Summary on Export from Bangladesh
Introduction
1.1 The word export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an “exporter” who is based in the country of export whereas the overseas based is referred to as an “importer” (foreign buyer). In international trade “exports” refers
to selling goods and services produced in home country to other foreign markets.
1.2 Bangladesh exports about 168 different products and services to almost 186 countries. The main exportable are Readymade Garments, Knitwear, Home Textile, Frozen Food, Leather & Leather goods, Jute and goods which contribute near about 89% of our total export. On the other hand the main export destination of Bangladesh are USA, Canada, EU Countries including U.K, Germany, France, Italy, Sweeten etc contributing almost 93% of total export. The export statistics reveals that Bangladesh is proceeding with positive export growth since 1974-75 .
2. Procedure of Export
2.1 A company or individual businessmen with trade license is capable of doing export business. But before that he/the company has to obtain export registration certificate (ERC) from the office of Chief Controller of Import and Export (CCI&E), 111-113 Motijheel Commercial Area, Dhaka. Generally Trade License, Bank Balance Certificate,
Membership from respective trade associations are required for obtaining ERC.
2.2 For starting a business in Bangladesh, it starts with registering the company name at the Office of the Registrar of Joint Stock Companies & Firms. The office is located at 24-25 Dilkusha, Commercial Area, Dhaka. This Office accords registration of Companies, Associations and Partnership Firms under the Companies Act, other related acts, rules, orders and ensures lawful administration of them.
2.3 The new entities should also obtain trade license from the city corporation where it is located. Depending on the type of the business it may also have to obtain license or certificate from BSTI, BRTA, etc.
– For some products the exporters have obtain quality assurance certificate from BSTI/ Department of Fisheries (DOF)/ Respective Trade Associations etc.
2.4 The exporter can export with or without Letter of Credit (LC). The Contract/ Agreement with foreign buyer or CAD or Advance TT methods etc. are also allowed for export. The exporters then submit EXP form to bank and prepare bill of export. With all these documents exporters then approach at the customs authority of the port through which they want to ship his exportable. After examining all the papers the customs authority allows them to export and after boarding the products the authority gives them a bill of lading. After shipment the customs authority assures them stamping a seal in the back of bill of lading and provide Export General Manifest (EGM).
3. Export Law, Rules and Policies
The Export and Import Control Act 1950 (Annexure-1) provide the
Government power to administer the import and export of Bangladesh
under which a three yearly Export Policy is published. The Export
Policy (Export Policy 2009-12, Annexure-2) generally guide the over
all export of Bangladesh and help facilitate the exporters. The
salient features of the Export Policy 2009-12 are as follows:
3.1 Products which cannot be exported and which can be freely exportable
3.1.1 Export Prohibited Products: Some Products cannot be exported.
The list of such prohibited products can be found in Annex -1 of the
Export Policy 2009-12.
3.1.2 Products under Conditional Export: Products which are exportable
under some conditions can be exported only after fulfilling those
conditions. Such products have been listed in Annex-2 of Export Policy
2009-12.
3..1.3 Exportable Products: All other products except the products
enlisted in Annex-1 and Annex-2 of the Export Policy 2009-12 i.e.
export prohibited products and the products under conditional export
shall be freely exportable.
3.1.4 Export of Samples which don’t have commercial values: Samples of
exportable can be exported freely but with some conditions outlined in
para 2.2.1.2 of Export Policy 2009-2012.
3.2 Entre-pôt and Re-export Trade
Entre-pôt trade and re-export shall have to be conducted under the
procedures stipulated in the Public Notice No. 42 (2003-2006)/import
dated June 28, 2005 (14 Ashar 1412 Bangla) (Annexure-3) issued by the
Office of the Chief Controller of Import and Export.
3.2.1 Entre-pôt trade means the export of an imported product at a
price at least 5% higher than the import price. No change whatsoever
in the quality, quantity, shape or any other aspect is necessary in
this respect. Products under entre-pôt trade shall not come out of the
port boundary. However, the products can be brought out of the port
boundary under special authorization.
3.2.2 “Re-export” means the export of an imported product within a
specific period of time with a value addition of at least 10% to the
imported price by changing the quality or shape or both of the
products by means of local reprocessing.
3.3 Export facilities and incentives
The government formulates the Export Policy principally with a view to
facilitate the exporters so as to develop and promote export of
Bangladesh. Chapter 3-7 of the Export Policy detail the techniques of
export development and of providing facilities to the exporters. The
policy details the lists of export facilities. Chapter-1 of the Export
Policy 2009-12 introduces the title of the policy, its scope and
strategy, Chapter-2 describes the general rules of export, Chapter-3
explain export diversification mechanism, Chapter-4 lists the general
facilities of export, Chapter-5 describes about sector based facility,
Chapter-6 presents about service export and Chapter-7 highlights some
special facilities and incentives.
3.3.1 Cash incentives: As listed in Annexure-4, for 17 exportable, the
government is providing 5-20% cash incentives against FOB price of
exported items. The exporter can directly claim for cash incentive in
his merchant bank.
3.3.2 Duty Drawback: Duties which are paid at customs authority is
refundable in case of re-export business or imported materials which
after making finished products will be exported.
3.3.3 Bonded Facilities: For bonded ware house with a view to 100%
export materials can be imported without any duties.
3.3.4 Assistance in searching for foreign market: For exploring
foreign market Export Promotion bureau (EPB) organize/help the
exporters participate about 30-35 international trade fair every year.
EPB generally bear the costs of stalls including other incidental
costs. Normally the exporters will have to bear only traveling and
their accommodation cost. Besides, EPB and Ministry of Commerce often
organize Marketing Mission abroad for searching new export market. The
Mission comprises representatives from business leaders and exporters.
3.3.5 Export Loan at lower rate of interest: At only 7% rate of
interest export loans are being provided. Besides, there is a fund
named Export Promotion Fund (EPF) in Export Promotion Bureau (EPB)
which provide export loan for ICT and handicrafts exportable at only
4.5% rate of interest without any co-lateral. There is an Export
Development Fund (EDF) in Bangladesh Bank to provide export loans up
to USD 400 million(Annexure-5).
3.3.6 Awarding CIP status and National Export Trophy: Every year CIP
status (Annexure-6) and National Export Trophy (Annexure-7) are
awarded to the best exporters of different sectors in recognition of
producing new products, diversifying of products, enhancing exports,
etc.
4. Export Preferences to (trade relations with) Foreign Countries
Bangladesh maintains excellent trade relations with foreign countries.
Bangladesh became a member of World Trade Organization (WTO) from its
inception. Bangladesh is also the member of South Asian Free Trade
Area (SAFTA), Asia Pacific Trade Agreement (APTA), BIMSTEC and,
Organization of Islamic Conference (OIC). Through those organizations
and some times bilaterally Bangladesh enjoy preferential treatment on
export trade. Of all those preferential treatments the most important
one is Generalized System of Preference (GSP). In this system as an
LDC, we get some preferential advantages including duty free or
concession and quota free access. We are getting GSP in 37 Countries
including 27 EU countries and 10 others like USA, Canada, Japan,
Norway, Switzerland etc.
ELEMENTS OF EXPORT CONTRACT OR SALES CONTRACTS
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