Presentation on Import and Export

System ofBangladesh

Introduction

• A good or service brought into one country from another.• The word "import" is derived from the word "port," since

goods are often shipped via boat to foreign countries.• Countries are most likely to import goods that domestic

industries cannot produce as efficiently or cheaply.

Why Import?

• To serve markets where the firm has no or limited production facilities.• Goods that act as a tool for producing another kind of commodity.• To remain price-competitive in the home market.• To improve the efficiency of manufacturing equipment.• To achieve additional sales.• To extend a product’s life cycle.• To respond strategically to foreign competitors.

Non Importable Goods

• Maps, charts and geographical globes which do not indicate the territory of Bangladesh.

• Books, newspapers, periodicals, documents and other papers containing matters likely to outrange the religious feelings.

• Goods of secondary or sub-standard quality or below –standard or old, used, reconditioned goods or factory rejects and goods of job-lot/stock-lot.

•  Reconditioned office equipment, photocopier, type-writer machine etc.• Import of live Swine and any item prepared from swine.

DOCUMENTATION

Legal Documents • Trade License (Authority: City Corporation).• TIN (Tax Identification Certificate) Certificate (Authority: National Board of

Revenue).• VAT (Value Added Tax) Certificate (National Board of Revenue).• IRC (Import Registration Certificate) (Authority: Chief Commissioner

Import & Export).• Bank Account (Local Scheduled Bank) (Any Schedule under central Bank).• Specific License (i.e. Govt. Import, you should have Enlistment, Bond

Certificate for Specialized Zone).

Bill of Lading

Certificate of Origin

Commercial

InvoiceImport

License

Insurance

certificate

Packing list

Pre- Shipme

nt Inspecti

on

Pro Forma Invoice

Other Documents

• The date of manufacture and the date of expiry for import of Food and beverage.

• Radioactivity-test reports.• Sanitary Certification.

ImportProcedures

Sources of Finance

• Cash foreign exchange (balance of the foreign exchange reserve of Bangladesh Bank).

• Foreign currency accounts maintained by Bangladeshi Expatriates working/living abroad.

• External economic aid (Commodity Aid, Loan, Grant).• Commodity exchange: Barter and Special Trading Arrangement

(STA).

Sources of Finance (Cont.)• Commercial importers and industrial consumers may

utilize their respective shares under Barter/STA as per basis notified.

• Import under the Special Trading Arrangements (STA) concluded with prior approval/permission of the government, shall be subject to the specific procedures laid down by the government in this respect.

Import Process• Import License• Import against LCA Form• Import through L/C• Import against LCA Form but without opening of Letter of

Credit (L/C) • Import against Import Permits and in special cases against

Clearance Permit (for clearance of goods on payment of fine)

Import Process (Cont.)• Import on Deferred Payment Basis or Against Supplier’s

Credit.• Import against direct payment abroad.• Time limit for opening of L/C.• Validity of shipment for goods.

Transportation Documents

• There are different modes of transport through which goods can be Imported.

• Therefore every mode of transport will have a different document.

Ocean Freight• Various types of

bills of ladingAir Freight• Air bill/Air

consignment notes

Rail/Road• Railway

receipt/Consignment note

Post • Waybill

Courier • Courier receipt

Multimodal transport

Types of Transpor

t Documen

ts.

• A bill of lading • Air Waybill (AWB• Railway receipt• Waybill

Types of Transportation Documents

Fees Regarding Imports

Category Value Ceiling of annual import

Initial Registration

feesAnnual renewal

fees

First Tk. 5,00,000 Tk. 5,000 Tk. 3,000Second Tk. 25,00,000 Tk. 10,000 Tk. 6,000Third Tk. 50,00,000 Tk. 18,000 Tk. 10,000

Fourth Tk. 1,00,00,000 Tk. 30,000 Tk. 15,000Fifth Tk. 5,00,00,000 Tk. 45,000 Tk. 22,000

Sixth Above Tk. 5,00,00,000 Tk. 60,000 Tk. 30,000

Major Import Commodities of Bangladesh• Machinery and equipment• Chemicals• Iron and steel• Textiles• Foodstuffs• Petroleum products• Cement 

Partners

• China: 15.8%• India: 15.7%• Kuwait: 8.1%• Singapore: 7.6%• Japan: 4.4% 

Export

Export

• A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade.

• If used for trade, exports are exchanged for other products or services.• Exports are one of the oldest forms of economic transfer, and occur on

a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.

Why Export?

• The sale of such goods adds to the producing nation's gross output.

• Most of the largest companies operating in advanced economies will derive a substantial portion of their annual revenues from exports to other countries.

• The ability to export goods helps an economy to grow by selling more overall goods and services.

Bangladesh Exports: Commodities

• Garments (totaling $12.3 billion in FY09)• Frozen fish and seafood• Jute and jute goods• Leather 

• Garments Ceramics Products

• Vegetables Frozen Fish

• Fruits Bicycle

• Leather Handicrafts

• Woven Garments Tea

• Ship building Medicine Products

Export Partners• United States: 24%• Germany: 15.3%• United Kingdom: 10%• France: 7.4%• The Netherlands: 5.5%• Italy: 4.5%• Spain: 4.2%

Export Process

• Packed correctly so that it arrives in good condition• Labeled correctly to ensure that the goods are handled

properly and arrive on time and at the right place• Documented correctly to meet local and foreign

government requirements as well as proper collection standards; an

Freight Forwarder

• A freight forwarder is an agent who acts on behalf of importers, exporters or other companies or persons to organize the safe, efficient and cost-effective transportation of goods.

Tasks of Freight Forwarder

• Tracking inland transportation.• Preparation of shipping and export documents. • Warehousing.• Booking cargo space.• Cargo insurance and filing of insurance claims.• Document delivery.• After shipment forwarding all documents directly to the

customer or to the paying bank if desired.

Packing• Pack in strong containers, adequately sealed and filled

when possible.• Make sure the weight is evenly distributed.• Goods should be packed in oceangoing containers, if

possible, or on pallets to ensure greater ease in handling.• Packages and packing filler should be made of moisture-

resistant material.• To avoid mentioning contents or brand names on

packages. In addition, strapping, seals, and shrink wrapping are effective means of deterring theft.

Export packing list

• An export packing list itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on.

• The packing list should be attached to the outside of a package in a waterproof envelope marked "packing list enclosed.

The list is used by the shipper or forwarding agent to determine: The total shipment weight and volume and Whether the correct cargo is being shipped. In addition, customs

officials (both local and foreign) may use the list to check the cargo.

LabelingSpecific marking and labeling is used on export shipping cartons

and containers to:• Meets shipping regulations.• Ensures proper handling.• Conceals the identity of the contents, and• Helps receivers identify shipments.

Labeling (Cont.)

Exporters need to put the following markings on cartons to be shipped:• Shipper's mark.• Country of origin (exporters' country).• Weight marking (in pounds and in kilograms).• Number of packages and size of cases (in inches and centimeters).• Handling marks (international pictorial symbols).• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in

English and in the language of the country of destination).• Port of entry.

DOCUMENTATION

Required Documents

• Commercial invoice. As in a domestic transaction, the commercial invoice is a bill for the goods from the buyer to the seller

• Bill of lading. Bills of lading are contracts between the owner of the goods and the carrier (as with domestic shipments).

• Consular invoice. Certain nations require a consular invoice, which is used to control and identify goods

Required Documents (Cont.)• Certificate of origin. Certain nations require a signed statement as to the origin of

the export item.• Inspection certification. Some purchasers and countries may require a certificate of

inspection attesting to the specifications of the goods shipped, usually performed by a third party.

• Dock receipt and warehouse receipt. These receipts are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export.

• Destination control statement. This statement appears on the commercial invoice, ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that the item may be exported only to certain destinations.

• Insurance certificate. If the seller provides insurance, the insurance certificate states the type and amount of coverage. This instrument is negotiable.

• Export license. (when needed).

Shipping• The handling of transportation is similar for domestic orders and export

orders.• The export marks should be added to the standard information shown on a

domestic bill of lading.• The exporter should also include instructions for the inland carrier to notify

the international freight forwarder by telephone on arrival• International shipments are increasingly being made on a through bill of

lading under a multimodal contract• The multimodal transport operator (frequently one of the modal carriers)

takes charge of and responsibility for the entire movement from factory to the final destination.

Insurance

• Export shipments are usually insured against loss, damage, and delay in transit by cargo insurance.

• Arrangements for cargo insurance may be made by either the buyer or the seller, depending on the terms of sale.

• The carrier's liability is frequently limited by international agreements and the coverage is substantially different from domestic coverage.

Procedure of ERC

Procedure for issuance Export Registration Certificate has been simplified. It

requires only the following documents:• Trade License.• Membership Certificate from recognized Chamber/Trade Association.• Tax Identification Number.• Bank Certificate.• Memorandum and Articles of Association and Certificate of Incorporation (in case

of Limited Company).

Export Policy

Regulations

Control of Export of Products-- Export Prohibited Products Products under Conditional Export

• Authority to relax export control.• Export opportunities without L/C.• Pre-shipment Obligations.• Quality Control Certificate.

Highest Priority SectorsAgro-products and agro-processed products.Light engineering products (including auto-parts and bicycles).Footwear and leather products.Pharmaceutical products.Software and ICT products.Home textile.The Sea-bound Ship Building Industries.Toiletries Products

Benefits and Facilities to be provided to the Highest Priority Sectors

• Project loans at reduced interest rates on a priority basis.• Income Tax exemptions.• Possible financial benefits or subsidies consistent with WTO Agreement.• Export loans with soft terms and at reduced interest rates.• Air transport facilities at concessionary rates.• Duty draw-back/ bond facilities.• Expansion of institutional and technical facilities to improve and control quality of products.• Assistance in production and marketing.• Assistance in searching for foreign market.• Necessary initiatives to attract foreign investments.

Special Development Sectors• Crushed and finished leather production.• Frozen fish production and processing.• Handicrafts.• Fresh flower and foliage.• Jute and jute products.• Hand-woven textiles from hilly areas (pahari taat bostro).• Medicine and medicinal products.• Plastic products.• Furniture industries.

Export Facilities

• Use of Foreign Exchange Earned from Export.• Funding for Export.• Export Credit.• Exemption from Insurance Premium.• Easing VAT return on Export-facilitating Services.• Reduced Air fare for the export of specially privileged

products including Fruits and Vegetables.

Export Facilities (Cont.)

• Research and Development.• Encouragement and Facilities for Exports Based on Sub-Contracting.• Issue of Multiple Entry Visa.• Foreign Trade Related Training.• Arrangement of International Trade Fairs and Single Country Exhibitions• Shipment of Products.• Direct Air-Booking System.• Establishment of Management Information System (MIS).

Product-Specific Export Facilities(Readymade Garments Industry)

• Steps will be taken to reduce the "lead time” for export of readymade garments by means of improvement of port management, procedures for releasing goods, resolving electricity problems etc.

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

• Steps will be taken to establish waste water treatment plants in garments villages.• 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.

• Initiatives will be taken to provide trainings of different tenures to the workers.• Emphasis will be given on diversification of products by improving skills of workers and

staff.• Steps will be taken to send marketing missions abroad, arrange single country textiles

and readymade garments fairs abroad.

Export of Services• ICT based activities.• Construction business.• Recreation related activities.• Health service activities e.g. hospital, clinic and nursing services.• Hotel and tourism based services.• Telecommunication.• Banking activities.• Legal and professional services.• Education service etc.

Prohibited Export Goods• Jute and Shan seeds.• Wheat.• Any kind of live animal.• Fire arms, ammunition and related materials.• Archeological relics.• Human skeleton, blood plasma, or anything produced from human beings or human blood.• All shrimps except chilled, frozen and processed ones.• Onion.• Cane, wood, wood logs/ thick pieces of wood (except handicrafts made from these materials).• All types of frogs (alive or dead) and frog legs.

List of Conditional Export Products

• Urea fertilizer produced in all factories except KAFCO can be exported with the prior approval of the Ministry of Industries.

• 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.

• Petroleum and petroleum products produced from natural gas (such as furnace oil, lubricant oil, bitumen, condensate) can be exported under no objection from the Energy and Mineral Resources Division.

Product wise export in 2012

Country wise Export in 2012

Export – Import InformationYear Import (Billion US $ ) Export (Billion US $ )

2001-02 8.54 5.992002-03 9.66 6.552003-04 10.90 7.602004-05 13.15 8.652005-06 14.75 10.532006-07 17.16 12.182007-08 20.37 14.112008-09 21.44 15.572009-10 33.66 16.202010-11 35.52 22.922011-12 34.81 24.30

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