Govt allows export-import trade with Bhutan thru' land ports

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Badrul Ahsan The government has allowed export import business with Bhutan through Gobrakura, Koraitoli and Nakugao land ports with a view to utilising business opportunities between the two countries, a high official of National Board of Revenue (NBR) said. NBR in an official order on February 11 last announced the decision to open the ports for both way trade. Local exporters expressed their mixed reactions to the possible benefits of the latest decision of the government. Some exporters said Bangladesh would not be benefited much from the decision if the government fails to get duty free access of beverage and food items from the Bhutanese government. According to them, Bangladesh's major exportable items to Bhutan are fruit juice and some other crispy food items. But from July, 2012 Bhutan imposed up to fifty per cent duties on the items for which export earning of the country from Bhutan drastically dropped in the current financial year (FY-12-13). According to data available with Export Promotion Bureau (EPB), Bangladesh has exported goods worth only US$1.07 million in July-February period of FY12-13 against export worth $9.13 million a year ago (FY-12-13). "Our export to Bhutan had increased gradually till June 2012 but after imposition of taxes on fruit juice in July last by Bhutan, export of the goods to the country fell drastically," Marketing Director of Pran RFL Group, Kamruzzaman kamal told the FE Sunday. Pran RFL Group is the main exporter of Bangladeshi goods to Bhutan, according to EPB data. "If the government fails to get duty free access of all its goods to Bhutan, then import would ultimately increase and local market would be flooded with Bhutanese products," Kamal added. On the other hand, apparel exporters hailed the government decision. They said that due to the widening of scope of both way trade, apparel export of the country would increase significantly. "Readymade garment (RMG) exporters, specially small and medium, would be benefited from the decision as there is huge demand of cheap Bangladeshi RMG items in Bhutan," first vice-president of BGMEA, Siddiqul Islam told the FE. However, an EPB high official said Bhutan's exports to Bangladesh are more than imports as far as balance of trade is concerned. "This is actually driven by more demand for specific goods." The volume of trade between Bhutan and Bangladesh in 2011-2012 was around USD 22.0 million. Bhutan exported goods worth about $19.0 million, while Bangladesh exported only around $3.42 million to Bhutan during the year. "Trade between the two countries is rather negligible and heavily tilted towards Bhutan, so we have to concentrate on getting duty free access of our main products to Bhutan after widening the scope of trade," he said. Bhutan and Bangladesh's export/import currently takes place through only two LC stations; all the goods pass through the Indian states of Assam and Meghalaya. Bhutan imports items like fruit juice, garments, pharmaceuticals, toilet soap, melamine, etc. from Bangladesh, while exports are mainly fresh fruits, minerals, paper boards and spices.