 |
|
|
 |
|
|
|
Acceleration
of production and expansion of trade result in growth of
national wealth. Increased production in export sectors
may become the prime mover in the development cycle of a
densely populated country like Bangladesh as this will generate
employment opportunities which in turn will generate savings
and investment on consequent flow of capital.
Export trade is characterised by
the dominance of a few commodities in a narrow market. Such
dependence on a limited number of export items targeting
a limited market is not desirable for economic development.
In order to stimulate rapid economic growth of the country,
particularly through industrialization, the government has
adopted an ‘Open Door Policy’ to attract foreign
investment to Bangladesh. The Bangladesh
Export Processing Zones Authority (BEPZA) is the official
organ of the government to promote, attract and facilitate
foreign investment in the Export
Processing Zones. The primary objective of an EPZ
is to provide special areas where potential investors would
find a congenial investment climate, free from cumbersome
procedures.
Objectives:
The principal objectives of export policy are :
1 . To achieve optimum national growth through increase
of export in regional and international market;
2. To narrow down the gap between the country's export earning
and import payment through achievement of the export targets
3. To undertake timely steps for production of exportable
goods at a competitive price with a view to exporting and
strengthening existing export markets and making a dent
in new markets;
4.To take the highest advantage of entering into the post-Uruguay
liberalized and globalized international market;
5. To make our exportable items more attractive to the market
through product diversification and quality improvement;
6. To establish backward linkage industries and services
with a view to using more indigenous raw materials, expand
the product base and identify and export higher value added
products ;
7. To simplify export procedures and to rationalize and
solidify export incentives;
8. To develop and expand infrastructure ;
9. To develop trained human resources in the export sector;
10. To raise the quality and grading of export products
to internationallyrecognized levels.
 |
Target
For the policy period export targets have been set at US
dollar 5020 million for the fiscal
year (F.Y.) 1997-98, US dollar 5,630 million for the
F.Y.1998-99, US dollar 6,340 million for the F.Y. 1999-2000,
US dollar 7,175 million for the F.Y. 2000-2001 and US dollar
8,100 million for the F.Y. 2001-2002.
Product-Specific decisions:
1
Readymade Garments:
Provisions have been made for the exporters of readymade
garments to retain in their respective foreign currency
accounts - the portion of their export earnings required
for meeting the expenses on importing fabrics and other
accessories through back-to-back letter of credit. That
way, the exporters shall be saved from incurring losses
by first converting their export earnings to Taka and then
re-converting the same to foreign exchange for payment of
import bills on raw materials.
For making hand-woven sweaters of natural and synthetic
wool imported under customs, permission would be accorded
to take up such wool outside the bonded area, provided the
concerned firm furnishes a bank guarantee for equivalent
amount of customs duty leviable on such raw materials.
Import of samples for each category of garments:
At present, a facility exists for duty free import of 20
pieces of samples for each category of garments subject
to a maximum of 100 pieces. Imported samples are, however,
subject to mutilation at the customs paid.
Rationalizing the rate of value addition:
(a) It has been found that keeping the rate of value addition
flexible is congenial for the growth of the country's export
trade. Therefore a Standing Committee will be formed for
rationalizing the existing rates of value addition for all
commodities including readymade garments.
(b) When a garment export unit relies exclusively on locally
procured cotton and accessories through back to back L/C
the maximum amount of back to back L/C in case of knitwear
unit would be equal to the value of the master L/C.
Import of grey clothes :
With a view to expanding the base of backward linkage industries,
permission is being accorded for import of grey clothes,
through usual procedure for use in the export industries
or for direct export against specific export orders. So
long this facility used to be given only to the dyeing,
printing and finishing factories. Since value addition in
the readymade garments sector did not take place up to its
potentialities inspite of this facility the government has
allowed the exporters of readymade garments to import grey
clothes.
Establishment
of Fashion Institute :
To sustain in the global competition , a Fashion Institute
will be established in the private sector in cooperation
with the Export Promotion Bureau for the improvement of
quality and design of readymade garments ( including leather
garments ).
Frozen
Fish:
Emphasis has been laid on scientific cultivation of shrimps
for increased production and export of shrimp. With this
end in view, various programmes including setting up of
a Shrimp Development Board, declaring shrimp hatchery as
an 'industry',setting up of a Credit Assurance Fund for
extending loan facilities to the shrimp cultivators and
lowering of customs duty on import of equipments used in
the cultivation of shrimps, will be taken up.
Exporters having fish processing plant will be considered
for allotment of one hundred acres of 'Khas' land for cultivation
of shrimps applying modem techniques.
Bank loan on easy terms will be made available on priority
basis to the frozen food processing plants for the implementation
of the HACCP system.
In an effort to strengthen the quality control system of
frozen food, arrangements will be made for import of essential
quality control equipments free of customs duty.
Cultivation
of Bamboo, Cane and Coconut:
Sac Inspestance has been given to plan cultivation of bamboo,
cane and coconut keeping in view the need to increase supply
of local raw materials to the handicrafts sector.
A Design Centre will be set up to improve the quality of
handicrafts.
Tea
Industry:
The government is contemplating declaring the country's
tea industry as export oriented industry
Land under most of the tea estates at present do not enjoy
long term lease which is a limiting factor for development
activities of tea estates. To remove such impediment, land
under the tea estates will be leased out on long term basis.
Tea estates will be provided with soft term bank loans for
modernizing the plants to achieve high yield and improve
quality of products to strengthen sustain ability in the
international market. Development credit will also be considered
for sick tea estates.
To encourage export of package tea duty drawback at that
rates on FOB value will be provided on import of packing
materials.
General waiver for shipment of goods will be granted in
an effort to increase the export of tea.
Import of multiwall paper sacks on concessional customs
duty for packing of tea will be allowed.
To establish reputation and brand name of Bangladeshi tea
in overseas markets publicity measures will be strengthened.Liaison
shall be maintained, for this purpose, with reputed blending
and distributing agencies.
Jute
Industry:
Reform programmes will continue for the development of the
jute sector.
For developing the export of jute and jute goods, wide publicity
will be undertaken abroad highlighting the comparative advantage
as a natural fibre. Steps will also be taken to demonstrate
the diversified uses of jute goods.
As an incentive to export jute yam and twine, marketing
assistance at the rate of 10% ofF.O.B. value is being extended
to the exporters of this sector for a period of three years
commencing from 1997.
Other Sectors:
Six V-SAT lines have already been established to facilitate
increase of the export of software. Steps will be taken
to install more lines/connections to further increase export
from this sector.
Realizing the importance of software as a potential export
sector a committee was formed to recommend on the potentialities
and technical aspects of the sector. In the light of the
recommendations of the committee, the sorts is considering
to offer some more facilities to this sector.
A jewellery export policy incorporating various facilities
has already been formulated to provide necessary impetus
to the jewellery and diamond cutting industry. Formulation
of a diamond cutting policy is in its final stage.
World
Development Record
Bangladesh
| Merchandise
Exports |
Exports
of Commercial services |
Merchandise
Imports |
Imports
of Commercial Services |
| Millions
od Dollars |
Mfg
% of total |
Millions
of Dollars |
Mfg
% of total |
Millions
of Dollars |
| 1990 |
1998 |
1990 |
1998 |
1990 |
1998 |
1990 |
1998 |
1990 |
1998 |
1990 |
1998 |
| 1,671 |
3,831 |
77 |
91 |
296 |
252 |
3,598 |
6,974 |
56 |
69 |
554 |
1,180 |
World
| Merchandise
Exports |
Exports
of Commercial services |
Merchandise
Imports |
Imports
of Commercial Services |
| Millions
od Dollars |
Mfg
% of total |
Millions
of Dollars |
Mfg
% of total |
Millions
of Dollars |
3,328,
357 t |
5,253,
926 t |
72
w |
79
w |
754,
507 s |
1,279,
291 s |
3,408,
529 t |
5,383,
645 t |
71
w |
77
w |
783,
538 s |
1,266,
754 s |
Low
Income
110,
592 |
165,
177 |
48 |
52 |
16,
955 |
31,
453 |
118,
035 |
177
,252 |
64 |
63 |
30,934 |
57,435 |
Middle
income
613,
527 |
1,124
,846 |
54 |
71 |
104,
602 |
236,
330 |
572,
952 |
1,147,
658 |
70 |
74 |
131,347 |
243,
647 |
South Asia
| Merchandise
Exports |
Exports
of Commercial services |
Merchandise
Imports |
Imports
of Commercial Services |
| Millions
od Dollars |
Mfg
% of total |
Millions
of Dollars |
Mfg
% of total |
Millions
of Dollars |
| 27,790 |
51,606 |
71 |
77 |
6,838 |
12,970 |
39,339 |
67,217 |
54 |
56 |
9,317 |
19,272 |
Terms
of Trade
|
|
| Sources |
|
|
