Export Policy of Bangladesh

Export Policy 2009-12

Objectives, strategies, application and scope

1.1 Objectives

1.1.1 Updating and liberalizing the trade regime in accordance with the needs and requirements of the World Trade Organization and globalization;

1.1.2 Encouraging labor-intensive (especially female labor) export-oriented production;

1.1.3 Ensuring availability of raw materials for manufacturing export goods;

1.1.4 Increasing productivity and diversity of products;

1.1.5 Improving the quality of products; encouraging the use of modern, appropriate and environment-friendly technology, producing high-end products, and improving the design of the products;

1.1.6 Enhancing efficiency and dynamism by using e-Commerce and e-Governance;

1.1.7 Initiating new strategies for the expansion of the markets for export products, making proper utilization of computer technology and encouraging all modern technologies including e-Commerce;

1.1.8 Assisting the development of necessary infrastructure, particularly for backward and forward linkages in order to encourage the production of exportable goods;

1.1.9 Providing all-out support to new exporters as well as to existing exporters;

1.1.10 Assisting the development of a skilled labor-force through proper training for managing international trade; and

1.1.11 Providing adequate guidance to trade bodies, business organizations, business people and related individuals in understanding the changing international trading system, etc.

1.2 Implementation Strategy

1.2.1 Increasing the institutional skills 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, BSTI, Tea Board and different trade bodies;

1.2.2 Modernizing Bangladesh Foreign Missions abroad by strengthening economic diplomacy;

1.2.3 Strengthening and expanding the “Product based Business Promotion Council” activities through joint initiatives of public and private sectors to encourage the production and export of potential goods;

1.2.4 Providing assistance to producers and exporters in collecting market intelligence information on the demands for commodities abroad, expanding markets, attaining competitive and higher price, etc.

1.2.5 Extending support to export facilitating agencies by introducing automation and e-Governance for enhancing work-efficiency and ensuring transparency and accountability;

1.2.6 Providing assistance for updating and modernizing the over all trade system by ensuring the best use of all modern technologies including e-Commerce for making the export products more competitive through reducing cost of business, increasing production, expanding market and shortening lead time; 

1.2.7 Disseminating latest information to the exporters on export markets and technology to facilitate diversification of exports;

1.2.8 Creating training opportunities and establishing sector-specific training institutes for workers, staff and management personnel to increase productivity;

1.2.9 Encouraging promotion of export through increased institutional facilities including trading and export houses;

1.2.10 Providing assistance in establishing internationally accredited certification system to ensure the quality of the products;

1.2.11 Encouraging the establishment of product-wise design centers for improvement of product designs;

1.2.12 Assisting producers in using modern technology for production;

1.2.13 Providing supports to the exporters to get acquainted with the working procedures of significantly successful exporting countries;

1.2.14 Providing various financial and tax subsidies or incentives including low-interest loans to exporters;

1.2.15 Reducing lead time in export by means of improvement of port management and infrastructure, simplification of procedures for releasing goods, and improvement of the transport system;

1.2.16 Sending trade missions abroad and providing support to exporters to hold single country fairs abroad as well as to participate in different international trade fairs to familiarize and market the products;

1.2.17 Taking all necessary initiatives for achieving duty-free market access to developed and developing countries including United States for expanding markets for Bangladeshi products and services abroad;

1.2.18 Taking special initiatives to enhance exports of products and services to South Asia, Middle East and other Asian and African countries;

1.2.19 Awarding CIP status and National Export Trophy every year to the best exporters of different sectors in recognition of producing new products, diversifying of products, enhancing exports, etc;

1.2.20 Reviewing country's export situation at least once annually and providing necessary directions by the “National Committee on Export”;

1.2.21 Monitoring and evaluating the progress of the implementation of the decisions of the “National Committee on Export, by the task force established for this purpose; and

1.2.22 Identifying the problems related to export and recommending possible remedies by the Export Monitoring Committee headed by the Vice-Chairman of the Export Promotion Bureau and represented by the private sector including FBCCI;

1.3 Application and Scope

1.3.1 Unless otherwise stated, the Export Policy 2009-12 shall be applicable to exports of all types of goods and services from Bangladesh.

1.3.2 The Export Policy 2009-12 shall be effective from the date of its publication in the Bangladesh Gazette, and shall remain in force until June 30, 2012. However, this Export Policy shall remain effective until the next Export Policy is issued.

1.3.3 This policy shall be applicable to all places in Bangladesh except the Export Processing Zones (EPZs).

1.3.4 Any tax/ tariff related decision declared in the National Budget or by the National Board of Revenue shall prevail over the Export Policy.

1.3.5 Whatever is stated in this policy, any specific decision related to export issued by the government through any other order shall prevail over this policy even if the order is inconsistent with any section of this policy.

1.3.6 The Government will review the Export Policy at least once a year, and make any modification, expansion or amendment, if necessary.

General Provisions for Export

2.0 Rules and Regulations to be followed for Export of Products

The conditions stipulated in this Policy or in other related laws, and the rules and regulations related to foreign currency exchange issued from time to time by the Bangladesh Bank have to be followed in case of export of goods from Bangladesh. Besides, relevant documents within the scope of the above-mentioned conditions and rules and regulations have to be followed.

2.1 Control of Export of Products: Under this Policy, export of products will be controlled in the following ways such as:-

2.1.1 Export Prohibited Products: Unless otherwise stated, products prohibited under this Export Policy cannot be exported. Annex -1 reads the list of export prohibited products.

2.1.2 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.

2.2 Exportable Products:

Unless otherwise stated, all other products except the products enlisted in Annex-1 and Annex-2, i.e. export prohibited products and the products whose export is contingent upon certain conditions shall be freely exportable.

2.2.1 Nothing in this policy shall be applicable to the following:

2.2.1.1 Store, equipment or spare parts of ships, vehicles or aircrafts bound for going abroad, and products declared as their kitchen items, or the baggage accompanied by the sailors or the crews and passengers of those ships, vehicles or aircrafts.

2.2.1.2. Export of samples subject to fulfillment of the following conditions:

a) The product is not export prohibited;

b) A maximum of US$ 5,000 worth of products (except medicine) based on FOB price (free on board) per exporter per year;

c) Products sent as samples free of cost; provided that in case of medicine the maximum shall be (1) US$ 30,000 if there is no export L/C (letter of credit), or (2) 5% of the total value of the L/C or US$ 5000, whichever is less. Bangladesh Bank can increase these limits examining each case, if necessary.

d) For 100% export-oriented garment industries, a maximum of US$ 7,500 worth of samples of ready made garments per year;

e) The diamond processing farms having bond licenses issued from the Customs bond Commissionerate or diamond producing/ diamond-studded jewelery processing farms registered as producers with VAT Commissionerate, under National Board of Revenue can send abroad cut and polished diamond/diamond-studded jewelery worth of US$ 50,000 annually with a view to participating in international trade fair or showcasing for export market development. In this case the samples must be brought back to the country after the show. However, if the samples are sold, all sale proceeds must be repatriated through legal banking channel and the amount of the proceeds shall not be less than the value of the samples; 

f) Promotional materials (brochure, poster, leaflet, banner etc.) of any price or weight;

g) Gift parcel worth of US$ 1,000 or equivalent in Bangladeshi Taka;

h) Bonafide baggage of travelers traveling outside Bangladesh; and

i) Relief materials exported by the Government.

2.2.2 “Sample” means limited amount of goods which are easily identifiable and which do not have any commercial value.

2.2.3. “Gift parcel” means gift materials sent through courier service.

2.3 Authority to relax export control:-

The Government showing appropriate reasons can authorize the export of prohibited goods listed in Annex-1. Moreover, the Government can authorize, under special considerations, export, export-cum- import or re-export of certain products.

2.4 Entre-pôt and Re-export:-

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) issued by the Office of the Chief Controller of Import and Export . 

2.4.1 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.

2.4.2 “Import price” under entre-pôt trade shall refer to the C&F price of the imported product as declared at the port of Bangladesh.

2.4.3 “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 product by means of local reprocessing.

2.4.4 Import price in this case shall refer to the C&F price of the imported product as declared at the port of Bangladesh.

2.5 Export opportunities without L/C:-

Exports without L/C can be done through buying contract, agreement, purchase order or advance payment subject to the submission of EXP Form and Shipping Bill. In case of Advance Cash Payment, export without L/C will be allowed on consignment basis.

2.5.1 “Buying Contract” means a signed agreement between an exporter and an importer for the purpose of exporting a product.

2.6 Export-cum-Import

2.6.1 Cylinder and ISO tanks can be exported on a temporary basis only for the purpose of repairing, replacement or refilling of the imported products. However, an Indemnity Bond shall have to be submitted to the Customs Authorities at the time of export stating that the products will be imported back after completion of the necessary works.

2.6.2 Bangladeshi exporters will be authorized to export replacement products in case the exported product is found faulty as per the sales agreement. However, the exporter shall have to submit the following papers to the Customs Authorities:

a) Copy of the Sales Agreement;

b) Letter from the buyer with details of the faulty products; and

c) Any other condition to be met according to the Customs Law.

2.6.3 A person traveling to a foreign country can bring his or her vehicle along with himself or herself if authorized under the carnet de passage by the Customs Authorities or any other appropriate authority, or authorized against the indemnity bond submitted to the Customs Authorities with the condition to re-import.

2.6.4 Re-exportation of Frustrated Cargo:- A frustrated cargo can be re-exported in compliance with the rules and regulations of the Customs Act 1969.

2.6.5 The construction, engineering and electrical company shall be allowed temporarily to export-cum-import machinery for doing work as per contract under the following conditions: 

a) Relevant copies of agreement and award have to be submitted to the Customs Authorities; and

b) An indemnity bond has to be submitted stating that the machinery shall be returned after the completion of the task.

2.7 Pre-shipment Obligations:-

Unless other conditions apply, pre-shipment certificate is not obligatory for export of any product.

2.8 Quality Control Certificate:-

In case of export of products for which quality control certificate is obligatory, the exporter shall have to submit, to the Customs Authorities, a quality control certificate issued by the appropriate authority.

Steps toward Export Diversification

3.1 Formation of Product and Service specific Business Promotion Councils:

3.1.1 Ministry of Commerce has formed Several sector/ product and service specific Business Promotion Councils as a joint initiative of the government and the private sector within the scope of the Company Act 1994 for diversifying export, improving and ensuring the quality of products, acquiring appropriate technologies, fulfilling compliance requirements, marketing of products etc. Necessary initiatives will be taken under the Export Policy 2009-12 to strengthen and organize the activities of these Councils as well as to encourage the formation of more such Councils. Development projects will be initiated in cooperation with the development partners, if necessary, to accelerate product/service/sector-based development activities. Such initiatives of the Ministry of Commerce will complement the export promotion and export diversification activities of the Export Promotion Bureau.

3.2 Classification of Product and Service Sectors

3.2.1 Some products sectors will be identified as “highest priority sectors” while some others will be identified as “special development sectors” depending on the level of production and supply, potential contribution to the export sector, demand in the international market and above all the capacity to contribute to the socio-economic development. The government will regularly modify this list, and provide special privileges to encourage the export of these products.

3.3 Highest Priority Sectors

3.3.1 Highest priority sectors will refer to those product-sectors which have special export potentials, but such potentials could not be utilized properly due to certain constraints, and more success is attainable if adequate support is rendered to them. These are:

1) Agro-products and agro-processed products;

2) Light engineering products (including auto-parts and bicycles);

3) Footwear and leather products;

4) Pharmaceutical products;

5) Software and ICT products; 

6) Home textile;

7) The Sea-bound Ship Building Industries; and

8) Toiletries Products.

3.4 Benefits and Facilities to be provided to the Highest Priority Sectors

3.4.1 Project loans at reduced interest rates on a priority basis;

3.4.2 Income Tax exemptions;

3.4.3 Possible financial benefits or subsidies consistent with WTO Agreement on Agriculture, and Agreement on Subsidies and Countervailing Measures, including concessionary rates for utility services such as electricity, water and gas;

3.4.4 Export loans with soft terms and at reduced interest rates; 

3.4.5 Air transport facilities at concessionary rates ;

3.4.6 Duty draw-back/ bond facilities;

3.4.7 Facilities for setting up of backward linkage industries including infrastructural development so as to reduce cost of production ;

3.4.8 Expansion of institutional and technical facilities to improve and control quality of products;

3.4.9 Assistance in production and marketing;

3.4.10 Assistance in searching for foreign market; and

3.4.11 Necessary initiatives to attract foreign investments.

3.5 Special Development Sectors

3.5.1 Product sectors which have export potentials but whose production, supply and export base are not consolidated will be included in special development sectors to strengthen their export base. The following product sectors will be included in the special development sectors:

a. crushed and finished leather production;

b. frozen fish production and processing;

c. handicrafts;

d. electric and electronic products;

e. fresh flower and foliage;

f. jute and jute products;

g. hand-woven textiles from hilly areas (pahari taat bostro);

h. uncut diamond; 

i. producing herbal plants, medicine and medicinal products;

j. ceramic products and melamine;

k. plastic products; and

l. furniture industries.

3.6 Benefits and Facilities to be Rendered to the Special Priority Sectors

3.6.1 Project loans at normal interest rates on a priority basis;

3.6.2 Consideration for export loans with soft terms and at reduced interest rates;

3.6.3 Subsidies consistent with WTO Agreement on Agriculture, and Agreement on Subsidies and Countervailing Measures;

3.6.4 Shipment of products at reduced air fare; 

3.6.5 Duty draw-back/ bond facilities;

3.6.6 Facilities for setting up of backward linkage industries including infrastructural development so as to reduce production cost;

3.6.7 Expansion of technical facilities to improve the quality of products;

3.6.8 Assistance in marketing of product;

3.6.9 Assistance in searching for foreign markets;

3.6.10 Possible financial benefits for utility services such as electricity, water and gas; and 

3.6.11 Necessary initiatives to attract foreign investments (FDI).

3.7 Inter-Sector Project for Product Diversification

3.7.1 Inter-sector projects will be initiated with an objective to facilitate diversification of products. Under the projects, issues such as bond system, duty draw-back, subsidies etc. will be reviewed to keep export price at a competitive level. Similarly, the project will assess and take necessary steps regarding issues such as product development and market expansion, trade cooperation and infrastructural constraints hindering export trade. A project will also be initiated to acquire modern technology promoting expansion of export trade.

General Export Facilities

4.1 Use of Foreign Exchange Earned from Export

4.1.1 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.

4.2 Export Promotion Fund - There shall be an Export Promotion Fund (EPF) with EPB. The following facilities will be available from this fund:

4.2.1 Providing venture capital at lower interest rates and with soft terms for production of goods;

4.2.2 Assisting the producers/ exporters to receive foreign technical assistance, service and technology for development and diversification of products;

4.2.3 Supporting exporters to send marketing missions abroad and participate in international trade fairs;

4.2.4 Assisting exporters ,if possible , to set up sales and display centers as well as warehouse facilities abroad;

4.2.5 Supporting exporters to participate in training programs abroad on product development and marketing, so as to enable them to improve their technical and marketing skills; and

4.2.6 Providing assistance in other activities related to development and expansion of products and services.

4.3 Other Financial Facilities

4.3.1 The possibility of providing tax exemption and subsidy in service sectors such as electricity, water and gas, instead of cash benefits, will be examined;

4.3.2 Initiatives will be taken to develop necessary infrastructure to ensure uninterrupted supply of electricity, gas and water for all export-oriented industries on priority basis; 

4.3.3 Measures will be taken to fix the electricity, water and gas charges for industrial use at a reasonable level; and 

4.3.4 In accordance with the provisions of WTO, cash incentives may be provided to potential export-oriented emerging sectors (i.e. the sectors which are capable of making products having demand in international market). 

4.4 Funding for Export

4.4.1 Arrangements will be made for import of raw materials and related inputs under the Export Promotion Fund (EPF);

4.4.2 Possibility to provide facilities for back-to-back Letter of Credit for other export items besides readymade garments will be reviewed;

4.4.3 Loans at lower interest rates and with soft terms will be made available for import of capital machinery and raw materials to promote export.

4.5   Export Credit

4.5.1 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;

4.5.2 Initiatives will be taken to introduce online banking system to ensure prompt disposal of export related matters and promote transparency in the banking sector;

4.5.3 Bangladesh Bank will take necessary steps to ensure unremitting flow of normal credit for the export sector;

4.5.4 Banks will fix the exporters' cash credit limit based on the achievements of export earning of previous years;

4.5.5 Commercial banks will not impose overdue interest in case of the products exported on the basis of site-payment under irrevocable letter of credit provided that the exporter submits necessary export documents;

4.5.6 Bangladesh Bank may open up an “Export Credit Cell” for export financing for the development of this sector. Similarly, commercial banks will set up “Special Credit Unit” for export financing;

4.5.7 There shall be a highly empowered “Export Credit Monitoring Committee” under the leadership of Bangladesh Bank to fix the demand of export credit, and review and monitor the flow of credit ;

4.5.8 Banks will take necessary steps to fix service charges at a reasonable level;

4.5.9 Initiatives will be taken , if necessary, to establish/ strengthen banking facilities in order to expand trade relations with Russia, other CIS countries, Myanmar and north-eastern states of India;

4.5.10 Under the Export Credit Guarantee Scheme (ECGS), initiatives will be taken to compensate those exporters who have incurred losses for reasons beyond their control; 

4.5.11 Authorized dealers will be able to open internal back-to-back L/C in favor of local raw materials suppliers under the master letter of credit; and

4.5.12 In case of export, rate of interest, LC commission, miscellaneous service charges, bank guarantee commission etc will be kept as minimum as to be directed by Bangladesh Bank.

4.6 Exemption from Insurance Premium

4.6.1 Provisions will be made available for fire and shipping insurance premiums at exempted rates for export-oriented industries in the non-traditional sectors. Under this system, the exporter may be exempted from paying premium after shipment is made. 

4.7 Incentives for Export of Non-traditional Industrial Products:

4.7.1 Incentives will be given to the export of non-traditional and new industrial products having at least 40% value addition during the first two years ,and at least 50% value addition thenceforth;

4.7.2 Fire and shipping insurance will be fixed at a concessionary rate for export-oriented industries.

4.8 Bond Facilities for Export Oriented Industries:

4.8.1 The National Board of Revenue will consider the possibility of providing bonded warehouse facilities to import-dependent export industries. Especially, the Board will examine whether bonded warehouse facilities can be extended to all export-oriented industries. Besides, providing of additional bonded warehouse facilities to trading houses and export houses under certain conditions will be examined.

4.9 Initiating brand names to fetch higher price will be encouraged.

4.10 Providing alternative incentives, instead of duty bond or duty draw-back to export-oriented local textiles and readymade garment industries.

4.10.1 Government may provide subsidies (cash incentives) as alternative incentives instead of duty bond or duty draw-back to export-oriented local textiles and readymade garment industries the rate of incentive to be decided by the government. This incentive may be extended to other sectors too.

4.11 Easing VAT return on Export-facilitating Services

4.11.1 Simplified procedures will be put in place for the withdrawal of paid VAT on export facilitating services such as C&F services, telephone, telex, fax, electricity, insurance premium and shipping agent commission/ bill. 

4.12 General Facilities for Export-Oriented Industries:

4.12.1 Industries exporting at least 80% of their production will be considered as export-oriented industries and they will be entitled to receive bank loans and other financial benefits; and

4.12.2 Industries exporting at least 80% of their production will be permitted to sell their remaining 20% products in the domestic market subject to due payment of duties and taxes;

4.12.3 Exporters will be assisted in order to be more compliant;

4.12.4 Assistance will be provided for establishing Effluent Treatment Plants( ETP); 

4.12.5 Duty free import of spare parts up to10 % of total capital machinery will be allowed every two years for export oriented industries; 

4.12.6 Connection of utility services including electricity and gas will be provided on priority basis in export-oriented industries. 

4.13 Reduced Air fare for the export of specially privileged products including Fruits and Vegetables:

4.13.1 Biman Bangladesh Airlines will consider measures for reduced air fare for the export of fruits and vegetables, ornamental plants etc. 

4.14 Withdrawal of Royalty for the Expansion of Cargo Facilities of Foreign Airlines for Export Purposes:

4.14.1 No royalty is applied for transporting vegetables. Initiatives will be taken to provide similar incentives for specially privileged products including fruits; and

4.14.2 Initiatives will be taken for enhancing the space in foreign airlines' cargo services, and transporting fruits, vegetables etc. at a reasonable fare.

4.15 Venture Capital Facilities for Small and Medium Enterprises:

4.15.1 Agricultural farms with at least five acre size will be provided with venture capital facilities to encourage production and export of vegetables, fruits, fresh flowers, orchids etc.;

4.15.2 Establishment of cool chains will be encouraged to prevent quick putrefaction of the products. In this regard, import of reefer vans and reefer containers will be encouraged;

4.15.3 Initiatives will be taken to introduce SME credit Guarantee Scheme for increasing export in export-oriented industries.

4.16 Research and Development

4.16.1 The National Board of Revenue will consider the possibility of permitting duty-free import of machinery and equipment by the exporting institutions for research and development purposes . Research institutes may be provided this facility based on recommendations from the Export Promotion Bureau.

4.17 Encouragement and Facilities for Exports Based on Sub-Contracting:

4.17.1 An institution can spend, before acquiring the actual work order, a maximum of US$ 10,000 for communication, sending representatives, traveling abroad, purchase of tender documents etc. An authorization from Bangladesh Bank will be required if more foreign currency expenditure is needed;

4.17.2 Permission will be given for establishing offices and recruiting officials abroad; and

4.17.3 Individual professional guarantee/ insurance will be provided by Sadharan Bima Corporation in favour of project specialists.

4.18 Issue of Multiple Entry Visa

4.18.1 Investors and importers of Bangladeshi products will be issued multiple entry visas. For this purpose, Ministry of Commerce may send recommendations to the commercial officials of Bangladesh Missions abroad and to the Ministry of Foreign Affairs.

4.19 Foreign Trade Related Training

4.19.1 Bangladesh Foreign Trade Institute has been established for providing training on foreign trade. Adequate numbers of workshops and seminars will be arranged on different trade related issues, especially on WTO issues through this Institute.

4.20 Arrangement of International Trade Fairs and Single Country Exhibitions, and Participation in other Market Promotion Activities Abroad:

4.20.1 Encouraging facilities will be provided for participating in international trade fairs, single country exhibitions and other market promotion activities in different countries, and organizing single trade fairs abroad under joint initiatives of the government and the private sector.

4.21 Strengthening Export Related Training:

4.21.1 The Export Promotion Bureau will organize trainings, seminars and workshops in different parts of the country to inform the exporters of the rules and regulations regarding exports.

4.22 Setting up of Permanent Fair Complex and World Trade Center:

4.22.1 In order to expand export trade, initiatives have already been taken to establish Permanent Fair Complexes and World Trade Centers in Dhaka and Chittagong. The process will be accelerated; and

4.22.2 Assistance will be provided from the World Trade Centers to expand and integrate export trade through market investigation and development of marketing skills.

4.23 Both regular and product-specific trade fairs of international standard will be organized in Bangladesh in order to invite foreign buyers, familiarise export products among them and thus connect buyers and sellers.

4.24 Shipment of Products:

4.24.1 Initiatives will be taken to simplify shipment/ transportation of products. Government will provide necessary support if any exporter wants to charter an aircraft;

4.24.2 The best use of modern technology and automation system including one stop service will be ensured in order to expedite customs related services for releasing imports and exports.

4.25 Direct Air-Booking System:

4.25.1 To ensure that fresh vegetables and other perishable items from the northern part of the country reach their destinations easily without losing their quality, direct air booking facilities for these products from Rajshahi and Syedpur airports will continue .

4.26 Encouragement of Increased Use of Local Raw Materials:

4.26.1 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.

4.27 Establishment of Management Information System (MIS):

4.27.1 An MIS will be installed in the Ministry of Commerce. All officials of the Ministry have already been provided with computers and internet facilities. The Ministry of Commerce has taken initiatives to put in place a National Trade Portal to be connected to all business and trade related websites .

4.28 Facilities for Deemed Exports:

4.28.1 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 

4.28.2 Initiatives will be taken to consider direct sales in foreign currency without tender as “deemed export”, and augment their facilities.

4.29 Miscellaneous matters

4.29.1 A Trade Facilitation Center will be instituted in Dhaka;

4.29.2 Establishment of special types of warehouse, trading house, export house and trade center will be encouraged;

4.29.3 Initiatives will be taken to enhance the capacity and efficiency of Export Promotion Bureau in order to expedite settlement of export related trade disputes;

4.29.4 Product and Service specific Development Institutes will be established;

4.29.5 Initiatives will be taken to allow exporters to recruit foreign agencies without prior authorization from Bangladesh Bank;

4.29.6 Steps will be will be taken to identify the benefits for the least developed countries as provided by the WTO, and make the stakeholders aware of the benefits;

4.29.7 Exporting institutions will be encouraged to acquire ISO 9000 as well as environmental regulations-related ISO 14000 for quality assurance;

4.29.8 Codes with details of exportable products will be prepared in order to use the Harmonised Code being followed by WTO for L/C forms related to import and export; 

4.29.9 Financial and revenue related incentives and facilities will be reviewed from time to time and updated when needed; and

4.29.10 Special transportation by railways, roads, and water ways will be arranged for internal movements in order to export the agro products and agro-processed products.

Product-Specific Export Facilities

5.1 Readymade Garments Industry

5.1.1 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;

5.1.2 Initiatives will be taken to set up “garments villages” at various places with adequate infrastructural and utility facilities;

5.1.3 Steps will be taken to establish waste water treatment plants in garments villages;

5.1.4 Assistance will be provided to improve the working environment in the readymade garments factories to reduce risks of accident and to fulfill the compliance requirements at the factory level. Besides, initiatives will be taken to formulate an integrated and reasonable compliance regulation with the help of all stakeholders;

5.1.5 Initiatives will be taken to provide trainings of different tenures to the workers and staff of the garments industries to increase their productivity and facilitate diversification of products;

5.1.6 Emphasis will be given on diversification of products by improving skills of, workers and staff, and disseminating information to the entrepreneurs on products markets and technology;

5.1.7 Steps will be taken to send marketing missions abroad, arrange single country textiles and readymade garments fairs abroad, and organize and participate in international trade fairs at home and abroad so as to expand and consolidate the markets for readymade garments;

5.1.8 Establishment of backward and forward linkage industries will be encouraged; and

5.1.9 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. 

5.2 Frozen Fish Industry

5.2.1 Cultivation of shrimp for increasing the production of shrimp maintaining ecological balance will be encouraged;

5.2.2 Venture capital will be provided for producing, processing and exporting value added products in the frozen food sector;

5.2.3 Initiatives will be taken to establish “Seal of quality organization” or similar organizations under public-private partnership to ensure the quality of shrimp and shrimp products;

5.2.4 Necessary steps will be taken to establish Accredited Testing Laboratory of high quality under public and private or joint initiatives to ensure high quality of products and SPS (Sanitary and phyto-sanitary) related standards; 

5.2.5 Setting up of laboratories in the private sector will be allowed and steps will be taken for research and remedial measures to improve the quality of shrimps and protect them from diseases. 

5.2.6 Import of indispensable machinery for quality control will be encouraged so as to strengthen the efforts for controlling the quality of frozen food. Department of Fisheries and BCSIR will take initiatives to improve their accredited testing laboratories;

5.2.7 In order to reduce the risk of exporting contaminated frozen food, a special supervision or traceability system will be developed for all the steps from hatching to production of fish, processing and packaging;

5.2.8 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 so as to expand and consolidate the markets for frozen food;

5.2.9 All possible steps will be taken to implement the “Vision-2015” formulated by Bangladesh Frozen Food and Exporters Association (BFFEA);

5.2.10 A monitoring cell will be formed to control the quality of exportable shrimps;

5.2.11 Assistance will be provided to diversify fish and frozen fish products; and

5.2.12 Customs Authorities will ensure, before the release of the goods, whether the imported fish-feed is usable or whether there is any contaminated or prohibited substance in it. The Department for Fisheries or the Ministry of Fisheries and Livestock will send the updated list of prohibited substances to the Customs Authorities from time to time. 

5.3 Handicrafts Made from Bamboo, Cane and Coconut Fibre

5.3.5 Steps will be taken to set up artisans villages in Dhaka and other places;

5.3.6 Commercial production of bamboos, cane and wood will be encouraged in order to ensure easy availability of raw materials for handicrafts;

5.3.7 Export of value added products made from bamboos, cane, water hyacinth and coconut fibre will be encouraged;

5.3.8 Support will be given for design development to bring novelty and diversity to handicraft products. BSIC can take initiatives to establish a Design Center;

5.3.9 Steps will be taken to send marketing missions abroad, organize single country handicrafts fairs, arrange and participate in international trade fairs at home and abroad to expand and consolidate the markets for handicraft products; and

5.3.10 Banglacraft will take necessary steps to improve the quality of handicraft products.

5.4 Tea Industry

5.4.1 Initiatives will be taken to bring fallow land within the tea states under cultivation;

5.4.2 Steps will be taken to rehabilitate sick tea gardens;

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

5.4.4 All co-operation will be extended to exportable the completion of leasing procedures for tea estates awaiting completion of such procedures;

5.4.5 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 the international market;

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

5.4.7 Imported packaging materials will be allowed duty draw-back/bond facilities on FOB price to encourage the export of packet tea. Moreover, provisions will be made to allow duty-free import of packaging materials through bank guarantee; 

5.4.8 Steps will be taken to send marketing missions abroad, and participate in international trade fairs at home and abroad so as to expand and consolidate the markets for tea; and

5.4.9 The possibility of popularizing brand name for marketing Bangladeshi tea will be reviewed. Established branding and distribution agencies will be contacted in this regard.

5.5 Jute Industry

5.5.1 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. 

5.5.2 Obstacles impeding export of jute and jute products to different countries will be identified and necessary remedial measures will be taken to address those. 

5.5.3 Initiatives will be taken to popularize, through Bangladeshi Missions abroad, the use of jute by emphasizing the environment-friendly attributes of jute;

5.5.4 Co-operation will be extend to entrepreneurs for participation in international fairs and exhibitions to promote markets; and

5.5.5 Government support will be provided in establishing design development centres to bring about diversity to jute products.

5.6  Leather Industry

5.6.1 Sick leather industries will be allowed credit rescheduling facilities through policy support;

5.6.2 Initiatives will be taken to increase export through enhancing competitiveness of leather and leather products in the international market by taking measures for improving productivity and development of products.;

5.6.3 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;

5.6.4 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.

5.6.5 Initiatives will be taken through the Leather Sector Business Promotion Council involving the industrial entrepreneurs and exporters for the overall development of this sector;

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

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

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

5.6.9 An integrated “plan of action” will be taken for development and diversification of leather products to enhance the productivity of the leather industry by strengthening research activities and undertaking certain activities such as BMRE for sick leather industries. 

5.6.10 Assistance will be provided to the entrepreneurs for participation in international fairs and exhibitions to promote markets;

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

5.6.12 All possible cooperation will be extended for transferring the factories to the Tannery Village being developed in Savar;

5.6.13 Initiatives will be taken to establish a centralized waste management plant in the Tannery Village in Savar, and installation of clean technology will be encouraged;

5.6.14 Modern chemical laboratories and service centers will be set up to ensure the quality of leather and leather products;

5.6.15 Steps will be taken to impart local and foreign trainings to overcome the management crisis in the leather industry;

5.6.16 Cattle farming and import of raw hide during lean season will be encouraged to ensure easy availability of raw hide;

5.6.17 Less use of nitrogen and sodium chlorate in the leather industry will be encouraged;

5.6.18 Co-operation will be extended to improve the business relations between tannery owners and agents to enhance the capacity of the sales negotiation and marketing;

5.6.19 Tannery owners will be assisted in preparing plans to produce finished leather from crust leather while transferring factory units from Hajaribag to Savar Tannery Village;

5.6.20 Initiatives will be taken to make the design development center more effective to bring diversity to footwear and leather products; 

5.6.21 Steps will be taken to modernize the Leather Technology College including establishment of design and fashion institutes for development and improvement of export-oriented leather products;

5.6.22 Necessary arrangements will be taken to establish backward/ forward linkage industries for production of spare parts used in manufacturing leather products including footwear; and

5.6.23 Necessary measures will be taken to ensure easy availability of chemicals and other materials for the leather industry.

5.7  Pottery

5.7.1 Steps will be taken to encourage production of traditional potteries in different places of the country;

5.7.2 In order to being novelty and diversity in potteries, assistance will be provided for development of designs and patterns, and the design centre of BISCIC will be upgraded; and

5.7.3 Manufacturers of potteries will be trained under Fine Arts Institute to develop potteries.

5.8   Other Sectors

5.8.1 Contract farming will be encouraged for production of exportable vegetables;

5.8.2 Government Khas (Government owned) land, if available, will be allotted to interested exporters for the production of vegetables and fruits. Besides, establishment of export villages will be encouraged;

5.8.3 Production of modern and scientific packaging materials necessary for the export of vegetables, foliage and fruits will be encouraged;

5.8.4 Cultivation, production and export of potatoes will be encouraged;

5.8.5 Producers and exporters of vegetables, flowers-foliage and fruits will be imparted trainings;

5.8.6 Efforts will be made to commercialize the agricultural sector by assisting production, processing, marketing of exportable agricultural products and other related activities;

5.8.7 Best use of ICT will be ensured in the country for the improvement of information communication system;

5.8.8 In order to expand exports from the IT sector, communications with Bangladeshi diaspora will be strengthened. The possibility of setting up marketing centers abroad will be examined;

5.8.9 Initiatives for establishment of an “IT Village” for export of software will be strengthened;

5.8.10 Necessary measures will be taken to connect the sub-marine optical fibre cable to the national IT backbone to facilitate availability of high speed data transmission line, and strengthen the base of the IT sector regionally;

5.8.11 Measures will be taken to provide facilities to develop the ICT sector through the ICT Business Promotion Council;

5.8.12 The possibility of introducing passbook/ alternative system for the import of raw materials for the pharmaceutical sector will be examined;

5.8.13 Initiatives will be taken to establish Active Pharmaceutical Ingredient Park and Common Lab in Dhaka and Chittagong in recognition of the export potentials of the pharmaceutical sector;

5.8.14 A “Light Engineering Cluster Village” will be established near Dhaka for the development of the light engineering sector;

5.8.15 A modern laboratory and common facilities center will be set up for the development of the light engineering sector;

5.8.16 An “Agro-Products Business Promotion Council” will be established to improve and control the quality of agriculture and agricultural products;

5.8.17 Production and export of herbal plants, medicine and herbal products will be encouraged. Steps will be taken to establish necessary accredited laboratories with this end in view;

5.8.18 Herbal Products Development Council will be constituted for overall development of herbal products sector;

5.8.19 For ship building industries service charges including bank guarantee commission will be kept at a minimum as to be directed by Bangladesh Bank;

5.8.20 Initiatives will be taken to establish an appropriate laboratory for testing and certifying plastic products; 

5.8.21 Import of raw materials for Jewellery will be encouraged for the expansion of export of gold and silver Jewellery;

5.8.22 Business entrepreneurs and exporters will be given necessary co-operation in accordance with the SRO No. 18/Law/2006 dated 7 February 2006 to encourage export of diamond after processing the imported uncut diamond;

5.8.23 Production of toys and imitation Jewellery will be assisted and encouraged. 

Export Services

6.0 Generally service sector includes the services identified under General Agreement on Trade in Services (GATS) of WTO, such as:-

1. ICT based activities

2. Construction business

3. Recreation related activities

4. Health service activities e.g. hospital, clinic and nursing services

5. Hotel and tourism based services

6. Consulting services

7. Laboratory testing

8. Photographic activities

9. Printing and packaging

10. Telecommunication

11. Transport and communication

12. Warehouse and container services

13. Banking activities

14. Legal and professional services

15. Education service etc

6.1 Export Promotion Bureau will prepare a comprehensive plan of action in coordination with the concerned departments/institutions and take necessary steps for augmenting export in the service sector;

6.2 Export Promotion Bureau will take initiatives for maintaining export statistics of service sector in parallel with that of goods;

6.3 Steps will be taken to enhance the capacity of Bangladesh Missions abroad to promote export in the service sector;

6.4 A committee named “Service Export Development Coordination Committee” headed by the Vice Chairman, Export Promotion Bureau and represented by the concerned service sectors will be constituted to coordinate the activities of export promotion in service sectors.

6.5 Different service sector specific Business Promotion Councils will be constituted.

Other Steps towards Export Promotion

7.1.1 Freight forwarders shall be guided by Freight Forwarders (Licensing activity conduct) regulations, 2008 issued under SRO No 18/Law/2008/2174/duty dated 13 January, 2008 regarding control of freight forwarding;

7.1.2 Steps will be taken to develop infrastructure, modernise Bangladesh Bank, Customs, Chittagong and Mongla sea ports to ensure institutional assistance, and bring about dynamism in land port authorities;

7.1.3 Initiatives will be taken to develop necessary physical infrastructure including construction of Express Line to ensure uninterrupted supply of electricity, gas and water to export oriented industries on priority basis. Steps will be taken to fix the charge of electricity, gas and water to be used in the industries at a reasonable rate including subsidy;

7.1.4 Measures will be taken for capital dredging to facilitate movement of container ships in Mongla Port;

7.1.5 To fecilitate export of agricultural products, additional space in the aircrafts will be allotted alongside arranging separate cargo aircrafts. Both air and sea fare for transport of agricultural products will be reduced to a reasonable rate;

7.1.6 Biman Bangladesh Airlines will take initiatives to introduce regular “Cargo Freighter Service” to Europe;

7.1.7 To promote region-specific exports, emphasis will be given on infrastructure development of different regions;

7.1.8 Bangladesh Railway will review the possibility of offering attractive and competitive rates of fare to encourage the use of rail service for transportation of goods; 

7.1.9 To encourage female entrepreneurs in the export sector, female CIP's will be selected and the best female entrepreneurs will be awarded Export Trophy annually;

7.1.10 Steps will be taken to enhance the ICT capacity of Bangladesh Missions abroad in order to promote export;

7.1.11 To encourage product-specific exports, every year one product will be declared the “Product of the Year”;

7.1.12 Rationalizing the rate of Value Addition 

7.12.1 A standing committee will fix, from time to time, the rate of value addition for different products including readymade garments;

7.12.2 Foreign currency earned from reparing foreign vessels will be considered as export earnings from services only if the foreign currency has been repatriated through Bangladesh Bank. 

Annex 1 >   List of Export-Prohibited Products 

8.1 (a) All petroleum and petroleum products except those produced from natural gas (such as naphtha, furnace oil, lubricant oil, bitumen, condensate, MTT and MS). However, this prohibition shall not apply to the export of petroleum and LNG as shares of the foreign investment companies under the Product Sharing Contracts.

(b) Any passenger going abroad shall be allowed to carry as accompanied baggage , in excess of his or her personal goods, US$ 200 worth of goods, which are neither export-prohibited nor including to the list of conditional exports. In this case, no facilities/incentives like duty draw back adjustment, subsidy etc. shall be awarded.

8.2 Jute and `Shan' seeds

8.3 Wheat

8.4 Any kind of live animals, animal organs or hide/ skin of wild animals as mentioned in the Wildlife (Protection) Ordinance 1973 (President's Ordinance No. 23, 1973, Revised in 1974), except the species mentioned in the first list of the Ordinance.

8.5 Fire arms, ammunition and related materials.

8.6 Radioactive materials.

8.7 Archeological relics.

8.8 Human skeleton, blood plasma, or anything produced from human beings or human blood.

8.9 All types of pulses( except processed ones)

8.10 All shrimps except chilled, frozen and processed ones (SRO No. 60-L/76 date 14- 2-76).

8.11 Onion (SRO No. 250-L/77, date 13-8-77). 

8.12 Seawater shrimps of 71/90 count or smaller, except the species Harin/ harina and Chaka including sea species PUD, Cooked shrimp (SRO No. 345-L/83, date 20-10-83)

8.13 Cane, wood, wood logs/ thick pieces of wood (except handicrafts made from these materials).

8.14 All types of frogs (alive or dead) and frog legs.

8.15 Raw and wet blue leather.

Annex- 2

List of Conditional Export Products

9.1 Urea Fertilizer:- Urea fertilizer produced in all factories except KAFCO can be exported with the prior approval of the Ministry of Industries

9.2 Entertainment programs, music, drama, films, documentary films etc can be exported in the form of audio cassettes, video cassettes, CDs, DVDs etc subject to ‘no objection' from the Ministry of Information.

9.3 Petroleum and petroleum products produced from natural gas (such as naphtha, furnace oil, lubricant oil, bitumen, condensate, MTT and MS) can be exported under ‘no objection' from the Energy and Mineral Resources Division, 

9.4 Chemical products enlisted in schedules 1, 2, 3 of Chemical Weapons (Control) Act-2006 will be controlled (exported or prohibited to export) by section-9 of the ACT. 

 

Content Source: Export Promotion Bureau

Additional information