Frequently Asked Questions about Bangladesh International Trade 1. What are the main import and export commodities in Bangladesh? Bangladesh’s main imports are cotton and cotton yarn, mechanical and electrical equipment, petroleum and petroleum products, steel, chemicals, food, household appliances, plastics and rubber products, etc. The main export commodities are ready-to-wear, leather and leather products, frozen fish and shrimp, Footwear, jute and jute products, etc. In recent years, the main categories of China’s exports to Bangladesh include: ① cotton; ② boilers, mechanical appliances and parts; ③ electrical machinery, electrical, audio-visual equipment and their parts and accessories; ④ chemical fiber staple fiber; ⑤ chemical fiber filament; ⑥ fertilizer ⑦Knitted fabrics and crocheted fabrics; ⑧Vehicles and their parts and accessories, except railway vehicles; ⑨Special woven fabrics, tufted fabrics, embroidery, etc.; ⑩Steel products. The main categories of imported goods from Bangladesh include: ①other plant fibers; paper yarn and woven fabrics; ②non-knitted or non-crocheted clothing and clothing accessories; ③knitted or crocheted clothing and clothing accessories; ④other textile products; ⑤ Ore, slag and ash; ⑥ Plastics and their products; ⑦ Raw hides (except fur) and leather; ⑧ Fish and other aquatic invertebrates; ⑨ Optical, photographic, medical and other equipment and accessories; ⑩ Cotton. 2. Which international organizations has Bangladesh joined? Bangladesh joined the General Agreement on Tariffs and Trade in 1972 and automatically became a member of the WTO on January 1, 1995. Bangladesh is a member of the Asia-Pacific Trade Agreement (APTA), the SAARC Preferential Trade Arrangement (SAPTA), the SAFTA Free Trade Agreement (SAFTA), eight developing countries’ preferential trade arrangements, the sponsor of the SAARC, and the second Member States of the Regional Cooperation Organization “South Asia Growth Corners”, member countries of the ASEAN Regional Forum and member countries of the Bangladesh-India-Myanmar Economic Cooperation Organization (BIMSTEC). As one of the underdeveloped countries, Bangladesh, in addition to enjoying the EU’s Generalized System of Preferences, has also received tariff-free market access treatment from Canada, Norway, Japan, New Zealand, and Australia; since July 1, 2010, China’s 4,762 tax items are exported to China with zero tariffs, accounting for about 60% of all tariff items. 3. What restrictive regulations exist in Bangladesh’s import and export management? Bangladesh implements a trade liberalization policy, but many general commodities are still included in the list of prohibited/restricted imports. The prohibited goods include: terrorist, obscene or destructive literary works (in any form), any books, newspapers, periodicals, pictures, films, audio and video storage media that are different from Bangladesh’s religious beliefs, second-hand office equipment, photocopiers , Telegraph, telephone, fax machine, etc., all kinds of waste, pork and its products, etc. Most of Bangladesh’s commodities can be exported freely. The restricted products include: urea, audio and video entertainment, natural gas ancillary products, chemical products listed in the Chemical Weapons (Control) Act, etc.; the prohibited products include: except natural gas Other petrochemical products, jute seeds, wheat, weapons, radioactive materials, archaeology, human organs and blood other than ancillary products, shrimp products other than frozen shrimp, wild animals, etc. In addition, to encourage exports, the Bangladeshi government has formulated special policies for textile companies, frozen fish, jute, leather, ships, and processed agricultural products. 4. How to inspect and quarantine import and export commodities in Bangladesh? Bangladesh has implemented the “Pre-Ship Inspection System” (PSI) for imported goods on February 15, 2000, and implements cargo value evaluation and bulk state inspection (CKD or SKD inspection) for goods exported to Bangladesh before shipment. PSI is a mandatory import management standard. Unless otherwise specified, the system applies to all goods imported to Bangladesh from countries and regions around the world. The PSI system is designed to prevent importers from under-reporting the invoice amount or misreporting the HS code, but it causes more problems for Bangladesh’s import trade. For example, if the PSI company does not issue a clean report in time, the importer cannot declare customs in time, and PSI company overestimates the goods Value causes importers to overpay duties, etc. 5. How about the customs duties of Bangladesh? Bangladesh Customs is part of the Internal Revenue Service. The main legal system for customs administration is the “1969 Customs Law.” The import tariff rate of Bangladesh is basically in the range of 0-25%. The tariffs on most imported goods are 3%, 5%, 12% or 25%. For specific commodity tariff information, see the National Board of Revenue (National Board of Revenue) website: http://www.nbr.gov.bd/tariff_schedule.php?lan=eng 6. What is the international trade settlement method in Bangladesh? Import business in Bangladesh must be paid by irrevocable letter of credit. Unless authorized by the Ministry of Commerce of Bangladesh, CIF is not allowed in import trade to protect Bangladesh’s insurance and transportation industries. Unless otherwise specified, imported goods must be inspected before shipment by an international commodity inspection agency contracted by the Bangladesh government. 7. How to avoid illegal operations by the issuing bank? Some banks in Bangladesh often do not abide by international trade practices and operate in violation of regulations. Even if the beneficiary’s documents are consistent and the bills are consistent, they often delay payment or refuse to pay because the importer uses the quality of the goods as an excuse. For this reason, relevant investors should strictly do a good job in the examination of the letter of credit, require the counterparty to issue a letter of credit at sight, and pay attention to no discrepancies when examining the documents. Regarding the banks with more complaints, the Economic and Commercial Counseling Office of the Chinese Embassy in Bangladesh has published it on its website. 8. What should I do if the issuing bank violates the regulations and defaults on payment? In the event that the issuing bank defaults on payment in violation of the regulations, it shall strive for reasons and require the counterparty to pay on time in strict accordance with the uniform rules of international trade related to letters of credit. If, after negotiation, the issuing bank still refuses to pay, you can seek help from the Economic and Commercial Counselor of the Embassy in Bangladesh. The enterprise shall provide the following information accurately to the Economic and Commercial Counseling Office: (1) The full English name of the bank that opened the letter of credit, the name, title, and mailing address of the person in charge of the bank. (2) The full English name of your company. (3) L/C No. number of the letter of credit. (4) The amount of arrears settled by the letter of credit (USD). (5) A brief description of the event of the trade debt dispute. (6) Scanned copies or photocopies of all documents proving the above-mentioned trade debt disputes. The Economic and Commercial Counseling Office will actively promote the resolution of the incident on the basis of reviewing the relevant materials of your company. 9. How to strengthen the prevention and control of international trade risks? The first is to strengthen their own legal awareness, strictly follow the contract to regulate the trade behavior of both parties, and must not relax contract review or even use proforma invoices instead of contracts to conduct trade; reject any illegal requests made by the other party, and do not give unscrupulous businessmen a chance. The second is to carefully choose partners, choose a good reputation and large-scale cooperation partner, and hire a professional self-confidence investigation agency to investigate the self-confidence status of the partner when necessary. Third, it is recommended to insure export credit insurance for large export contracts.