University of Dhaka

Assignment Topics:
 SPS Requirements for Agricultural Products in Bangladesh.
 Last 15 Years of Export and Import Trends in Bangladesh.
 Understanding HS Code and Its Significance in Global Trade.
 Taxation requirements for import and export in Bangladesh.

Course: Export Import Process

Course Code: E-551

Prepared for:
Dr. Mansura Akter

Prepared by:
Shalim Ahmed
Roll No: 8230306

Date: 13 December 2024

Department of International Business
Faculty of Business Studies (FBS)
University of Dhaka
ASSIGNMENT INDEX
Assignment: SPS Requirements for Agricultural Products in Bangladesh....................................1
Assignment: Last 15 Years of Export and Import Trends in Bangladesh.......................................5
Assignment: Understanding HS Code and Its Significance in Global Trade................................13
Assignment: Taxation requirements for import and export in Bangladesh...............................18
Assignment:

SPS Requirements for Agricultural Products in Bangladesh

Introduction

Sanitary and Phytosanitary (SPS) measures are essential in international trade to protect human, animal,
and plant life or health from risks arising from pests, diseases, and contaminants. For Bangladesh, as a
developing country with significant agricultural exports, compliance with SPS requirements is critical for
accessing global markets.

1. Overview of SPS Measures

 Definition: SPS measures are rules and standards set to ensure food safety and prevent the
spread of pests and diseases.
 Objective: Protect consumer health, safeguard agricultural resources, and promote sustainable
trade.

2. SPS Requirements for Agricultural Products in Bangladesh

Bangladesh implements SPS measures in line with World Trade Organization (WTO) standards and
domestic policies.

a. National Frameworks

1. Plant Quarantine Act, 2011

 Regulates the import and export of plants and plant products to prevent the spread
of pests.
 Requires a Phytosanitary Certificate for exports.

2. Food Safety Act, 2013

 Ensures food safety for consumers.

 Establishes standards for pesticide residues and contaminants in food.

3. Bangladesh Standards and Testing Institution (BSTI)

 Develops and enforces agricultural product quality standards.

 Certifies food products to comply with international norms.

4. Animal Health and Livestock Act, 2010

 Regulates animal health to prevent zoonotic diseases and maintain hygiene in

animal-based exports.

b. International Compliance
 Bangladesh aligns its SPS measures with the following:

1. WTO SPS Agreement:

 Provides a framework for non-discriminatory trade while ensuring safety.

 Requires Bangladesh to meet importers’ SPS standards.

2. Codex Alimentarius:

 Sets global standards for food safety, including pesticide limits and labeling.

3. International Plant Protection Convention (IPPC):

 Ensures compliance with plant health standards to prevent pest entry and
spread.

3. Key SPS Challenges for Bangladesh

 Infrastructure Deficiency: Limited testing facilities for residues and contaminants.

 Capacity Building: Need for skilled manpower in SPS compliance and enforcement.
 Harmonization Issues: Variations in SPS standards across importing countries.
 Awareness Gap: Lack of understanding among farmers and exporters about SPS compliance.

4. Initiatives for Improvement

 Modernizing Laboratories: Upgrading testing facilities to meet international standards.

 Training Programs: Enhancing awareness and technical skills of stakeholders in SPS compliance.
 Policy Harmonization: Aligning local standards with global requirements.
 Digitalization: Streamlining documentation processes such as issuing Phytosanitary Certificates
online.

5. Case Studies

 Success Story: Export of Bangladeshi mangoes to the EU after meeting stringent SPS
requirements.
 Challenge: Temporary bans on shrimp exports due to detection of contaminants.

Conclusion

Ensuring compliance with SPS requirements is vital for Bangladesh to enhance its agricultural exports
and sustain economic growth. By investing in infrastructure, training, and policy reform, the country can
overcome challenges and strengthen its position in the global agricultural trade.
References

 WTO SPS Agreement documents.

 Bangladesh Food Safety Authority (BFSA) guidelines.
 Reports from the Bangladesh Ministry of Agriculture.
 Case studies on Bangladeshi agricultural exports.
Assignment:

Last 15 Years of Export and Import Trends in Bangladesh

Introduction

Bangladesh's trade landscape has undergone significant transformations over the last 15 years. With a
growing economy and increasing integration into global markets, the country has seen changes in its
export and import patterns, focusing on key commodities and destinations. This assignment provides an
overview of these trends, highlighting major export items, import categories, and their respective
destinations.

1. Overview of Bangladesh's Trade Sector

Bangladesh has a trade-driven economy, heavily reliant on exports to generate foreign exchange and
imports for industrial and consumer needs. Key characteristics include:

 Strong dependency on the Ready-Made Garments (RMG) sector for exports.

 A rising trend of importing raw materials, machinery, and consumer goods.
 Diversification in export destinations, with a growing presence in non-traditional markets.

2. Export Trends over the Last 15 Years

Exports of goods and services represent the value of all goods and other market services provided to the
rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties,
license fees, and other services, such as communication, construction, financial, information, business,
personal, and government services. They exclude compensation of employees and investment income
(formerly called factor services) and transfer payments. Data are in current U.S. dollars.

 Bangladesh exports for 2023 was $57.55B, a 2.91% decline from 2022.
 Bangladesh exports for 2022 was $59.28B, a 33.54% increase from 2021.
 Bangladesh exports for 2021 was $44.39B, a 13.65% increase from 2020.
 Bangladesh exports for 2020 was $39.05B, a 15.09% decline from 2019.

a. Key Export Items

1. Ready-Made Garments (RMG)

 Dominates export earnings (approximately 80-85%).

 Includes knitwear and woven garments.

2. Jute and Jute Products

  Traditional export item, though its share has declined.

3. Leather and Leather Goods

 Significant contribution, with a focus on footwear.

4. Frozen Foods and Seafood

 Mainly shrimp exports, contributing to agricultural exports.

5. Pharmaceuticals and Ceramics

 Emerging as new export categories with steady growth.

b. Major Export Destinations

1. European Union (EU)

 Largest market for RMG, especially Germany, UK, and Spain.

2. United States

 A major importer of RMG products.

3. Canada and Australia

 Growing markets for RMG and other goods.

4. Asian Markets

 Japan, India, and China emerging as key destinations for non-RMG exports.
 Last 15 years historical data of Exports -

The chart displaying Bangladesh's exports (in billions of US dollars) and their percentage contribution to
GDP from 2008 to 2023 has been generated.

3. Import Trends Over the Last 15 Years

Imports of goods and services represent the value of all goods and other market services received from
the rest of the world. They include the value of merchandise, freight, insurance, transport, travel,
royalties, license fees, and other services, such as communication, construction, financial, information,
business, personal, and government services. They exclude compensation of employees and investment
income (formerly called factor services) and transfer payments. Data are in current U.S. dollars.

 Bangladesh imports for 2023 was $77.97B, a 18.91% decline from 2022.
 Bangladesh imports for 2022 was $96.16B, a 35.39% increase from 2021.
 Bangladesh imports for 2021 was $71.02B, a 19.98% increase from 2020.
 Bangladesh imports for 2020 was $59.20B, a 8.82% decline from 2019.
 Fig: Import Trends over the last 15 years and compare with GDP growth.

a. Key Import Categories

1. Industrial Raw Materials

 Includes cotton, yarn, and fabrics for the textile industry.

2. Machinery and Equipment

 Heavy machinery for infrastructure development and industrial growth.

3. Petroleum Products

 Essential for energy production and transportation.

4. Consumer Goods

 Includes food items, electronics, and vehicles.

5. Fertilizers and Chemicals

 Critical for the agricultural sector.

b. Major Import Sources

1. China

 Dominates imports, particularly in machinery, electronics, and textiles.

2. India

 Key supplier of raw materials, food products, and energy.

3. Middle East

 Primary source of petroleum and petrochemical products.

4. Southeast Asia

 Malaysia, Indonesia, and Vietnam contribute to imports of edible oil, electronics, and
industrial goods.

4. Major Shifts in Trade Patterns

1. Diversification of Export Items

 Increased focus on pharmaceuticals, ceramics, and ICT services.

2. New Markets

 Entry into African and South American markets for RMG and jute products.

3. Rising Imports for Infrastructure Development

 Import of construction materials and technology-driven equipment for mega projects like
Padma Bridge and Metro Rail.

5. Challenges in Trade

1. Export Concentration

 Over-reliance on the RMG sector poses risks.

2. Trade Deficit
  Imports often outpace exports, creating pressure on foreign exchange reserves.

3. Global Trade Dynamics

 Fluctuations in demand due to geopolitical tensions, pandemics, and economic crises.

6. Recommendations for Future Growth

1. Diversification of Exports

 Develop high-value products like electronics and processed foods.

2. Market Expansion

 Strengthen trade ties with Africa, South America, and emerging Asian economies.

3. Improving Trade Facilitation

 Modernize ports, customs, and logistics to reduce lead time and costs.

4. Skill Development

 Invest in workforce training to improve productivity and innovation.

Conclusion

Over the last 15 years, Bangladesh has demonstrated resilience and adaptability in its trade patterns.
While the dominance of RMG in exports remains, efforts to diversify products and markets have started
yielding results. Similarly, strategic imports are supporting the country’s development goals. With
appropriate policies and investments, Bangladesh can achieve sustainable trade growth and strengthen
its position in the global economy.
References

 Bangladesh Bank Trade Statistics Reports.

 Export Promotion Bureau (EPB) Data.
 Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Reports.
 WTO Trade and Development Reports.
 [Link]
Assignment:

Understanding HS Code and Its Significance in Global Trade

Introduction

The Harmonized System (HS) Code is a standardized numerical method for classifying traded goods
globally. Developed and maintained by the World Customs Organization (WCO), HS codes are used by
over 200 countries to facilitate trade, monitor goods, and apply tariffs and duties. This assignment
explores the HS code system, its structure, importance, and its relevance to countries like Bangladesh in
international trade.

1. What is an HS Code?

 Definition: HS Code, short for Harmonized System Code, is a six-digit code assigned to goods
to classify them uniformly in international trade.
 Purpose: It ensures a common language for global trade, enabling efficient tracking,
documentation, and taxation.

2. Structure of HS Code

HS codes have a hierarchical structure consisting of:

 Chapters (2 digits): Broad categories of goods (e.g., Chapter 61 for apparel).

 Headings (4 digits): Specific groups within a chapter (e.g., Heading 6103 for men’s suits).
 Subheadings (6 digits): Further breakdown for precise classification (e.g., 6103.21 for suits made
of synthetic fibers).

Example:

 HS Code 6103.21 represents:

 61: Articles of apparel and clothing accessories.
 6103: Men’s or boys’ suits, ensembles, jackets, trousers, etc.
 6103.21: Made of synthetic fibers.

3. HS Code: A Country’s Perspective

Importance of HS Code for a Country:

1. Facilitates Trade: Ensures accurate classification of goods, reducing disputes in

international markets.
2. Revenue Collection: Helps in calculating tariffs, customs duties, and trade
statistics.
3. Compliance with Trade Agreements: Aligns with World Trade Organization
(WTO) requirements.
4. Policy Making: Assists governments in analyzing trade data to shape policies.
 Example of Bangladesh
Bangladesh uses HS codes to classify its primary exports such as Ready-Made Garments (HS
Code: 61 and 62), jute products (HS Code: 53), and frozen fish (HS Code: 03).

4. How Countries Use HS Codes

Import and Export Documentation: HS codes are mandatory on customs declarations, invoices,
and shipping documents.

Trade Agreements: Countries use HS codes to define tariff schedules and trade terms in
agreements like Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).

Monitoring and Regulation: Used to track restricted goods, impose bans, or ensure product
safety compliance.

5. Challenges with HS Code Implementation

Misclassification: Intentional or accidental misclassification can lead to penalties and trade

disruptions.

Complexity in Updates: The WCO periodically updates the HS code, requiring countries and
businesses to adapt quickly.

Lack of Awareness: Small businesses often lack knowledge of HS code usage, leading to trade
inefficiencies.

6. Recommendations for Effective Use of HS Codes

Awareness Campaigns: Governments should educate exporters and importers about HS codes.

Technology Integration: Use of automated systems for accurate classification and reduced
errors.

Capacity Building: Training customs officials and trade professionals on HS code updates.

Collaboration with the WCO: Ensure compliance with international standards for seamless
trade.

7. Case Studies

Bangladesh:

RMG Exports: HS Code 6101-6209 facilitates seamless classification for garments

exported to Europe and the US.
 Jute Products: HS Code 5307 ensures accurate tariff calculations for traditional exports
to India.

Conclusion

The HS Code system is a cornerstone of global trade, enabling countries to classify and regulate goods
efficiently. For a country like Bangladesh, leveraging the HS code ensures compliance, enhances export
competitiveness, and strengthens trade relationships. By addressing challenges and enhancing
awareness, countries can maximize the benefits of this standardized system.
References

 World Customs Organization (WCO) resources on HS codes.

 WTO guidelines on trade classification.
 Bangladesh Export Promotion Bureau (EPB) reports.
 Case studies on HS code implementation.
Assignment: Taxation requirements for import and export in
Bangladesh
Here's an overview of the taxation requirements for import and export in Bangladesh. This will cover
common taxes, duties, and requirements that importers and exporters typically encounter.
Tax Type Description Import Requirements Export Requirements
Customs Duty A tax imposed on Rates vary depending on Not applicable to exports.
(CD) imported goods based on product category,
their customs value. typically 0% - 25%.
Value Added Tax Applied on most goods Generally 15% on CIF Not applicable to exports.
(VAT) and services at different (Cost, Insurance, and
stages of production and Freight) value.
distribution.
Supplementary Additional tax imposed on Varies from 10% - 500%, Not usually applicable to
Duty (SD) luxury or non-essential depending on product exports.
goods. type.
Advance Income Tax deducted at source on Typically 5% for Not applicable to exports.
Tax (AIT) the assessed value of commercial imports, may
imported goods. vary based on industry
regulations.
Regulatory Duty Duty imposed to control Varies from 3% - 20%, Not applicable to exports.
(RD) imports of certain goods applied on specific
to protect local industries. products like textiles,
luxury goods.
Advance Trade Collected in advance on 3% on specified goods; Not applicable to exports.
VAT (ATV) selected imported goods calculated on assessed
at the port of entry. value with applicable
taxes.
Export Tax Tax levied on specific Not applicable to Rarely applied but could
export goods (rare and imports. apply to restricted items
limited to select sectors). like raw leather.
Import Permit Legal authorization Mandatory for restricted Not required for exports
required for importing or prohibited goods, unless for banned items or
certain restricted goods. subject to licensing. requiring special
permission.
Export Permit Legal authorization Not applicable to Required for restricted
required for exporting imports. goods, especially raw
certain restricted goods. materials and regulated
items.
HS Codes Classification of goods Mandatory for correct Required for all export
Compliance based on the Harmonized classification and duty documentation and
System (HS). assessment. classification.
Excise Duty A domestic tax on Rarely applied on imports Generally not applicable on
production or sale of but may affect final sale exported goods.
specific goods within price domestically.
Bangladesh.