A study report by Bangladesh Foreign Trade Institute has suggested opting for Chinese duty-free offer for 7,787 Bangladeshi products in its market at higher value addition criteria than that of under the APTA arrangement. The institute under the ministry of commerce has submitted its report to the ministry on Sunday after being asked to analyse whether Dhaka should accept the new offer at 40 per cent value addition, or continue enjoying the existing duty-free facility under Asia-Pacific Trade Agreement for its 4,788 items at 35 per cent criteria, sources said.
The report said the enhanced value addition as proposed by China under its new scheme would not hurt the export interest of Bangladesh in Chinese market, particularly no dent will cause for the country’s apparel items in the second largest economy of the world as flexibility remains in the Chinese offer.
The report, highlighting the 40 per cent value addition criteria, said the exporters could avail CTH (change of tariff heading) facility in case they fail to comply with the required value addition as CTH does require to meet any in value addition criteria.
‘However, application of CTH as an alternative in LDCs scheme enables Bangladesh to comply with the rules of origin criterion especially for RMG products. Therefore, if PSR (product specific rules) is not for RMG sector, LDCs scheme will be more lucrative for Bangladesh,’ reads the report of BFTI.
‘On the basis of above, the BFTI is of the view that Bangladesh may accept the proposal of China to offer DFQF (duty free quota free) market access under LDCs scheme instead of under APTA provided China gives an assurance that PSR will not be more stringent than general rules under the LDCs scheme,’
China in its proposal sought Dhaka’s consent before Prime Minister Sheikh Hasina visits Beijing early next month to attend the Second China-South Asia Exposition. During her visit, the 13th joint economic commission meeting between the two counties will also take place where Chinese government will want to sign an exchange letter on the new offer, officials said.
‘We are analysing the study report of BFTI before any firm decision is taken on China’s new offer,’ a senior official at the commerce ministry told New Age on Wednesday.
He said an inter-ministerial meeting, held a few days back at the ministry, also decided to go with the new offer of the Chinese government as exporters are hopeful of tapping new opportunity out of the new Chinese trade regime.
However, commerce secretary Mahbub Ahmed a few days back told New Age that he did not want to leave the APTA arrangement and accept new
offer from the country as far as duty-free market access in Chinese market is concerned.
Bangladesh exported goods worth US$ 458.12 million to China in 2012-2013 fiscal year, against the import of US$ 6.30 billion. The lion’s share of export from Bangladesh to China is woven and knitwear, according to figure of Export Promotion Bureau.
-With New Age input
