Publish : 15 Jan 2022, 07:40 PMUpdate : 15 Jan 2022, 07:39 PM
With the inclusion of 383 new products, Bangladesh is set to enjoy duty-free access of 98% of its products to China, one of the largest global economies in the world and the largest in Asia.
Bangladeshi products especially leather and leather goods are now under the zero-treatment list with the new number of products enjoying the duty holiday now standing at 8,930 in contrast to that of previously existing 8,547.
In a diplomatic written communication format known as a note verbale, the Chinese embassy on Wednesday informed the Commerce Ministry of granting duty-free treatment for imported goods originating from Bangladesh to promote the economic development of China and Bangladesh and strengthen trade relations.
Chinese Ambassador to Bangladesh Li Jiming has already signed the document on behalf of the Chinese government, and the Commerce Ministry is currently pursuing the signing process.
Commerce Secretary Tapan Kanti Ghosh confirmed the matter to Dhaka Tribune yesterday.
"It would be appreciated if the Bangladesh government could complete the signing of the letter of exchange as soon as possible, to facilitate the enterprises and the people of Bangladesh to benefit from the special tariff treatment soon," the letter read.
According to the Additional secretary to the Commerce Ministry Noor Md Mahbubul Haq, the ministry still has to cross-check products with the harmonized system (HS) code that was written in Chinese, which has been newly added to the duty-free tariff list.
However, leather and leather goods have been included in the list as per the Commerce Ministry official’s assurance.
Shahidullah Azim, vice-president of the BGMEA said that although China offers zero-tariff access for a number of Bangladeshi products including RMG, the export of Bangladesh to China declined by 21.04% in the first half of the FY2021-22.
“China usually meets its own demands with their own clothing items,” he added.
However, Bangladesh exported apparel items worth $110.39 million to China in the first half of the current fiscal year-- fetching a 21.04% negative growth in comparison to the first six months of the previous fiscal year, which was $139.81 million.
In 2020, China offered 97% of Bangladeshi products duty-free access to its market and 8,547 Bangladeshi products came under such treatment but some leather goods, a major exportable to China, were left out of the facility.
According to the Bangladesh Bank, Bangladesh's total imports from China in FY 2020-21 amounted to about $13 billion, which is one-fourth of the country's import expenditure. At the same time, it exported $681 million worth of goods, up by 13.42% over the preceding year.
As a single country, Bangladesh imports the most from China, while its exports to the Chinese market are very low.
The country's duty-free export facility increased from the first day of the last fiscal year, but exports to the destination have not gone up much.
Zero tariff for most Bangladeshi exports to China
Leather and leather goods are now under the zero-treatment list with the new number of products enjoying the duty holiday now standing at 8,930
With the inclusion of 383 new products, Bangladesh is set to enjoy duty-free access of 98% of its products to China, one of the largest global economies in the world and the largest in Asia.
Bangladeshi products especially leather and leather goods are now under the zero-treatment list with the new number of products enjoying the duty holiday now standing at 8,930 in contrast to that of previously existing 8,547.
In a diplomatic written communication format known as a note verbale, the Chinese embassy on Wednesday informed the Commerce Ministry of granting duty-free treatment for imported goods originating from Bangladesh to promote the economic development of China and Bangladesh and strengthen trade relations.
Chinese Ambassador to Bangladesh Li Jiming has already signed the document on behalf of the Chinese government, and the Commerce Ministry is currently pursuing the signing process.
Commerce Secretary Tapan Kanti Ghosh confirmed the matter to Dhaka Tribune yesterday.
"It would be appreciated if the Bangladesh government could complete the signing of the letter of exchange as soon as possible, to facilitate the enterprises and the people of Bangladesh to benefit from the special tariff treatment soon," the letter read.
According to the Additional secretary to the Commerce Ministry Noor Md Mahbubul Haq, the ministry still has to cross-check products with the harmonized system (HS) code that was written in Chinese, which has been newly added to the duty-free tariff list.
However, leather and leather goods have been included in the list as per the Commerce Ministry official’s assurance.
Shahidullah Azim, vice-president of the BGMEA said that although China offers zero-tariff access for a number of Bangladeshi products including RMG, the export of Bangladesh to China declined by 21.04% in the first half of the FY2021-22.
“China usually meets its own demands with their own clothing items,” he added.
However, Bangladesh exported apparel items worth $110.39 million to China in the first half of the current fiscal year-- fetching a 21.04% negative growth in comparison to the first six months of the previous fiscal year, which was $139.81 million.
In 2020, China offered 97% of Bangladeshi products duty-free access to its market and 8,547 Bangladeshi products came under such treatment but some leather goods, a major exportable to China, were left out of the facility.
According to the Bangladesh Bank, Bangladesh's total imports from China in FY 2020-21 amounted to about $13 billion, which is one-fourth of the country's import expenditure. At the same time, it exported $681 million worth of goods, up by 13.42% over the preceding year.
As a single country, Bangladesh imports the most from China, while its exports to the Chinese market are very low.
The country's duty-free export facility increased from the first day of the last fiscal year, but exports to the destination have not gone up much.
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