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Trade & Investment

Trade and Investment Working Committee

BUILD features a structured and effective dialogue between the Government and private sector, backed by intensive research and analysis, through Trade & Investment Committee. Trade and Investment Working Committee have been established to address issues related to trade and investment raised from the private sector. This committee is co-chaired by the Secretary, Ministry of Commerce and the President, Metropolitan Chamber of Commerce and Industry (MCCI). The working Committee reviews each issue and identify the best and most appropriate solution also determine the best way to implement these recommendations. The Recommendations may be implemented by the Ministry of Commerce or other government of Bangladesh line ministries and agencies or they are routed to the Private Sector Development Policy Coordinating Committee (PSDPCC). The WC reviews each issue and identifies the best and most appropriate solution to determine the best way to implement these recommendations.

So far BUILD has successfully accomplished five meeting under T&I Working committee and the 6th one is underway.

SL.

Name of the Meeting

Co-chaired by Public Sector

Co-chaired by Public Sector

Date

1.     

1st Meeting of T&IWC

Mr. Ghulam Hossain Secretary, MoC

Ms. Nihad Kabir, Vice President, MCCI

February 08, 2012

2.     

2nd Meeting of T&IWC

Mr. Ghulam Hossain Secretary, MoC

Ms. Nihad Kabir, Vice President, MCCI

September 2, 2012

3.     

3rd Meeting of T&IWC

Mr. Md.Mahbub Ahmed

 Secretary, MoC

Ms.Rokia Afzal Rahman

President, MCCI

September 17, 2013

4.     

4th Meeting of T&IWC

Mr. Md. Hedayetullah Al Mamoon

Sr.Secretary, MoC

Ms.Rokia Afzal Rahman

President, MCCI

September 30, 2014

 

5.     

5th Meeting of T&IWC

Hedayetullah Al Mamoon

Sr.Secretary, MoC

Mr. Syed Nasim Manzur, President, MCCI

May 3, 2015

 

BUILD presented 16 Policy Papers in the T&I WC which also reviewed in the Private Sector Development Policy Coordination Committee (PSDPCC) where Secretary, MOC is one of the core members. So far, BUILD proposed 108 recommendations through T&I WC from which 26 recommendations has been implemented. 30 recommendations are in process of implementation while 43 are under the review of Ministry of Commerce for approval.

 

Table 1: The Issues presented in Meeting of T&IWC

Name of the Meeting

Name of the Studies

1st Meeting of T&IWC

Sector Prioritization

2nd Meeting of T&IWC

Process Reengineering of DIFE  Factory Plan Approval, Registration and Licensing

Process Simplification of IRC and ERC Issuance and Renewal

3rd Meeting of T&IWC

Simplification for Deemed Export

Simplification of Export-cum-Import Procedures- Capital Machinery and Spares

Process simplification of Industrial Ad-hoc IRC

4th Meeting of T&IWC

Procedural Simplification & Widening GSP Scope

Import Policy: Some Reform Recommendations

SPS Certificate for Agro Exporters

Value addition criterion for export sectors in the Import Policy Order (IPO)

Acknowledgement of EPCs as Deemed Exporters

5th Meeting of T&IWC

Simplification of Export Documentation for Ease of Doing Business

Simplification of Policies for Service Export

----A Case of  Indenting  Service

Policy Paper on Non Tax Revenue: Trade and Business License Fees

Simplification of Policies for Diversified Jute Products (DJP)

 

Export Subsidy Guideline: Maximizing Export Support

 

Graphical presentation of the implemented and under process of implementation proposals are as follows:

 Total Recommendations

Approved

Implemented

In Process

To review

Rejected

108

63

26

30

43

2

Figure 1: Status of the implemented Reform Recommendations of T&IW

Some Milestones and Reforms of Trade & Investment (T&I) Working Committee Meeting is shown below:

Simplification of Policies for Diversified Jute Products (DJP)

ü  Definition of diversified jute products is clearly mentioned in the Jute Act-2017 {Clause 2 (9)}

ü  The ratio of using of raw jute to avail the cash subsidy against exporting diversified jute products is presently 50%, (which was previously 75%) {Clause 2 (9)}

Included in Export Policy 2015-18

ü  Some new standards for different plastic products included in Export Policy (Export Policy 2015-18, Section 5.15.1, page no 7186)

Inclusion in Industrial Policy-2016

ü  Seven high priority sectors have been included in the Industrial Policy. (Appendix 1, Industrial Policy-2016)

Issuance of Ad-HOC IRC

ü  The time needed by BIDA(BOI) to issue the certificate has been reduced to just 10 days from earlier 34-63 days (572th Executive Committee meeting of the Board of Investment held on December 24, 2013)

ü  Website of BIDA (previously BOI) has full information regarding application procedure, now Regional entrepreneur gets full information that they would need to apply through regional offices of BIDA.(572th Executive Committee meeting of the Board of Investment held on December 24, 2013)

ü  On-line access to the Application Form both in English and Bengali is now available in the BIDA (BOI) website. (572th Executive Committee meeting of the Board of Investment held on December 24, 2013)

GSP Automation

ü  GSP Automation services for outside Dhaka and Non-RMG sector is agreed in the 7th  PSDPCC

INCOTERMS inclusion in Import Policy

ü  Maintenance of the INCOTERMS by the Importers & Authorized Dealers (ADs)  have been included in the Import Policy(Import Policy 2015-18, Chapter 2, Clause 5)

Inclusion in Export Policy 2015-2018

ü  E-Phytosanitory Certification has been included (Export Policy 2015-2018)

SPS Certificate for Agro Exporters

ü  National SPS Enquiry Point working in the Ministry of Commerce has been strengthened. [Minutes of the Review Meeting of T&I WC (date:26 October,2016)]

ü  Export Policy 2012-15 Chapter 2, Clause 2.8 should have a specific  mention of SPS certificate requirements for Agro products to meet the specific need of the implementing country, which has included in the Export Policy 2015-18. [Export Policy 2015-18, Chapter 5, Clause 5.8.5 (Bangladesh  Gazette, Additional, September 9, 2015  page 7184)]

ü  As per Export Policy 2015-18 Plant Quarantine Authority will be made workable soon. [Export Policy 2015-18, Chapter 5, Clause 5.8.1 (Bangladesh  Gazette, Additional, September 9, 2015  page 7184)]

Import & Export Registration Certificate issuance and renewal policy simplification

ü  The time needed for the CCI&E to renew IRC was reduced from 6 days to 2.29 days, generating direct compliance cost savings  to a significant amount.

ü  The time needed for the issuance of  IRCs and ERCs was reduced from 11–15 days to 2 hours CCI&E. (7 January, 2013)

ü  Application Forms of IRC  and ERC have been available online at the website both in Bangla (English is already available) (http://www.ccie.gov.bd/index.php?cmd=download_form&id=7)

ü  IRC renewal now has been done by the Nominated Banks as it has given the right to do so in the current Import Policy [Chapter 3, Clause 8(5)] (CCI&E Circular issued on February 27, 2013)

ü  A clear revised circular from CCI&E through Bangladesh Bank  should be given to all Nominated Banks (NBs) stating that the one-off authenticity seal from CCI&E is the only verification criteria prior to renewing IRCs from the NBs(CCI&E Circular issued on February 27, 2013)

ü  Currently, firms obtain the treasury challan directly from Bangladesh or Sonali Bank Firms now also has allowed to deposit the renewal fee in cash to the NBs instead of obtaining treasury challan themselves (in line with the clause 8 (7) of the Import Policy 2009-12: ‘The banks shall deposit the money received as renewal fees to the Bangladesh Bank or to The Sonali Bank’) (Import Policy 2012-15, Chapter 3, Clause 9 (5))

Factory Plan Approval, Registration & Licensing/ DIFE

ü  The status of Department of Factory and Establishments has been upgraded from Directorate to Department. (letter no: 40.010.036.01.00.003.2011 (Part 1-697))

ü  A mandatory check list for inspection has been established so that all parties know the compliance criteria.http://www.dife.gov.bd/index.php/en/inspectionm

ü  DIFE has been established an IT cell to operate the online system. (Letter from Labour and Employment Ministry to PMO, Date: 19.11.2014)

Simplification of Export-cum-Import Procedures

ü  Required documents for Export-cum-Import Procedures have been reduced from 11 to 5 (Letter from CCI&E, date: 28.08.2014)

Transparency in Trade Procedure

BUILD has worked in collaboration with BFTI, MoC regarding Transparency in Trade Procedure (1st & 2nd Phase). “Transparency in Trade Procedures” project aimed to increase transparency of administrative procedures for businesses in Bangladesh to facilitate export by creating a step-by-step guide for exporters. e-Regulations has been used to document and display the export procedures in this online guide.

In Bangladesh, export procedures of two products, fresh vegetables and live and chilled fish were documented in the first phase of the project. In the second phase, BUILD and BFTI (Bangladesh Foreign Trade Institute) are working on five more products which have been mentioned as priority sectors for export in the 7th Five Year Plan. These five products include shrimp, leather goods, jute goods, plastic products and pharmaceutical products. The procedures for each product are documented based on market destination as some Licenses and certificates vary depending on the importing country’s requirements. Table 1 shows the list of destination for each product.

 Table 2: Products and destinations for documenting export procedures

Sl

Product

Destination

1.

Fresh vegetables

1a. European Union

1b. Middle-East

2.

Live and chilled fish

2a. China

2b. Middle-East

3.

Shrimp

3a. European Union

3b. Japan

4.

Leather goods

4a. China

4b. European Union

4c. Japan

4d. United Arab Emirates

4e. United States of America

5.

Jute goods

5a. Russia

5b. European Union

6.

Plastic products

6a. European Union

6b. United States of America

7.

Pharmaceutical products

7a. Russia

7b. South Africa

Figure 2: Partial screenshot of the summary page for the procedure of exporting fresh vegetables to the Middle-East

Using this online guide, an exporter can easily find out the administrative requirements to export a certain product to a specific destination. The guide shows what Licenses, certificates and other documents are required to export the product and how to obtain them. Figure1 shows the partial screenshot of the summary page for the procedure of exporting fresh vegetables to the Middle-East.

On the left side of the summary page, all steps required to export the product are listed. The sub-heads on the list indicate the documents need to be obtained in order to export the product. From the summary page an exporter can get all the information about the procedure at a glance. It shows the places where an exporter has to go to obtain these documents; what documents he/she will get from this procedure; what documents are required; how much it will cost; how long it will take; and the legal documents related to the procedure.

For each step, eRegulations includes information such as contact details of the entity or authority in charge, unit in charge and person in charge for that step. It also includes what the exporter will get (expected result) at the end of that step and what documents are required for that step. The cost (if any) is also mentioned along with time required and the legal justification for the step. Any other relevant information is also mentioned under additional information section.

Policy Advocacy Support through Structured Public Private Dialogue (PPD)

BUILD is in the process of working on export competitiveness by providing policy advocacy support through structured Public-Private Dialogue (PPD) on sector-specific issues. Under this area, it will work for Leather, Light Engineering, and Plastic sector. Issue-specific PPDs have enough importance as the issues are very diverse and need specific treatment for the individual topics. BUILD will arrange Public-Private Dialogues (PPD), validation workshops, FGDs, prepare sector-specific policy papers, suggest reform recommendations/ reform notes follow up for implementation and so on under this project.

 

Some more reform Policy Papers are in the pipeline to be placed in the T&IWC

1.      Replication of RMG Policy Benefits to other High Priority (Export) Sectors

2.      Simplification of Policies for Import of Samples in Bangladesh

3.       Policies for Deemed Export Needs Reforms

4.      Policies for availability of the English Version of Different laws, Rules, Notifications & SROs for  Attracting more the Foreign Investment

5.      Time Lag for Availability of Trade and Investment related Information for Foreign Investors (FI)-How to Address

6.      Policy Simplification for export of Crab to EU

7.      FGDs on Sectoral issues: Leather, Light Engineering & Plastic

8.      PPD on Sectoral issues: Leather, Light Engineering & Plastic

9.      Comments on upcoming Import Policy 2018-21

10.  Policy Briefs on Sectoral issues

 

Structure of Trade & Investment Working Committee

 

Public Sector     

Private Sector

Secretary,
Ministry of Commerce

President,
Metropolitan Chamber of Commerce and Industry (MCCI)