Mousumi Saha

Assistant Professor
Institute of Agribusiness & Development Studies
Bangladesh Agricultural University
Mymensingh-2202
 Export
• A function of international trade whereby goods produced in
one country are shipped to another country for future sale or
trade.

• If used for trade, exports are exchanged for other products or

services.

• 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.
 Why Export?
• The sale of such goods adds to the producing nation's gross
output.

• Most of the largest companies operating in advanced

economies will derive a substantial portion of their annual
revenues from exports to other countries.

• The ability to export goods helps an economy to grow by

selling more overall goods and services.
 Bangladesh Exports: Commodities

• Garments

• Frozen fish and seafood

• Jute and jute goods

• Leather
• Garments Ceramics
Products

• Vegetables Frozen
Fish

• Fruits Bicycle
• Leather Handicrafts

• Woven Garments Tea

• Ship building Medicine Products

Export Process
 Export Process
• Packed correctly so that it arrives in good condition

• Labeled correctly to ensure that the goods are handled

properly and arrive on time and at the right place

• Documented correctly to meet local and foreign

government requirements as well as proper collection
standards
 Freight Forwarder
• A freight forwarder is an agent who acts on behalf of importers,
exporters or other companies or persons to organize the safe, efficient
and cost-effective transportation of goods.

Tasks of Freight Forwarder

• Tracking inland transportation.
• Preparation of shipping and export documents.
• Warehousing.
• Booking cargo space.
• Cargo insurance and filing of insurance claims.
• Document delivery.
• After shipment forwarding all documents directly to the customer or to
the paying bank if desired.
 Packing
• Pack in strong containers, adequately sealed and filled when
possible.
• Make sure the weight is evenly distributed.
• Goods should be packed in ocean going containers, if possible, or
on pallets to ensure greater ease in handling.
• Packages and packing filler should be made of moisture-resistant
material.
• To avoid mentioning contents or brand names on packages. In
addition, strapping, seals, and shrink wrapping are effective means
of deterring theft.
 Export packing list
• An export packing list itemizes the material in each individual
package and indicates the type of package: box, crate, drum, carton,
and so on.
• The packing list should be attached to the outside of a package in a
waterproof envelope marked "packing list enclosed.
The list is used by the shipper or forwarding agent to determine:
ü The total shipment weight and volume and
ü Whether the correct cargo is being shipped. In addition, customs
officials (both local and foreign) may use the list to check the
cargo.
 Labeling
Specific marking and labeling is used on export shipping cartons and
containers to:
• Meets shipping regulations.
• Ensures proper handling.
• Conceals the identity of the contents, and
• Helps receivers identify shipments.

Exporters need to put the following markings on cartons to be shipped:

• Shipper's mark.
• Country of origin (exporters' country).
• Weight marking (in pounds and in kilograms).
• Number of packages and size of cases (in inches and centimeters).
• Handling marks (international pictorial symbols).
• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in
English and in the language of the country of destination).
• Port of entry.
DOCUMENTATION
 Required Documents
• Commercial invoice. As in a domestic transaction, the commercial invoice
is a bill for the goods from the buyer to the seller.

• Bill of lading. Bills of lading are contracts between the owner of the goods
and the carrier (as with domestic shipments).

• Consular invoice. Certain nations require a consular invoice, which is used

to control and identify goods.

• Certificate of origin. Certain nations require a signed statement as to the

origin of the export item.

• Inspection certification. Some purchasers and countries may require a

certificate of inspection attesting to the specifications of the goods shipped,
usually performed by a third party.
 Required Documents (Cont.)
• Dock receipt and warehouse receipt. These receipts are used to transfer
accountability when the export item is moved by the domestic carrier to
the port of embarkation and left with the international carrier for export.

• Destination control statement. This statement appears on the

commercial invoice, ocean or air waybill of lading, and SED to notify the
carrier and all foreign parties that the item may be exported only to certain
destinations.

• Insurance certificate. If the seller provides insurance, the insurance

certificate states the type and amount of coverage. This instrument is
negotiable.

• Export license. (when needed).

 Shipping
• The handling of transportation is similar for domestic orders and
export orders.
• The export marks should be added to the standard information
shown on a domestic bill of lading.
• The exporter should also include instructions for the inland carrier
to notify the international freight forwarder by telephone on arrival
• International shipments are increasingly being made on a through
bill of lading under a multimodal contract
• The multimodal transport operator (frequently one of the modal
carriers) takes charge of and responsibility for the entire movement
from factory to the final destination.
 Insurance
• Export shipments are usually insured against loss, damage, and
delay in transit by cargo insurance.

• Arrangements for cargo insurance may be made by either the

buyer or the seller, depending on the terms of sale.

• The carrier's liability is frequently limited by international

agreements and the coverage is substantially different from
domestic coverage.
 Procedure of ERC
Procedure for issuance Export Registration Certificate has been
simplified. It requires only the following documents:
• Trade License.
• Membership Certificate from recognized Chamber/Trade
Association.
• Tax Identification Number.
• Bank Certificate.
• Memorandum and Articles of Association and Certificate of
Incorporation (in case of Limited Company).
 Export Policy
• The important features of the export policies are:
i) Updating and liberalizing the trade regime in accordance with
the needs and requirements of the World Trade Organization and
globalization;
ii) Encouraging labor-intensive (especially female labor) export-
oriented production;
iii) Ensuring availability of raw materials for manufacturing
export goods;
iv) Increase productivity and diversity of products;
 Export Policy
v) Improving the quality of products; encouraging the use of
modern, appropriate and environment-friendly technology,
producing high-end products, and improving the design of the
products;
vi) Enhancing efficiency and dynamism by using e-Commerce
and e-Governance;
vii) Initiating new strategies for the expansion of the markets for
export products, making proper utilization of computer
technology and encouraging all modern technologies including e-
Commerce;
 Export Policy
viii) Assisting the development of necessary infrastructure,
particularly for backward and forward linkages in order to
encourage the production of exportable goods;

ix) Providing all-out support to new exporters as well as to

existing exporters;

x) Assisting the development of a skilled labor-force through

proper training for managing international trade; and

xi) Providing adequate guidance to trade bodies, business

organizations, business people and related individuals in
understanding the changing international trading system, etc.
 General Provisions for Export
Rules and Regulations to be followed in Export of Products :
• Control of Export of Products--
ü Export Prohibited Products
ü Conditional Export
ü Exportable Products
• Authority to relax export control.

• Entre-port and Re-export.

• Export opportunities without L/C.

• Temporary Exportation for re-import.

• Pre-shipment Obligations.

• Quality Control Certificate.

 Highest Priority Sectors

Ø Agro-products and agro-processed products.

Ø Light engineering products (including auto-parts and bicycles).
Ø Footwear and leather products.
Ø Pharmaceutical products.
Ø Software and ICT products.
Ø Home textile.
Ø The Sea-bound Ship Building Industries.
Ø Toiletries Products
 Special Development Sectors
• Crushed and finished leather production.

• Frozen fish production and processing.

• Handicrafts.

• Fresh flower and foliage.

• Jute and jute products.

• Hand-woven textiles from hilly areas (pahari taat bostro).

• Medicine and medicinal products.

• Plastic products.

• Furniture industries.
 Export Facilities
• Use of Foreign Exchange Earned from Export.

• Export Promotion Fund.

• Funding for Export.

• Export Credit.

• Exemption from Insurance Premium.

• Easing VAT return on Export-facilitating Services.

• Reduced Air fare for the export of specially privileged

products including Fruits and Vegetables.
 Export Facilities (Cont.)

• Venture Capital Facilities for export-oriented Small and

Medium Enterprises.
• Issue of Multiple Entry Visa.
• Foreign Trade Related Training.
• Strengthening Export Related Training.

• Shipment of Products.
• Direct Air-Booking System.
• Establishment of Management Information System (MIS).
 Export of Services
• ICT based activities.

• Construction business.

• Recreation related activities.

• Health service activities e.g. hospital, clinic and nursing

services.

• Hotel and tourism based services.

• Telecommunication.

• Banking activities.

• Legal and professional services.

• Education service etc.

 Prohibited Export Goods
• Jute and Shan seeds.
• Wheat.
• Any kind of live animal.
• Fire arms, ammunition and related materials.
• Archeological relics.
• Human skeleton, blood plasma, or anything produced from human beings or
human blood.
• All shrimps except chilled, frozen and processed ones.
• Onion.
• Cane, wood, wood logs/ thick pieces of wood (except handicrafts made
from these materials).
• All types of frogs (alive or dead) and frog legs.
 Export – Import Information
Year Import (Billion US $ ) Export (Billion US $ )
2001-02 8.54 5.99
2002-03 9.66 6.55
2003-04 10.90 7.60
2004-05 13.15 8.65
2005-06 14.75 10.53
2006-07 17.16 12.18
2007-08 20.37 14.11
2008-09 21.44 15.57
2009-10 33.66 16.20
2010-11 35.52 22.92
2011-12 34.81 24.30
Problems of export trade in Bangladesh
• There are many obstacles/barriers/problems of export trade in
Bangladesh. These are given below:
i) Weakness of Infrastructure;
ii) Transportation problem;
iii) Lack of knowledge about foreign market;
iv) Invention of Synthetic fiber;
v) Import dependent export goods;
vi) Lack of diversification of exporting product.
vii) Lack of skilled manpower;
viii) Lack of modern technology;
ix) Administrative weakness;
 Problems of export trade in Bangladesh
x) Mismanagement and corruption;

xi) Higher production cost;

xii) Attitude of dishonesty;

xiii) Black marketing;

xiv) Problem of storage and packaging;

xv) Imposing conditions by Buyers;

xvi) Political instability;

xvii) Low quality of exportable product;

xviii) Lack of capital;

xix) Unhealthy environment;

xx) Government control.

 Reference
• Ibrahim, S. (2015). A detailed description of Import and
export process of Bangladesh. Chittagong Independent
University, Chittagong.

• http://www.bdtradeinfo.com/business-
investment/export_policy.php#sthash.2i2woxNf.dpufExport
Policy of Bangladesh

• http://www.epb.gov.bd/