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Bangladesh: Protective tariffs to be phased out.

Homo Sapiens

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Protective tariffs to be phased out

National Tariff Policy will come into force next year, if approved


Highlights-
  • First ever National Tariff Policy prepared
  • Effective from next year if approved
  • Will make tariff protection time-bound for industries
  • Will be based on returns from industry
  • Businesses welcome the move
  • Removing protective measures will promote consumer welfare

The tariff protection to the country's domestic industry — imposition of high rates of customs duty on imports – will soon end. However, the privilege will be afforded to a select few for a certain period of time, according to the draft of the National Tariff Policy 2023, which looks to make domestic industries more efficient to sustain post-LDC competition.

The country's first-ever tariff policy, whose draft has been seen by The Business Standard, also aims at encouraging investment, promoting exports as well as ensuring consumers' benefits through reduction of price disparities between local and imported goods.

The average tariff in Bangladesh is 14%, while the average of least developed countries is 8.5%. Countries are committed to the World Trade Organisation to lower tariffs to facilitate more global trade integration.

The draft tariff policy seeks to cancel the existing discriminatory bond facility for raw material import for export sectors amid complaints from many local industries -- including textile and paper –- that the facility is being misused and costing local manufacturers.


It also envisions abolition of separate tariff systems for different importers; no imposition of regulatory duty except in emergency situations; and abolition of the existing system of minimum value determination by the National Board of Revenue (NBR) for imported goods.

The Bangladesh Trade and Tariff Commission, the author of the draft, will meet the Ministry of Commerce and other stakeholders Monday before finalising it for approval, officials at the ministry said. Once approved, the first national tariff policy will come into effect next year.

The commission has asked existing industries, including those making new products and still infant, to let it know how long they want protection measures to continue.

Among other issues and goals of the proposed National Tariff Policy are: meeting the targets of Vision 2041 and the 8th Five-Year Plan, export diversification, rationalising the tariff system, dealing with external economic shocks.
Speaking to The Business Standard, Dr Mostafa Abid Khan, a trade expert and also advisor of the committee on the tariff policy, said, "If tariff protection is given for a certain period, local industries will be willing to develop to meet competition. Otherwise (if it continues for an indefinite period) they will not learn to stand on their own feet."

He said if the tariff policy – which will bring such taxes in line with commitment to the World Trade Organization's bound rate – is finalised, it would help sustain the country's industry and also reduce excessive tax burden on the consumer

Business leaders mostly ok with the new policy move
Business leaders have welcomed the move, but also highlighted other issues that would require attention.
Manzur Ahmed, advisor of the Federation of Bangladesh Chambers of Commerce and Industry, the apex body of the country, said the proposal to make the protection to the local industry through tariffs time-bound was a logical one.

"In the case of infant industries, this protection can be eight to 10 years," he said, adding, "Some businessmen, however, use their influence to take protection through the highest tariff, but this isn't extended to anyone else apart from that company."
Bangladesh Motorcycle Manufacturers and Exporters Association President Hafizur Rahman Khan, also the chairman of the country's motorcycle manufacturing and exporting pioneer Runner Automobiles Ltd, said protection should not be sought for an indefinite period of time.

"But, before lifting the protection, we must check if the goals of the protection were achieved or not. If not, we must look deeper into the reasons."
Lifting protection before that would seriously hurt local industries, he warned, adding that the development of component vendor industries and export market were important goals of the tariff support for the two-wheeler manufacturing industry.

How businesses were protected so far
Protectionist measures created barriers to imports to allow local businesses to thrive. For instance, if a company manufactures a product locally, an additional duty-tax is levied on the imported substitute to make it costlier. Various industries and industrial sectors in Bangladesh have been getting this benefit for years in the name of protecting local industries.

For example, Bangladesh imports super plastic pipe, on which the total tariff is more than 104%. That is, if the price of a pipe is Tk100 in the global market, then the consumer of Bangladesh will have to spend an additional Tk104 taka on the same imported pipe because of the tariff.

Again, the tariff rate on any footwear import is 170%. Some 237 types of food stuff also get average protection, alongside various other products.

Specific information on how many industries in Bangladesh get protection as well as the tariff rate of such protection, or for how many years was not readily available.

Syed Nasim Manzur, managing director of Apex Footwear Limited, one of the largest local brands of Bangladesh, told TBS, "It's a good move. It's time to bring down the high wall of protection. There is a 170% tariff on finished shoe imports, which is outdated. Of course it needs to be reduced."

He, however, thinks that the phasing out should be gradual, while some industries like agro and poultry should be protected.

 

Bilal9

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Must be orders from New Delhi on behalf of their Banyas.

They want to "open up Bangladesh" for Indian exports to our market.

Thanks Hasina.
 
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Must be orders from New Delhi on behalf of their Banyas.

They want to "open up Bangladesh" for Indian exports to our market.

Thanks Hasina.

Seems to have support from Bangladeshi businesses 🤣🤣

Protectionism doesn’t work. All it does is create loads of zombie businesses.

It’s no coincidence that despite having a large industrial base compared to BD - Indian living standards aren’t much better. Life expectancy is actually much lower.

And India famously had a covid genocide and struggles with basic toilet facilities and has massive unemployment.

Modern economies are about specialisation in a few things. And do it better and cheaper than anyone.
 

Bilal9

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Seems to have support from Bangladeshi businesses 🤣🤣

Protectionism doesn’t work. All it does is create loads of zombie businesses.

It’s no coincidence that despite having a large industrial base compared to BD - Indian living standards aren’t much better. Life expectancy is actually much lower.

And India famously had a covid genocide and struggles with basic toilet facilities and has massive unemployment.

Modern economies are about specialisation in a few things. And do it better and cheaper than anyone.

"The support" is coming from businesspeople. some of whom I know personally. We are all members of the two chambers in Dhaka.

This "hukka hua" in unison coming from these howling foxes aka businessmen is just trying to avoid any future trouble by showing support to Hasina's measures.

It is clear to all - on which country's side those India-lover people are on, who support open imports from India.

Hasina propaganda as usual, no businessmen in Bangladesh will let their own business turf be invaded by open Indian imports.

Hasina Propaganda being foisted and supported by current commerce minister Tipu Munshi who is a bonafide Indian agent. This is open secret in Bangladesh.

Fifth columnists, PDF false flaggers and undercover Indian agents (who support India at the cost of Bangladeshi development/industrialization) will never successfully decide trade policy in Bangladesh.

If they try to, they will exit stage left, just like Hasina will in a few months.
 
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mb444

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Tarrifs needs to be targeted to protect home market. There is no one size fits all. BD tarrif reduction should be conjoined with pta/fta deals that are signed. No knee jerk reaction that leads to dumping.

BD needs to put up adequate para tariff wall as it lowers actual tarrif. BD interest first at all times.
 

Bilal9

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Tarrifs needs to be targeted to protect home market. There is no one size fits all. BD tarrif reduction should be conjoined with pta/fta deals that are signed. No knee jerk reaction that leads to dumping.

BD needs to put up adequate para tariff wall as it lowers actual tarrif. BD interest first at all times.

We need to do the same thing as Indians do. They block all Bangladeshi exports to their market, no matter what it is. Batteries, apparel. food, FMCG, you name it, they block our exports to their market, or assign heavy tariff, all on flimsy pretexts.

They even assign para tariff (dumping tariff) without any basis, on simple hearsay, just "allegations" of dumping. They allege that we "re-label" Chinese products and export, otherwise how Bangladeshi cost would be so low. Idiots should check what 19th century inefficient tek-na-lajee their 3rd rate producers are using, which makes India-made products uncompetitive.

OTOH they don't assign any tariff to direct import of Chinese products. These h*r*mi suw*rs know that if they f**k with the Chinese, China will pay them back in their own coin and block Indian exports to China.

It is "Bangladeshi exports guilty of dumping first, then proof of proving innocence is on Bangladesh". Playing tough with a smaller neighbor.

The same they do with countries like Nepal. To this day Bangladeshi exports to India are barely more than $2 Billion a year. It's a friggin' joke....

We are under no friggin' obligation to consume Indian products. Thank you Hasina !!

Indian customs people are on the take from their Banya Indian businesspeople, who will protect their market at all costs.

WE SHOULD DO THE SAME.
 
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NAVDEEP DHALIWAL

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We need to do the same thing as Indians do. They block all Bangladeshi exports to their market, no matter what it is. Batteries, apparel. food, FMCG, you name it, they block our exports to their market, or assign heavy tariff, all on flimsy pretexts.

They even assign para tariff (dumping tariff) without any basis, on simple hearsay, jus "allegations" of dumping. They allege that we "re-label" Chinese products and export, otherwise how Bangladeshi cost would be so low. Idiots should check what 19th century inefficient tek-na-lajee their 3rd rate producers are using.

OTOH they don't assign any tariff to direct import of Chinese products. These h*r*mi suw*rs know that if they f**k with the Chinese, China will pay them back in their own coin and block Indian exports to China.

It is "Bangladeshi exports guilty of dumping first, then proof of proving innocence is on Bangladesh". Playing tough with a smaller neighbor.

The same they do with countries like Nepal. To this day Bangladeshi exports to India are barely more than $2 Billion a year. It's a friggin' joke....

We are under no friggin' obligation to consume Indian products. Thank you Hasina !!

Indian customs people are on the take from their Banya Indian businesspeople, who will protect their market at all costs.

WE SHOULD DO THE SAME.

Can you give me some examples where India forces tax on items on Bangladesh but let's import from China without any problem.

Name any 2 items that u know of.
 

Bilal9

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Can you give me some examples where India forces tax on items on Bangladesh but let's import from China without any problem.

Name any 2 items that u know of.

Google is your friend, look for it yourself please.

It's not just that India doesn't assign tariffs to Chinese products, they just strong arm Bangladesh because it is EASY TO DO....

India always runs a trade deficit with China, so they try to make it up by taking this out on countries like Bangladesh. We export $2 Billion to India, Indians export close to $45 Billion of goods and services to us.

In 2021-22, the trade deficit between India and China rose to $72.9 billion, up from $44 billion in the previous year. Overall, India’s merchandise trade deficit in the same year was $192.24 billion, an increase of 87 per cent from the previous year.


Not going to get into any kind of time waster arguments, find the evidence yourself.

Here is one example.


There are multiple dozens of unfair "dumping tariffs" on Bangladesh exports to India based on all sorts of flimsy pretexts. Here is another example.


There was also automotive lead acid battery case which we took to the WTO and won.


My point is - Bangladesh hardly gets into a WTO-related tussle with India on reciprocal tariff imposition, but eventually we will be forced to. Tariffs imposed on Indian side are too one-sided nowadays.
 
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Google is your friend, look for it yourself please.

It's not just that India doesn't assign tariffs to Chinese products, they just strong arm Bangladesh because it is EASY TO DO....

India always runs a trade deficit with China, so they try to make it up by taking this out on countries like Bangladesh. We export $2 Billion to India, Indians export close to $45 Billion of goods and services to us.

In 2021-22, the trade deficit between India and China rose to $72.9 billion, up from $44 billion in the previous year. Overall, India’s merchandise trade deficit in the same year was $192.24 billion, an increase of 87 per cent from the previous year.


Not going to get into any kind of time waster arguments, find the evidence yourself.

Here is one example.


There are multiple dozens of unfair "dumping tariffs" on Bangladesh exports to India based on all sorts of flimsy pretexts. Here is another example.


There was also automotive lead acid battery case which we took to the WTO and won.


My point is - Bangladesh hardly gets into a WTO-related tussle with India on reciprocal tariff imposition, but eventually we will be forced to. Tariffs imposed on Indian side are too one-sided nowadays.

India does make it difficult…

But your exaggeration is unhinged.

Why isn’t BD exports to China at similar level to India’s?
 

Bilal9

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India does make it difficult…

But your exaggeration is unhinged.

Why isn’t BD exports to China at similar level to India’s?

You are talking exactly like a Sanghi.

You should not be asking me to compare India and China as markets to export to.

China GDP per capita in real terms is $12,556.

That of India is $2,277, lower than ours.

Two different markets, two different product mixes, two different approaches.
 
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You are talking exactly like a Sanghi.

You should not be asking me to compare India and China as markets to export to.

China GDP per capita in real terms is $12,556.

That of India is $2,277, lower than ours.

Two different markets, two different product mixes, two different approaches.

You are an intelligent and patriotic man.

Why do you insult yourself by name calling and unhinged remarks?

I understand your anger at BAL robbery and Indian hegemony at the top of BD’s civil service…

I see it myself!

I have only failed two interviews in my life - both times the main interviewer was Hindu 🤣

My family members are in the medical profession - they tell me the Hindu prejudice is even worse there….

You can make those valid points without losing your self respect.

It’s our fault for falling behind on education. We need to rectify it by keeping our head down. I tell my nephews and nieces to work their socks off so we can catch up.

Shun Wahhabism and focus on education.
 

Bilal9

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You are an intelligent and patriotic man.

Why do you insult yourself by name calling and unhinged remarks?

I understand your anger at BAL robbery and Indian hegemony at the top of BD’s civil service…

I see it myself!

I have only failed two interviews in my life - both times the main interviewer was Hindu 🤣

My family members are in the medical profession - they tell me the Hindu prejudice is even worse there….

You can make those valid points without losing your self respect.

It’s our fault for falling behind on education. We need to rectify it by keeping our head down. I tell my nephews and nieces to work their socks off so we can catch up.

Shun Wahhabism and focus on education.

Personal affronts aside, we have to agree that Indians will not be doing us any favors trade-wise, any time soon.

They are in the business to

1. export things unfettered (Tariffless) to Bangladesh, and

2. try their level best not to allow our exports to their market.


It is only natural. Which is okay.

But why should we then do India any favors, like we are doing currently?

Why should we have that idiot Indian agent commerce minister Tipu Munshi dictate our India-friendly tariff policy?

We need protective tariffs against Indian products (most of them in the dumping category) immediately to,

a) grow our industrial capacity and satisfy the local market and,

b) in the second stage, diversify our export base


We have done this with apparel already. We can very easily do it with quality pharma and ceramics products. Our costs are lower and quality is a lot higher than a lot of countries.

If we keep allowing cheap dumped low quality Indian products in our market without tariff protection, none of this will happen.
 
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Personal affronts aside, we have to agree that Indians will not be doing us any favors trade-wise, any time soon.

They are in the business to

1. export things unfettered (Tariffless) to Bangladesh, and

2. try their level best not to allow our exports to their market.


It is only natural. Which is okay.

But why should we then do India any favors, like we are doing currently?

Why should we have that idiot Indian agent commerce minister Tipu Munshi dictate our India-friendly tariff policy?

We need protective tariffs against Indian products (most of them in the dumping category) immediately to,

a) grow our industrial capacity and satisfy the local market and,

b) in the second stage, diversify our export base


We have done this with apparel already. We can very easily do it with quality pharma and ceramics products. Our costs are lower and quality is a lot higher than a lot of countries.

If we keep allowing cheap dumped low quality Indian products in our market without tariff protection, none of this will happen.

Easy to say we should do this and that…

Hard to execute it when our people are so poorly educated and have such poor ethics.

Our imbecile “English professors” cannot speak English!

Our doctors cannot carry out routine operations. And cheat patients at an industrial scale. Of all the professions, in BD, it is the most corrupt and unethical. Quite a few doctors in my family and they cannot believe the medical culture in BD.

Ordinary Muslims have to focus like a laser on learning and hard work and compete like hell. Not be lazy and dream of paradise with 101 virgins.

Until then we have to suck it up!!!

If we try to give tit for tat - we will quickly end up with a bloody nose. Something my generations learnt whilst growing up in utterly racist 1980s England. Most of us sucked it up - those who didn’t either have a criminal record or are collecting social security.

I told you about my interview experiences and the hostility I face from British Hindus. But I don’t let it cloud my judgement or use it to poison the well. Because that is not in our best interest.

Anyway, you are a bro, I have tried my best to explain things to you. Please channel your, well founded, grievance and anger correctly. Please don’t be a typical Bangladeshi by torching your local shops to demonstrate your anger at a foreigner or even the national government.

That’s the ultimate definition of cutting your nose to spite your face!

Let’s be civilised and not accuse each other of treachery.

Even @bluesky wants the best for BD but he is just unhinged 🤣🤣🤣 like a mad uncle.
 

Bilal9

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Easy to say we should do this and that…

Hard to execute it when our people are so poorly educated and have such poor ethics.

Our imbecile “English professors” cannot speak English!

Our doctors cannot carry out routine operations. And cheat patients at an industrial scale. Of all the professions, in BD, it is the most corrupt and unethical. Quite a few doctors in my family and they cannot believe the medical culture in BD.

Ordinary Muslims have to focus like a laser on learning and hard work and compete like hell. Not be lazy and dream of paradise with 101 virgins.

Until then we have to suck it up!!!

If we try to give tit for tat - we will quickly end up with a bloody nose. Something my generations learnt whilst growing up in utterly racist 1980s England. Most of us sucked it up - those who didn’t either have a criminal record or are collecting social security.

I told you about my interview experiences and the hostility I face from British Hindus. But I don’t let it cloud my judgement or use it to poison the well. Because that is not in our best interest.

Anyway, you are a bro, I have tried my best to explain things to you. Please channel your, well founded, grievance and anger correctly. Please don’t be a typical Bangladeshi by torching your local shops to demonstrate your anger at a foreigner or even the national government.

That’s the ultimate definition of cutting your nose to spite your face!

Let’s be civilised and not accuse each other of treachery.

Even @bluesky wants the best for BD but he is just unhinged 🤣🤣🤣 like a mad uncle.

You said a lot of things - but most are unrelated to the problem at hand. Focus - my friend.

Problem is,

1. India is assigning unfair tariffs on our products imported to their market.

2. The only way we can retaliate is selectively assign tit-for-tat tariffs on Indian imports as we see fit.



Until we do, Indians will not get the message. No nose will be bloodied, and one of two things will happen.

3. Indians will learn their lesson and change their tariff policy.

4. If Indians do not want to learn from this, they will be the loser, we don't really need their imports. We can import from either China, Indonesia, Turkey or Pakistan. Countries who do not want to exploit us.
 
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You said a lot of things - but most are unrelated to the problem at hand. Focus - my friend.

Problem is,

1. India is assigning unfair tariffs on our products imported to their market.

2. The only way we can retaliate is selectively assign tit-for-tat tariffs on Indian imports as we see fit.



Until we do, Indians will not get the message. No nose will be bloodied, and one of two things will happen.

3. Indians will learn their lesson and change their tariff policy.

4. If Indians do not want to learn from this, they will be the loser, we don't really need their imports. We can import from either China, Indonesia, Turkey or Pakistan. Countries who do not want to exploit us.

All those alternate sources you name are expensive and carry extra shipping cost and longer lead times.

E.g. BD government even imports from Burma because of the cost savings.

Your hatred has blinded you.

You are too emotional.

One thing an English education does is suck out your emotion 🤣🤣🤣
 

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