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Export and Import in Bangladesh

Export & Exporting

Export means goods or services sold to foreign countries.
Exporting means the process of selling of goods or services to foreign countries.

The steps of exporting

1. 2. 3. 4. 5. Importer-Exporter Code (IEC) Number Register with the export promotion council Procuring orders Documentation & Billing Shipment & sending of documents to the importer 6. Submission of documents to bank 7. Bank sends docs to importers bank . Payment is done

Getting IEC Number

Registration with the relevant export promotion

Bank sends docs to importers bank .payment is done

Market Identification Submission of docs to banks Channel Selection

Transportation Maritime / Air / Road / Rail

Identifying the Potential Buyers / Customers Going for procuring orders Documentation & Billing Prepare marine, air, and documents Certificate of quality control


Advantages of Exporting
1. 2. 3. 4. 5. 6. 7. 8. Increased Sales and Profits Enhance Domestic Competitiveness Gain Global Market Shares Diversification Compensate for Seasonal Demands Create Potential for Company Expansion Sell Excess Production Capacity Expand Life Cycle of Product

Exporting Challenges
1. 2. 3. 4. 5. Extra Costs Product Modification Financial Risk Export Licenses and Documentation Market Information

Import & Importing

Import means goods or services purchased from another country.
Importing means the process of purchasing of goods or services from another country.

Steps of Importing
1. Select a product to import 2. Achieve import license 3. Finding seller 4. Negotiate a deal with seller 5. Giving order 6. Collection of foreign exchange 7. Opening L/C 8. Receiving Documents 9. Completing formalities regarding tariff 10.Delivery of Goods

Flow chart of Importing

Select a product to import Achieve import license

Finding seller

Negotiate a deal with seller

Giving order Collection of foreign exchange

Receiving of Goods

Opening L/C

Receiving Documents

Completing formalities regarding tariff

Benefits of Importing
1. Reduced costs 2. Good quality items
3. Remote management

Limitations of Importing
Exchange rate fluctuation Financial Risk
Payment to government as the form of Tariff

2007-08 2008-07 2009-08 2010-11

Ratio of export and import

1:1.45 1: 1.39 1:1.32 1:1.52



Export-Import Information
Year Import (Billion US $ ) Export (Billion US $ )

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

9.66 10.90 13.15 14.75 17.16 20.37 21.44

6.55 7.60 8.65 10.53 12.18 14.11 15.57

Impact of political instability in Export

1. 2. 3. 4. 5. 6. 7. Hamper shipment process Affect supply chain Increase lead time Discourage foreign buyer Affect production unit Reduce competitive advantage Increase production cost

Suggestion for increasing exporting in Bangladesh

1. Fullest access of Bangladesh exports to international markets 2. Price stability and an appropriate exchange rate must be ensured 3. Hassle-free regulatory framework 4. Adequate infrastructure must be built 5. Proper quality of exportable items must be maintained 6. Government backed trade related services are essential

Suggestions (contd..)
7. Close partnership between the Government and the business community is crucial 8. Market diversification