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Bangladesh may re export everything


Published on…/bangladesh-may-re-export-everyth…
They can also export bottled LPG or LPG in bulk quantity after attaining no- objection certificate (NOC) the commerce ministry. Bangladesh can also allow exporters to allow export all possible products in a manner similar to LPG export to our neighbors. It may take advantage of being neighbors of India, China and ASEAN countries.

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Bangladesh may re export everything

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  2. 2. game. The border security or any other measures are not effective to stop economic co-operation and transactions. The better option is to open up the procedure and reduce the formalities as low as possible to get of the formal and informal trades. Usually the bigger and relatively better economies have the headache to protect their businesses from inflow of low cast products produced in small and cottage industries. The other threats are influx of importer products of other origin products enter into the bigger economies. The smaller countries frame their economic and trade policy focusing on demand of bigger neighbor economies. They promote free economic zone to cater the need of bigger economies and gain benefit of being neighbor of bigger economies. The Mexico and Canada has industrial and economic policy on the basis of demand of USA. The FDI from other countries in Canada and Mexico are also driven by demand in USA. These countries are also in trade of products from third counties. It includes inward processing, manufacturing under bond, export-processing zones, temporary admission for re-exportation in the same state, and Customs warehousing. Another method is drawback duties/ taxes to be paid at the time of importation and then refunded after the finished goods are re-exported. The other options are free zone for manufacturing and trading, temporary admission, transit and corridors etc. A free trade zone (FTZ) is one or more special areas of a country where the usual trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new businesses and foreign investments. Most FTZs are located in developing countries, and they are labor-intensive manufacturing centers that involve the import of raw materials or components and the export of factory-finished products. Free trade zones came about because of the need to promote trade between and amongst nations. Free zones or bonded warehouses became increasingly popular in the last decade, with many countries attempting to promote exports of non-traditional manufactured goods, strengthen the competitiveness of exporters, attract investors, diversify the economy , create employment, transfer technology, expand trade and transport linkages to the country as a whole, promote tourism, encourage foreign direct investment (FDI), and achieve development and growth. Sometimes referred to as Free Trade Zones, Duty-Free Zones, Tax-Free Zones, Free Export Zones, Special Economic Zones, Export Processing Zones, by whatever name, such zones are considered legally outside the Customs territory of the country and thereby subject to an entirely different Customs tariff and income tax regime. The process is simple like break-bulk and shifting of goods from one container to another, sorting/repackaging/re-labeling, further assembly or manufacturing, etc. Free trade zones have transformed themselves into leading service centers for attracting foreign investment in the world and are greatly needed. The location of FTZs in underdeveloped parts of the host countries attract employers, thus reducing poverty and unemployment and stimulating the economy of the host country. They are normally organized around major seaports, international airports and national frontiers -- areas with many geographic advantages for trade like Hong Kong, Singapore and Nigeria. There are more than 3000 FTZs in more than 225 countries, with nearly 50 million workforce engaged in them at various times and seasons. The FTZ is meant for manufacturing and re-export of products imported from other countries. Re-exports consist of foreign goods exported in the same state as previously imported, from the free
  3. 3. circulation area, premises for inward processing or industrial free zones, directly to the rest of the world and from premises for customs warehousing or commercial free zones, to the rest of the world. It creates opportunities of development of trading centres and diversified economic bases. Trade, service, industry, banking, etc. are free. Vendors and shipping forwarders, shipping agents and customs brokers, exporters and importers, manufacturers and investors have free entry to free zones without much formality. The FTZs are so important that the World Free Zone Summit held in Dubai on 2 November 2010 called for "increased synergy between free zones". Jebel Ali Free Zone in Dubai, UAE, is probably the most successful zone in the world. Created in 1985, this free zone has no taxation. The restrictions are minimal, and there is no obligation to have a local partner. Staff can be recruited from anywhere. There are excellent port facilities, warehouses, office space, and factories already built and ready for lease. The port is the busiest in the Middle East and now the 10th busiest in the world. Aqaba Special Economic Zone in Jordan is another recent bold initiative to turn the entire port city area of Aqaba into a duty/tax free zone in an attempt to attract economic development and FDI. What is interesting with the Aqaba Special Economic Zone Authority (ASEZA) is the authorities' decision to create a separate Customs service to operate inside ASEZA. ASEZA Customs is autonomous from the national Jordanian Customs administration, in an attempt to provide a focused, specialized and a better level of service to firms operating inside the zone. ASEZA has been very successful in a very short period of time at attracting several billion USD of FDI since its creation in what was otherwise a seriously economically depressed region of southern Jordan. ASEZA constitutes a pilot/catalyst for nationwide Customs reform. Colon Free Zone in Panama operates almost exclusively as an entrepot/warehousing hub, focusing on commercial warehousing and repacking operations for firms that export finished goods to the Caribbean and Central America. Singapore was traditionally a re-export economy by virtue of her historical role as an entrepot for Southeast Asia. Singapore's imports included goods for re-exports. A noteworthy change for Dutch trade is the recent growth of imports from China. A large share of goods imported from China is destined for other countries. Exporting partners often declare the Netherlands as the destination of goods intended for re-export. This is because suppliers are unaware of the final destination of goods. Asia supplies 25 per cent of the Netherlands' goods for re-export, with China as the leading supplier from the region. Other large re-exporting countries include Belgium, Germany and the United States where more than 10 per cent of their exports are re-exports. Vietnam has introduced temporary entry of goods and transit provisions, temporary import for re- export and transit of goods. The ASEAN nations are exploring trade and investment opportunities in Malaysia under seamless trade, utilising the country as a gateway to emerging markets in South Asia and the Middle East under the ASEAN Free Trade Agreement (AFTA). The position of Bangladesh within the global map makes it a natural candidate to become a regional hub of economy. However, the globe wouldn't come to it unless it aligns itself to become a hub. Re- export has a big promise for the economic development of Bangladesh. It also has the potential to facilitate trades for land-locked Nepal and Bhutan and land-locked Indian provinces in the North- East. Bangladesh has allowed transit to India for re-entry of their goods to 7 sisters in eastern part of Bangladesh. There is a criticism of agreed transit fees. India wins in negotiation with Bangladesh. Bangladesh already have six export processing zones (EPZs) and provide manufacturing facilities
  4. 4. only. It has also declared to set up 100 FTZs both in public and private sector. But in India, the terms Free Trade Zones and Export Processing Zones are synonymous. India has 10 Free Trade Zones (FTZs) for local and foreign investment. They allow manufacturing and trading of foreign products for re-export. Because of this Indian policy, Bangladesh is now importing products of other origins from India through FTZs. These FTZs are new challenge to Singapore, Dubai FTZs. If India can re-export to Bangladesh, why should Bangladesh voluntarily restrict (under bureaucratic process)re-export to India and other countries? We can adapt same policy like India. There is a wonderful policy decision of Bangladesh Government for re-export of LPG. According to report of Daily Financial Express on 16th February 2017, The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) has already published a gazette notification of the policy styled 'LP Gas Operational Licensing Policy 2017. The licensees under this policy would hold the authority to supply LPG to households, auto-gas stations, and to commercial and industrial clients through engaging dealers or franchises. They can also export bottled LPG or LPG in bulk quantity after attaining no- objection certificate (NOC) from the EMRD and necessary approval from the commerce ministry. Bangladesh can also allow exporters to allow export all possible products in a manner similar to LPG export to our neighbors. It may take advantage of being neighbors of India, China and ASEAN countries. The writer is legal economist