Assignment on

Trade Barriers Faces by Bangladesh in Internation Trade

Submit To

Md. Rashadur Rahman

Lecturer of Business Administration Program SMUCT
Prepared By
Abdullah Al Mamun ID: 1 !"# 1" $% Batch: 1&th

Shanto-Mariam University Of Creative Technology

Trade Barriers in Bangladesh'

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1. Introduction Acceleration of (roduction and e)(ansion of trade result in gro*th of national *ealth+ Increased (roduction in e)(ort sectors ma, become the (rime mo-er in the de-elo(ment c,cle in a densel, (o(ulate of Bangladesh li.e our as this *ill generate em(lo,ment o((ortunities *hich in turn *ill generate sa-ings and in-estment on conse/uent flo* of ca(ital+ The (rime national ob0ecti-e of (o-ert, alle-iation *ill thus be materialised+ As a first ste( to*ards reaching this goal *e need to loo. at the countr,1s (roduction infrastructure+ 2ur e)(ort trade must .ee( (ace *ith the (ro0ected 3DP gro*th 4 &5 and ma.e due contribution through increased e)(ort earning+ In this e)ercise it is im(erati-e to identif, ne* thrust sectors6 increased e)(ort of higher -alue added items6 di-ersif, (roduct *ise 6 ensure (roducts /ualit,6 im(ro-e (ac.aging6 attain efficient (roducti-it,+ 7e should aim at mar.eting /ualit, (roducts at com(etiti-e (rice at the correct time+

!. O"#ectives The (rinci(al ob0ecti-es are: !+1+ To achie-e o(timum national gro*th through increase of e)(ort in regional and international mar.et8 !+!+ To narro* do*n the ga( bet*een the countr,1s e)(ort earning and im(ort (a,ment through achie-ement of the e)(ort targets8 !+9+To underta.e timel, ste(s for (roduction of e)(ortable goods at a com(etiti-e (rice *ith a -ie* to e)(orting and strengthening e)isting e)(ort mar.ets and ma.ing dent in ne* mar.ets8 !+#+ To ta.e the highest ad-antage of entering into the (ost Urugua, liberali:ed and globali:ed international mar.et8 !+%+ To ma.e our e)(ortable items more attracti-e to the mar.et through (roduct di-ersification and /ualit, im(ro-ement8 !+;+ To establish bac.*ard lin.age industries and ser-ices *ith a -ie* to using more indigenous ra* materials6 e)(and the (roduct base and identif, and e)(ort higher -alue added (roducts 8 !+&+ To sim(lif, e)(ort (rocedures and to rationali:e and solidif, e)(ort incenti-es8 !+$+ To de-elo( and e)(and infrastructure8 !+<+ To de-elo( trained human resources in the e)(ort sector8
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!+1 + To raise the /ualit, and grading of e)(ort (roducts to internationall, recogni:ed le-els+

Trade $arriers Bangladesh has made significant (rogress in liberali:ing its trade regime+ Customs dut, rates ha-e been com(ressed to a range of + "# + 5+ The !+%5 im(ort (ermit fee is the onl, other (rotecti-e instrument for most im(orts =a trade neutral 1%5 -alue"added ta) is also a((lied>+ The im(ort (ermit s,stem is no* automatic+ The cumbersome (rocedure for o(ening letters of credit has been sim(lified+ Customs duties are le-ied on all im(orts e)ce(t ra* cotton6 te)tile machiner,6 certain machiner, used in irrigation and agriculture6 animal feeds used b, the (oultr, and dair, industries6 and certain drugs and medical e/ui(ment+ Dut, rates are determined along the follo*ing lines: "fe* items6 mostl, in(uts "basic ra* materials "intermediate (roducts "finished (roducts + "1%5 1%"!!+%5 !!+%"9 5 9 "# 5

A !+%5 infrastructure de-elo(ment surcharge is le-ied on im(orts+ A su((lementar, dut, is le-ied on lu)ur, items li.e cars *ith engine ca(acit, greater than 16 cc and ?undesirable? items li.e cigarettes+ @)cise duties ha-e been abolished on all items e)ce(t on manuall, (re(ared cigarettes6 ban. accounts6 and te)tiles+ Certain (roducts are e)em(t from the -alue" added ta)+ Aead,"made garments manufacturers *ho are 1 5 e)(ort"oriented can im(ort dut," free through bonded *arehouses+ 2ther e)(ort"oriented industries and indirect e)(orters can claim a dut,"dra*bac. at stated rates+ Customs %aluation The customs -aluation of im(orted goods for the (ur(ose of assessment and reali:ation of customs dut, is based on the normal -alue conce(t+ Ad -alorem duties are generall, assessed on the basis of the CIB =cost6 insurance6 freight and other charges> cost of goods+ Duties are collected in Bangladesh currenc, b, Customs authorities under the Bangladesh Customs and @)cise De(artments of the Ministr, of Binance1s Cational Board of Ae-enue+ Bollo*s is an e)am(le of ho* duties are charged on an im(orted item Im&ort 'icenses
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Im(ort licenses are not re/uired for an, im(orted items e)ce(tthose on the restricted list+ Do*e-er6 im(orters need to use Letter of Credit Authori:ation =LCA> forms to im(ort goods+ ()&ort Controls The follo*ing items are banned for e)(ort: "all im(orted goods in their original or un(rocessed form "(etroleum and (etroleum (roducts e)ce(t na(htha6 furnace oiland bitumen ""oil seeds and edible oils e)ce(t .a(o. seeds ""0ute seeds and sunn"hem( seeds "*heat ""gur and .handseri sugar ""animals6 animal s.ins and *ildlife co-ered b, the Bangladesh 7ildlife Preser-ation 2rder6 1<&9 "arms and ammunition6 e)(losi-es6 and ingredients thereof ""fissionable materials "ra* and *et blue leather "rare items of archaeological interest ""human s.eletons ""(ulses ""eggs and (oultr, ""(ra*ns and shrim(6 e)ce(t fro:en and (rocessed ""feature films not certified b, the Bangladesh Bilm Censorshi( Board as fit for e)(ort ""onions ""rice bran =e)ce(t de"oiled rice bran> ""shrim( of count &1E< and si:es belo* for sea *ater and ;1E& and si:es belo* for fresh *ater6 e)cluding t*o -arieties =Darina and Cha.a>
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""bamboo and cane in *hole form and *ood log ""frogs of all s(ecies =li-e or dead> and frog legs ""human blood ""chemical *ea(ons In addition6 the follo*ing items are restricted for e)(ort6 re/uiring Ministr, of Commerce (ermission on a case"b,"case basis: molasses6 de"oiled rice bran6 *heat bran and urea fertili:er+ Fualit, control licenses issued b, the Bangladesh Standards and Testing Institute are re/uired to e)(ort the follo*ing items: cane molasses6 shrim( and (ra*ns =e)ce(t fro:en de-eined or coo.ed>6 oil ca.e6 *et batteries and dr, batter, cells6 electric fans and other select electric a((liances6 biscuits6 and PGC electric cables+ An ins(ection certificate is re/uired for e)(orts of ra* 0ute+ All (lants and (lant materials for e)(ort must be ins(ected and certified that the, are free of insects or disease+ Im&ort*()&ort +ocumentation Unless other*ise s(ecified6 all im(orts transacted through a ban. re/uire a Letter of Credit Authori:ation =LCA> Borm+ 2btaining an LCA is not onerous6 and man, of the documents re/uired for submission b, im(orters can be .e(t on file *ith their ban.s+ At (resent6 there is no lac. of foreign currenc, for im(ort transactions+ Do*e-er6 as a safet, cushion against currenc, fluctuation6 ban.s (refer to source foreign currenc, for LECs o-er H % 6 from the central ban.+ T,(icall,6 1"! da,s is re/uired to obtain registration from the central ban.+ Unless other*ise s(ecified6 all im(orts must be made b, o(ening an irre-ocable letter of credit ,u"lic sector im&orters also need to &rovide the follo-ing documentation "attested (hotoco(, of allocation letter issued b, the allocating authorit, in fa-or of the concerned (ublic sector agenc, s(ecif,ing the source6 amount6 (ur(ose6 -alidit,6 and the terms and conditions8 ""attested (hotoco(, of sub"allocation letter6 if an,6 issued in fa-or of the im(orting agenc, or unit8 ""attested (hotoco(, of sanction letter from the administrati-e ministr, or authorit, *here a((licable8 and ""a declaration b, the authori:ed officer of the im(orting agenc, indicating the amount of utili:edEunutili:ed go-ernment funds and that im(orted ra* materials *ill not be sold+
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,rivate sector im&orters need to furnish the follo-ing additional documents: ""-alid membershi( certificate from the registered local chamber of commerce and industr, or an, trade association6 established on an all"Bangladesh basis6 re(resenting an, s(ecial trade or business8 ""(roof of (a,ment of rene*al fees for the Im(ort Aegistration Certificate =IAC> for the concerned fiscal ,ear8 ""co(, of a ?TIC Certificate? issued b, the ta) authorit,+ The TIC =Ta) Identification Co+> Certificate is a ne* re/uirement aimed at ensuring collection of income ta)6 GAT and other re-enues from im(orters+ ""a declaration6 in tri(licate6 that the im(orter has (aid income ta) or submitted an income ta) return for the (receding ,ear and cou&ons. ""im(orts under (a,"as",ou"earn scheme for a limited number of cars6 fishing -essels6 cargo or (assenger -essels6 and ne* machiner, on the basis of clearance from the Bangladesh Ban.8 ""im(ort of items b, (assengers coming from abroad in e)cess of the (ermissible limits as (er (ermitted allo*ance8 and "im(ort of free sam(les6 ad-ertising materials6 and gift items abo-e (rescribed ceilings+ ()&orts. @/ui(ment or machiner, im(orted on a tem(orar, basis is e)em(t from dut, if the im(orter obtains an im(ortEe)(ort (ermit+ 'a"eling/ Mar0ing Re1uirements Im(orted goods =including their containers> must not bear an, *ords or inscri(tions of a religious connotation6 the use or dis(osal of *hich ma, in0ure the religious feelings and beliefs of an, class of the citi:ens of Bangladesh+ In addition6 im(orted goods should not bear an, obscene (ictures6 *riting6 inscri(tion6 or -isible re(resentation+ Mil. food can be im(orted in cans and in bul.+ The container must indicate the ingredients in Bangla as *ell as the manufacturing and e)(iration dates =in Bangla or @nglish>+ A measuring s(oon must be su((lied in all containers of bab, food+ Standards Fualit, standards are set and monitored b, the Bangladesh Standards and Testing Institute+ Bangladesh also recogni:es and acce(ts goods bearing certification from standard institutions of
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other countries+ Standards for (harmaceuticals are controlled b, the De(artment of Drugs Administration under the Ministr, of Dealth and Bamil, 7elfare+ The Bangladesh Atomic @nerg, Commission tests all im(orted food items to ensure that the (rescribed standard for radioacti-it, is maintained+ S&ecial Im&ort ,rovisions Bangladesh has encouraged counter"trade for man, ,ears as a means to (romote e)(orts *hile conser-ing foreign e)change+ Barter trade in commodities used to carried out *ith countries in Central and @astern @uro(e6 Central Asia6 China6 and Corth Iorea6 but during BJ<; barter trade *as discontinued *ith Bulgaria6 China6 the C:ech Ae(ublic6 Dungar, and Corth Iorea+ Bangladesh also allo*s s(ecial trading arrangements through the Trading Cor(oration of Bangladesh+ Membershi( in Bree Trade Arrangements Bangladesh is a member of the South Asia Preferential Trade Agreement =SAPTA> under the umbrella of the South Asia

$i"liogra&hy ***+britishhighcommission+go-+u. or ***+u.inbangladesh+org ***+sit(ro+org+u.EtradeEinde)+html ***+sit(ro+org+u. htt(:EE***+i(o+go-+u.Eabroad+htm

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