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Duty-free export of Bangladesh RMG to India faces hidden tariff barrier
Holiday Report
Bangladeshi garments manufacturers are facing difficulties to export their products to India under the duty-free agreement as Delhi has been imposing hidden taxes on ready-made garment.
The higher hidden tax imposed by India has created obstruction on the way of Bangladesh exports of eight million pieces of garments under duty-free facility. BGMEA leaders claim that Delhi is imposing higher hidden taxes, which accounts for more than 18 percent.
BGMEA President Abdus Salam Murshedy said Bangladesh could send only 40 percent of eight million pieces in the first nine months this year. "We couldn't fulfil our quota since the beginning of the facility from 2008," he added.
Bangladesh signed an agreement with India in September 2007 to export eight million pieces of garment items a year under duty-free facility that New Delhi offered under the South Asia Free Trade Agreement (SAFTA). Of the total quota, affiliated members of the BGMEA get a 70 percent share while the rest goes to the members Bangladesh Knitwear Manufacturers and Exporters Association.
However, Bangladesh can hardly benefit from the opportunity of exporting the apparel items because of higher hidden taxes although those products were meant for duty-free export under SAFTA framework.
Under such a situation, both Bangladeshi exporters and Indian importers feel discouraged to go for a bilateral deal due to such hidden higher taxes, which include provincial tax and higher school education charge.
Meanwhile, the Bangladesh commerce ministry in a recent letter has sought clarifications from New Delhi for imposing higher hidden taxes on export of eight million pieces of readymade garment products to India duty-free as per SAFTA facility. "We asked for explanations as we think imposing such taxes is illogical. We are entitled to the duty-free benefit," said a Commerce Ministry official.
The official said explanations have been sought from Delhi and Kolkata through the Bangladesh mission in India. The Ministry expects to receive clarification before the visit of Bangladesh Prime Minister to India beginning from December 19.
During the prime minister's visit, Dhaka will also urge Delhi to increase the duty-free quota and remove non-tariff and para-tariff barriers to increase the volume of trade between the two countries, he said.
The official said the ministry sent the letter following a complaint lodged by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) as the enlisted companies of the association were facing problems in exporting products under duty-free facility.
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MTB awards scholarships to DU students
Holiday Report
Mutual Trust Bank Ltd (MTB) in association with Dhaka University Alumni Association (DUAA), recently awarded scholarships to the less advantaged but meritorious students of the University of Dhaka. The bank in association with DUAA, has been awarding these scholarships to DU students since the last year and will continue for another three years under an arrangement between MTB and DUAA.
The award giving ceremony was held at Nabab Nawab Au Chowdhury Senate Building Auditorium, University of Dhaka with Bangladesh Bank Governor Dr. Atiur Rahman gracing as chief guest while Professor A A M S Arefin Siddique, Vice Chancellor of the University of Dhaka, was present as the guest of honour.
Samson H. Chowdhury, Chairman of Mutual Trust Bank Ltd attended the function as special guest. Syed Manzur Elahi, President, DUAA & MTB Founding Chairman presided over the program.
Bangladesh Bank Governor, Dr. Atiur Rahman, thanked MTB for awarding scholarship to less advantaged but meritorious students of the Dhaka University. He suggested that the CSR (Corporate Social Responsibility) activity of the corporate body should not be confined to relief work in catastrophes like flood or cyclone rather they should diversify their activities to invest in productive sectors like education and health.
Professor A A M S Arefin Siddique also thanked Mutual Trust Bank for this CSR activity and said that the students would be encouraged to study hard with this scholarship.
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HSBC launches YEA 2009-10
Holiday Report
The Hongkong and Shanghai Banking Corporation (HSBC) Ltd in Bangladesh has launched the Young Entrepreneurs Awards 2009-2010 (YEA), a business plan writing competition, for the fourth consecutive year on Wednesday at Bengal Gallery.
The YEA was originally launched nine years ago to encourage innovation and creativity amongst students in Hong Kong. Since that time, over 14,000 students have submitted over 5300 ideas in the competition. In the 2009-2010 version, students from Hong Kong, Malaysia, Philippines, Thailand, Brunei and Bangladesh will compete in the regional final in Malaysia. In 2009 over 250 teams from Bangladesh made submissions. Three winning teams (Gold, Silver & Bronze winners) from Bangladesh were provided with an opportunity to take a weeklong study trip to Hong Kong, where the gold team competed with the winners from the each of the other region. The team came in third and won the bronze award along with a cash prize of HK$10,000. The competition will be held in 3 phases with students in 2-3 person teams requested to submit a business plan at YEA website (www.asiayea.com) by 24 January 2010. Following which, a minimum of 30 teams will be selected for the second round and provided with a workshop on business plan writing. They will be requested to submit their business plan by 1 6 March. Out of the 30 teams, a minimum of 7 teams will be chosen for the final round. These teams will be provided with a second workshop on presentation skills and will be required to present in front of a panel of judges on 04 April 2009. The regional competition in Malaysia will take place in June. Speaking at the occasion, Sanjay Prakash, chief executive officer of HSBC Bangladesh said that HSBC was proud to provide students with access to this regional competition and hoped that Bangladesh would continue to produce talented young entrepreneurs that could compete and win on the global stage.
Mustafizur R Khan, head of marketing and communications of HSBC Bangladesh also spoke on the occasion. Members of the local winning team from the 2008 competition were also present at the event and shared their experiences of the regional competition.
More information about the HSBC Young Entrepreneurs Awards competition can be found at www.asiayea.com
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GDFS opens branch at Gulshan
Holiday Report
Green Delta Financial Services Limited (GDFCL), a brokerage house in Bangladesh has opened its 4th branch at Gulshan near circle two. GDFCL is a sister concern of Green Delta Insurance Company Limited and a member of both the Dhaka Stock Exchange and the Chittagong Stock Exchange. It has been serving the capital market for the last two years and has a client base of over 6000 clients including some reputed corporate houses.
At the opening ceremony, M. Rakibur Rahman president of the DSE were present as chief guest. Among others Waqar A Chowdhury, managing director of GDFCL, Nasir A Chowdhury of Green Delta Insurance Company Limited, City Bank chairman Aziz Al Kaiser, AEM Muhaemen, managing director of BRAC Bank, Anis A Khan, managing director of Mutual Trust Bank Limited and senior executives from different leading financial institutions were present.
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