank.


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PROSPECT AND POSSIBILITIES

TO BOOSTEXPORT MARKET


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Bangladesh Exports: Commodities

Major export commodities of Bangladesh:

Garments (totaling $14.3 billion in FY11)

Frozen fish and seafood

Tea

Jute and jute goods

Leather and Leather goods


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Bangladesh Trade: Export Partners

The following were Bangladeshs export partners:

United States: 24%

Germany: 15.3%

United Kingdom: 10%

France: 7.4% The Netherlands: 5.5%

Italy: 4.5%

Spain: 4.2%


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Bangladesh Trade: Prospects The government of Bangladesh undertook significant steps during

the 1980s. Consequently there was a tremendous increase in the

export of ready-made-garments and knitwear, which garnered

maximum foreign exchange for the country.

Cheap labor and low conversion costs are the major factors behind

the growth of Bangladeshs garment industry. Over 3 million

Bangladeshis (90% women) are employed in this industry.

Bangladesh shares excellent trade relations with the US, showingnoteworthy trade surplus with the latter. The country is an active

partner of the Asia Pacific Trade Agreement and the World Trade

Organization.

A number of export processing zones have been set up by the

government to enhance economic growth by attracting foreign

investment.


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Bangladesh Trade: Growth

It is perhaps of some interest to note that Bangladesh's export

sector has demonstrated a good recovery during the first

quarter of FY2011 (July-September, 2010).

In terms of growth rate, export earning performance of some of

the major sectors including woven-RMG (20.5%) and knit-RMG

(31.2%), frozen foods (54.6%) and leather (5.4%) was

significantly better compared to the corresponding period ofFY2010.

The growth in export was mainly achieved, thanks to increase in

volumes rather than that of price. The contribution of price

index to the incremental export over the first quarter of FY2011

was 12.9%, whilst that of volume index was 87.1%.


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Strong growth led by textiles and apparel


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Engine of growth: apparel and clothing


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Market: US and EU


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Concluding Remarks

The Govt. needs to recognize the challenges under the new global

order and will have to equip itself adequately to meet these

challenges.

The Govt. will need to design a dynamic export strategy and put in

place the capacity to realize such a strategy rather than just talk

about it.

The Govt. will need both strong political commitment as well as good

governance, and will also be required to pursue a proactive external

policy underwritten by coalition-building and skillful negotiating

strategies.

Priority should be given to preparing a joint action agenda with other

LDCs which need to be pursued in any future round of trade

negotiations.


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THANK YOU

International Trade and ExportImport (Bangladesh Perspective) -Class Presentation

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