《International Economics Report》

Course Title：International Economics

Instructor：Professor Chen

Name MUHAMMAD JUBIRUL ISLAM FAHIM

Student ID 201739100063

School Economics and Management

Major International Economic and Trade

Tel 18482043453

Date：05/23/2020

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 Current Export and Import Situation in Bangladesh
 
International trade is the exchange of goods and services across national boundaries. It is the most
traditional form of international business activity and has played a major role in shaping world
history and has also been shaped by world history

A brief History of International Trade:

International Trade Based on the free exchange of goods started as early as 2500 BC. Archeological
discoveries indicate that the Sumerians of Northern Mesopotamian enjoyed great prosperity based
on trade on sea in textiles and metals. The Greek profited by exchange of olive oil and wine for
grain and metal somewhere before 2000 BC. With the decline of Greece, Rome became powerful
and began to expand to the East. In the first century the Romans traded through the Silk Road and
developed many trade routes and complex trading patterns by sea. By the time of breaking up off
Roman Empire in fifth century the papacy had emerged as a strong institution in a new and unstable
world. New products such as carpets, furniture, sugar, and spices brought from Egypt, Syria, India
and China stimulated the market and the growing commercial life of the West.

Bangladesh World Trade:

Bangladesh has been a WTO member since 1 January 1995.Infact Bangladesh is the founder
member of WTO. The geographic location and competitive advantage in producing export quality
local goods, low cost etc have made Bangladesh potential country in the field of world trade, though
Bangladesh is listed amongst the Least Development Countries(LDC),The performance of
Bangladesh in World trade is relatively good. Bangladesh’s contribution in WTO in 2013 is
0.115%.

Rank in world trade, 2012 Exports Imports

Merchandise 68 62
excluding intra-EU trade 47 44
Commercial services 115 70
excluding intra-EU trade 89 51

Current Status of Export-Import in Bangladesh:

Bangladeshi international trade is extremely small relative to the size of its population, although it
experienced accelerated growth during the last decade. It is not very diversified and depends on the
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fluctuations of the international market. The Bangladeshi government struggles to attract export-
oriented industries, removing red tape and introducing various financial and tax initiatives. Between
1990 and 1995 Bangladesh doubled its exports from US$1.671 billion in 1990 to US$3.173 billion
in 1995 and then almost doubled them again from US$3.173 billion in 1995 to US$5.523 billion
in1999.During the 1990s, the United States has been the largest trading partner for Bangladesh, with
its exports to the United States reaching 35.7 percent in 1998-99. This percentage consisted mainly
of Ready-Made Garments (RMG). Germany is the second- largest export market, with the
proportion of goods reaching 10.4 percent; and the United Kingdom is in third place at 8.3 percent.

Bangladesh Exports: Commodities

Here are the major export commodities of Bangladesh:
 Frozen fish and seafood
 Jute and jute goods
 Leather
 Garments

Bangladesh Trade: Export Partners

The following were Bangladesh’s export partners as of 2008:
 Germany: 15.3%
 United Kingdom: 10%
 France: 7.4%
 The Netherlands: 5.5%
 Italy: 4.5%
 Spain: 4.2%
 United States: 24%

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Bangladesh Imports: Commodities
Here are the major import commodities of Bangladesh:
 Machinery and equipment

 Chemicals
 Iron and steel
 Textiles
 Foodstuffs
 Petroleum products
 Cement

Bangladesh Imports: Partners

The following were Bangladesh’s import partners as of 2008:

 China: 15.8%

 India: 15.7%
 Kuwait: 8.1%
 Singapore: 7.6%
 Japan: 4.4%

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General Condition of Export-Import of Bangladesh:

Year Import (Billion US $ Export (Billion US $ )

)
2001-02 8.54 5.99
2002-03 9.66 6.55
2003-04 10.90 7.60
2004-05 13.15 8.65
2005-06 14.75 10.53
2006-07 17.16 12.18
2007-08 20.37 14.11
2008-09 21.44 15.57
2009-10 33.66 16.20
2010-11 35.52 22.92
2011-12 34.81 24.30

2012-2013 32.47 27.02

2013-2014(July-Dec) 17.60 14.68

Source: Foreign Exchange Policy Department, Bangladesh Bank, CCI&E and EPB.
A Review of Trade Balance: During the last decade, Bangladeshi exports shifted from the sale of
agricultural products and raw and processed natural resources to labor-intensive manufactured
goods(including clothing, footwear, and textiles), but the country, unlike neighboring India, could not catch
up with the exporters of skill-intensive products. The problem of balance of trade in Bangladesh is well
known: ever since the independence of the country, export earnings have persistently fallen behind import
payments. Consequently, every year the country incurs a huge trade deficit.

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EXPORT-IMPORT POLICY IN BANGLADESH
 Definition:
In this order, unless there is anything repugnant to the subject or context----

(1) Entre-port Trade‟ means such trade in case of which imported goods could be exported to
a third country after minimum value addition at 5% without changing quality, quantity or
shape and without allowing the said goods to be brought out side the port area but can
be carried, with the permission of the Ministry of Commerce, from one port to another
port for the purpose of exports.
(2) “Act” means, The Imports and Exports (Control) Act, 1950 (Act No. XXXIX of 1950)

(3) “Importer” means the „Importer‟ as defined in article 2(f) of Importers, Exporters and
Indenters (Registration) Order,1981
(4) “Import Control Authority” means the Chief Controller of Imports and Exports and
includes any other authorized officer to issue licenses, permits or registration certificates as
per the relevant provisions of Import and Exports (Control) Act, 1950 (XXXIX of 1950);

(5) “Basis of Imports” means percentage, rate or formula adopted for determining the
Share of a registered importer;
(6) “Import value” means C&F or CFR value of imported goods for entre-port trade or re-
export ;
(7) H.S. Code Number, means the H.S. Code comprising eight or more digits as
mentioned in the First Schedule of the Customs Act pertaining to classification of
commodities.

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Conditions for regulating import:

1) In case any restriction is imposed on import of a particular commodity, Bangladesh

Tariff Commission shall strictly monitor production of that industrial unit regularly;
2) The industrial units shall have to move towards progressive manufacture
actively.
3) The price of finished product is excessively higher than the rise in the price of the
raw materials in the international market, the ban on the import may be withdraw on
the recommendation of the concerned Bangladesh Tariff Commission
4) Goods from Israel shall not be importable

General Conditions of Import of goods:

1) H.S. Code number

2) No Objection Certificate on the basis of Right of Refusal
3) pre-shipment inspection
4) Import at competitive rate
5) Import on C&F or CFR, CPT, FOB, CIF, CIP, DAF, DES, DEQ and DDU basis
6) Import by mentioning “Country of Origin
7) Inscription of Name, Address and TIN of Importer-

Source of finance:
1) Cash
2) Cash foreign exchange
3) Foreign currency accounts
4) External economic aid
5) Commodity exchange: Barter and Special Trading Arrangement
Registration Certificate:

1) Registered commercial importers and industrial

consumers have been classified into six
categories:
Category Value Ceiling of annual Initial Registration Annual renewal
Import fees fees
First Tk. 1, 00,000.00 Tk. 1,800.00 Tk. 1,700.00
Second Tk. 5,00,000.00 Tk. 3,000.00 Tk. 2,300.00
Third Tk. 15,00,000.00 Tk. 4,800.00 Tk. 3,500.00
Fourth Tk. 50,00,000.00 Tk.9,500.00 Tk. 6,700.00
Fifth Tk. 1,00,00,000.00 Tk. 17,500.00 Tk. 11,000.00
Sixth Above Tk.1,00,00,000.00 Tk. 23,000.00 Tk. 17,000.00

2) An importer shall apply in writing

3) Import Control Authority shall make an approval under seal and
signature
4) Importers whose already registered for renewal there
registration certificate shall submit two copies of application
in writing.
5) Importer can pay renewal fee in cash
6) The banks shall deposit the money received as renewal fees to the
Bangladesh Bank
7) No importer shall be allowed to open L/C in excess of the
value maximum of annual import applicable for him.

The following goods shall not be importable:

(1) Maps, charts and geographical globes which do not

indicate the territory of Bangladesh in accordance with the
maps published by the Department of Survey, Government of

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 the People Republic of Bangladesh;
(2) Horror comics, obscene and subversive literature including
such pamphlets, posters, newspapers, periodicals,
photographs, films, gramophone records and audio and video
cassette tapes etc;

(3) Books, newspapers, periodicals, documents and other

papers, posters photographs, films, gramophone records,
audio and video cassettes, tapes etc. containing matters likely
to outrange the religious feelings and beliefs of any class of
the citizens of Bangladesh;

(4) Unless otherwise specified in this order, 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;
(5) Unless or otherwise specified in this order, all kinds of waste;
(6) Goods (including their containers) bearing any words or
inscriptions of a religious connotation the use or disposal of
which may injure the religious feelings and beliefs of any class
of the citizens of Bangladesh;

(7) Goods) bearing any obscene picture

(8) Import of live viper and any item prepared from swine is banned.

 Rules and Regulations to be followed for Export of Products:

1) Control of Export of Products:

 Export Prohibited Products: Unless otherwise
stated, products prohibited under this Export
Policy cannot be exported.

 Products under Conditional Export: Products

which are exportable under some conditions can
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 be exported only after fulfilling those conditions.

 Classification of Product and Service Sectors :

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.

Highest Priority Sectors

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.

Special Development Sectors:

1) Crushed and finished leather production;

2) frozen fish production and processing;
3) handicrafts;
4) electric and electronic products;
5) fresh flower and foliage;
6) jute and jute products;
7) hand-woven textiles from hilly areas
8) uncut diamond;
9) producing herbal plants, medicine and medicinal products;

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 10) ceramic products and melamine;
11) plastic products

 General Export Facility:

1) Export Promotion Fund

2) Financial Facilities
3) Funding for Export
4) Export Credit
5) Exception from Insurance Premium
6) Incentives for Export of Non-traditional Industrial Products
7) Bond Facilities for Export Oriented Industries:
8) Providing alternative incentives, instead of duty
bond or duty draw-back to export-oriented local
textiles and readymade garment industries
9) Easing VAT return on Export-facilitating Services
10) General Facilities for Export-Oriented Industries
11) Reduced Air fare for the export
12) Encouragement and Facilities for Exports Based on Sub-
Contracting
13) Issue of Multiple Entry Visa
14) Foreign Trade Related Training
15) Setting up of Permanent Fair Complex and World Trade Center
16) Direct Air-Booking System.

Export of Services:

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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

 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;

 Export Promotion Bureau will take initiatives for

maintaining export statistics of service sector in parallel
with that of goods;

 Steps will be taken to enhance the capacity of

Bangladesh Missions abroad to promote export in the
service sector;

 A committee named “Service Export Development

Coordination Committee” headed by the Vice Chairman,

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 Export Promotion Bureau and represented by the
concerned service sectors will be constituted to
coordinate the activities of export promotion in service
sectors.

 Different service sector specific Business Promotion Councils will be

constituted.

 List of Export-Prohibited Products:

 Petroleum Product
 Jute and `Shan‟ seeds
 Wheat
 Any kind of live animals
 Fire arms, ammunition and related materials.
 Radioactive materials
 All shrimps except chilled
 Cane, wood, wood logs
 All types of frogs
 Raw and wet blue leather.
 Onion

Trading Corporation of Bangladesh (TCB)

Trading Corporation of Bangladesh (TCB) in the backdrop of
scarcities of essential consumer items and industrial raw materials after
the liberation of Bangladesh in 1971, the Trading Corporation of
Bangladesh (TCB) was established under President's Order No. 68 of
1972.

The main functions of the Corporation are:

 To carry the business of imports and exports in accordance

with the policy of the Government.

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  To arrange for the sale and distribution of the imported
goods and to appoint dealers/agents etc. for this purpose
as per Government directives.
 To do all other acts and things connected with or ancillary thereto.

Tariff Commission
According to Bangladesh Tariff Commission Act 1992, the
Commission may be required to advise the government on the
following matters:

a) Providing protection to industries within Bangladesh;

b) Encouraging competitiveness in industrial production;
c) Ensuring efficient use of industrial resources;
d) Promoting exports from Bangladesh;
e) Increasing efficient use of resources within and outside Bangladesh
through bilateral and multilateral negotiations. to counter dumping
and other unfair measures adopted in respect of import and sale of
foreign goods in Bangladesh; and
f) Any other matter relating to protection or assistance to domestic
industry or efficient use of resources in such industry that the
Government may refer to the Commission.
In addition to the functions above, the Commission may assist the
government in preparing the national budget and also advise the
government on trade matters

Functions and Responsibilities of the BTC

For a smooth and speedy disposal of business, the Commission has
been divided into three wings:
(a) Trade Policy Wing,
(b) Trade Remedies Wing,
(c) International Cooperation Wing. Each Wing is headed by a Member.
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 Besides, there is also an Administrative section headed by the
Secretary of the Commission to conduct administrative business of
the Commission.

Conclusion:

From the conversation we can effortlessly pronounce that, International

Trade is measured an awfully significant fraction all above the world.
It is well thought-out as a vital resource of returns and also for
employment. Furthermore replace the goods and services from one
country to another country. It is based on the free exchange of goods
started as early as 2500 BC. We talk about WTO, which is largely
worked for the progress of World Trade. WTO is successor of the
GATT (General Agreement on Tariffs and Trade). Bangladesh has
been a WTO member since 1 January 1995.Infact Bangladesh is the
founder member of WTO. The volume of world trade in 2004 was
about three times what it was in 1990 and approached eleven trillion
U.S. dollars. In addition, many developing countries have shifted their
emphasis from demanding tariff cuts by wealthy countries for their
exports to requesting technical assistance to increase production and

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 exports.

Guidelines:

1. The country’s import requirements are large and the

imperative to increase exports is immediate.

2.The significance of foreign trade to the economy is visible in a

number of facts and figures. So necessitate more government
concern.

3. Export of Bangladesh is decreasing then the previous years.

So have to know the reason why it is decreased and work
out the difficulty
4. The crisis of stability of trade in Bangladesh is well known:
ever since the independence of the country, export earnings
have persistently fallen behind import payments.
Consequently, every year the country incurs a huge trade
deficit. So, require to find out the dilemma. Government and
concentration of export and import business man can simply
resolve the problem.

5. Bangladesh performs export and Import business with a

number of little number of countries from side to side a little
number of commodities, Need to raise the number of export
and import business area and products also.
6. The price of finished product is excessively higher than the
rise in the price of the raw materials in the international
market. Extremely higher price product is applicable for the
county which has high income of people or for market
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 skimming. So need to discover a number of alternatives.
7. The product of both export and import must check very
carefully before importing and exporting. No illegal product
is acceptable.

Policy guidelines for economic development of Bangladesh:

1. We know, Export industry is positively related with the

income in particular industry. But it is mismatch in
Bangladesh. The salary of the garments people re not
sufficiently increase. So try to sort out these problems.
2. Improvement of general quality of institutional framework.

3. If government determines the trade &foreign exchange

policies, then do it in n effective way.
4. Foreign resources can be made available by using the
international trade to mitigate backward integration of
RMG sector in Bangladesh.
5. As, International Trade involves less amount of resources,
we should create scope (FDI) for different country’s
companies.

6. By using IT we can test our country market s it ir the most inexpensive

way.
7. As the growth rate of service sector is high than
merchandise, Bangladesh is focusing on service sector.
8. Dr. Paul Samuelson predicted that in 2055 the growth rate
of service &merchandise will be same. So Bangladesh
should focus on service & merchandise tactically.
9. Bangladesh should focus on the protection of trade related property
rights.
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 10. To increase the export rte Bangladesh should motivate
developed countries to provide technical assistance
facilities.

REFERENCES:
1. http://en.wikipedia.org/wiki/Economy_of_Bangladesh
2. www.mincom.gov.bd/
3. www.bb.org.bd
4. www.scribd.com/
5. www.epb.gov.bd
6. www.ccie.gov.bd .
7. www.economywatch.com
8. www.wto.org ›
9. http://www.indexmundi.com/bangladesh/economy_profile.html
10. http://www.tradingeconomics.com/bangladesh/gdp-growth
11. http://tazakhobor.com/national/4591-budget-2013-14-gdp-growth-target-
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