Govt allows sugar export

Daily Sun, 12 September 2012

The government has decided to allow export of sugar for an interim period, tagging five conditions, to help utilise the full production capacity of the local sugar refining mills.

The cabinet committee on economic affairs Tuesday approved a proposal of the commerce ministry to allow temporary sugar export.

The Bangladesh Sugar Refiners Association and the Bangladesh Sugar and Food Industries Corporation (BSFIC) have been demanding to allow sugar export.

Nurul Karim, joint secretary to the cabinet division, told reporters that the proposal of sugar export was approved for the time being.

He also said if necessary, the government will re-impose the ban on the export of the sweetener.

As per the commerce ministry’s proposal, signed by Commerce Secretary Ghulam Hussain, the government should permit sugar export “on an urgent basis or on a special consideration”.

There has been a ban on sugar export as the price of the essential shoots up sometimes due to supply shortages against a high demand that the local sugar mills fall far short of producing.

Refiners import raw sugar and refine that for marketing.

Five conditions tagged to the export of sugar include taking prior permission from the commerce ministry.

A potential exporter will also have to submit a certification letter from Bangladesh Sugar Refiners Association, confirming its sufficient sugar stock, to the ministry.

The ministry will give permission to the refiner as per availability of sugar in local market, which will be assessed by Bangladesh Tariff Commission, according to the proposal.

Under the proposed arrangement, the sugar exporters will set a profit margin of 10 percent of its value addition.

Currently, the country’s annual demand for sugar is 1.4 million tonnes against a production capacity of 3.5 to 4 million tonnes.

Six sugar refiners are currently active in the local market. Those include Deshbandhu Group, City Group, Abdul Monem Ltd, and Meghna Group.

Golam Rahman, managing director of Deshbandhu Group, said the government has allowed sugar export at a time when the sugar producers have already incurred huge losses for selling the item at lower price in the local market.

“The local refiners have targeted the EU, Japanese, Korean, Malaysian and Sri Lankan markets to export their sugar,” he added.

The country’s sugar refiners enjoy zero-duty benefit on imports of both raw and refined sugar.

Bangladesh Sugar and food Industries Corporation (BSFIC) meets only 8 percent of the country’s total demand for sugar.

The sugar refiners’ association has claimed that the refiners produce 3.58 million tonnes sugar annually, almost double of the country’s sugar demand, as per the proposal.

The Bangladesh Sugar and Food Industries Corporation (BSFIC) has also suggested allowing export of white sugar to the European Union countries as the item has huge demand in that region.

39th APTA session in Bangkok Sept 12-13 Dhaka to press for reducing value addition to 30 per cent

The Financial Express, 10 September 2012

Dhaka will make a request for bringing down minimum value addition requirements to 30 per cent from existing 35 per cent under the Asia Pacific Trade Agreement (APTA) in the next meeting, officials said Sunday.

The 39th session of the APTA standing committee is scheduled to be held on September 12-13 in Bangkok where participants are expected to explore widening and deepening of areas of cooperation and integration.

They will also have discussion on conclusion of the fourth round of tariff concessions, mechanisms to address non-tariff measures; sectoral agreement of the Rules of Origin under the APTA; ratification of the framework agreements on trade facilitation, trade in services and investment; and increasing awareness and visibility of the APTA in the region.

Bangladesh, China, India, Lao People’s Democratic Republic, Republic of Korea, and Sri Lanka are participating states of APTA while Mongolia is currently in the process of accession in the regional pact.

A senior official of the Ministry of Commerce (MoC) said presently the participating countries need 35 per cent value addition to avail tariff concession under APTA.

He said the participating states are in talks to reduce the minimum requirements of value addition to 30 per cent, but the process will take time.

He also said in the next session of APTA standing committee Bangladesh will raise the issue for bringing down the value addition requirement immediately.

The MoC official said conclusion of the fourth round of the tariff concession negotiations is needed for trade expansion among the member countries under APTA.

The fourth round of talks is stalled because of indifference over tariff concession.

In the third round of negotiations Bangladesh agreed on tariff concession of 631 products for all countries but three products for the Least Developed Countries (LDCs).

China agreed on 100 per cent tariff concession for 4,721 products for LDCs. The products include fish, food products, pharmaceuticals, soap, leather and leather goods, jute goods, knitwear, woven garments, automobile parts, and bicycles.

India agreed to offer 40 to 100 per cent tariff concession to 48 LDC goods. Those include fish, jamdani sari, leather products, and construction materials of steel.

In the third round South Korea agreed to reduce tariff of 3,938 products for all countries but 960 products for the LDCs. The products include leather and leather goods, automobile parts, and jute goods.

Lao PDR agreed to reduce tariff of 1,803 products by 40 to 80 per cent for all countries. The products include chemicals, fish, some items of clothing and textiles.

Sri Lanka in fourth round agreed to reduce tariff of 145 products for all countries but 72 products for LDCs. The products include woven, knitwear, and jute carpets.

Another trade official said as India has expressed its inability over further tariff concession, China and South Korea have backtracked from the proposals they placed on the table of the fourth round of negotiations. The duo is now considering reducing tariff as was offered by India in the third round of negotiations.

Exporters fretful over C&F agents’ strike

The Financial Express, 10 September 2012

Exporters have voiced concern over the ongoing work abstention programme by clearing and forwarding (C&F) agents at Chittagong Port, saying it will have a negative impact on businesses and economy as well.

They have also urged the authorities to take immediate and effective measures to resolve the crisis, which will affect the country’s foreign trade if the strike gets protracted.

In a statement, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said Sunday apparel manufacturers are worried over the situation as taxation process at the country’s prime seaport ground to a halt.

The association representing 5,000 apparel exporters termed the industry “very sensitive” and said the industrialists cannot get enough power and gas to run their units uninterruptedly and traditional markets of Bangladeshi products were squeezing gradually.

“We’re in a difficult situation. If the strike creates a situation of suspension of shipments it will of course put the economy at stake,” the statement by the country’s apex apparel body said.

Exporters Association of Bangladesh (EAB), another key platform of exporters, warned that the production would face a major setback if companies fail to get our imported raw materials released in time.

In a statement, the association said, the exporters will incur huge financial loss if they opt for air freighting to avoid delayed shipments.

Bangladesh faces tremendous pressure to become competitive globally due to ongoing global financial downturn and debt crisis in the Euro zone.

It said the country had failed to achieve the export target in the immediate past financial year (2011-2012) and orders from global buyers are on the path of decline.

Both the business groups, however, requested the authorities to properly investigate the allegations raised by the Chittagong Customs C&F Agents Association and hold talks to bring normalcy in the activities of the port.

The C&F agents called for indefinite work absence at the key seaport Sunday on various demands, including taking too much fines by the customs authority.

They alleged the authorities do not follow any rule while charging fines and customs duties and ignore the government’s evaluation policy.

The protestors also demanded removal of the commissioner of the Chittagong Customs House, bringing allegations against him of corruption and misbehaviour with the agents.

NBR moves to broker deal to end deadlock C&F agents’ strike delays Tk500m revenue Sunday

The Financial Express, 10 September 2012

CHITTAGONG, September 9: In an attempt to remove stalemate caused by work stoppage of the C&F agents, the Customs authorities have planned to hold a tripartite meeting here Monday.

Both the agitating C&F agents and the Customs Authority hinted that a solution will emerge out of the meeting where three top revenue board officials will be present.

Assessment and taxation of import and export remained stalled at Chittagong Custom House and transportation of goods faced problems in the seaport today after the work abstention by C&F agents.

A deputy commissioner of the Custom House said no bill of entry was submitted to any section of the House and there was no assessment of import documents or any financial transaction as the C&F people remained away from submitting bills of entry and allowed none to enter the Custom House with documents.

Secretary of Chittagong Port Authority Syed Forhad Uddin Ahmed said transportation of goods from the seaport was hampered due to work abstention of the C&F employees at the Custom House today.

The situation has aggravated as more than 20 officials of Chittagong Custom House have submitted letters en masse to the concerned authority seeking their transfer orders from Chittagong if the CCH Commissioner Dr Maruful Islam is transferred.

Additional Commissioner Dr Matiur Rahman has admitted submitting letters for transfer and he was one of them. The letters have not been sent to the NBR, sources said.

Sources said the Customs authority called a meeting with the Custom House C&F Agents Association this morning to find out ways through negotiation, but the association leaders declined to sit with the Commissioner without NBR chairman Nasir Uddin Chowdhury or his representatives.

A senior official of the CCH said three members of the national board of revenue will arrive from Dhaka to attend a meeting with C&F Agents Association at the Custom House conference room at 10.00 am tomorrow (Monday).

The NBR members scheduled to attend the meeting are Nasiruddin Ahmed, Farid Uddin Ahmed and Firoze Shah Alam, Additional Commissioner of CCH Dr Matiur Rahman said. They are expected to reach Chittagong on Sunday night.

“There is no alternative to discussion between the Customs authority and the C&F agents. Many things can be solved through negotiation and we hope some solution will definitely come out of that meeting,” he told this correspondent at his office this afternoon.

Kazi Mahmud Imam Bilu, acting secretary of Chittagong Customs Clearing and Forwarding Agents Association, estimated that revenue earning worth about Tk 500 million was delayed due to halt in paper assessment and submission of import papers in a single day on Sunday. He said it has hampered overall import and export in the country’s major seaport.

The C&F agents staged daylong demonstration in the Custom House corridor to press home their six point charter of demand protesting violation of Duty Assessment Rules 2000, authoritarian activities of the Custom House Commissioner and harassment to the C&F agents and their employees.

Drug could emerge as game changer as Bangladesh seeks to expand export base

The financial Express, 10 September 2012

The Export Promotion Bureau (EPB) has moved to boost shipment of a dozen products as part of its strategy to widen the country’s export basket, an official said.

Pharmaceuticals, shipbuilding, leather, paper, and furniture are among the sectors, which officials say could help Bangladesh reduce its overwhelming reliance on clothing that accounts for 80 per cent of the country’s US$24 billion annualised exports.

A senior official at the EPB said that the country is well-placed to increase drug exports, thanks to its quality and price competitiveness.

“Pharmaceuticals top our priority list. I think drug sector has all the potentials to be a darling of importing nations,” the official said.

The country exported pharmaceuticals products to more than 80 countries, fetching US $ 48.25 million in 2012 financial year.

The EPB official said exports of leather and leather goods top the list as the sector pulled in worth $429.52 million last fiscal.

The nascent shipbuilding industry has been singled out as another potential export sector, thanks to its competitiveness in the areas of price and quality.

The sector has already secured a spot on the world’s shipbuilding map after exports of mid-size ocean-going vessels to several European countries.

Officials said the EPB will submit a specific proposal to the government for reducing the cost of capital. The country earned worth $ 35 million from the shipbuilding sector in 2012 financial year.

The furniture sector could also help in establishing backward linkage industry. Bangladesh exported furniture worth $ 27.14 million during the FY 2011-12.

Availability of raw materials and duty waiver and providing support to enrich the knowledge of entrepreneurs and workers could help increase furniture export.

The official said steps will be taken to reduce capital cost and lead time for being competitive in exporting furniture from the country.

The country has a prospect of exporting paper to different countries. The country exported paper and paper products worth $ 27.75 million during the FY 2011-12.

High production cost, uncompetitive in price and quality, illegal use of bonded facilities, lack of market promotional efforts are the main problems in the paper sector of the country. And the EPB has been working to resolve all these problems.

The major export items of the country are readymade garments (RMG – woven and knit), jute and jute goods, home textiles, frozen foods and leather and leather goods.

The European Union (EU) is the largest market for Bangladeshi exportable items (52 per cent) while the United States has been the single largest destination (22.28 per cent).

Bangladesh is exporting her products to 189 countries. The American region shares 31. 61 per cent, European region 52.70 per cent, Asian region 7.34 per cent, Middle East 1.52 per cent, African region 0.97 per cent and other regions 5.86 per cent of her goods.

Bangladesh earned $ 24,301.90 million during FY 2011-12 and $ 22,924.38 million during FY 2010-11 through her exports, according to EPB.

Ctg C&F agents start work abstention

The Daily Star, 9 September 2012

Clearing and forwarding agents of Chittagong port are observing a work abstention for an indefinite period from Sunday protesting ‘excessive fines charged by the customs authorities’.

According to the agents, the authorities do not follow any rule while charging fines and customs duties. They ignore the government’s evaluation policy, the agents said.

They also demanded removal of the commissioner of the port city customs house and levelled allegations against him of corruption and misbehaviour with the agents.
If a representative from National Board of Revenue (NBR) meet them and consider their demands, the agents will revoke their decision of work abstention immediately, Altaf Hossain, General Secretary of Chittagong Custom C&F Agents’ Association told the Daily Star.

In the meantime, Benapole custom C&F Agents’ Association is observing a half-day work abstention expressing their solidarity with the Chittagong C&F agents.

France’s richest man seeks Belgium nationality

Daily Sun, 9 September 2012

BRUSSELS: Bernard Arnault, the richest man in France and the world’s fourth-wealthiest, confirmed reports Saturday that he was seeking Belgian nationality as Paris moves to impose a 75-percent wealth tax.

But the 63-year-old billionaire head of the LVMH luxury goods empire denied he planned to be a tax exile and said he would also keep his French citizenship.

The Belgian daily La Libre Belgique earlier quoted Georges Dallemagne, the head of the Belgian parliament’s naturalisation commission, as saying that Arnault’s application would be treated the same as all the others.”

“We currently have 47,000 before us,” he told the paper.

Belgian legislation requires applicants for citizenship to have had at least three years residency in Belgium, barring which they need to prove ties to the country, Dallemagne said.

Arnault lives in Paris and has a home in Brussels, the daily said.

“Contrary to the reports published today, Mr Bernard Arnault states that he is and will remain a French tax resident,” a statement put out by Arnault’s press office said.

“If he obtains dual French-Belgian nationality it would not change this position, nor his determination to pursue the development of the LVMH group and the creation of jobs in France which this engenders.”

The statement said Arnault’s move was linked to plans for his own private Groupe Arnault “to expand its numerous activities in Belgium.”

“Mr Arnault, who is from northern France, has many personal and family ties with Belgium as well as on the professional front,” it added.

His application comes amid a debate on one of the main pledges that France’s President Francois Hollande made during the election campaign earlier this year—to impose a 75-percent tax on incomes above one million euros.

Press reports this week said that the government was looking to water down the measure by raising the threshold to two million euros for couples and excluding capital gains. —AFP

Mexico leader defends freedom, democracy

Daily Sun, 9 September 2012

VLADIVOSTOK: Mexican Presi-dent Felipe Calderon launched an impassioned defence of freedom and democracy on Saturday, at an Asia Pacific summit hosted by Russian leader Vladimir Putin.

Discussions at the Asia Pacific Economic Cooperation (APEC) annual leaders’ gathering normally concentrate on trade, but the Mexican leader turned instead to overtly political topics.

“We must believe and support freedom and democracy in any point of the world,” Calderon, whose party ousted opponents who had ruled for more than 70 years at polls in 2000, told a business forum on the summit sidelines.

“We need to stand for democracy and for freedom, we need to fight for them every single day,” he said, adding they were essential for prosperity and “the future of humankind”.

“My advice is stand on principles, believe and fight for freedom in economics and politics as well.”

Calderon, who has less than three months left in office, specifically referred to freedom of speech, which critics say is under threat in Russia and seriously curbed in neighbouring China, as well as freedom of assembly.

Putin was voted back to the Kremlin this year but international observers said the election was skewed in his favour during the campaign and the ballot marred by irregularities.

More recently international concern was aroused by the two- year prison terms handed to members of punk band Pussy Riot for protesting against the Russian leader in a Moscow cathedral.

Putin has described their antics as an “orgy” and defended their prosecution for hooliganism as necessary to protect religious believers’ feelings.

China, APEC’s most populous country and the world’s second- biggest economy, is ruled by the Communist Party, which used military force to crush the Tiananmen democracy protests in 1989.

Rights groups say China’s rulers often use subversion charges to jail government critics. Nobel Peace Prize winner Liu Xiaobo was convicted of the offence in 2009 and sentenced to 11 years in prison.

Calderon declined to identify any countries as the object of his comments.

“My duty as head of the Mexican state is be to prudent and respect the rights and sovereignty of other countries, but I hope that in the future every country in the world will have these rights,” he told AFP afterwards.

During the official session at the business forum, Calderon said authoritarianism was “in the past”.

“Either rightist dictatorship or leftist dictatorship, for me it’s the same, it’s a problem of lack of freedom, it’s a problem of lack of democracy, it’s a problem of lack of human rights.” —AFP

Income tax fair from Sept 16

Daily Sun, 9 September 2012

The National Board of Revenue (NBR) will organize a 7-day income tax fair in all eight divisional and 11 large district headquarters from September 16 aiming to encourage people to pay tax online.

“We’re going to organize the fair in eight divisional and 11 large district headquarters for the fourth time with an expectation of enrolling new taxpayers and encourage people to pay tax online,” said NBR chairman Dr Nasiruddin Ahmed at a press conference here today.

Gold prices rise further

Daily Sun, 9 September 2012

Bangladesh Jwellers Samity has raised gold prices further.

The trade body has re-fixed the price of the precious metal at a meeting held at the samity’s head office at Baitul Mukarram in the capital Saturday, said a press release.

The new price will come into effect from today (Sunday). The new rates are Tk 5100 per gram for 22/22 caret, Tk 4,870 per gram for 21/21 caret, Tk 4,175 per gram for 18/18 caret, Tk 3,160 per gram for sanatan system and Tk 135 per gram for 21/21 caret candium.

The present rates are Tk 4970 per gram for 22/22 caret, Tk 4,750 per gram for 21/21 caret, Tk 4,070 per gram for 18/18 caret, Tk 3,090 per gram for sanatan system and Tk 130 per gram for 21/21 caret candium.