digitalbinosIntroduction
Bangladesh has established itself as a major exporting nation, with industries such as textiles, jute, leather, and agricultural products playing a vital role in the country’s economy. With a business-friendly environment, government incentives, and a growing global demand for Bangladeshi products, now is an excellent time for entrepreneurs to explore export opportunities. This guide provides a step-by-step approach to starting a successful export business in Bangladesh.
1. Understanding the Export Potential of Bangladesh
Bangladesh’s export sector is primarily driven by:
- Ready-Made Garments (RMG)The largest contributor, accounting for over 80% of total exports.
- Jute and Jute Products– Known for being environmentally friendly and widely used globally.
- Leather and Footwear– High-quality leather exports to Europe and the US.
- Agricultural Products– Including tea, frozen seafood, and vegetables.
- Pharmaceuticals– Gaining recognition in international markets.
2. Legal and Regulatory Requirements for Exporting
Before starting an export business, you must comply with the regulatory framework. Key steps include:
- Business Registration– Register your company with the Registrar of Joint Stock Companies and Firms (RJSC).
- Obtain an Export Registration Certificate (ERC)– Issued by the Office of the Chief Controller of Imports and Exports (CCI&E).
- Trade License & VAT Registration– Acquire a trade license from the local government and VAT registration from the National Board of Revenue (NBR).
- Bank Account and Export LC (Letter of Credit)– Open a business bank account and get an export LC for secure transactions.
3. Identifying Target Markets and Buyers
Researching and identifying international markets is crucial. Steps to find potential buyers include:
- Attending Trade Fairs and Expos– Events like the Dhaka International Trade Fair help connect with buyers.
- Using Online Marketplaces– Platforms like Alibaba, TradeIndia, and ExportHub can help find global clients.
- Networking with Export Promotion Agencies– Institutions like the Export Promotion Bureau (EPB) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) can provide valuable insights.
4. Logistics and Shipping Process
A smooth export process requires proper logistics planning. Important steps include:
- Selecting a Freight Forwarder– Companies like DHL, Maersk, and Kuehne+Nagel can handle international shipping.
- Customs Clearance and Documentation– Ensure proper documentation, including the Bill of Lading, Commercial Invoice, and Packing List.
- Shipping Methods– Choose between sea freight, air freight, or land transport, depending on the product and destination.
5. Government Incentives and Export Support
The Bangladeshi government provides various incentives to exporters, such as:
- Cash incentives– Up to 10% for certain industries like jute and leather.
- Tax Exemptions– Export-oriented industries enjoy tax benefits.
- Duty Drawback Facilities– Refunds on import duties for raw materials used in export products.
- Export Processing Zones (EPZs)– Offering infrastructure, tax benefits, and business-friendly policies.
Conclusion
The export business in Bangladesh offers tremendous opportunities for growth. By understanding the legal framework, identifying target markets, ensuring smooth logistics, and leveraging government incentives, new exporters can establish a profitable business in the global market.