Economic Policy Paper of Import in Bangladesh Essay Example

fiscal year 2008-09. I firmly believe that this publication will be valuable and well-received by policymakers, planners, readers, the business community, and other stakeholders if it proves useful. We welcome any comments and suggestions for further enhancing this publication.

BBS has been annually performing the task of ensuring the timely availability of foreign trade data since 1973-74. The specific objective of FTS is to provide policymakers, planners, researchers, and other users with data on exports and imports. This data includes the unit, value, quantity, and country of origin by commodity, following the harmonized commodity description and coding system (HS code) at 2 to 8 digits level. The publication also publishes micro-level data on foreign trade, which is considered attractive and useful to users. To enhance utilization, time-series data and comparative statistics are included. Additionally, a summary and key findings are provided at the beginning of the report to give an overview of foreign trade trends.

NBR gathers data from primary sources of foreign trade data, which are the customs stations. BBS obtains CD-Roms from NBR that contain tabular data covering various fields. BBS selects certain data from these different fields based on its requirements. In the past, for sea-based data, BBS used to acquire "bills of entry" for imports and "shipping bills" for export entries. Importers had to submit a bill of entry and exporters had to submit shipping bills to the customs houses at the Chittagong and Mongla seaports for each consignment being imported or exported from Bangladesh. The personnel from BBS stationed at Chittagong and Mongla Customs Houses were responsible for collecting and forwarding these bills to the National Accounting Wing's Foreign Trade Section.

The staff

previously stationed at the two customs houses would regularly collect documents and transport them to Dhaka two or three times per month. Currently, BBS only gathers data from NBR in CD-Rom format. In the past, land-based foreign trade data was compiled from monthly reports received from land customs stations nationwide, while air-based data was collected from trade returns including bill of entries for imports and customs statements for exports. These reports are obtained from the air freight unit in Dhaka. However, currently both land-based and air-based foreign trade data is obtained from NBR in CD-Rom format.

Scope and Coverage
FTS encompasses all commodities, excluding military hardware, bullion, currency notes, coins, and goods in transit, that cross the customs territory boundary. For imports, FTS includes all goods and commodities entering the country, while for exports, it encompasses all goods and commodities leaving the country. Additionally, FTS covers imported and exported commodities in Export Processing Zones (EPZ). It considers all exports and imports via various routes such as sea, air, land, and postal parcels. The classification includes broad commodity categories at the 4-digit level as well as detailed descriptions at the 8-digit level.

BBS has created HS codes at the 2 to 8-digit level to encompass all items involved in international trade. Import information is organized by the country the goods are sent from, while export information is categorized by the country they were ultimately delivered to. BBS compiles data on quantities and values from NBR's CD-Rom, specifically focusing on HS codes and the imported and exported goods. BBS does not alter the value assigned by NBR for each commodity, but ensures the accuracy of the recorded quantities by conducting

thorough checks to identify any discrepancies between value and quantity.

The BBS examines and resolves any anomalies found by observing the figures of the same commodity from the last few years. For valuation, the Bangladesh Bureau of Statistics follows the Brussels Definition of Value (BDV). The BDV was introduced in December 1950 under the Principles of the General Agreement on Tariffs and Trades (GATT) to establish a consistent valuation system. It has been universally accepted by nearly all countries worldwide.

Under the BDV, the taxable value of goods brought into the country for personal use is calculated based on their market price at the time when customs duty is payable. However, determining the value of XXI goods can be challenging and depends on what is most convenient for revenue collection. Currently, the customs authority uses either tariff values or international prices as a reference point for assessing customs and related duties. The BBS records the value of imports based on the cost, insurance, and freight (CIF) and the value of exports based on the free on board (FOB) terms.

After the Computer Wing completes the necessary work, they send the tabulation sheets to FTS for correction, compilation, and editing. FTS then returns the sheets to the Computer Wing to repost the corrected entries. The Computer Wing incorporates the corrected figures and prints a copy for further checking. Once a final check is complete, the Computer Wing prints the final tables. While most tabulations follow HS Coding, some selected tabulations are based on goods categories from various exporting or importing accounts. Monthly tables are chosen for publication in the Monthly Statistical Bulletin and other monthly and annual publications of

BBS.

FTS are published on a fiscal year basis, from July 1 to June 30. The special trade system is based on the concept of "clearance through the customs frontiers" which is essentially the statistical boundary. Any commodity that is not cleared by the customs is not included in these statistics. On the other hand, the general system of trade considers the national boundary as the statistical frontier. This means that all goods and commodities, except for military goods, bullion, currency notes, coins, and goods in transit, entering or leaving the country are documented in trade statistics.

Bangladesh has shifted from a specific trade system to a general trade system with the aim of enhancing coverage. The nation depends solely on imports to meet its petroleum product requirements, which has led to the largest trade balance disparity in the last five years.

Table 2.1 reveals a continuous rise in the trade deficit for the past five years. To narrow down the gap between exports and imports, the Government has been assisting private exporters through various means. This includes arranging both domestic and international trade fairs to promote export prospects. Moreover, there has been a recent growth in exporting non-traditional products.