Export Policy 2015-2018

Export Policy 2015-2018

Md Feroz Ahammad.

Assistant Vice President

Social Islami Bank Ltd

Principal Branch

F. Ex Department

Chapter One

Title, objectives, strategies, application and scope

Title

This Policy shall be called the Export Policy 2015-18. It has been published as on 9^th September 2015 by Ministry of Commerce. It has been come to effect from publishing date to further publish any Export policy order by Bangladesh Govt. authority.

Objectives of the export policy.

The main objectives of the export policy are:

1.      To update and liberalize the trade regime keeping consistence with the global perspectives and needs, and the requirements of World Trade Organization and sub-regional connectivity of the four countries (Bangladesh-India-Nepal-Bhutan).

2.      To take step for raising export earnings to US$ 60 billion by 2021.

3.      To increase export, expand markets and diversify products, and improve balance of trade

4.      Rationally with different countries in light of the Perspective plan and 6th and 7th Five year plan, with a view to graduating Bangladesh to a Middle income country by 2021.

5.      To increase export of all types of products including plant & plant produces and non-traditional products, as well as to establish a compliant supply chain through contract farming, with the conviction of building a poverty-free Bangladesh through creation of employments for the huge population of the country.

6.      To  arrange export of quality products at competitive price, take coordinated effort to upgrade the testing facilities to global standard, improve quality of products, encourage the use of the state-of-the-art, appropriate and environment- friendly technology, produce high value added exportable products and improve designs of products.

7.      To make export trade unhindered by ensuring compliance in the export oriented industry and consolidate the position of Bangladesh in the competitive global trade.

8.      To increase the stake of service sectors including ICT in the export, and bring dynamism to the export trade by utilizing e-commerce and e-governance.

9.      To encourage production of labour-intensive products, and to enhance the involvement of

women force in export oriented industries and trade.

10.  To make infrastructural facilities including electricity, water and gas easily obtainable, enhance capacity of the ports and develop communication system connecting the ports in order to facilitate increasing the export.

11.  To increase the number of Business Promotion Council already established and strengthen their activities to facilitate public-private partnership, export diversification and institutionalization.

12.  To make Bangladesh missions abroad more business-friendly.

13.  To do branding of Bangladeshi products.

14.  To establish more business-friendly banking system under the support of Bangladesh Bank and encourage factoring services for export trade financing.

15.  To expand export trade by establishing import substitute industries.

16.  To encourage FDI (Foreign Direct Investment) in the export oriented industries for escalating export.

17.  To make raw materials, from local and foreign sources, easily available in producing exportable goods.

18.  To enhance productivity and diversify products.

19.  To search for new markets, adopt new strategies, collect and analyze information relating to international market in order to expand market of export products.

20.  To assist in building necessary infrastructure and in special cases backward and forward linkage for encouraging production and marketing of exportable commodities.

21.  To extend all-out assistance to the existing exporters and create new exporters.

22.  To provide assistance in generating skilled manpower suitable for international trade through imparting appropriate training; and

23.  To make the Chambers of Commerce, Trade Associations, Businessmen and the people concerned with trade aware of the changing rules & regulations of the international trade.

Implementation strategy to achieve the objectives & goals of the export policy.

1.       Increasing the institutional capacity and efficiency of the Export Promotion Bureau (EPB),

2.      Providing assistance in capacity building of the Customs Authorities, Sea and Land Port Authorities, Department of Fisheries, Department of Agricultural Extension, BSTI, Tea Board and different trade bodies, and initiating coordinated activities;

3.      Strengthening BFTI ( Bangladesh Foreign Trade Institute);

4.      Involving Tariff commission in research activities;

5.      Modernizing and updating Bangladesh Foreign Missions abroad by strengthening economic diplomacy;

6.       In addition to infusing dynamism into the activities of the 6 (Six) established Business Promotion Council, establishing Business Promotion Council for other products including plastic goods for increasing production and trade through joint initiative of public and private sector for encouraging the production and export of potential goods;

7.      Providing assistance to producers and exporters in getting information on market intelligence regarding demands for commodities abroad, competitive price, expanding markets and in getting competitive and higher price etc. and establishing a strong institutional structure for research in the Export Promotion Bureau;

8.      Extending support to the export facilitating agencies for enhancing work-efficiency and ensuring transparency and accountability by introducing automation arid e-Governance;

9.      Providing assistance for updating and modernizing the over-all trading system by ensuring the best use of all modern technologies including e-Commerce with a view to making the export products more competitive through reducing cost of doing business, increasing production, expanding market and reducing lead time;

10.  Disseminating updated information to the exporters on export markets and technology to facilitate diversification of exports;

11.  Arranging training on different subjects for workers, staff and management personnel with a view to enhancing productivity and establishing more sector specific training institutes.

12.  Encouraging promotion of export through increasing facilities of relevant institutions including trading and export houses;

13.  Providing assistance in establishing internationally accredited certification system to ensure the quality of products;

14.  Giving importance to workers' right including workplace safety;

15.  Encouraging the establishment of product-specific design centers for improvement of product designs;

16.  Encourage to follow internationally accepted best practice/ethical business;

17.   Setting up single window service center to facilitate international trade;

18.  Extending overall assistance to the exporters for producing organic products;

19.  Providing special assistance to the small and Medium Enterprises;

20.  Providing assistance to the exporters for getting themselves familiar with the working process of the importing countries;

21.  Providing different financial incentives to exporters including export credit at comparatively lower interest rate;

22.  Taking supportive measures to improve port management, infrastructure and transport

systems and to simplify procedures for clearing goods in order to reduce lead-time, as well as to introduce one stop service to reduce cost of doing business with a view to increasing competitive strength of the exporters;

23.  Organizing single country trade fairs and providing assistance to the exporters for participation in international trade fairs in different countries under the initiative of exploring new markets for product branding and diversification, sending trade delegation abroad, receiving trade delegation comprising buyers/business associations and taking necessary steps to study market of the products;

24.  Taking all necessary initiatives for getting duty-free market access to developed and developing countries, including the United States with a view to expanding markets of Bangladeshi products and services abroad;

25.  Taking special initiatives to increase export of products and services in South Asia and other countries of Asia including Middle-east and Africa, Brazil, Mexico, Chile, South Africa, CIS countries including Russia, SAARC countries, SADC (South African Developing Countries) and taking initiatives to increase export of products having demand among expatriate Bangladeshis;

26.  Awarding CIP status and National Export Trophy every year to the best exporters of different sectors in recognition of producing new products, diversifying products, enhancing export, etc.;

27.  Regular reviewing of the country's export situation at least once annually and providing

necessary directions by the "National Committee on Export";

28.  Regular monitoring and evaluating the implementation progress of the decisions of the "National Committee on Export" by the Task Force formed for this purpose; and

29.  Identifying problems related to export and recommending possible remedies thereof to the higher authority by the Export Monitoring Committee headed by the Vice-Chairman of the Export Promotion Bureau and represented by the private sector including FBCCI for their implementation.

30.  Formulating export monitoring committee comprising representatives from the related ministries and apex business associations for monitoring Export Policy 2015-2018, reviewing its implementation progress and providing necessary recommendations; and

31.   Establishing export cell in the Ministry of commerce.

Application and scope of the export policy 2015-2018.

1.      Unless otherwise stated, the Export policy 2015-2018 shall be applicable for exports of all types of goods and services from Bangladesh;

2.       The Export Policy 2015-2018 shall be effective from the date of its publication, and remain in force till June 30, 2018. However, this Export Policy will remain valid until the new Export Policy is enforced;

3.      This Policy shall be applicable in all places in Bangladesh except for the Export Processing

Zones, Bangladesh Economic Zones and private Export Processing Zones;

4.      Any tax-and-tariff-related decision announced in the National Budget and by the National Board of Revenue shall prevail over the Export Policy;

5.      Whatever is stated in this Policy, any specific order related to export issued by the government shall prevail over this Policy even if the said order is inconsistent with any provision of this Policy;

6.      The government will review the Export Policy at least once a year, and will make modification, expansion or amendment, if necessary.

Chapter Two

General Provision for Export

Rules and Regulations to be followed in Export of Products.

The conditions stipulated in this Policy or in any other related laws and the rules & regulations related to foreign currency exchange issued from time to time by Bangladesh Bank have to be followed in case of export of goods from Bangladesh; and relevant documents as stipulated in the above mentioned policy, laws, rules & regulations have to be submitted

Which products aren’t exportable from Bangladesh?

1.      Soyabean oil, Palm oil.

2.       

a)      All petroleum and petroleum products except those produced from natural gas (such as naphtha, furnace oil, lubricant oil, bitumen, condensate, MTT and MS). However, this prohibition shall not apply to the export of petroleum and LNG as shares, as per agreement, of the foreign investment companies under the Product Sharing Contracts.

b)      Any outbound passenger shall be allowed to carry goods made in Bangladesh in accompanied baggage, in excess of his or her personal goods, worth US$ 200, which are neither export-prohibited nor included in the list of conditional exports. No facilities such as duty draw back/ adjustment, subsidy etc. for the goods so carried shall be awardable;

3.      Jute and ‘Shan’ seeds.

4.      Wheat;

5.      Rice (except govt. to govt. level rice and aromatic rice);

6.      As per section 29 of WILD LIFE (CONSERVATION AND SAFETY) ACT of 2012 (ACT NO. XXX of 2012), no persona)

a)      through any other route except customs port of exit

b)      without CITES certificate, where applicable, and

c)      without license-shall export or reexport any wild animal or parts thereof, trophy, uncured trophy, or plants mentioned in scheduyle IV or parts or derivativers thereof.

7.      Fire arms, ammunition and related materials;

8.      Radioactive materials;

9.      Archeological relics;

10.  Human skeleton, blood plasma, or anything produced from human beings or human blood;

11.  All types of pulses (except processed pulses);

12.  All shrimps except chilled, frozen and processed ones;

13.  Onion, gahicand ginger;

14.  Seawater shrimps of 71/90 count or smaller, except the species harina and Chaka including sea species PUD, Cooked shrimp;

15.  Cane, wood and wood logs/ thick pieces of wood (except handicrafts made from these materials), However, rubber wood of Forest Industries Corporation will be allowed to export as inputs of furniture industries located in Export Processing Zones which will be considered as deemed export. These furniture industries will have to submit export statements of furniture made from the wood as mentioned aboveto the concerned authority;

16.  Frogs of all species (alive ordead) and frog legs;

17.  Raw and wet blue leather.

Products under Conditional Export

1.      Urea Fertilizer: Urea fertilizer produced in all factories except KAFCO can be exported with the prior approval of the Ministry of Industries;

2.      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;

3.      Petroleum and petroleum products produced from natural gas (such as naphtha, furnace oil, bitumen, condensate, MTT and MS) can be exported subject to `no objection' from the Energy and Mineral Resources Division. However, lubricating oil can be exporfed unconditionally under intimation to the Energy and Mineral Resources Division about the volume of export;

4.      Chemical products stated in schedules 1, 2, 3 of Chemical Weapons (Prohibition) Act, 2006 shall be exportable or export prohibited as per the provision of section-9 of the Act,

5.      Sugar;

6.      Hilsha fish;

7.      Aromatic rice;

8.      Ministry of Commerce will issue permission for export of raw hides and ineat of crocodile produced commercially in individual or Joint Venture farms, on the basis of no objection/approval from the Ministry of Environment and Forest.

Exportable Products

Unless otherwise stated, all other products except for the products under prohibition as listed above and the products under conditional export as listed above shall be freely exportable.

Rules & regulations as stated in this Policy shall not be applicable to the following cases:

1. Store, equipment or spare parts of ships, vehicles or aircrafts bound for abroad, and products declared as part of their kitchen, or the baggage accompanied by the sailors or the crew and passengers of those ships, vehicles or aircrafts;
2. Export of samples subject to fulfillment of the following conditions –
1. All products that are not included in the prohibition list;
2. A maximum of US$ 10,000 worth products per exporter annually (except medicine) based on the FOB (free on board) price;
3. Products sent free of cost as samples, provided that, in case of medicine:

                                                              i.      Any registered exporters who are member of tre registered Associations can send a maximum of US$70,000 worth products as sample, without export L/C (Letter of Credit);or

                                                            ii.      Medicine worth 10% of the total value of each L/C or a maximum of US$ 15,000, whichever is less;

                                                          iii.      Examining on a case-to-case basis, Bangladesh Bank, if necessary, can increase these limits.

4. Subject to the approval of Bangladesh Bank, for 100% export-oriented garment industry, a maximumofUS$15000worthsamplesofreadymadegarmentperyear;
5. The diamond processing farms having bond licenses issued from the Customs Bond Commissionerate or diamond and diamond-studded jewellery processing firms registered as producers with VAT Commissionerate under National Board of Revenue can send abroad cut and polished diamond/ diamond-studded jewellery samples worth US$ 60,000 annually with a view to participating in international trade fair or showcasing for export market development; the samples so sent must be brought back to the country after the show. However, if the samples are sold, all sale proceeds must be repatriated through legal banking channel and the amount of the proceeds shall not be less than the value of the samples;
6. Promotional materials (brochure, poster, leaflet, banner etc.) irrespective of value or weight;
7. Gift parcel worth us$ 2,000 or equivalent in Bangladeshi Taka.
8. Bona tide baggage of travelers traveling outside Bangladesh; and
9. Products exported by the government as Relief Materials.
2. "Sample" means limited quantity of goods easily identifiable and having no commercial value; and
3. "Gift parcel" means gift materials sent by air, by post or by courier service.

Entre-port and Re-export:

1. Entre-port trade means such trade that involves the export of an imported product to a third country at a price at least 5% higher than the import price, and without any change whatsoever in the quality, quantity, shape or any other aspect in this respect. Products under entre-port trade shall not be brought out of the port area. However, in case of export through another port, the products can be transported from one port to another subject to approval from the Ministry of Commerce;

2. Import for entre-port trade: Products for entre-port trade can be imported against back-to-back L/C -- established by the buyer and through ‘Import Permit’ on returnable basis issued from the Office of the Chief Controller of Import and Export. In case of such entre-port import, the words 'entne-port or temporary import' have to be mentioned in the declaration of goods;

3. The imported products shall not be brought out of the port if the import port and the export port are the same;

4. If the import port and the export port are different, products have to be exported within a specific period of time, upon transporting them to the export port on approval from the Customs Authorities paying duty taxes under duty-drawback or providing a 100% bank guarantee;

5. Import price" under entre-port shall refer to the CFR (Cost and Freight) price of the imporfed product declared at the port of Bangladesh;

6. `Re-export" means the export of an imported product within a specific period of time with a value addition of at least 10% to the imported price by changing either quality or shape or both of the products by means of local reprocessing;

7. Import price in this case shall refer to the CFR price of imported product declared at the port of Bangladesh for re-export;

8. In case of clearance from port and re-exportation of readymade garments returned due to defects:

1. For the readymade garment exported under the bonded warehouse system and returned back for defects or any other reason, the Chief Controller of Import and Export shall issue clearance permit for clearing of such products from the port and their subsequent re-export on the basis of no objection from the relevant lien Banks and the Customs Authorities.

2. For the readymade garment made of locally produced raw materials and exported without the bonded warehouse license, and returned for defects, the relevant enterprises can take delivery of such products from the port on submission of clearance permit from the Office of the Chief Controller of Import and Export to be issued on the basis of an undertaking that, such products shall be re-exported within one year. However, in case of failure to re-export as per the undertaking, such products can be sold in the local market subject to payment of VAT payable at the local level as per the existing VAT Act (only in case of local fabrics) equivalent to the drawback received as per Mushak-11.

9. In case of return of rejected fabrics:
1. For the defective fabrics which the supplier/exporter wants to take back and for which no foreign currency has been remitted from Bangladesh, the Chief Controller of Import and Export shall issue the clearance permit for the re-export on the basis of no-objection from the relevant lien banks and the Customs Authorities

2. For the defective fabrics which the supplier/exporter wants to take back and for which foreign currency has already been remitted from Bangladesh, the Chief Controller of Import and Export shall issue the clearance permit for the re-export of such fabrics on the basis of no-objection from the relevant lien banks and the Customs Authorities. However, this clearance shall only be issued after the determination of the volume of defective fabrics through preparation of Inventory as per mutual consent of the Buyer and Seller, and after inward remittance of foreign currency through TT or At Sight L/C or after replacement of an equal volume of products.

Unless otherwise stated, export shall be allowed against L/C established by the foreign buyers:

1. Export opportunities without L/C:- ln-addition to L/C, export will be allowed against buying contract, agreement, purchase order or advanced payment on the basis of obtaining EXP (Export Permit) from the bank; export of all products shall be allowed without L/C on consignment basis in case of advance encashment. TT will also be included under advance encashment; and
2. "Buying Contract" means a signed agreement between an exporter and an importer for the purpose of exporting a product.

Temporary Export for Re-import

1.  
1. In case of sending machinery, equipment or cylinder abroad for the purpose of repairing, re-filling or maintenance etc, a bank guarantee equivalent to the value of the goods shall have to be submitted to the Customs Authorities. In this case, an Export-cum-Import Permit will be required from the Chief Controller of Import and Export (CCI&E).

2. The above mentioned provisions shall be applicable for industrial enterprises, and in this respect the relevant industrial enterprise shall, on the basis of recommendation from the sponsoring authority, furnish an undertaking.

3. In case of turbines capable of producing electricity (with or without gearbox) or of homogeneous machinery, Export-cum-Import Permit has to be obtained from the Chief Controller of Import & Export in order to export the expired turbines to the supplier company on replacement of turbines (with or without gearbox) and other related machinery and equipments imported as per conditions of the L/C/agreement signed with turbine producers or overhauling companies. In this respect service charge/replacement expense can be paid through establishing L/C as per agreement signed with the overhauling companies.

2. For the purpose of repairing, replacing or only for refilling, imported cylinder and ISO tank can be exported on a temporary basis. Provided that, an indemnity bond shall have to be furnished with the Customs Authorities at the time of-export stating that the goods so exported will be re-imported after completion of the necessary works;

3. Bangladeshi exporters shall be allowed to export replacement product if any defect is detected in the exported product as per sales agreement. However, the exporter shall have to submit the following documents to the Customs Authorities:

1. Copy of the Sales Agreement;
2. Letter from the buyer with description of the defective product; and
3. Any other conditions to be fulfilled as per Customs law.
3. Any person can take his or her vehicle along with him or her with a view to travelling abroad on condition of re-import, against a carnete de passage issued by any other authorities empowered to do so, or against an appropriate indemnity bond furnished with the Customs Authorities.
4. Re-exportation of Frustrated Cargo:-A frustrated cargo can be re-exported in compliance with the rules and regulations of the Customs Act, 1969.
5. In order to conduct their activities as per contract, the construction, engineen.ng and electrical companies shall be allowed to temporarily export-cum-import their machinery and equipment under the following conditions:
1. Relevant copies of agreement and award have to be submitted to the customs Authorities; and
2. Necessary indemnity bond has to be furnished stating that the machinery shall be brought back after the completion of the work.
6. Pre-shipment obligations: -Unless otherwise stated, pre-shipment certificate is not obligatory for export of any product.
7. Quality Control Certificate: Quality Control Certificate issued by the competent authority (Bangladesh Standards and Testing Institution/Department of Fisheries/Department of Agricultural Extension/Bangladesh Council of Scientl.fic and Industrial Research) shall have to be submitted to the Customs Authorities in case of export of products for which quality control certificate is obligatory.