Investment In Bangladesh
Export Policy Bangladesh
Bangladesh is an export-oriented developing country and its export policy, which was published in 2015 will remain in force till June 30, 2018.
The export policy shall be applicable in all places in Bangladesh except the Export Processing Zones, Bangladesh Economic Zones and private Export Processing Zones. Bangladesh pursuing export-oriented industrialization with its key export sectors including textiles, shipbuilding, fish and seafood, jute and leather goods etc. According to the IMF, Bangladesh’s economy is the second fastest growing major economy of 2016, with a rate of 7.1% that has been largely motivated by its exports of RMG products. So it is really positive to have an export policy that could help promote export of the country.
The government prioritize 12 sectors as the ‘most potential’ while 14 other sectors as ‘special development’.
The 12 highest priority sectors in the new export policy are high value added RMG accessories, software and IT-enabled services and ICT products, pharmaceutical products, shipbuilding, shoe and leather products, jute and jute-based products, plastic products, agro products and agro-processed products, furniture, home textile and terry towel, home furnishing and luggage.
The 14 special development sectors are multifarious jute-based products, electronic and electric products, ceramic products, light engineering, value added frozen fish, printing and packaging, crude diamond and jewelry, paper and paper products, rubber, silk products, handicraft and cottage products, lungi and tent industry products and coconut coir.
The 17 export prohibited products that have been identified in the new export policy are edible oil, wheat, onion, garlic, all sorts of pulses except processed one, general rice except the fragrant rice, jute seed, arms and ammunition-related products etc.
Objectives of The Export Policy of Bangladesh
According to the Ministry of Commerce, this export policy will remain valid until the new export policy is enforced and any tax-and-tariff-related decision announced in the National Budget and by the National Board of Revenue shall prevail over the export policy. Bangladesh export policy set some objectives to achieve like-
- To update and liberalize the trade regime keeping consistence with the global perspectives and needs, and the requirements of World Trade Organization and sub-regional connectivity of the four countries (Bangladesh-India-Nepal-Bhutan).
- To take target oriented steps to raise export earnings to US$ 60 billion by 2021.
- To increase export, expand markets and diversify products, and improve balance of trade rationally with different countries.
- To increase export of all types of products including plant & plant produces and non-traditional products, as well as to establish a compliant supply chain through contract farming.
- Arrange export of quality products at competitive price, take coordinated effort to upgrade the testing facilities to global standard, improve quality of products, encourage the use of the state-of-the-art, appropriate and environment- friendly technology, produce high value added exportable products and improve designs of products.
- To make export trade unhindered by ensuring compliance in the export oriented industry, and consolidate the position of Bangladesh in the competitive global trade.
- To make infrastructural facilities including electricity, water and gas easily obtainable, enhance capacity of the ports and develop communication system connecting the ports in order to facilitate increasing the export.
- To do branding of Bangladeshi products.
- To establish more business-friendly banking system under the auspices of Bangladesh Bank and encourage factoring services for export trade financing.
- To encourage FDl in the export oriented industries for escalating export.
- To search for new markets, adopt new strategies, collect and analyze information relating to international market in order to expand market of export products.
Export Policy - Implementation strategy
To attain the objective the export policy included some implementation strategy. Some strategies are given below-
- Increasing the institutional capacity and efficiency of the Export Promotion Bureau (EPB), providing assistance in capacity building of the Customs Authorities, Sea and Land Port Authorities, Department of Fisheries, Department of Agricultural Extension, BSTl, Tea Board and different trade bodies, and initiating coordinated activities.
- Involving Tariff commission in research activities.
- Modernizing and updating Bangladesh Foreign Missions abroad by strengthening economic diplomacy.
- Extending support to the export facilitating agencies for enhancing work-efficiency and ensuring transparency and accountability by introducing automation arid e-Governance.
- Disseminating updated information to the exporters on export markets and technology to facilitate diversification of exports.
- Giving importance to workers’ right including workplace safety.
- Providing different financial incentives to exporters including export credit at comparatively lower interest rate.
- Taking all necessary initiatives for getting duty-free market access to developed and developing countries, including the United States.
- Taking special initiatives to increase export of products and services in South Asia and other countries of Asia including Middleueast and Africa, Brazil, Mexico, Chile, South Africa, CIS countries including Russia, SAARC countries, SADC (South African Developing Countries).
- Regular reviewing of the country’s export situation at least once annually and providing necessary directions by the “National Committee on Export”.
This is a comprehensive export policy, which included total seven chapters. In these seven chapters, the policy pointed out several issues like- General Provision for Export Chapter, Export Diversification, General Export Facilities, Product- Specific Export Facilities, Export of Services and Various Measures for the Promotion of Export.
