WELCOME TO OUR PRESENTATIO N

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Export Import Condition of Bangladesh

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International trade

The economic interaction among different nations involving the exchange of goods and services, that is, exports and imports.

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Perspective on International Trade

Education Intellectual Properties Textile Service trade related investments

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Bangladesh Trade: Growth

Fiscal Year Total Export Total Import Foreign Remitta nce Earnings

20072008 20082009 6/21/12 2009-

$14.11b $25.205b $8.9b $15.56b $22.00b+$9.68b $17.6b N/A $10.87b

Exports of Bangladesh during last five years

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Principal Commodities

Export of Principal commodities during last five years (in million taka).
2004-05 2005-06 2006-07 2007-08 2008-09

Readymade garments Made up textile articles Vegetable textile fiber - Yarn Shrimps & Prawn Foot wear Hides, Skins and leather Raw jute Special Woven Fabrics Fertilizer Hats and other headgear

398149 16636 17332 19915 5358 13649 5269 3823 5306 3758

478226 18987 22870 27656 5906 15651 9004 5259 4609 3989

633430 24040 30021 39026 8590 18421 11930 6928 5851 4615

734651 31610 34569 41890 11295 19843 12874 7451 3070 4989

849673 36544 207811 24338 12593 12350 9907 8432 7392 4513

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Possibility of export product from Bangladesh

1. Agricultural crops and crop products 2. Readymade garments 3. Raw Jute & Jute products 4. Ship Building 5. Medicine 6. Fresh Vegetable 8. Handicraft product 6/21/12

Export Policy Objectives of the export policy To export optimal products in

maximum countries. Encouraging female labor in export oriented production. Increasing productivity. Ensuring availability of raw materials for producing export products. Proper utilization of e-commerce. 6/21/12 Provide support to each and every

General Provisions for Export

Control of Export of Products Export Prohibited Products Products under Conditional Export Exportable Products Export opportunities without L/C
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crushed and finished leather production; handicrafts;

Special Development Sectors

frozen fish production and processing; electric and electronic products; fresh flower and foliage; jute and jute products; hand-woven textiles from hilly areas (pahari taat bostro); uncut diamond;

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General Export Facilities

Export Promotion Fund Funding for Export Export Credit Exemption from Insurance Premium Incentives for Export of Nontraditional Industrial Products Bond Facilities for Export Oriented Industries
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Product-Specific Export Facilities

Readymade Garments Industry Handicrafts Made from Bamboo, Cane and Coconut Fibre Tea Industry Jute Industry Leather Industry Export of Services Other Sectors
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Export Procedure

Export Procedure, Issuance and Disposal of EXP Form, Negotiation of Export Bill, Collection of Export Bill, Handling of Discrepant Documents under Documentary Credit, Dispute Settlement, Exchange Rate used in Negotiation and Collection, Realization of Export Proceeds, 6/21/12 Non realization of Export

Methods of Payment

Cash in Advance Letters of Credit Documentary Collection

L C

Sight/Time Drafts aka D/P, D/A

Open 6/21/12

Account

Cash in Advance

- Exporter has no risk of non-payment or non-acceptance - Importer has risk that exporter will not ship the goods as ordered Goods - Used occasionally for small amounts, new customers, one-time Exporter Importer sales Click to edit Master subtitle style

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Letters of Credit
Protects the interests of both the Importer and the Exporter

L/ C

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Exporter is assured payment provided terms of L/C are met Importer is assured terms of L/C have been met before she is required to pay Used for larger

Documentary Collections
Exporter routes documents through banking channels, where they are held for payment or acceptance
Exporter Exporters Importer Bank I mporters Bank

Go Click to edit Master subtitle style

ods
Good s

Less costly than a L/C and avoids tying up Importers line of credit 6/21/12 Average of 2 - 4 weeks for exporter to

Open Account bills Exporter ships goods and

the importer for payment at sight or at a future date

Importer has use of funds, no product risk Exporter has risk of nonpayment Risk can be shifted through credit 6/21/12 insurance,

Invoice

net 30

Goo ds

1.

Export er

OPENING & OPERATION OF LETTER OF CREDIT Importer and 2. Importer Exporter enter applies for a into a sales letter of credit agreement with the Issuing Bank Import
Agreem ent

Import er

er
Applicatio n

Issuin g Bank
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OPENING & OPERATION OF LETTER OF CREDIT 3. Issuing Bank advises the letter of credit to U.S. Bank, usually via L/C SWIFT
U.S. Bank

4.U.S. Bank authenticates the L/C and Benefici advises L/C to ary Beneficiary

SWIF T
Lette r of Credi t

Issuing Bank

Issuing Bank

L/C

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OPENING & OPERATION OF LETTER OF CREDIT

5.

Exporter prepares the documents and ships the goods Export Goods Import
er er

6.Exporter sends shipping documents to U.S. Bank for examination

Export er Documents
U.S. Bank

Good s
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FBM

OPENING & OPERATION OF LETTER OF CREDIT

7. Assuming clean documents, U.S. Bank pays exporter by debiting Issuing Banks account or upon receipt of funds from a separate reimbursing bank. Documents sent to Issuing Bank.
Export er

U.S. Bank

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Doc s

Issuing Bank

8. Issuing Bank examines documents & delivers to importer against Importe r payment. Doc Importer takes s Issuing Import possession of Bank er goods by Doc Good presenting s s documents.

Benefits of Letters of Credit

To the Exporter

To the Importer Documentary Payment evidence that protection the ordered Reliance on goods have issuing banks been shipped credit rather on time than buyers Assurance that Rapid, local necessary source of clearance if repayment, documents a payable at will

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Recommendation
Financing facilities for export oriented industries are to be made available on a priority basis. Lack of adequate finance is one of the major constraints for diversification of export. Small and medium exporters are affected more by this constraint. Therefore, providing financial support is a top priority Private commercial banks may be persuaded to give loans to exporters at rates of interest fixed by the govt. Existing subsidy for export should be continued. New items in the priority list may be considered for granting subsidy. Click to edit Master subtitle style Gas and power supply need to be ensured for export oriented industries. Trade information centre of EPB must be upgraded immediately. Govt. may allow duty free import of capital goods for all export oriented industries. Thesis followed in many other countries. Private sector should take full advantage of the incentives 6/21/12 offered by the govt. These incentives should be utilized for

Thank you all

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