South Korea has offered duty concession for 13 products of Bangladesh in entering its market under Asia Pacific Trade Agreement, commerce ministry officials said on Sunday.
In exchange, the country has sought duty benefits for its eight products in entering the Bangladesh’s market, they said. The 42th meeting of standing committee of the APTA will be held in October 25-26 in South Korea where member states would discuss on reduction of sensitive list for tariff concession, the officials said.
According to South Korea’s proposal, Bangladesh will have to include its eight products in its offer list for providing duty concession to the country under the APTA.
In return, the country will increase margin of preferences by 50 per cent from existing 25 per cent to 30 per cent for 13 products of Bangladesh.
South Korea offered additional margin of preferences for the products such as trunks, different kinds of cases, containers, bags, purse, boxes of leather or composition of leather with outer surface of plastics and textile materials, warp-pile fabrics of cotton and different types of silk fabrics.
According to Bangladesh Tariff Commission, Bangladesh currently exports trunks, bags, containers and other items of leather in Korea and has potential in increase of exporting those products in the country.
Bangladesh, however, has no earnings from export of warp-pile fabrics and silk fabrics from the country though in last financial year it exported silk fabrics worth only $11,000 to other countries.
Currently, Bangladesh, as a least developed country, enjoys duty-free facility for it’s around 91 per cent of products in entering the South Korean market.
It also enjoys duty privilege for some other products under the APTA.
According to the proposal, Bangladesh will have to provide duty concession for woven fabrics of synthetic yarn (containing 85 per cent non-textured polyester filaments), fabrics of elastomeric yarn, flat/cold-rolled iron or steel in different thickness, flat rolled products of iron or non-alloy steel, iron or steel products painted, varnished or coated with plastics (for pre-fabricated building industry), structures and parts of structures of iron and steel, reservoirs, tanks, vats and similar containers of iron and steel.
Currently, Bangladeshi importers will have to pay duties ranging from 10 per cent to 25 per cent.
If Bangladesh includes those products in its offer list, it will have to reduce duties further in import of those products.
Commerce ministry officials said Bangladesh would make final decision on including the products in its offer list after taking opinion from stakeholders.
The ministry has already asked the Bangladesh Tariff Commission for giving opinion on the proposal by October 10.
The BTC will hold a meeting with stakeholders on Wednesday aiming to find out if exporters will get any benefit after getting margin of preferences for 13 products and revenue loss including eight products in Bangladesh’s offer list.
-With New Age input
