Market Access Facilities for Bangladeshi Exportable
Bangladesh as a Least Developed Country (LDC) is enjoying duty free market access or reduced tariff rate facilities to export to various developed and developing countries in the world. This facility is enhanced and privileged by the membership of World Trade Organization (WTO). Besides, Bangladesh is the member of different regional trade blocs. Thus the country enjoys duty free or reduced tariff rate access to other member countries.
WTO members always recognize the necessity of providing Duty Free Quota Free (DFQF) market access to LDCs. It was decided in the 6th WTO Ministerial Conference held in Hong Kong in 2005. All developed countries will provide DFQF market access to LDCs for at least 97% tariff lines. Bangladesh is getting DFQF market access to different markets.This is the first legally binding decision on DFQF for LDCs.
EU GSP scheme also grants duty free access for the 50 least developed countries under “Everything but Arms (EBA)” scheme.EBA grants duty-free quota-free access to all products, except for arms and ammunitions, covering 99% of all tariff lines.EU adopted a reformed GSP law on 31 October 2012, which made applicable from 1 January 2014.
Rules of Origin: Rules for identification of origin of goods
Substantial transformation can be ascertained mainly by three criteria:
Japan’s GSP scheme includes a general preferential regime and a special preferential regime.
Japan grants preferential tariff treatment under its GSP scheme to 137 developing countries and 14 territories.
LDCs are granted duty free and quota free market access in 5415 products of which 1383 are agricultural products and 4034 are industrial products.
Rules of Origin:
Rules of Origin:
Rules of Origin:
DFQF access in GSP schemes of Developed Members:
Country |
Duty-free coverage (major exclusions) |
Australia |
100% |
Canada |
98.6% (dairy, eggs and poultry) |
European Union |
99.0% (arms and ammunitions) |
Iceland |
91.8% (Meat and dairy products, eggs, vegetables and plants, cereals and starch, other food preparations) |
Japan |
97.9% (rice, sugar, fishery products, articles of leather) |
New Zealand |
100% |
Norway |
100% |
Switzerland |
100% |
Russian Federation (2012) |
38.1% (exclusions cover a wide range of tariff lines including petroleum products, copper, iron ores, articles of leather, articles of apparel and clothing, etc.) |
United States |
82.6% (dairy products, sugar, cocoa, articles of leather, cotton, articles of apparel and clothing, other textiles and textile articles, footwear, watches, etc.) |
|
DFQF access of selected Developing Countries:
Country |
Duty-free coverage (major exclusions) |
Chile |
99.5% (wheat, wheat flour and sugar) |
China (2013) |
61.5%b (chemicals, machinery, paper and wood products, cotton, textiles, steel products, etc.) |
India |
94.1% (Meat and dairy products, vegetables, coffee, tobacco, iron and steel products, copper products, etc.) |
Korea, Republic of |
90.4% (meat, fish, vegetables, food products, etc.) |
Chinese Taipei |
31.0%. Some 136 products enjoy exclusive duty-free access, including selected plastic items, raw hides and skins, textile and clothing articles, parts of vehicles, precious stones, etc. The exclusions cover a wide range of products. |
Turkey (2011) |
79.7% (meat, fish, food, steel products, etc.) |
|
India, Maldives, Nepal, Pakistan & Sri Lanka
SAFTA Sensitive Lists: The Agreement provides scope for maintaining of sensitive lists, which are not subject to tariff reduction program.Bangladesh, India and Nepal maintain different sensitive lists for LDCs and Non-LDCs.
SAFTA Sensitive list (SL):
Member State |
Number of Products in Original SL |
Number of Products in Revised SL (Phase-II in 2012) |
Afghanistan |
1072 |
858 |
Bangladesh |
1233 (LDCs); 1241 (NLDCs) |
987 (LDCs); 993 (NLDCs) |
Bhutan |
150 |
156 |
India |
480 (LDCs); 868 (NLDCs) |
25 (LDCs); 614 (NLDCs) |
Maldives |
681 |
154 |
Nepal |
1257 (LDCs); 1295 (NLDCs) |
998 (LDCs); 1036 (NLDCs) |
Pakistan |
1169 |
936 |
Sri Lanka |
1042 |
837 (LDCs); 963 (NLDCs) |
|
Rules of Origin:
General Rule:
Single Country Content
SAARC Cumulation
For Sri Lanka
Tariff Reductions: Results of 3rdRound:
Concession Offering Country |
Tariff Concessions as of third round |
|
No. of Products* |
MoP (%) |
|
Bangladesh |
209 |
14.1 |
China |
1,697 (161) |
26.7 (77.9) |
India |
570 (48) |
23.9 (39.7) |
Republic of Korea |
1,367 (306) |
35.4 (64.6) |
Sri Lanka |
427 (72) |
14.0 (12.0) |
Total |
4,270 (587) |
26.8 (58.8) |
* Figures in parenthesis indicate concessions given to LDCs |
MoP = Margin of Preference
|
APTA Rules of Origin:APTA RoO has a minimum local value addition content requirement of-
Value addition is measured as percentage of FOB value.
Korea provided Preferential Tariff to to 48 least-developed countries to 95% of tariff lines in 2012.LDCs like Bangladesh enjoy DFQF access in South Korea market at 4,802 products which amounts 95 per cent of total HS codes.
Rules of Origin:
Rules of Origin:
Chile's duty-free and quota-free (DFQF) scheme named "Eliminating Import Tariffs on Goods from the Least Developed Countries" entered into force on 28 February 2014 with no expiry date.Bangladesh started to get benefit in 1 January 2015.
Rules of Origin:
India became the first developing country to extend this facility to all Least Developed Countries (LDCs). India’s Duty Free Tariff Preference (DFTPI-LDC) Scheme for LDCs came into effect in August 2008 with tariff reductions spread over five years on 4,430 items (at 6-digit HS code level), which constitutes 85% of total tariff lines.
Rules of Origin:
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