Welcome to our presentation

ONExporting of Bangladesh

We are-

Nawsheen Huq 1256

Shadman Sakib Khalili 1264

Md. Fahad Bhuiyan 1271

Nurul Alam 1285

Nawshaad Haque 1959

Ishtiaqe Ahmed 1960

Definition of Exporting

Exporting means the function of international trade whereby goods produced in one country are shipped to another country for future sale or trade

The sale of such goods adds to the producing nation's gross output Exports are one of the oldest forms of economic transfer, and occur

on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.

Strategic Advantages of Exporting

Service companies and manufacturers export to increase sales revenues Accountants, advertisers, lawyers or solicitor, and consultants export

their services to meet the needs of clients working abroad Many companies that are not leaders in their domestic markets may

more actively seek export sales as an indirect way to counter the volume advantage commanded by the market leader

A company may alleviate the problem of excess capacity in the domestic market

Some companies export rather than invest abroad because of the perceived higher risk of operating internationally

Exporting enables companies to diversify their activities

Characteristics of Exporters

The probability of being an exporter increases with company size, as defines by sales revenues

Export intensity, the percentage of total revenues coming from export sales, is not positively correlated with company size. Rather, the greater the percentage of exports to total revenues, the greater the degree of export intensity

Exporting is engaged by both big and small companies. More than two-thirds of exporters have fewer than 20 employees

Three Phases of Export DevelopmentThe three phases of exporting development are- Phase 1: Pre-engagement

Companies selling goods and services solely in the domestic markets Companies considering but not currently exporting

Phase 2: Initial Exporting Companies that do sporadic, marginal exporting Companies that see lots of potential in export markets Companies unable to cope with exporting demands

Phase 3: Advanced Companies become regular exporters Companies gain extensive overseas experience Companies may use other strategies for entering markets

Procedure of Exporting

Asses the company’s export potential by examining its opportunities and resources

Obtain expert counseling on exporting Having export licenses and necessary documents approved Select a market or markets Formulate and implement an export strategy

Relation between the exporter and customer

Exporter’s relations with various parties

Trend of Products that are exported by Bangladesh The products Bangladesh exports are

Primary Commodities Frozen Food - Frozen Fish, Shrimps etc Agricultural Products - Team Vegetables, Tobacco, Cut Flower & Foliage, Fruits, Spices, Dry Food Manufactured Commodities – Cement, Salt, Stone, Ores, Slag and Ash, Petroleum bi products, Cemical

Products Pharmaceuticals – Chemical Fertilizer, Cosmetics Plastic Products – PVS Bags, Plastic waste etc Rubber Leather Products Wood Products Handicrafts Pulp Paper Products Silk

Exporting countries of BangladeshAustralia Afghanistan Brazil Canada

Colombia Cambodia Cosovo DjiboutiEcuador France Germany GhanaHungary India Indonesia JapanJordan Korea Lebanon Mexico

Mozambique Myanmar New Zealand Netherlands

Norway South Africa Spain Sweden

Syria Singapore Russia TanzaniaThailand Taiwan Togo UAEUSA Venezuela Zimbabwe UkraineGeorgia Pakistan Sri Lanka VietnamNepal Kenya Yemen MalaysiaIran Philippines Sudan Bhutan

Hong Kong

Current Picture of Exporting of Bangladesh Bangladesh exported worth of $30.25 billion in 2013 Bangladesh is the World leader in textiles and ready-made garments

(second largest exporter after China) Also, it exported jute and jute products, fish and seafood, ocean-going

ships, ferries, pharmaceuticals, software, leather goods, ceramics, processed food, sporting goods, cement, fertilizer, electronic appliances, bicycles, automotive components, agro products, handicrafts

Current Picture of Exporting of Bangladesh (cont.) Main export partners are-

United States 16.7%, Germany 12.5%, United Kingdom 8.4%, France 5.0% (2012 est.)

Export Law, Rules and Policies

General Provisions for Export Rules and Regulations to be followed in Export of Products:-

Bank have to be followed in case of export of goods from Bangladesh. Besides, relevant documents required under the above- mentioned conditions and rules and regulations have to be submitted.

Control of Export of Products Under this Policy, export of products will be controlled in the following

ways, such as:- Export Prohibited Products: Unless otherwise stated, products prohibited under this Export Policy cannot be exported

Exportable Products Unless otherwise stated, all other products except the products under

prohibition and the products under conditional export shall be freely exportable

Export Law, Rules and Policies (cont) Classification of Product and Service Sectors

Some products sectors will be identified as “highest priority sectors” while some others will be identified as “special development sectors” depending on the level of production and supply, potential contribution to the export sector, demand in the international market and above all the capacity to contribute to the socio-economic development of the country

Highest Priority Sectors 1. Agro-products and agro-processed products; 2. Plastic Products; 3. Footwear and leather products; 4. Pharmaceutical products; 5. Software and ICT products; 6. Home textile; 7. Ocean going Ship Building Industries; 8. Furniture Industries; 9. Terri Towel; and 10. Tourism Industries.

Export Law, Rules and Policies (cont) Special Development Sectors

1. Light engineering products (including auto-parts and bicycles); 2. Electric and electronic products; 3. Jute products; 4. Hand loom fabrics; 5. Ceramic products; 6. Frozen fish; 7. Printing and packaging; 8. Rubber; 9. Uncut diamonds and jewelry; and 10. Cosmetics and toiletries

Export Law, Rules and Policies (cont) General Export Facilities

Exporters can retain a certain amount of their export earning in their foreign currency time to time. Under the existing foreign exchange dealing system, exporters can use the retention quota balance for bona fide business expenses, (such as business-related tour participation in export fairs and seminars; setting up and management of offices abroad; importing raw materials/capital machinery; etc)

Export Promotion Fund There shall be an Export Promotion Fund (EPF) with EPB. The following facilities will be available from

this fund: Venture capital at lower interest rates and on soft terms for production of goods; Support for obtaining foreign technical assistance, service and technology for development and diversification of

products; Support for sending marketing missions abroad and participating in international trade fairs; Assistance in possible cases, to set up sales and display centers as well as warehouse facilities abroad; Support for participating in training programs abroad on product development and marketing to improve technical

and marketing skills; and Assistance in other activities related to development and expansion of markets, including products and services.

Export of Services

Generally service sector means the services identified under General Agreement on Trade in Services (GATS) of WTO, such as:-

1. ICT based activities; 2. Construction business; 3. Health service activities e.g. hospital, clinic and nursing services; 4. Hotel and tourism based services; 5. Consulting Services; 6. Laboratory testing; 7. Photographic activities; 8. Telecommunications; 9. Transport and communication; 10. Warehouse and container services; 11. Banking activities; 12. Legal and professional services; 13. Education service, etc; 14. Security service; 15. Pre-shipment inspection (PSI); and 16. Outsourcing.

Export Preferences with Foreign Countries TICFA

TICFA means Trade and Investment Cooperation Framework Agreement This agreement took place between Bangladesh and US in Washington DC

on November 25 Signed by Bangladesh Secretary of Commerce Mahbub Ahmed and Acting

Deputy U.S. Trade Representative Wendy Cutler TICFA provides a mechanism for both governments to discuss trade and

investment issues and areas of cooperation. It is assumed that, with this agreement, the U.S. and Bangladesh will more regularly work together to address issues of concern in our trade and investment relationship

Export Preferences with Foreign Countries (cont)

Aid for exporters by Bangladeshi Government The importance assistances the Government provides to the exporters are as follows:

-project loan at lower rate of interest -Income tax exemption -cash incentive -export loans with soft terms and lower rate of interest -reduced air fare -tax return/bond facilities -assistance in production of marketing -help them to participate in international fair, marketing missions abroad -duty draw back, ECG, EPF fund facilities -International trade related training and workshop -export loan with a lower rate of interest and under easy terms and condition etc

Export Preferences with Foreign Countries (cont)

Identifying the difficulties and barriers faced in international market Export Controls & Licensing Intellectual Property State Trading and Trade Promotion Organisations Exchange controls Trade Barriers Standards Labeling, Marking Requirements Free Trade Zones/Warehouses

Strategies to overcome barriers1. Simplifying export procedures and helping the private sector achieve efficiency. The Govt.

Desires more and more involvement of the private sector while the govt. will continue to play its facilitating role;

2. Enhancing technological strength and productivity and facilitating reduce cost and attain internationally accepted standard of quality of exportable products and thereby consolidate their competitiveness ;

3. Ensuring maximum use of local raw materials in the production of export goods and encouraging establishment of backward linkage industries;

4. Participation in the international trade fairs, specialized fairs, single country exhibitions abroad and also sending out trade missions, with a view to consolidating our position in the existing market and creating new markets;

5. Encouraging export of new category high value added readymade garments and also encouraging the concerned trade associations for establishment of a Fashion Institute

6. For promotion of high value added leather and leather goods export: providing various facilities including bonded warehouse facilities for import of materials such as raw hides, pickled, wet blue, crushed and finished leather, components and chemicals etc. to 100% export oriented leather industries;

Strategies to overcome barriers (cont)1. For promotion of export of shrimp: Extension and modernization of traditional/semi-

intensive method of shrimp cultivation and ensuring quality as per buyers requirements2. For promotion of export of jute and jute goods: Undertaking extensive publicity of jute

and jute goods as environment-friendly natural fibre and diversification of the uses of jute products;

3. For promotion of export of tea undertaking programmes for establishing brand name and developing linkage with established blending and distributing agents;

4. For promotion of export of agro based products: undertaking programmes for raising quality standard and expansion of market;

5. For the promotion of export of electrical and electronic goods ( including computer software and data entry) : Building and ensuring conducive infrastructure;

6. For the promotion of export of engineering consultancy and other services and sub-contracting involving, in a bigger way, Bangladesh missions abroad obtaining contracts

Future of Bangladeshi Products in the international market Garment industry is emerging rapidly in Taiwan, Hong Kong,

Singapore and Korea in Asia. Thailand, Malaysia, Indonesia, Philippines and Sri Lanka have found the garment industry more attractive to develop their economy from 70′s decade

Climate change can be an issue. It may affect the regularity of the growth of perishable goods, and affect the whole demand-supply chain.

The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals

Women’s participation is hopefully going to be higher than present, because socio economic and cultural views are changing day by day

Thank YouThat’s all for our presentation