Bangladesh has sought GSP facility for its 89 products, mostly readymade garment items, in the markets of Russia, Belarus and Kazakhstan, commerce ministry officials said.
The commerce ministry has requested the Eurasian Customs Union, a common customs platform of the three countries, to give generalised system of preferences to the products in the markets, the officials said.
The ministry sent a list of 89 products to the union in July, they said.
‘The Bangladesh Tariff Commission has prepared the list after holding talks with stakeholders particularly exporters and considering future export potential,’ a senior commerce ministry official told New Age on Saturday.
Products of RMG, pharmaceuticals, rawhide, leather goods, paper and paperboard, home textiles, footwear, steel, electrical, electronics, ship, furniture, games and sports have been included in the list, he said.
A BTC official said currently Bangladeshi exporters have to pay 20 per cent duty on export of knitwear products to the three countries, in addition to other tariff and non-tariff barriers and duties on the export of other products are also high, ranging from 5 per cent to 20 per cent.
‘If the three countries allow duty-free and quota-free facility for the products in their markets, the Eurasian union will be a big and important export destination for Bangladesh,’ he said.
Bangladeshi exports in Russia have been increasing in the last few years. Bangladesh also exports few items particularly RMG, home textiles, jute and tobacco goods to Belarus and some RMG items to Kazakhstan, he said.
At the end of 2012, Bangladesh sought GSP facility from Russia for its 57 products in a bid to enter into the big Russian market and boost overall exports to the country.
But in April this year, Russia advised Bangladesh to submit a common list of products seeking GSP facility to the three countries as the country alone can not provide the facility in its market to any country as it is a member of the same customs union along with Belarus and Kazakhstan, the commerce ministry officials said.
In 2010, Russia, Belarus and Kazakhstan formed the Eurasian Customs Union and since then the countries have been following common external tariff structure for other countries.
As a member of the union, a country alone can not provide additional tariff facility to other countries.
Following the Russia’s suggestion, the BTC revised the list keeping Belarus and Kazakhstan in mind and considering the future export potential, they said.
Bangladesh has been trying to get GSP facility particularly for apparel items in the Russian market since 2000.
Bangladesh so far has not exported any rawhide product, paper and paper product, steel, electric and electronics equipment, ship, furniture product in any markets of the three countries, BTC officials said.
But, these products have been included in the list considering future export potential to those markets, they said.
Currently, some Bangladeshi products including meat, frozen food, fish, jute and jute goods, are getting GSP facility in the Russian market but main export items such as knitwear, woven, textile, leather goods and footwear products remain out of the facility.
Bangladeshi RMG products, however, enjoyed GSP facility in the Russian market till 1997.
The Bangladesh Knitwear Manufacturers and Exporters Association said Russia might be one of the most important and lucrative export destinations for the Bangladeshi knitwear products.
The association said the Russian market could reduce the Bangladesh’s dependency on European and US markets and boost export at least by 20 per cent within a year of securing GSP regime in the Russian market.
Belarus and Kazakhstan may also be two other important export destinations for the Bangladeshi RMG products, it said.
-With New Age input
