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Indonesia sends its 309-product list for Bangladesh PTA
Dhaka earlier sent list of 301 products to Jakarta
Staff Correspondent | Published: 22:40, Feb 01,2020
https://www.newagebd.net/article/98334/indonesia-sends-its-309-product-list-for-bangladesh-pta
A file photo shows a worker showing palm oil fruits at palm oil plantation in Topoyo village in Mamuju, Indonesia, Sulawesi Island in 2017. Indonesia has sought duty benefits on export of its 309 products to Bangladesh under the proposed preferential trade agreement (PTA) between the two countries. — Reuters photo
Indonesia has sought duty benefits on export of its 309 products to Bangladesh under the proposed preferential trade agreement (PTA) between the two countries.
The South East Asian country has recently forwarded the list containing the names of the products, known as a request list, to the Bangladesh commerce ministry for consideration as per the decision of the second meeting of the trade negotiation committee (TNC) held in July 2019.
Bangladesh has also exchanged the request list seeking duty benefits for 301 products, including readymade garments, leather and leather goods, pharmaceuticals, jute and jute goods, and electronic products, on the Indonesian market.
Commerce ministry officials said that the Bangladesh Tariff Commission has primarily prepared a recommendation, as per ministry inputs and upon consultation with stakeholders, on the possible offers to be made against Indonesia’s request.
Trade experts from the both countries would discuss the lists at the next TNC meeting to be held soon, they said.
The TNC on the Bangladesh-Indonesia PTA started negotiations in February 2019 to reach a conclusion over the signing of the agreement.
According to the request list sent by Indonesia, the country sought duty-free benefits on export of 271 products to Bangladesh along with a reduction of duty by 50 per cent for 33 products and by 40 per cent for another five products.
The products include palm oil, coconut oil, vegetable fats, fish, natural honey, cocoa, sand, stone, granules, gypsum, limestone, coal, petroleum oils, wood and wood products, rails, aluminium, air conditioner, refrigerator, washing machine, mobiles and mobile accessories, computer monitor, television and its parts, LED lamp, solar modules, printer, various types of spare parts, coconuts, betel nuts, dried fruit, coffee, tea, rice and various types of spices.
Of the products under the list, 25 per cent customs duty is now applicable on import of 144 products by Bangladeshi traders, 15 per cent on eight products, 10 per cent on 69 products, 5 per cent on 60 products, and 1 per cent on 16 products and zero duty on import of nine products.
Out of the 144 products with 25 per cent CD, Indonesia sought full exemption of CD for 125 products.
According to an analysis of the BTC, these 309 products cover around 68 per cent of the total imports from Indonesia and more than 70 per cent of the total revenue collection generated from Indonesian imports.
The share of these products in global import and global revenue generation of Bangladesh is more than 18 per cent and around 25 per cent respectively, it said.
The officials said that 157 of the products on the request list sent by Indonesia were already on Bangladesh’s preference list for trade under the South Asian Free Trade Agreement with 0 to 5 per cent duty rates.
Therefore, these products might be first considered for offer, they said.
They said that the decision would be taken following recommendations of the stakeholders, including local manufacturers.
The BTC on December 30 held the first consultation meeting with the stakeholders concerned.
The stakeholders recommended the commission to exclude some products, including television, tea and sugar, from the offer list.
The lists will be finalised after considering the inputs of the commerce ministry and other government agencies.
Currently, bilateral trade between the two countries is heavily against Bangladesh. Bangladesh exported goods worth only $55 million to the country in 2017-18.
On the other hand, Bangladesh imported goods worth $1.15 billion from the country in FY 2017.
Dhaka earlier sent list of 301 products to Jakarta
Staff Correspondent | Published: 22:40, Feb 01,2020
https://www.newagebd.net/article/98334/indonesia-sends-its-309-product-list-for-bangladesh-pta
A file photo shows a worker showing palm oil fruits at palm oil plantation in Topoyo village in Mamuju, Indonesia, Sulawesi Island in 2017. Indonesia has sought duty benefits on export of its 309 products to Bangladesh under the proposed preferential trade agreement (PTA) between the two countries. — Reuters photo
Indonesia has sought duty benefits on export of its 309 products to Bangladesh under the proposed preferential trade agreement (PTA) between the two countries.
The South East Asian country has recently forwarded the list containing the names of the products, known as a request list, to the Bangladesh commerce ministry for consideration as per the decision of the second meeting of the trade negotiation committee (TNC) held in July 2019.
Bangladesh has also exchanged the request list seeking duty benefits for 301 products, including readymade garments, leather and leather goods, pharmaceuticals, jute and jute goods, and electronic products, on the Indonesian market.
Commerce ministry officials said that the Bangladesh Tariff Commission has primarily prepared a recommendation, as per ministry inputs and upon consultation with stakeholders, on the possible offers to be made against Indonesia’s request.
Trade experts from the both countries would discuss the lists at the next TNC meeting to be held soon, they said.
The TNC on the Bangladesh-Indonesia PTA started negotiations in February 2019 to reach a conclusion over the signing of the agreement.
According to the request list sent by Indonesia, the country sought duty-free benefits on export of 271 products to Bangladesh along with a reduction of duty by 50 per cent for 33 products and by 40 per cent for another five products.
The products include palm oil, coconut oil, vegetable fats, fish, natural honey, cocoa, sand, stone, granules, gypsum, limestone, coal, petroleum oils, wood and wood products, rails, aluminium, air conditioner, refrigerator, washing machine, mobiles and mobile accessories, computer monitor, television and its parts, LED lamp, solar modules, printer, various types of spare parts, coconuts, betel nuts, dried fruit, coffee, tea, rice and various types of spices.
Of the products under the list, 25 per cent customs duty is now applicable on import of 144 products by Bangladeshi traders, 15 per cent on eight products, 10 per cent on 69 products, 5 per cent on 60 products, and 1 per cent on 16 products and zero duty on import of nine products.
Out of the 144 products with 25 per cent CD, Indonesia sought full exemption of CD for 125 products.
According to an analysis of the BTC, these 309 products cover around 68 per cent of the total imports from Indonesia and more than 70 per cent of the total revenue collection generated from Indonesian imports.
The share of these products in global import and global revenue generation of Bangladesh is more than 18 per cent and around 25 per cent respectively, it said.
The officials said that 157 of the products on the request list sent by Indonesia were already on Bangladesh’s preference list for trade under the South Asian Free Trade Agreement with 0 to 5 per cent duty rates.
Therefore, these products might be first considered for offer, they said.
They said that the decision would be taken following recommendations of the stakeholders, including local manufacturers.
The BTC on December 30 held the first consultation meeting with the stakeholders concerned.
The stakeholders recommended the commission to exclude some products, including television, tea and sugar, from the offer list.
The lists will be finalised after considering the inputs of the commerce ministry and other government agencies.
Currently, bilateral trade between the two countries is heavily against Bangladesh. Bangladesh exported goods worth only $55 million to the country in 2017-18.
On the other hand, Bangladesh imported goods worth $1.15 billion from the country in FY 2017.