Assignment On Import Trend of Bangladesh (2001-2009)

Course Title: Export Import Management (IBS-3338) Submitted to: Maruf Reza Byron Faculty, UIU Submitted by

Date of Submission
15.3.2011

UNITED INTERNATIONAL UNIVERSITY

Table of Content

Content Introduction
IMPORT TRADE CONTROL (ITC) COMMITTEE

Page No. 3 3

Regulation of import Import duties Source of finance Bangladesh imports: Commodities Bangladesh Import Commodities 2001-09 Bangladesh trade growth Changes in import Conclusion

4 5 6 7 8-12 13 13 14

Introduction
The term "import" is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter. Thus an import is any good (e.g. a commodity) or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country. In Bangladesh, there are some commodities that people import to some country.

IMPORT TRADE CONTROL (ITC) COMMITTEE

ITC Committee: --(1) In case of any dispute between an importer and the Customs Authority on ITC classification or description of goods imported under First Schedule of Customs Act., importer may ask for adjudication by the local ITC Committee set up at Chittagong, Dhaka, Khulna, Benapole and Sylhet.

(2) The local ITC Committees will consist of representatives of the Chief Controller, Local Chamber of Commerce and Industry and the Customs Authority and will be headed by the representative of the Chief Controller.

(3) If the local ITC Committee is required to discuss and take decision about any special type of item, a representative from the concerned Trade Association which represents that particular item shall also be invited to attend the relevant meeting of the Committee.

(4) The importer concerned shall be given an opportunity to plead his case before the local ITC Committee. Necessary decision shall be taken by the above Committee within 15(fifteen) days.

(5) If the importer is not satisfied with the decision of the local ITC Committee, he may file an appeal to the Central ITC Committee at Dhaka which shall consist of the Chief Controller as the Chairman and representative of the National Board of Revenue, the concerned sponsoring authority and the Federation of Bangladesh Chamber of Commerce and Industry as members.

(6) A revision petition may be filed with the Secretary, Ministry of Commerce in accordance with the Review. Appeal and Revision Order, 1977, if the decision in appeal does not satisfy the importer.

(7) In addition to appeal petition, the Chief Controller may, if he considers necessary, place any case relating to ITC matter before the Central ITC Committee.

Regulation of Import
Import of goods under this Order shall be regulated as under: (a) Banned list: Unless otherwise specified, items included in this list can not be imported. List of import banned items has been attached in annexure - I; (b) Restricted list: Any item included in this list shall be importable only on fulfillment of the conditions (b) specified there in against the item. The list of restricted items has been attached in annexure - I (b); (c) Freely Importable Items: Unless otherwise specified, any item, which does not appear either in banned or in restricted list shall be freely importable; (d) In addition to the conditions mentioned in the Restricted and Banned Lists, the conditions, restrictions and procedures for import of various items mentioned in the text portion of this order, shall as usual apply in case of import of those items; (e) If, while determining the import status of an item mentioned in the Restricted and Banned Lists, the description of goods does not conform to the H. S. code mentioned against the item or any discrepancy arises between the H. S. Code and the description of goods in that case the description of good shall prevail; (f) Conditions of Ban and Restriction: If the import of an item had been banned at any time before the coming into effect of this Order or if such ban has been made effective

by virtue of the placement of the item in the control list annexed to this Order such ban such shall be subject to the following conditions: (i) The concerned sponsoring authority/Tariff commission shall strictly monitor production of the industrial unit which is being afforded protection by the ban. The ban may be revoked on the recommendation of the concerned sponsoring authority/Tariff Commission if the quality of products deteriorates and the price of the product is not maintained at satisfactory level or if production level fails leaving unutilized capacity. Such of the protected units as are now primarily engaged in assembly type activities shall actively and expeditiously move towards progressive manufacture. (ii) The sponsoring authority concerned and Tariff Commission shall continuously monitor the prices of the items covered by such ban to guard against undue increase of price. If the price of any item is increased except for factors like rise in the price of raw materials or decline in the rate of exchange or if the increase in the price of the item is disproportionately higher compared to the rise in the price of the raw material, the ban may be revoked on the recommendation of Tariff Commission/sponsoring authority. (iii) Whoever feels aggrieved by any decision regarding ban or restriction on import of any item can represent his case to the Tariff Commission. The Tariff Commission will duly examine such a representation and furnish as early as possible its recommendation (s) to the Ministry of Commerce for latter's consideration.

Import Duties
Despite some recent reductions, tariffs in Bangladesh remain high, averaging over 50 percent. At the recommendation of the World Bank, Bangladesh has placed a 100 percent tariff ceiling on most goods, with the intention of bringing the ceiling down to 60 percent in fiscal year 1993-94. A value-added tax (VAT) of 10 to 20 percent and additional fees, typically adding up to 15 percent of the cost and freight value, are also applied to imports. Duties are reduced to 2.5 percent for installation of imported machinery in less developed areas. Duties are also reduced to 2.5 percent for capital machinery and factories which use 70 percent or more indigenous materials and for imported machinery for exportoriented industries. Exemptions from duties and the import sales tax are available for a variety of goods.

Source of finance
1. Import may be allowed under the following sources of finance:

(a) Cash (i) Cash foreign exchange (balance of the foreign exchange reserve of Bangladesh Bank); (ii) Foreign currency accounts maintained by Bangladeshi nationals working/living abroad; (b) External economic aid (Commodity Aid, Loan, Credit or Grant); (c) Commodity exchange: Barter and special trading arrangement (STA); this source shall be abolished as and when present agreements expire. 2. Commercial importers and industrial consumes may utilize their respective shares under Barter/STA as per basis notified. (3) Import under the Special Trading Arrangements (STA) which are or were concluded with prior approval/permission of the government, shall be subject to the specific procedures laid down by the government in this respect. (4) The provision of this Para will remain effective only up to the time of completion of on going agreements.

Bangladesh Imports: Commodities

Here are the major import commodities of Bangladesh. Edible oil Machinery and equipment Chemicals Iron and steel Textiles Crude petroleum Petroleum products Cement Pharmaceutical products Fertilizers Dyeing & Tanning materials Plastic & Rubber Cotton Yarn

MERCHANDISE IMPORTS Food grains Period Milk & Dairy Product s 15 Oil seeds 17 Edible oil 18

Commodities ( others than food grains )

Rice

Wheat

Total 14=(12+ 13)

Spices

P (a

12

13

16

2001-02

87 1220 842 1627 787 1234 5993 1642

983 1145 1690 1915 2012 2774 3681 4431

1070 2365 2532 3542 2799 4008 9674 6073

339 353 359 532 489 572 943 663

72 185 177 254 212 525 550 428

412 369 434 526 607 736 932 1094

1439 2110 2773 2698 3174 4022 6905 5953

505 840 707 974 1094 1356 2242 1609

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

MERCHANDISE Commodities Crud e Petro lileum Petro lileum Prod ucts Phar maceuti cal Prod ucts Dyei ng & Tann ing Mate rials Plast ic and Rub ber articles ther eof 28 Text ile and artic les ther eof 31

IMPORTS ( other than food grains ) Capi tal Mac hine ry Othe rs (Incl udin g EPZ) Tota l (15 through 35) Bala nce of Trad e 38=( 1137)

Perio d

Sug ar

Clink er

Che micals

Ferti lizer s

Cott on

Yarn

Stap le Fibr es

Iron & Stee l

Tota l Impo rts

20

21

22

23

24

25

26

27

29

30

32

33 237 2 263 4 282 6 419 3 659 0 680 5 809 1 103 36

34

35

36

37=( 14+3 6)

2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09

135 601 647 135 5 837 203 4 271 8 284 4

862 834 821 105 0 141 3 165 6 238 0 215 8

139 1 154 5 148 4 215 7 408 0 360 7 476 7 401 2

276 4 358 8 453 6 773 5 943 7 118 07 141 16 137 28

192 3 204 2 239 4 314 1 389 7 461 6 610 3 660 6

224 258 267 253 336 338 426 548

615 630 882 203 5 226 2 237 0 433 0 655 8

503 500 644 814 997 111 3 149 2 177 9

143 5 162 7 216 1 293 4 351 6 444 0 554 2 577 9

179 4 227 4 343 6 409 6 498 7 592 6 831 7 887 9

162 2 156 1 190 0 241 4 336 7 402 3 473 9 544 8

610 2 640 6 762 7 964 6 115 98 130 64 129 84 144 43

226 239 339 461 507 671 756 773

318 4 317 2 429 8 687 6 103 65 133 32 114 40 976 3

200 60 217 85 230 13 232 09 265 66 314 10 389 26 453 47

479 79 535 53 617 25 773 53 963 31 114 470 138 696 148 748

490 49 559 18 642 57 808 95 991 30 118 478 148 370 154 821

181 15 226 76 236 76 300 60 365 29 395 60 620 87 573 76

Pie Charts:

2003-04 (TK in core)

Edible Oil Petroleum products Chemicals Cotton Textile Iron & steel Capital Machinery Others

2773 4536 2394 2394 32158 7627 2826 4298

10

2004-05 (TK in core) Edible Oil Petroleum products 2698 7735 3141 4096 42510 9646 4193 6876 Textile Iron & steel Capital Machinery Others Chemicals Cotton

2005-06 (TK in c ore)E dible Oil P etroleum produc ts Chem ic als Cotton Tex tile Iron & s teel Capital M ac hinery Others

3174 9437 3897 4987 50079 11598 6590 10365

11

Ed 2 0 0 6 -0 7 (TK in c o re) ib le O il 4 0 2 2 11 8 0 7 4 61 6 59 2 6 58859 1 30 6 4 6805 13332 Te x tile Iro n & s te e l C a p ital M a c h in ery O the rs P e tro le u m pro d u c ts C h e m ic a ls C o tto n

E 2007-08 (TK in c ore) dible O il P etroleum produc ts Chem ic als Cotton Tex tile Iron & s teel Capital M ac hinery O thers

6905 14116 6103 8317 80417 12984 8091 11440

12

2 0 0 8 -0 9 (TK in c o E d ib le O il re ) P e tro le u m p ro d u c t s C h e m ic a ls C o tto n Te x tile Iro n & s te e l C a p ita l M a c h in e ry O th e rs

5953 13728 6606 8879 84019 14443 10336 9763

If we analysis our Import trend from 2001-09,then we will find that our import trend increase year by year. In 2001 Bangladesh import Edible oil by Tk 1439 core and in 2009 it is Tk. 5953. In 2001 we import capital machinery only Tk. 3184 core but in 2009 it was Tk. 9763 core. In other side we import textile material by Tk. 6102 core in 2001 and in 2009 it is 14443 cores. In 2009 we import petroleum product by Tk. 13728 core and if we see to the 2001 chart, it was only Tk. 2764 core. In other sector where we import more these include rice, wheat, milk and dairy products, oil seeds, spices, sugar, fertilizers, plastic and rubber , yarn and etc. in these sector we expend Tk. 29471 core in 2001 and in 2009 it was Tk. 84019 core. So above these we can say that our import trend in every sector increase very highly.

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Bangladesh TRADE: Growth

The Government of Bangladesh undertook significant steps during the 1980s.Consequently there was a tremendous increase in the export of ready-madegarments and knitwear, which garnered maximum foreign exchange for the country. Cheap labor and low conversion costs are the major factors behind the growth of Bangladeshs garments industry. Over 3 million Bangladeshis (90%women) are employed in this industry. Bangladesh shares excellent trade relations with the US, showing noteworthy trade surplus with the latter. The country is an active partner of the Asia pacific trade agreement and the world trade organization. A number of export processing zones have been set up by the government to enhance economic growth by attracting foreign investment.

Changes in Import over the year of 2001-02 to 2008-09

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Import (Billion US $ ) 8.54 9.66 10.90 13.15 14.75 17.16 20.37 21.44

14

25 20 15 10 5 0 Conclusion
After discussion about the import trend in Bangladesh, we can say that Government should go on easy the regulation on import business. Government also should expand the import business by importing more different several of products. By this Government can reduce the unemployment of Bangladesh.

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

15

References

http://www.reportbd.com/articles/31/1/Bangladesh--ExportOverview/Page1.html

and-Import-

http://www.workmall.com/wfb2001/bangladesh/bangladesh_economy.html http://en.wikipedia.org/wiki/Economy_of_Bangladesh

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