Exporting of

Bangladeshi
Vegetable Items
Group Members

Name ID
Zannatul Ferdous Sharmin 801413088
Bhuiyan Farhan Tanvir 801827034
Mirza Noor-E-Alam 801413023
Rahat Ara Islam 801723012
Khondaker Nahid Hossain 801415017
Joyanta Paul 801724066
Introduction of the Industry

 Third largest growing vegetable producer

 15.95 million tons of vegetables  in  8.6 million hectares land
 Only 2.56% land is dedicated towards vegetable cultivation
 70 varieties of vegetables are exported to 53 countries, mainly EU & Middle East
 Potatoes, tomatoes, cabbage and cauliflowers, beans are mostly exported
 Production heavily dependent on import of hybrid seed.
 Government providing 20% subsidy in this sector
 Export is low due to lack of compliance.
Importance to National Economy

 One of the Most important sector of Bangladesh Economy is agriculture

 Agricultural produce accounts for 32% of value of export,
 More than 90% is vegetables
 2/3rd of employment is generated from agriculture sector
 Major Source of livelihood in rural areas where 80% of the population live.
 While share in GDP is declining, it is still a significant 1/3rd of GDP.
 Export: 100 million USD exporting in last fiscal year , 164 million USD this
year
 Vegetable exports rebound after four years in FY 18-19
Export Procedure

 Collecting Trade License is the first step.

 Obtaining Export Registration Certificate (ERC) from the office of Chief
Controller grave and Export (CCI&E).
 Receiving export order from buyer.
 Collect vegetable from contract growers under the supervision of Department of
Agriculture Extension (DAE) officers.
 Collect inspection certificate from authorized office, organizations or trade
associations if necessary.
 Collects Letter of Credit (LC) from confirming bank. This is the most used
method of payment for vegetable exports.
Export Procedure

 Exporter collects all these documents and approach to the port. In case of
vegetables, the preferred mode of transportation from Bangladesh is air cargo.
 Exporter reserve the air space via freight forwarder and an airway bill is issued
for exporter’s products. Booking is confirmed by airlines when freight forwarder
gives the 10% advance of the freight cost, which is he collected from the exporter.
 Exporter collects cargo insurance for transportation if necessary.
 Exporter submits all the documents including the Commercial Invoice, Packing
List, EXP Form, GSP Certificate (if needed), Certificate of Origin and Insurance
Certificate (Insurance Policy) to the custom authority for their approval. An
additional Phytosanitary Certificate also need for vegetables export and exporter
get this certificate from the Department of Agricultural Extension office located
in airport.
Export Procedure

 Exporters depend on clearing and forwarding agents for the procedures involved
in customs approval. Custom issues a ‘C’ number if finding the document
satisfactory.
 Clearing and forwarding agent clears the goods through customs with reference of
this ‘C’ number.
 For custom clearance, an inspection is required by the custom people when the
goods is in airport area and available for export. After custom clearance, the cargo
is now ready for export.
Require Documents

 Customs Export Declaration

 Certificate of Origin
 Commercial invoice
 Airway bill
 Phytosanitary Certificate
 Inspection certification/Pre-shipment inspection (clean report of findings)
 Destination control statement
 Insurance certificate
 Export license (if needed)
 Export packing list
Major Actors

 Exporters
 Contract Growers
 Banks
 Freight Forwarders
 Clearing and forwarding agents (CFA)
 Buyers/Importers
Distribution Channels & Patterns
 Mostly indirect channel

 Here, exporter is an independent local middle man and acts as an Export

Merchants.
 Exporter assumes all risks associated with ownership.
Payment Procedures

 The Contract/ Agreement with foreign buyer or CAD or Advance TT methods etc.
are allowed for export but most use method for export vegetables from
Bangladesh is Letter of Credit (L/C).
Current Problems

 Limited Cargo space coupled with high charge.

 Shipment delay.
 Lengthy custom process.
 Poor packaging system.
 Farmers not getting fair prices.
 Weak infrastructure: pack house
 Inadequate subsidy.
 Low Nutrition content.
RECOMMENDATION

 Increase cargo capacity and reduce airfreight cost

 Increase packaging storage and transportation facilities
 Provide varieties of seeds with export potential
 Decrease custom formalities to speed up shipment
 Increase subsidies
 Training the farmers to implement best agricultural practice
 Proper coordination is required from ministry level to the bottom
Thank You