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Govt formulates new tariff policy to boost trade

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Economic Tag: Import

The Bangladeshi government is developing a new national tariff policy with the aim of expanding the country’s trade and increasing the competitive capacity of domestic industries. The policy will maintain a balance in import and export, while creating employment opportunities. Instead of value addition conditions, the draft policy includes a provision to provide bond facility up to 70% of the value of export products for importing raw materials.

If the cost of raw materials is more than 70%, then exporters will receive duty drawback facilities as per the existing policy. The Bangladesh Trade and Tariff Commission is formulating the policy, which will consist of 17 guidelines for tariff determination. The policy aims to increase the competitive capacity of domestic industries through trade liberalisation and tariff structure rationalisation. The policy is expected to play an effective role in rationalising tariffs and facilitating the expansion and diversification of exports.

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