Although globalization has made trade among countries more liberalized and easy, participating countries are increasingly being engaged into competition with each other in order to secure their position in the international market. On the other hand, because of the decreasing trend in the possibility of receiving foreign aid, all the countries tend to strengthen their potentials and initiatives to expand foreign trade as a more appropriate instrument for development. In this respect all the countries are engaged in utilizing their respective comparative advantage in producing goods so as to stay in the competition. Bangladesh is not an exception, either. Export sector is the main source of Bangladesh’s hard-earned foreign currency. The government has taken all the initiatives for the overall development of this sector as the driving force of the economic development of the country.
In order to face the challenges of globalization, the government has prepared a Poverty Reduction Strategy Paper (PRSP). One of the prime reasons of this Strategy Paper is to facilitate, for Bangladesh as a developing country, the intensification and acceleration of the export promotion activities by using the advantages of globalization, and to play a strong role in accomplishment of government’s stated poverty reduction objectives by connecting the mass public to these activities. Keeping in mind the objectives stipulated in the PRSP, the government has taken initiatives to diversify and liberate the export sector from limited goods dependency and ensure the supply of goods in competitive prices in the world market by means of putting more importance on the implementation and observation of issues such as the facilitation and simplification of import-export procedures, expansion of the use of modern technology in businesses, market expansion, capacity building activities such as productivity increase, quality goods production, reduction of business expenses, and compliance-related issues including the overall development of the governance situation. At the same time the government has taken the initiative to increase the export earnings from the service sector (such as information and communication technology, consulting services, construction etc.) by providing all facilities for the development of this sector.
The government has endorsed the Export Policy 2006-09 upon the recommendation from the Consultative Committee consisting of the country’s main industry and merchandising societies, chambers, research institutes, and concerned governmental divisions and organizations. A separate Export Strategy Paper has been formulated to implement the directives stipulated in this Policy. It is expected that the attainment of the goals and objectives of the Export Policy would be easier if the aforesaid Export Strategy is properly implemented.
Application and Scope
If not referred to differently, then the Export Policy 2006-09 will be applicable for the export of all types of goods and services from Bangladesh.
The Export Policy 2006-09 as well as the Export Promotion Strategy Paper 2006-09 (annexed to the Export Policy 2006-09) will come into effect from the day of the publication in the Bangladesh Gazette, and it will be effective until June 30, 2009. However, if for some reason the endorsement of a new Export Policy is delayed, then the present Export Policy will remain effective until the new Export Policy is issued.
This policy will be applicable in all places in Bangladesh with the exception of the Export Processing Zones (EPZs).
Any tax/ tariff-related decision announced by the National Budget and the National Board of Revenue will prevail over the Export Policy.
In case that a Government Order endorses a specific decision related to export, and in case the decision is not in conformity with any of the provisions of the Export Policy, then the aforesaid Government Order will get precedence over the Export Policy.
The Government will review the Export Policy at least once every year, and if needed, will be entitled to make any modification, expansion or correction.
Rules and Regulations Related to the Export of Products
While exporting goods from Bangladesh, the conditions stipulated in this Policy or in some other related law, the rules and regulations related to foreign currency exchange issued from time to time by the Bangladesh Bank has to be followed. Also, relevant documents within the scope of the above-mentioned conditions and rules and regulations have to be submitted.
Control of Export of Products
Under this Policy, export of products will be controlled in the following way:
List of Export Prohibited/Controlled Products: If not referred to differently, products that are prohibited from exporting under this Export Policy cannot be exported. But the products for which export is contingent to certain conditions can be exported if those conditions are duly met.
The list of Export Prohibited Products and Conditional Export can be found in Annex 1.
If not referred to differently, and except the ones enlisted in Annex 1, i.e. export prohibited products and the products for which the export is contingent to certain conditions, all other products shall be freely exportable.
Nothing in the policy shall be applicable to the following:
The foreign-bound ships, vehicles or stores of aircrafts, their equipments or spare parts and products declared as their kitchen items, or the baggage accompanied by the crew and passengers of those ships, vehicles or aircrafts.
Export of sample products shall be conducted upon the fulfillment of the following conditions:
a) When the export of the product is not prohibited;
b) A maximum of US$ 5,000 worth of products (except medicine) per exporter per year, valued in FOB (free on board);
c) Products sent as sample on free of cost; but for medicine the conditions are: 1) maximum US$ 10,000 if there is no export L/C (letter of credit), or 2) against each L/C, medicine worth of 1% of the total value of the L/C or US$ 1000, whichever is the lesser;
d) For 100% export-oriented garments industries, a maximum of US$ 7,500 worth of sample of ready made garments products per year;
e) Promotional materials (brochure, poster, leaflet, banner etc.) of any price or weight;
f) Gift parcel worth of US$ 1,000 or equivalent in Bangladeshi Taka;
g) Bonafide baggage of traveler traveling outside Bangladesh; and
h) Relief materials exported by the Government.
"Sample" will refer to limited amount of goods which are easily identifiable and which do not have any commercial value.
"Gift parcel" will refer to gift materials sent by courier service.
Authority to relax export control
The Government can, upon providing appropriate reasons, authorize the export of prohibited goods. Moreover, the Government can authorize, under special considerations, the export, export-cum-import or re-export of certain products.
Entre-pôt and Re-export
Entre-pôt trade and re-export will 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 .
Entre-pôt trade will refer to 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.
"Import price" under entre-pôt trade will refer to the C&F price of the imported product as declared at the port of Bangladesh.
"Re-export" will refer to the export of an imported product within a specific period of time with a value addition of at least 10% over the imported price by changing the quality or shape or both, of the product by means of local re-processing.
Import price in this case will refer to the C&F price of the imported product as declared at the port of Bangladesh.
Export opportunities without L/C
Upon the submission of EXP Form and Shipping Bill, exports without L/C can be done through buying contract, agreement, purchase order or advance payment.
"Buying Contract" will refer to a signed agreement for the purpose of exporting a product between an exporter and an importer.
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, this provision is conditional to the submission, at the time of export, of an Indemnity Bond to the Customs Authorities stating that the products will be imported back once the necessary tasks will be completed.
In case that an exported product is found to have faults as per the sales agreement, then the Bangladeshi exporter will be granted the authorization to export replacement products. But the exporter will 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 product; and
c) Any other condition that has to be met according to the Customs Law.
A person traveling in 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.
Re-exportation of Frustrated Cargo:- A frustrated cargo can be re-exported by maintaining the rules and regulations of the Customs Act 1969.
Temporary export-cum-import of machinery and other equipments, which are necessary to fulfil the purpose, is permissible under the construction, engineering and electrical company agreement, but following conditions apply:
a) Relevant agreement and copy of award have to be submitted to the Customs Authorities; and
b) An indemnity bond stating that the machinery will be returned after the completion of the task has to be submitted.
If no other conditions apply, then a pre-shipment certificate for the purpose of export of products is not obligatory.
Quality Control Certificate
While exporting products for which quality control certificate is obligatory, the exporter will have to submit, to the Customs Authorities, a quality control certificate issued by the appropriate authority.
Export Promotion Strategy Paper
In order to promote and assist exports, Government has issued a three-yearly "Export Promotion Strategy Paper 2006-09" which will be considered as an integral part of this Policy. The Ministry of Commerce will be responsible for the implementation of this