Quota:

A quota is a government-imposed trade restriction that limits the number or monetary value of goods
that a country can import or export during a particular period. Countries use quotas in international
trade to help regulate the volume of trade between them and other countries.

Tariff:

A tariff is a tax imposed by one country on the goods and services imported from another country.

Tariff or Custom Quota:

Bangladesh tariff, Import, export Quotas:

The import quota means physical limitation of the quantities of different products to be imported from
foreign countries within a specified period of time, usually one year. The import quota may be fixed
either in terms of quantity or the value of the product.

Bangladesh - Import Tariffs:

The average Most Favored Nation (MFN) tariff rate is 13.9 percent, with average rates for agricultural
products higher than for industrial goods. The maximum MFN applied rate is 25 percent. Products
subject to rates of from 5 to 25 percent include general input items, basic raw materials, and
intermediate and finished goods. Bangladesh provides concessions for the import of capital machinery
and equipment, as well as for specified inputs and parts, which makes determinations of tariff rates a
complex and non-transparent process. Other charges applicable to imports are an advance income tax
of 5 percent; a value-added tax of 5 to 15 percent, with exemptions for input materials previously
mentioned; and a supplementary duty of 10 to 15 percent, which applies to luxury items such as
cigarettes and perfume. Bangladesh has abolished excise duties on all locally produced goods and
services, with certain exceptions.

Import quota Bangladesh:

Bangladesh places controls on imports of some items currently listed in the Import Policy Order 2015-
2018 at the website of the Office of the Chief Controller of Imports and Exports.

On February 15, 2016, the Government of Bangladesh introduced the Import Policy Order 2015-18. The
previous policy order expired on June 30, 2015. The new policy puts emphasis on easing the imports of
raw materials for use in export-oriented industries. The country of origin must be noted on all products,
product packaging, or containers. However, for imports of coal, cotton, aluminum, and export-oriented
garment and industrial related raw materials, the country of origin is not required. Nuclear radiation
tests are mandatory for imported milk, dairy, edible oil, vegetable seeds, grains, and other food
products. Such certification should also be submitted to Customs authorities. Non-commercial
importers (individuals and organizations) may import goods worth seven thousand dollars for personal
use; with permission, non-commercial importers may import more than seven thousand dollars’ worth
of goods. According to the new policy order, ocean-going ships, oil tankers and fishing trawlers older
than 25 years cannot be imported. To import abandoned ships (scrap vessels), the exporter or owner
must have a certification and importer must issue a declaration to the effect that ‘toxic or hazardous
waste are not being transported’.

Items banned on either religious, social, health, or economic policy grounds include illegal drugs,
materials that would offend religious sensitivities, certain agricultural products and several types of
reconditioned equipment. In addition, the importation of goods from Israel and shipment of goods on
vessels operating under the Israeli flag are prohibited. Additional items are restricted, but not banned,
from import for religious, social, health, security or trade reasons. Of the restricted items, some may be
imported with prior permission, while other items may be imported only by authorized industrial users
(e.g., pharmaceutical enterprises) or government agencies (e.g., arms and ammunition).

Trade barriers:

In addition to high tariff rates and supplementary duties, Bangladesh has registration procedures and
other regulatory requirements that often impede market access.

Foreign companies are allowed to provide services in Bangladesh except in sectors that are subject to
administrative licensing processes. Yet new market entrants face significant restrictions with respect to
most regulated commercial fields (including telecommunications, banking, and insurance), and the
process for establishing legal entities such as financial institutions is subject to strict regulatory
requirements. There have been reports that licenses are not always awarded in a transparent manner.
Transfer of control of a business from local to foreign shareholders requires prior approval from the
Bangladesh Bank (control is defined as the ability to control the board of directors or a majority of the
directors). In 2016, the Bangladesh Investment Development Authority (BIDA) was formed from the
merger of the Board of Investment and the Privatization Commission. BIDA’s goal is to push for
implementation of a One-Stop Service Act and to become Bangladesh’s one-stop private investment
promotion and facilitation agency. On February 5, 2018, the Parliament passed the One Stop Service Bill
2018. BIDA prepared the rules, which will be formulated under the Act. After the formulation of the
rules, the authority will able to implement the Act properly. BIDA is currently developing an
automation-based business model, which is fully virtual.

China tariff, import, export quota:

Generally, there are two types of barriers to trade: tariff and non-tariff barriers. Tariff Barriers (TBs)
usually take the form of taxes limiting imports from or exports to another country. In contrast, Non-
Tariff Barriers to trade (NTBs), or sometimes referred to as Non-Tariff Measures (NTMs), are set up to
restrict trade in more indirect ways other than trying to discourage trade directly through high taxes or
fees. This article is about the non-tariff barriers.

These two main types of blocking free trade are both more common for imports (but can be often
applied to exports, too). China import quotas, as the most important non-tariff barrier, are one of the
various ways countries try to protect their own domestic market from the adverse effects of an influx of
exports of other countries.
China has been particularly stringent in ensuring that there are compulsory limits imposed against goods
produced abroad and sold within the country. However, this scenario is not exclusive only to China:
many countries around the world impose such restrictions.

A quota generally takes the form of a limit in terms of quantity or value, setting a quantifiable boundary
restricting the amount of goods to be imported into (or exported from) the country. It is a key tool in the
arsenal of barriers of trade.

Absolute Quotas and Tariff-Rate Quotas:

An absolute quota is when there is a numerical restriction imposed over a certain period of time. If that
quota is met before the end of the period, the quota is considered filled and no further goods are
allowed to enter into the country. There are China import quotas with this absolute restriction.

A tariff-rate quota is slightly different. During the quota period, merchandise is allowed to be entered at
a reduced rate of duty. There is no limit to the volume of goods. However, all further merchandise will
be subject to a higher rate of duty after this period. There are also China import quotas with this relative
restriction.

Other Non-Tariff Barrier Restrictions:

Quotas, while popular, are not the only non-tariff barrier enforced by nations around the world. All
related methods seek to achieve the same result as quotas; restricting imports or exports. However, the
details of the method employed vary.

One other type restriction is called an embargo, generally resulting from political reasons, which is a
restriction that outright bans both exports and imports to and from a specific country. Embargoes can
either be total (the USA and Cuba) or a partial (the arms embargo against China by the US and the EU).

Licenses are also commonly used as an instrument to regulate mostly imports but also exports. Licenses
work as a non-tariff barrier to trade as it requires authorization to be received from the government or
appointed body to grant permission to import and export certain commodities. Depending on the
criteria, these licenses can be difficult to acquire.

Another non-tariff barrier is shown in countries requiring certain – often purposely uncommon –
standards to be met by imports. This could be labeling requirements, classification requirements and
necessity of certain tests to be undertaken. These standards can act as a barrier to block products
produced in foreign countries, as well.

Voluntary export restraints are another non-tariff barrier. However, it is special in its nature as it is a
quite rare voluntary restriction. These self-imposed measures usually result from a request made by the
importing country within the scope of trade negotiations.

It may seem unusual why a country would voluntary agree to such a restriction, but when compared to
the other restrictions that could be imposed against them, they are a more favorable alternative.

China Import Quotas and Other Specific Restrictions:

The country enforces strict sanitary rules, requiring significant administrative requirements consisting of
vast amounts of documents and health certificates. This is only one example, with others including strict
labeling requirements consisting of detailed nutritional components as well as the Chinese language
being mandatory.

Currently, specific China import quotas apply to more than 40 categories of goods, including watches,
cars, some textile products and also certain kind of foods. However, most of them are quite old and
China has been gradually eliminating its import quotas and is commonly expected to continue this
process.

China export restrictions:

China's export restraints on raw material inputs can create enormous competitive advantages for
downstream Chinese manufacturers and exporters in markets around the world. At the same time, the
restraints seriously disadvantage U.S. and other foreign manufacturers, exporters, and workers in many
downstream industries that make or use processed steel, aluminum and chemical products.

China's export quotas limit foreign access to these raw material inputs.

Because China is a leading world source of the raw materials, the export quotas can also raise world
market prices for these inputs. The duties that China places on exports of the inputs further contribute
to increased world prices.

At the same time, the export quotas increase the availability of the raw material inputs in China,
creating lower domestic prices that can translate into significant cost advantages for China's
downstream producers when they compete against foreign counterparts in China or around the world.

Recommendation: Trade between Bangladesh and China is highly skewed towards imports from China.
This deficit is growing day by day as new technological developments and cheaper prices push up the
demand of Chinese products.

Major export items from Bangladesh to China include jute and jute products, plastic products, raw hide
and skins, frozen fish and crabs, live eel fish, sesame seeds, and cotton waste products.

Trading with China or entering into the Chinese market, the various tariffs that are imposed are
something to be considered. These tariffs can change according to political relationships between
countries, meaning difficulty for your company can heighten over time, and make it a more challenging
task to deal with the Chinese market.

Reference

https://intrepidsourcing.com/trade-wiki/quotas-restrictions-non-tariff-barriers-to-trade-in-china

https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2009/june/wto-case-challenging-
chinas-export-restraints-raw-materi

https://www.privacyshield.gov/article=Bangladesh-Import-Tariffs

https://databd.co/stories/china-bangladesh-trade-new-prospects-opening-up-for-bangladesh