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 angladesh exports about !"# different products and services to almost !#" countries. The
main exportable are $eadymade %arments& 'nitwear& (ome Textile& )ro*en )ood& +eather ,
+eather goods& -ute and goods which contribute near about #./ of our total export. 0n the
other hand the main export destination of angladesh are 123& 4anada& 51 4ountries
including 1.'& %ermany& )rance& Italy& 2weeten etc contributing almost .6/ of total export.
The export statistics reveals that angladesh is proceeding with positive export growth since
!.7897: . 3nexxure9!7 presents the export trend from the year!.7897: to ;<!<9!! as well as
the export performance in -uly9-une& ;<!!.
2. Procedure of Export
2.1 3 company or individual businessmen with trade license is capable of doing export
business. ut before that he=the company has to obtain export registration certificate (5$4)
from the office of 4hief 4ontroller of Import and 5xport (44I,5)& !!!9!!6 >oti?heel
4ommercial 3rea& @haka. %enerally Trade +icense& ank alance 4ertificate& >embership
from respective trade associations are reAuired for obtaining 5$4.
2.2 )or starting a business in angladesh& it starts with registering the company name at the
0ffice of the $egistrar of -oint 2tock 4ompanies , )irms. The office is located at ;89;:
@ilkusha& 4ommercial 3rea& @haka. This 0ffice accords registration of 4ompanies&
3ssociations and Bartnership )irms under the 4ompanies 3ct& 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. @epending on the type of the business it may also have to obtain license or certificate
from 2TI& $T3& etc.
2.3 )or some products the exporters have obtain Auality assurance certificate from 2TI=
@epartment of )isheries (@0))= $espective Trade 3ssociations etc.
2.4 The exporter can export with or without +etter of 4redit (+4). The 4ontract= 3greement
with foreign buyer or 43@ or 3dvance TT methods etc. are also allowed for export. The
exporters then submit 5CB form to bank and prepare bill of export. Dith all these documents
exporters then approach at the customs authority of the port through which they want to ship
his exportable. 3fter examining all the papers the customs authority allows them to export and
after boarding the products the authority gives them a bill of lading. 3fter shipment the
!
customs authority assures them stamping a seal in the back of bill of lading and provide
5xport %eneral >anifest (5%>).

3. Export La! "ules and Policies
The 5xport and Import 4ontrol 3ct !.:< (3nnexure9!) provide the %overnment power to
administer the import and export of angladesh under which a three yearly 5xport Bolicy is
published. The 5xport Bolicy (5xport Bolicy ;<<.9!;& 3nnexure9;) generally guide the over
all export of angladesh and help facilitate the exporters. The salient features of the 5xport
Bolicy ;<<.9!; are as followsE
3.1 Products hich cannot #e exported and hich can #e freely exporta#le
3.1.1 Export Prohi#ited Products$ 2ome Broducts cannot be exported. The list of such
prohibited products can be found in 3nnex 9! of the 5xport Bolicy ;<<.9!;.
3.1.2 Products under %onditional Export$ Broducts which are exportable under some
conditions can be exported only after fulfilling those conditions. 2uch products have been
listed in 3nnex9; of 5xport Bolicy ;<<.9!;.
3..1.3 Exporta#le Products$ 3ll other products except the products enlisted in 3nnex9! and
3nnex9; of the 5xport Bolicy ;<<.9!; i.e. export prohibited products and the products under
conditional export shall be freely exportable.
3.1.4 Export of Samples hich don&t ha'e commercial 'alues$ 2amples of exportable can
be exported freely but with some conditions outlined in para ;.;.!.; of 5xport Bolicy ;<<.9
;<!;.
3.2 Entre(p)t and "e(export *rade
5ntre9pFt trade and re9export shall have to be conducted under the procedures stipulated in the
Bublic Gotice Go. 8; (;<<69;<<")=import dated -une ;#& ;<<: (!8 3shar !8!; angla)
(3nnexure96) issued by the 0ffice of the 4hief 4ontroller of Import and 5xport.
3.2.1 5ntre9pFt trade means the export of an imported product at a price at least :/ higher
than the import price. Go change whatsoever in the Auality& Auantity& shape or any other
aspect is necessary in this respect. Broducts under entre9pFt trade shall not come out of the
port boundary. (owever& the products can be brought out of the port boundary under special
authori*ation.
3.2.2 $e9export means the export of an imported product within a specific period of time
with a value addition of at least !</ to the imported price by changing the Auality or shape or
both of the products by means of local reprocessing.
3.3 Export facilities and incenti'es
The government formulates the 5xport Bolicy principally with a view to facilitate the
exporters so as to develop and promote export of angladesh. 4hapter 697 of the 5xport
Bolicy detail the techniAues of export development and of providing facilities to the exporters.
;
The policy details the lists of export facilities. 4hapter9! of the 5xport Bolicy ;<<.9!;
introduces the title of the policy& its scope and strategy& 4hapter9; describes the general rules
of export& 4hapter96 explain export diversification mechanism& 4hapter98 lists the general
facilities of export& 4hapter9: describes about sector based facility& 4hapter9" presents about
service export and 4hapter97 highlights some special facilities and incentives.
3.3.1 %ash incenti'es$ 3s listed in 3nnexure98& for !7 exportable& the government is
providing :9;</ cash incentives against )0 price of exported items. The exporter can
directly claim for cash incentive in his merchant bank.
3.3.2 +uty +ra#ac,E @uties which are paid at customs authority is refundable in case of re9
export business or imported materials which after making finished products will be exported.
3.3.3 Bonded -acilities$ )or bonded ware house with a view to !<</ export materials can be
imported without any duties.
3.3.4 .ssistance in searching for foreign mar,etE )or exploring foreign market 5xport
Bromotion bureau (5B) organi*e=help the exporters participate about 6<96: international
trade fair every year. 5B generally bear the costs of stalls including other incidental costs.
Gormally the exporters will have to bear only traveling and their accommodation cost.
esides& 5B and >inistry of 4ommerce often organi*e >arketing >ission abroad for
searching new export market. The >ission comprises representatives from business leaders
and exporters.
3.3./ Export Loan at loer rate of interest$ 3t only 7/ rate of interest export loans are
being provided. esides& there is a fund named 5xport Bromotion )und (5B)) in 5xport
Bromotion ureau (5B) which provide export loan for I4T and handicrafts exportable at
only 8.:/ rate of interest without any co9lateral. There is an 5xport @evelopment )und
(5@)) in angladesh ank to provide export loans up to 12@ 8<< million(3nnexure9:).
3.3.0 .arding %IP status and 1ational Export *rophy$ 5very year 4IB status
(3nnexure9") and Gational 5xport Trophy (3nnexure97) 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 2trade relations ith3 -oreign %ountries
angladesh maintains excellent trade relations with foreign countries. angladesh became a
member of Dorld Trade 0rgani*ation (DT0) from its inception. angladesh is also the
member of 2outh 3sian )ree Trade 3rea (23)T3)& 3sia Bacific Trade 3greement (3BT3)&
I>2T54 and& 0rgani*ation of Islamic 4onference (0I4). Through those organi*ations and
some times bilaterally angladesh en?oy preferential treatment on export trade. 0f all those
preferential treatments the most important one is %enerali*ed 2ystem of Breference (%2B). In
this system as an +@4& we get some preferential advantages including duty free or concession
and Auota free access. De are getting %2B in 67 4ountries including ;7 51 countries and !<
others like 123& 4anada& -apan& Gorway& 2wit*erland etc.

6
-re4uently .s,ed 5uestions 2-.53
1. I ant to do #usiness. 6o can I start a #usiness7
.ns$ To start a business at first you should have Tax Identification Gumber (TIG)=certificate
and especially need a trade licenseH )or -oint business or company you need register your
company in 0ffice of the $egistrar of -oint 2tock 4ompanies , )irms. The office is located at
;89;: @ilkusha 4ommercial 3rea& @haka. This 0ffice accords registration of 4ompanies&
3ssociations and Bartnership )irms under the 4ompanies 3ct& other related acts& rules& orders
and ensures lawful administration of them.

2. -rom here can I get a trade license7
.ns$ )or trade +icense you can apply to 4ity 4orporation& Bourashova or 1nion Barishad.
3. 6o can I register my company7
.ns$ )or registration of company name you need approach 0ffice of the $egistrar of -oint
2tock 4ompanies , )irms. The office is located at ;89;: @ilkusha 4ommercial 3rea& @haka.
This 0ffice accords registration of 4ompanies& 3ssociations and Bartnership )irms under the
4ompanies 3ct& other related acts& rules& orders and ensures lawful administration of them.
4. 6a'ing a trade license can I start export #usiness7
.ns. Go& for export business you need to get 5xport $egistration 4ertificate (5$4) also.
/. 6o can I get E"%7
.ns$ To get 5xport $egistration 4ertificate (5$4) you have to apply to the 0ffice of the
4hief 4ontroller of Import and 5xport (44I,5) in prescribed form. 3long with the
application you have to submit the following documentsE
4opy of trade license
Gationality certificate issued by Dard 4ommissioner or 1nion Barishad 4hairman (for
angladeshi nationals)
Income tax payment certificate of the previous year (in applicable cases)
Ialid membership certificate from the 4hamber of 4ommerce or $egistered Trade
3ssociation
ank solvency certificate
Bartnership deed or Incorporation certificate
Bhotograph J ; copy.
Brescribed form and other related information are provided in the official website of the
44I,5. The web address of 44I,5 is .ccie.go'.#d
8
203 -or export should I need any 4uality assurance certificate7
.ns. Kes& in most cases you need Auality assurance certificate. These kinds of certificate are
being issued by some authori*ed office=organi*ations=trade associations like& 5xport
Bromotion ureau(5B)& @epartment of )isheries(@0))& angladesh 2tandard and Testing
Institute(2TI) and some other Trade 0rgani*ations.
283 9hat is compliance in export #usiness7
.ns$ In export business compliance means meeting the foreign buyer reAuirements.
2ometimes the foreign buyers=buyer country=countries impose some special conditions on
Auality issues& working environment in the factory& etc. These reAuirements are known as
compliance.
2:3 -or export should I need ;o'ernment Permission7

.ns. 0ther than restricted items enlisted in 3nnex9!(export prohibited items) and 3nnex9;
(conditional export items) all the products are freely exportable and donLt reAuire any export
permission from %overnment. )or conditional export items you need clearance from the
appropriate authority as mentioned 3nnex9; of the 5xport Bolicy ;<<.9;<!;.
2<3 I ill #uy some finished products and then again export it at higher rate. Is it
possi#le7
.ns$ Kes& you can but under some conditions i.e. in that case your export will be 5ntre9pFt
and $e9export you need to follow the rules and procedure laid in respective policy or circulars
which is attached here with as 3nnexure96)
1=. 6o can I get cash incenti'e for my exported items7
.ns$ Kou can get cash incentives for the items and at the rate as shown in 3nnexure98. Kou
?ust follow the procedure as stated and claim with all necessary documents in your merchant
bank.
11. 9hat is ;SP7
.ns$ %2B9 %enerali*ed 2ystem of Breference. In this system we get some preferential
advantage including duty free or concession and Auota free access.
12. In hich countries e are getting ;SP
.ns$ De are getting %2B in 67 4ountries including ;7 51 countries and !< others like 123&
4anada& -apan& Gorway& 2wit*erland etc.
13. 6o an exporter export certain products. 6o can I help him7
.ns$ 3t first and exporter needs an 5$4 (5xport $egistration 4ertificate) upon submission of
bank balance& membership certificate of some association& trade license etc as explained in
answer of Auestion no9:. Then he can search for foreign buyers. (e can collect some buyers
:
list from 5xport Bromotion ureau (5B) and angladesh >issionLs of the export destination
country.
14. 9hat is -*. and P*. and explain Bangladesh Position in these agreements7
.ns$
)T3 stands for )ree Trade 3greement. 5.g. angladesh ?s a member of 2outh 3sian
)ree Trade 3greement (323)T3)
BT3 stands for Breferential Trade agreement. 5.g. angladesh is a member of 3sia
Bacific Trade 3greement (3BT3)
1/. 9hat is "*. and B*. and explain Bangladesh Position in these agreements7
.ns$
$T3 stands for $egional Trade 3greement 5.g. angladesh is a member of in
I>2T54 (angladesh& India& >yanmar& 2rilanka& Thiland).
T3 2tands for ilateral Trade 3greement. Go bilateral agreement has been finali*ed
but Breliminary ilateral Trade Talks with India& Bakistan and 2rilanka.
10. 9hat are comparati'e ad'antage! %ompetiti'e .d'antage and .#solute ad'antage7
.ns$
Comparative Advantage: Identifying which activities a country=firm=individual is most
efficient at doing (e.g. naturally available9cheap labour& cheap resource& better climate etc).
3nother example that 4anada has the right climate= skilled labour& resources etc. to produce
wood9pulp efficiently. 43 theory states that grow and sell the product which you have
comparative advantage (43) and buy the product in which you have less 43.

Competitive Advantage: 4ompetitive advantage is at the heart of a formLs performance in
competitive markets. 4ompetition between firms or products. e.g. +ower cost& differentiated
products .
Absolute Advantage: If a firms or products is superior at producing both the products& it holds
absolute advantage.
18. 9hat is 1*! >-1! *B*! 1*B7
.ns$
1*$ Gational Treatment (Treat domestic and imported product eAually)
>-1$ >ost9)avored Gation Treatment (To treat all DT0 countries eAually)
*B*$ Technical arriers to TradeE 5nsure regulations& standards& testing and certification
(DT0 regulation)
SPS$ 2anitary and Bhytosanitary 2tandards. 4omplement to TT
1*B$ Gon Tariff arrier
"
1:. 9hat are +umping! .ntidumping and %ounter'ailing7
.ns$
+umping$ 0ccurs when a company when a company exports a product at a price lower than
that normally charged in home market
.ntidumping$ But an export tax on dumped product.
%ounter'ailing$ >eaning 3nti9subsidies9 4ountervailing duties may be used to offset
(remedy) unfairly subsidi*ed trade.
"o?9$ules of 0rigin9 used to determine where a product comes from
*"IPS9Trade $elated Intellectual Broperty $ights94opy $ight +aw& Batent +aw& Trade >ark
law
1<. 9hat are Primary goods! >anufactured goods! *raditional and 1on (traditional
goods7
.ns$
Primary goodsE 3lmost 0btained naturallyE )ro*en food& @ry fish
>anufactured ;oods$ >anufactured in IndustriesE 4hemicals& >edicine
*raditional ;oods$ -ute& Tea& -ute goods
1on(*raditional ;oods$ 0thers except Traditional %oods.
2=. 6o can you separate the L+%@s from +e'eloping countries7
.ns$ The 4riteria for the identification of the +@4s are as followsE
In its latest triennial review of the list of +east @eveloped 4ountries in ;<<6& the 5conomic
and 2ocial 4ouncil of the 1nited Gations used the following three criteria for the
identification of the +@4s& as proposed by the 4ommittee for @evelopment Bolicy (4@B)E
a low9income criterion& based on a three9year average estimate of the gross domestic
product per capita (under M7:< for inclusion& above M.<< for graduation)N
a human resource weakness criterion& involving a composite 3ugmented Bhysical
Ouality of +ife Index (3BO+I) based on indicators ofE (a) nutritionN (b) healthN (c)
educationN and (d) adult literacyN and
an economic vulnerability criterion& involving a composite 5conomic Iulnerability
Index (5II) based on indicators ofE (a) the instability of agricultural productionN (b)
the instability of exports of goods and servicesN (c) the economic importance of
nontraditional activities (share of manufacturing and modern services in %@B)N (d)
merchandise export concentrationN and (e) the handicap of economic smallness (as
measured through the population in logarithm)N and the percentage of population
displaced by natural disasters. (5=;<<8=66).
To be added to the list& a country must satisfy all three criteria. To Aualify for graduation& a
country must meet the thresholds for two of the three criteria in two consecutive triennial
reviews by the 4@B. In addition& since the fundamental meaning of the +@4 category& i.e. the
recognition of structural handicaps& excludes large economies& the population must not exceed
7: million. In the ;<<< review& 2enegal was included in the list of +@4s. Timor9+este was
7
added to the list in ;<<6& bringing the total number of +@4s to :<. Dith regard to the ;<<6
triennial review of the list& the 4@B concluded that 4ape Ierde and >aldives Aualified for
graduation and recommended that they be graduated from the +@4 category. The 4@B also
concluded that 2amoa was eligible for graduation in ;<<". ased on the 4@B report& the
540204 will make a recommendation to the %eneral 3ssembly& which is responsible for the
final decision on the list of +@4s.
21. 9hat is >-.7
.ns$ The >ulti9fiber 3rrangement (>)3)& sometimes referred to as the >ulti9fiber
3greement& is a trade agreement adopted in !.76 by the 1nited 2tates& 4anada& and 5urope
that set Auotas for the amount of textiles and apparel that other countries could export to these
countries. The >)3& which came into force in !.78& was seen as a protectionist measure
intended to prevent the loss of textile and garment industry ?obs in the 12& 4anada& and the
51 to countries& mainly developing countries& where such goods could be more cheaply
produced. It was first seen as a temporary measure& but was extended five times ((yvPrinen&
;<<<). (owever& by the end of this year& following a !<9year phase9out program governed by
another agreement& the 3greement on Textile and 4lothing (3T4)& that came into force along
with the Dorld Trade 0rgani*ation (DT0) agreement in !..:& the >)3 system will come to
an end. This means that in ;<<:& all DT0 members will have unrestricted access to the
5uropean& 12& and 4anadian markets.
22. 9hat assistance do e pro'ide to our exporter7
.ns$ The importance assistances we provide to our exporters are as followsE
pro?ect loan at lower rate of interest
Income tax exemption
cash incentive
export loans with soft terms and lower rate of interest
reduced air fare
tax return=bond facilities
assistance in production of marketing
help them to participate in international fair& marketing missions abroad
duty draw back& 54%& 5B) fund facilities
International trade related training and workshop
export loan with a lower rate of interest and under easy terms and condition etc.
23. 9hat is the #asic feature of our export policy7
.ns$The basic features areE
0ur 5xport Bolicy ;<<.9;<!; provides guide lines to promote our export. Its ob?ective
is to facilitate our exporter rather than control the export
The policy allows freely export of all the products except a few export prohibited
products and conditional export items.
#
0nly !" categories of products have been prohibited. >ost of them are in line with
international conventions. )or example arms& chemical weapons& some wild animals&
archeological relics etc. ; are under conditional export (fertili*er9audio9video etc)
)or export diversification # sectors identified as (ighest Briority sectors where as !;
promising sectors have been identified as 2pecial @evelopment 2ectors have been
identified.
Brovisions of %eneral facilities and incentives have been described in chapter98
2ector based facilities have been incorporated in chapter9:
4hapter " describe about the service export while
4hapter seven describes some misc export promotional issues like export trophy and
and 4IB for women entrepreneurs.
24. 6o an exporter is #eing honored7
.ns$ To honor the exporter 4ommercially Important Berson (4IB) are declared by
%overnment related facilities are being provided. esides 5xport Trophy are also distributed
to the distinguished exporters.
2/. 6o many ,inds of %IP are #eing declared and hat is the criteria for %IP
exporters7
.ns$ There are different types of 4IB i.e. 4IB95xport& 4IB9Industry and 4IB9G$ in
angladesh. De deal with 4IB95xport and the criteria used to determine 4ommercially
Important Berson (4IB) for 5xport are as followsE
>inimum export earning for . specific product is 12M<.!< million and for other sector
12M !.<< million.
Got a loan or Tax (all tax) defaulter.
Go trade dispute with the foreign buyer.
Got convicted by the court.
Go false information provider.
>inistry of 4ommerce or 5xport Bromotion ureau publishes advertisement regarding
invitation of application for 4IB in 3ugust of the year. )or further information a copy of the
4IB (5xport) Blicy9;<<" can be seen at 3nnexure9")
20. 9hat is 9*? >ode1! >ode2! >ode3! >ode47
.ns$
>ode19 Invisible communication with another countries e.g. Telecommunication& $ail
4ommunication etc.

>ode119 2ervices taken from other countries like healthcare& nursing& etc
>ode 1119 )oreign @irect Investment()@I)
>ode IA9 >ovement of Gatural Berson to another countries.
.
28. 9hat is *"I>s7
.ns$ *"I>s$ (DT0) Trade $elated Investment >easures 3greements
2:. 9hat facilities for export(oriented industries are #eing offered #y Board of
In'estment 2B?I37
.ns$
1se of a portion of the foreign currency earned by the exporter under the retention
Auota of angladesh ank for foreign trip& participation in international fairs and
seminars& import of raw materials& spares and eAuipment& establishment of office
abroad& etc.N
5xport development )und(5@)) offers ?oint venture capital at low interest rates&
assistance for obtaining foreign technical assistance& service and technology& assist in
sending marketing missions abroad& assist in the establishment of sales , display
centers and warehousing facilities abroad& assist in participation in product
development , marketing training programs for export promotion& etc.N
Tax holidays (: years for @haka& 4hittagong , 'hulna and 7 years for other areas)N
3gro9processed industries& I4T& to be relieved from income taxN
$estructure the 5xport 4redit %uarantee 2chemeN
1p to .</ bank loan against irrevocable +4 or confirmed contracts.
!<