WT/TPR/M/385/Add.1  
4 June 2019  
(19-3843) Page: 1/68 
Trade Policy Review Body  
3 and 5 April 2019  Original: English/anglais/inglés  
 
  
TRADE POLICY REVIEW  
BANGLADESH  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Bangladesh .1 
 
 
Organe d'examen des politiques commerciales  
3 et 5 avril 2019  
EXAMEN DES POLITIQUE S COMMERCIALES  
BANGLADESH  
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Manuel A.J. Teehankee (Philippines)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Bangladesh .1 
 
 
Órgano de Examen de las Políticas Comerciales  
3 y 5 de abril de 2019  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
BANGLADESH  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Manuel A.J. Teehankee (Filipinas)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicion ales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Bangladesh .1 
  
                                                
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/385/Add.1  
 
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  Contents  
RUSSIAN FEDERATION  ................................ ................................ ................................ ...... 3 
JAPAN  ................................ ................................ ................................ ...............................  4 
CHINA  ................................ ................................ ................................ ...............................  5 
CHINA – ADDITIONAL Q UESTIONS  ................................ ................................ ...................  6 
EUROPEAN U NION  ................................ ................................ ................................ ............  9 
EUROPEAN UNION – FOLLOW -UP QUESTIONS  ................................ ................................  24 
UNITED STATES  ................................ ................................ ................................ ..............  25 
UNITED STATES – FOLL OW-UP QUESTIONS  ................................ ................................ .... 27 
HONG KONG, CHINA  ................................ ................................ ................................ ........  28 
ICELAND  ................................ ................................ ................................ .........................  31 
UKRAINE  ................................ ................................ ................................ .........................  33 
SINGAPORE  ................................ ................................ ................................ .....................  45 
THAILAND  ................................ ................................ ................................ .......................  46 
AUSTRALIA  ................................ ................................ ................................ .....................  53 
THE SEPARATE CUSTOMS  TERRITORY OF TAIWAN , PENGHU, KINMEN AND  MATSU  ........  55 
CANADA  ................................ ................................ ................................ ..........................  58 
INDIA ................................ ................................ ................................ .............................  61 
TURKEY  ................................ ................................ ................................ ...........................  65 
INDONESIA  ................................ ................................ ................................ .....................  67 
 
  WT/TPR /M/385/Add.1  
 
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  RUSSIAN FEDERATION  
QUESTIONS ON THE SECRETARIAT REPORT  
(WT/TPR/S/385)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measu res Affecting Production and Trade  
3.3.3  Sanitary and phytosanitary requirements Page 73, para 3.117  
 
The secretariat Report notes that Bangladesh has not submitted any notification to the 
WTO Committee on Sanitary and Phytosanitary Measures.  
 
Question N° 1  
 
Does Bangladesh maintain any SPS measures which result in a higher level of sanitary and 
phytosanitary protection than would be achieved by measures based on the relevant international 
standards, guidelines or recommendations? If yes, please provide any in formation on Bangladesh 
intention to notify its SPS measures.  
 
Answer:  
 
In adopting SPS measures, Bangladesh generally follows the guidelines of CODEX Alimentarius, IPPC 
and OIE. No measures are adopted which results in a higher level of sanitary and phyto sanitary 
protection than would be achieved by measures based on the relevant international standards, 
guidelines or recommendations. In such case, there is no requirement for notification of 
SPS measures.  
 
 
  WT/TPR/M/385/Add.1  
 
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  JAPAN  
Report by the Secretariat (WT/TPR/S/385)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
 
(Question 1 Paragraph 3.148, page 82)  
 
Upon graduation from the LDC  expected in 2024, Bangladesh are required to bring its laws into full 
conformity with the WTO agreements in areas including patent protection for pharmaceuticals. Will 
Bangladeshi Patent Office begin examination of the mail -box applications of pharmaceuti cals upon 
the graduation?  
 
Answer:  
 
General Council decision taken on 30 November 2015 (WTO document WT/L/971) waived all LDCs  
including Bangladesh from the obligation of 70.8 regarding maintenance of mail -box. Accordingly, 
Bangladesh does not maintain any mail -box at present.  
 
(Question 2 Paragraph 3.170, page 88)  
 
We would like to know whether Bangladesh is planning to introdu ce the IP recordal system at the 
customs in the near future, and if so, please clarify such plan in detail.  
 
Answer:  
 
At present NBR is working with a draft IPR enforcement rule. NBR is considering incorporation of IP 
recordal system in the rule.  
 
 
  WT/TPR /M/385/Add.1  
 
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  CHINA  
Part I.  Questions based on Report by the Secretariat (WT/TPR/S/385)  
 
SUMMARY  
 
Page 8，Para 3  
 
This was achieved through a prudent fiscal stance resulting in spending control, and the slower 
implementation of development projects, which compensated for reve nue under -performance. With 
tax revenues at around 10% of GDP, there is a pressing need to boost collection; in this context, a 
new VAT regime, whose implementation has been delayed over some years, is now expected to be 
implemented by July  2019.  
 
Question s: 
 
Will this new VAT regime lead to the increase of the export price of tobacco or tobacco products?  
 
Answer:  
 
There is no scope to increase the export price of tobacco or tobacco products in the new VAT Act.  
 
Will Bangladesh introduce any tax incentives  or preferential policies for foreign -invested enterprises 
in Bangladesh during the implementation of this new VAT regime?  
 
Answer:  
 
No tax incentives or preferential treatment will be introduced in the new VAT Act.  
 
TRADE POLICIES AND PRACTICES BY MEASUR E 
 
Page 61 ，Para 3.79  
 
"As at 2018/19, corporate income tax rates remain largely unchanged, and are as follows: 25% for 
publicly traded companies; 35% for non -publicly traded companies; 37.5% (40% before 2013) for 
publicly -traded banks, insurance and financ ial institutions and banks; 37.5% for merchant banks; 
40% (42.5% prior to 2018/19) for non -publicly traded banks, insurance and financial institutions; 
45% for all cigarette, bidi, zarda, chewing tobacco or other tobacco product manufacturing 
companies (40 % for publicly -traded companies prior to 2014);"…  
 
Questions:  
 
In 2014, Bangladesh increase the corporate income tax rates from 40% to 45% for cigarette, bidi, 
zarda, chewing tobacco or other tobacco product manufacturing companies, with a view to reducing  
tobacco consumption. Could Bangladesh please introduce the effects of this policy?  
 
Answer :  
 
A number of studies conducted by the private sector and NGOs reveals that the consumption of 
tobacco and tobacco products has declined substantially due to incre ase of tax on tobacco and 
tobacco products and enforcement of "Smoking and Usage of Tobacco Products (Control) Act 2013 
which prohibits all forms of tobacco advertising, sponsorship, and promotion in most media and 
tobacco smoking in all public transportat ion and public places including restaurants and cafes, health 
care facilities, and all  educational institutions. The Global Adult Tobacco Survey (GATS) tobacco use 
prevalence significantly decreased among adults from 43.3% in 2009 to 35.3% in 2017 (from 58 .0% 
to 46.0% among males; from28.7% to 25.2% among females). This represents a 18.5% relative 
decline of tobacco use prevalence (20.8% decline for males; 12.2% decline for females).  
 
  WT/TPR/M/385/Add.1  
 
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  CHINA – ADDITIONAL Q UESTIONS  
Part I.  Questions based on Report by the Secretariat (WT/TPR/S/385)  
 
Page 52, para 3.48&3.49  
 
With a view to encouraging exports, the Government provides incentives to selected export sectors. 
These take the form of cash incentives, and are provided to exporters who do not avail of the duty 
drawback facility or the bonded warehousing facility. The rate of the incentive is decided by the 
Government, and is updated annually through circulars issued by the Bangladesh Bank, which 
administers the incentive scheme.  
 
The list of products eligible for cash incentives (export subsidies) for goods shipped be tween 1 July 
2018 and 30 June 2019, along with the associated rate of subsidy/cash incentive, is contained in FE 
Circular No. 31 (Table 3.3).  
 
Questions:  
 
Please provide detailed introduction to FE Circular No. 31.  
 
Answer:  
 
FE Circular 31 contains list o f products with rate of cash incentives as percentage of FoB value eligible 
for cash incentives.   
 
"With a view to encouraging exports, the Government provides incentives to selected export sectors. 
These take the form of cash incentives, and are provided  to exporters who do not avail of the duty 
drawback facility or the bonded warehousing facility. " Could Bangladesh please clarify whether those 
incentives constituted the prohibited subsidies under the Agreement on Subsidies and Countervailing 
Measures, as  they are directly related to exports? Could Bangladesh please clarify whether the export 
incentives have been notified to the WTO Secretariat or not?  
 
Answer:  
 
As mentioned in the secretariat report, cash incentives are provided to the exporters who do no t 
avail of the duty drawback facility or the bonded warehousing facility. Objectives of these cash 
incentives to give the exporters back the duty/taxes received from the import of inputs. Therefore, 
these cash incentives may not fall under the export subsi dies within the meaning of the Agreement 
on Subsidies and Countervailing Measures. Moreover, export subsidies are not prohibited for LDCs 
as per Article 27.2(a) of the Agreement.   
 
Page 54, Paragraph 3.51  
 
Since 2012/13, the incentive (subsidy) amount has  been rising, and was nearly BDT 4,480 crore in 
2017/18, with nearly half of the subsidy outlay going to the textile sector (Table 3.5)  
 
Questions:  
 
Could Bangladesh please explain why nearly half of the subsidy outlay goes to the textile sector?  
 
Answer:  
 
Share of Textiles and clothing accounts for nearly 90 % of Bangladesh export amounting 
USD 32.9 billion in fiscal year 2017 -18. It is therefore obvious that major portion of cash incentive 
goes to this sector. However, it is to be mentioned that lion share  of export of textiles and clothing 
does not receive any cash incentives. Cash incentives are provided to exporters using the yarn 
produced in the country, SMEs exporters and to that portion of export, which goes to the markets 
other than EU, US and Canada .    
 WT/TPR /M/385/Add.1  
 
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  Page 54, Paragraph 3.52  
 
In addition to the export subsidy/cash incentive (Section 3.2.4.1), Bangladesh continues to provide 
a wide array of other support measures including, inter alia: concessional tariffs, a duty drawback 
system, special bonded wa rehouses, and EPZs.  
 
Questions:  
 
It seems that other support measures such as concessional tariffs, a duty drawback system, special 
bonded warehouses, and EPZs are directly related to exports. Could Bangladesh please clarify their 
compliance with the Agre ement on Subsidies and Countervailing Measures?  
 
Answer:  
 
As per illustrative list of Annex I and Annex III of the Agreement on Subsidies and Countervailing 
Measures support measures such as concessional tariffs, a duty drawback system, special bonded 
warehouses, and EPZs do not fall under the definition of export subsidies.  
 
Page 122 ，Para 4.153  
 
"4.153. The Bangladesh Flag Vessel (Protection) Ordinance, 1982 continues to provide that at least 
40% of the sea -borne cargoes relating to the country's foreign trade be carried by Bangladesh -flag 
vessels.149 The implementation of this Ordinance is jointly  monitored by DG Shipping, the 
Department of Shipping (DOS), the Department of Food, the BADC, and the state -owned Bangladesh 
Chemical Industries Corporation (BCIC) (Section 3.3.5). As at November 2018, there was no 
container ship under the Bangladesh flag . Foreign -flag vessels carry cargo to and from Bangladesh 
through waivers. The number of waivers increased from 2,500 in 2012 to 3,500 in 2018 (up to 
October). A limited quantity of bulk, petroleum or chemical cargo is carried by Bangladesh -flag 
vessels, w hich carry less than 40% of sea -borne goods. The remaining percentage of cargo is 
shipped by foreign -flagged vessels. Cargo for carriage by a third -country -flag vessel is allowed only 
when there is no available national -flag vessel or flag vessel of the tr ading country. " 
 
Questions:  
 
"The Bangladesh Flag Vessel (Protection) Ordinance, 1982 continues to provide that at least 40% of 
the sea -borne cargoes relating to the country's foreign trade be carried by Bangladesh -flag vessels. " 
Could Bangladesh please cl arify whether there is any plan to modify the Bangladesh Flag Vessel 
(Protection) Ordinance, 1982?  
 
Answer:  
 
Yes, the Government has a plan to modify the Bangladesh Flag Vessel (Protection) Ordinance, 1982  
 
"As at November 2018, there was no container ship  under the Bangladesh flag. Foreign -flag vessels 
carry cargo to and from Bangladesh through waivers. " Could Bangladesh please clarify whether the 
vessels with waivers are restricted to foreign trade transportation (Is it possible for them to engage 
in coas tal transportation or domestic transportation in Bangladesh)? Could Bangladesh please 
provide details about the approval authority, procedures and deadlines for the waivers?  
 
Answer:  
 
Waiver is granted under the Bangladesh Flag Vessel (Protection) Ordinanc e, 1982, which covers 
foreign trade only. foreign vessel requires waivers to engage in coastal transportation or domestic 
transportation in Bangladesh and also require permission from the shipping authority which is 
Department of Shipping.   
 
Waiver author ity: 
Mercantile Marine office  
CGO Building  
Agrabad,  chottagarm  
 WT/TPR/M/385/Add.1  
 
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  Shipping Authority:  
Director General  
Department of Shipping  
141-143 Motijheel C/A  
Dhaka -1000 
Bangladesh.  
 
Page 123 ，Para 4.157  
 
4.157. …… Considering the economic importance of Chittagong Port,  the Government undertook 
projects to add more dynamism in its operating activities, such as: reconstruction of Service Jetty -1 
near the Dock Office (July 2018); increasing navigability of the Karnaphuli River from Sadarghat to 
Bakalia Char, by capital and  maintenance dredging (project initiated in May 2017 and to be 
completed by June 2021); construction of a New -Mooring Overflow Yard (initiated in January 2018 
and to be completed by June 2019); construction of Patenga Container Terminal (initiated in 
Janua ry 2017 and to be completed by June 2019); procurement of equipment for a new -mooring 
container terminal (initiated in January 2014 and to be completed by June 2019), " 
 
Questions:  
 
Could Bangladesh please provide the requirements and details for foreign investors or joint ventures 
to invest in the construction and operation of port business in Bangladesh?  
 
Answer:  
 
Bangladesh economy is growing rapidly. It is one of the highest GDP increasing country of the world. 
With this growing demand, Bangladesh government has taken some initiatives in port development 
e.g. Payra Port, Matarbari Port, Bay Terminal, Patenga Container Terminal (PCT) etc. All those are 
capital intensive project and  Bangladesh is keen to have Foreign investment in construction of above 
mentioned portsct. It could be Joint Venture or Foreign Direct Investment.  
 
Operation of those ports will be based on the demand. Global Terminal Operator might be consulted 
while ope ration will be commenced.  
 
Page 124 ，Para 4.163  
 
"The Civil Aviation Authority of Bangladesh (CAAB) maintains and operates aerodromes, air traffic, 
air navigation and communication services and facilities. All other aviation -related ground services 
and faci lities are also regulated by the CAAB, for safe aircraft operation within the territorial air space 
of the country. At present, it operates three international airports, seven domestic airports, and two 
Short Take -Off and Landing (STOL) airports….. " 
 
Quest ions:  
 
Are there any access restrictions on foreign investment in air transport -related services such as air 
transport, and civil airports, aviation fuel, ground services, and aircraft maintenance? What are the 
specific measures if there are access restrictions? Is there a plan and timetable for further opening 
up? 
 
Answer:  
 
Investment be it foreign or domestic in air transport related service in Bangladesh requires prior 
permission from the Authority/Ministry  
 
 
  WT/TPR /M/385/Add.1  
 
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  EUROPEAN UNION  
WT/TPR/S/385 – WTO S ecretariat's Report  
 
SUMMARY  
 
Paragraph 7, page 9, Paragraph 3.117, page 73, and Paragraph 3.135, page 79  
 
The Secretariat's report states that "…Bangladesh continued to have a limited regular notifications 
record…."  
 
"So far, Bangladesh has not submitted any notification to the WTO Committee on Sanitary and 
Phytosanitary Measures, and neither has it been subject to SPS -related specific trade concerns."  
 
"Bangladesh has never notified the WTO of any state -trading activities undertaken by entities within 
the meaning of Article XVII:4(a) of the GATT 1994."  
 
EU Question N°1: Does Bangladesh intend to improve its compliance with notification obligations 
in a timely manner and are there any specific measures under consideration to be taken?  
 
Answer:  
 
Report of t he Secretariat regarding notification submitted by Bangladesh appears to be partial. 
According to the update on notification circulated by the Secretariat (WTO document 
G/L/223/Rev.25, 21 February 2018) Bangladesh has submitted notifications to the Committ ee on 
Sanitary and Phytosanitary measures as per notification obligation under the SPS Agreement. 
Bangladesh's compliance with notification obligation under the Agreement on agriculture is more 
than 55% as assessed by the Secretariat. Since the establishme nt of the WTO Bangladesh never 
imposed any anti -dumping, countervailing or safeguard duty although Bangladesh has notified the 
laws on those measures, name of the investigating authority and initially submitted six -monthly 
reports. Bangladesh has also met notification obligation under other agreement except for 
state-trading enterprise and quantitative restrictions. The Government is committed to meet the 
notification obligation in those areas as soon as possible.  
 
1 ECONOMIC ENVIRONMENT  
 
Paragraph 1.12 an d 1.13, pages 17 and 18  
 
The Secretariat's report states that "…To effectively mobilize long -term capital for investment, the 
financial sector would become more efficient, and reform the banking sector and develop capital 
markets, in this regard, the Gover nment has taken certain measures…"  
 
"…The new value added tax (VAT)…is fundamental to this effort, and successful implementation 
would be an important signal that the Government is determined to persevere with needed structural 
reforms. Several actions hav e been taken in preparation,"  
 
EU Question N°2: Bangladesh has taken steps to improve finance sector governance and pursue 
needed reforms, and we encourage Bangladesh to continue to prioritize reforms in this area. How 
does Bangladesh ensure that tax polic y does not discriminate between foreign and domestic firms? 
What steps is Bangladesh considering to reducing the bureaucratic burden associated with 
repatriation of profits which would contribute to foreign investment in key sectors?  
 
Answer:  
 
Tax policy does not discriminate between foreign and domestic firms. Article 4 of the Foreign Private 
Investment (Promotion and Protection) Act, 1980 ensures fair and equitable treatment to foreign 
private investment. In respect of foreign private investme nt, the transfer of capital and the returns 
from it and, in the event of liquidation of industrial undertaking having such investment, of the 
proceeds from such liquidation is guaranteed by this Act. Beside this, the Industrial Policy 2016 also 
ensure same  treatment to local and foreign investment in all areas.  
 WT/TPR/M/385/Add.1  
 
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  In accordance with paragraph 28 & 29, chapter 10 of the Guidelines for Foreign Exchange 
Transactions (GFET), 2018 (Vol. -1), branches of foreign firms and companies, foreign banks, 
financial institutions and insurance companies operating in Bangladesh may remit profits abroad 
through their nominated Authorized Dealers (ADs) without prior approval from Bangladesh Bank. 
Moreover, as per paragraph 31, chapter 10 of GFET, 2018 (Vol. -1), ADs are al so allowed to remit 
dividends to the non -resident shareholders without prior approval from Bangladesh Bank.  
 
Therefore, there is no bureaucratic burden associated with repatriation of any kinds of returns from 
the foreign investments including profits  
 
Paragraph 1.23, page 21  
 
The Secretariat's report states that "Exports continue to be heavily concentrated in textiles and 
textile articles, which accounted for nearly 90% of total exports in 2017/18; footwear and headgear 
were responsible for a further 2.8% of total exports, followed by live animals and products (1.4%) 
and raw hides and skins (1.4%)…"  
 
EU Question N°3: What is Bangladesh doing to reduce negative environmental impacts and to 
protect health and security of workers in industrial sectors under de velopment such as leather and 
shoes?  
 
Answer:  
 
In order to reduce negative environmental impact of leather industry, the scattered tanneries of 
Hazaribagh, Dhaka have been shifted to the BSCIC Leather Industrial Estate in Savar, Dhaka with a 
facility of Ce ntral Effluent Treatment Plant (CETP) designed to minimize the negative environmental 
impacts caused by leather wastage.  The Government is considering to build clinics and 
accommodation for workers engaged in leather sector under BSCIC Leather Industrial Estate -2 
project.  
 
2 TRADE AND INVESTMENT REGIMES  
 
Paragraph 2.10, page 26  
 
The Secretariat's report states that "…Trade policy formulation begins with the MOC [The Ministry of 
Commerce], and is finalized through a consultative process with the EPB [Expo rt Promotion Bureau]. 
Proposals are invited from relevant stakeholders, including the private sector's chambers of 
commerce (e.g. the Federation of Bangladesh Chambers of Commerce and Industry, and the 
Bangladesh Garments Manufacturers and Exporters Associ ation) and research organizations (e.g. 
the public/private Bangladesh Foreign Trade Institute (BFTI)); and independent academic 
institutions, such as the Centre for Policy Dialogue, issue papers and participate in trade -related 
policy debates… " 
 
EU Questio n N°4: Could Bangladesh indicate whether it considers inviting and consulting foreign 
private sector platforms including Chambers of Commerce representing foreign businesses in the 
trade policy formulation process, in view of the point of view that their i nputs can bring key insights 
and experiences to develop in Bangladesh a business -friendly trade regime?  
 
Answer:  
 
The Government always invites private sector representatives including chambers of commerce 
representing foreign business for the trade policy  formulation. It is a regular practice of the 
Government for the preparation of budget and import, export, Industrial and other policies having 
direct or indirect bearing on trade and industry.  
 
Paragraph 2.11, page 26  
 
The Secretariat's report states that "Trade and trade -related policy formulation and objectives 
continue to be shaped by relatively long and wide -ranging strategies and plans. Vision 2021, issued 
in 2009, and the associated Perspective Plan 2010 -21, lay ou t a series of development targets for 
2021, the year of the 50th anniversary of independence. Its overriding objective is for Bangladesh 
to become a middle -income country by 2021, raising per capita income to USD 2,000, and reducing WT/TPR /M/385/Add.1  
 
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  poverty from 40% to 15% . Vision 2021 is being implemented through five -year plans, which set out 
policy objectives and priorities…"  
 
EU Question N°5: Could Bangladesh explain further on its intention to becoming a middle -income 
country by 2021? Bangladesh moved up the World Bank 's income bracket becoming lower -middle 
income economy in 2015 with a GNI per capita of USD 1,190 which grew to USD 1751 in 2018.  
 
Answer:  
 
Under the perspective plan 2010 -2021, Bangladesh planned to become a middle income country by 
2021. However, it ach ieved lower middle income status by 2015. Bangladesh also aspires to become 
a peaceful, progressive and developed country by 2041.  
 
Paragraph 2.25 and 2.26, page 30  
 
The Secretariat's report states that "…it is expected to graduate from LDC status in 2024… In 2017, 
the Government formed a committee to oversee the preparations in the lead -up to graduation, and 
to develop strategies to address post -graduation challenges."  
 
"…Upon graduation, Bangladesh would have to bring its laws into conformity with WTO agre ements… 
However, several instruments are available in the WTO to help graduating LDCs prepare for a smooth 
transition…"  
EU Question N°6: How does Bangladesh plan to tackle the implications that will result from LDC 
graduation?  
 
Answer:  
 
Bangladesh will lo se its preferential market access granted for the LDCs under the WTO including 
the EU's EBA initiatives which will reduce its competitiveness in the global market. Besides this, the 
country has to bring into conformity its laws and regulations consistent w ith the WTO rules and 
regulations applicable for the developing countries. Apart from these, it has to ensure enforcement 
of IP laws and regulations which appears to be a major challenge for the country given the country's 
administrative, financial and tec hnical capacities . 
 
The Government of Bangladesh has been attempting to overcome the loss of market share by 
enhancing its productivity and improving quality. It has also been working for ensuring Ease of Doing 
Business to improve its competitiveness by re ducing the cost of production and promoting trade 
facilitation. Taking into consideration of the effect of graduation, the Export Policy 2018 -2021 aims 
to diversify export product basket and market destinations. Government is also working for 
enhancing reg ional cooperation through strengthening the existing FTAs and initiating new FTAs with 
potential trading partners.  
 
Bangladesh expects that the preference giving countries will continue their preferential treatment 
for graduated LDCs for certain period in line with the General Assembly Resolution59/209in order to 
make the graduation smooth and sustainable.  
 
Paragraph 2.27, page 30  
 
"Bangladesh attaches importance to deepening intra -regional trade through regional economic and 
trade cooperation arrangements, inter alia , because of the possible impact of its graduation on 
preferential market access....Since its last Review, it has take n initiatives to negotiate FTAs with a 
number of countries, including China, Indonesia, Malaysia, Sri Lanka, Thailand, and Turkey. No data 
on preferential trade under each RTA in force was available from the authorities."  
 
EU Question N°7: Could Bangladesh  give information regarding the principal objectives and the 
status of the above -mentioned FTA negotiations? Would Bangladesh be able to provide the data on 
preferential trade under each RTA in force?  
 WT/TPR/M/385/Add.1  
 
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  Answer:  
 
The principle objective of FTA negotiation for Bangladesh is to get greater market access for trade 
in goods and services, attract foreign investment and to meet the LDC graduation challenges. The 
ongoing negotiations with the countries mentioned are in di fferent stages, i.e. some are in feasibility 
study stage and some are in negotiation stage. On request, the trade data under any RTA (currently 
Bangladesh is party to SAFTA and APTA) in force can be provided for import consignments only. The 
electronic tra de data is recorded at the Customs point. For availing preferential tariff benefit under 
any RTA in force, the importers claim it by declaring a separate CPC (Customs Procedure Code) while 
making the import declaration. But, for the export consignments, th e exporters do not have to make 
such declaration since the RTA's preferential tariff is claimed in the country of import – not in the 
country of export.  
 
Paragraph 2.51, page 36  
 
The Secretariat's report states that "…The BIDA's One -Stop Shop (OSS) attempt s to bring the 
different regulatory requirements of business (registration, licences, permissions, etc.) into one 
place, to minimize the cost and time burden for businesses and individuals. The OSS Act, passed on 
5 February 2018, provides for a "one -stop s ervice committee", headed by a cabinet minister, to 
ensure effective management of the overall system. The launch of the pilot OSS was scheduled for 
1 July 2018, and the fully -fledged OSS for 1 July 2019."  
 
EU Question N°8: Could Bangladesh inform whether  there is any effective grievance redressal 
system or mechanism in place within the Bangladesh Investment Development Authority (BIDA) or 
any other Bangladeshi Government agencies for foreign investors on matters arising after having 
established their busi ness in the country?  
 
Answer : 
 
BIDA has an in -built mechanism to listen into the grievances of the issues faced by investors. If the 
issues that are challenging for the investors and id that lies within the territory of BIDA  it will resolve 
it, and if that lies with agencies BIDA tries to communicate with that agencies to resolve the issues 
through collegial processes.  
 
It is noteworthy that the functional commencement of OSS will reduce many issues faced by the 
investors whi le obtain services, as the OSS model will limit the discretionary attitude of the service 
delivery agencies.  
 
Paragraph 2.53, page 37  
 
The Secretariat's report states that "In September 2017, a National Committee for Monitoring and 
Implementation of Doing Business Reforms was formed, to bring together 15 reform -implementing 
government agencies,…Key reforms include: meeting the demand for power, by reducing the time 
required to obtain a commercial electricity connection from over 400 days to 4 weeks…"  
 
EU Qu estion N°9: Although power generation has increased, significant problems remain affecting 
the transmission and distribution of power. What concrete steps does Bangladesh envision taking to 
meet the demand for power, including those to achieve the goals in  the National Committee for 
Monitoring and Implementation of Doing Business Reforms action plan?  
 
Answer:  
 
In Bangladesh as of today no such allocation has been done. Rather, in Bangladesh, generation is 
allocated between public and private power producers . As per revisiting of PSMP -2016, public 
generation should not be less than 50% of total generation.  
 
At present 90 % people of Bangladesh have access to electricity facilities. The total installed 
electricity generation capacity stood at 16,046MW in FY 2017 -18. The transmission and distribution 
of power system is gradually improving. At present the country's transmissio n line stands to 
10,680.64  circuit kilometre and distribution line stands to 4,34000 kilometer and the number of 
consumers reaches to 2 crore 82 lakh. A Policy has been formulated to encourage private sector to 
generate electricity under Public -Private - Partnership (PPP), Rental Power Producer (RPP), and WT/TPR /M/385/Add.1  
 
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  Independent Power Plant (IPP) arrangements. According to Power System Master Plan (PSMP), the 
Government has set a target to increase installed electricity generation capacity to 24000 MW by 
2021 and 40,000  MW by 2030.  
 
Paragraph 2.57, page 37  
 
The Secretariat's report states that "Investment restrictions remain virtually unchanged…under the 
Foreign Private Investment and Protection Act, 17 sectors require prior clearance or permission from 
the respective line ministries or authorities…"  
 
EU Question N°10: Does the Government intend to introduce new measures that would open 
additional sectors and/or reduce administrative requirements in the 17 restricted sectors, to facilitate 
access for foreign investors? Does the Government intend to remove or reduce restrictions limiting 
share of foreign capital in different sectors of Bangladesh's economy?  
 
Answer : 
 
Industrial Policy 2016 defines 22 sectors not 17, where prior permission from concerned Ministry/ 
authori ty is required for establishing an industry by domestic as well as foreign investor.  
 
These sectors are strategic in nature and have separate regulators, who define the modus operandi 
of the investment. These sectors include infrastructure, financial sect or, power sector, energy sector, 
aviation, telecommunication sector etc.  
 
There is no quantitative restriction to invest in these sectors or in any other sectors in terms of 
capping in percentage or amount of equity.  
 
Paragraph 2.63, page 39  
 
The Secretariat's report states that "… To avoid investors from paying tax in two different countries, 
it has signed Avoidance of Double Taxation Treaties (DTTs) with 33 countries, …since the last 
Review." and 
 
Paragraph 2.5, page 6 ( document WT/TPR/G/385)  
 
The Report states that "In order to increase domestic and foreign investment, the Government of 
Bangladesh formulated investment friendly policies, acts and laws…Bangladesh has signed 
29 bilateral Trade and Investment Cooperation agreements for promotion and  protection of foreign 
investment. Besides, it has signed agreements on avoidance of double taxation with 27 countries…"  
 
EU Question N°11: The EU would appreciate if Bangladesh could indicate what measure or 
mechanism exists in Bangladesh to address the m atters arising in relation to the implementation of 
the double taxation avoidance agreement?  
Answer:  
 
Bangladesh has signed 33 double taxation avoidance agreements (DTAAs) so far. If any entity is 
entitled to get benefit (zero tax or reduced tax) arising from DTAA that entity needs to apply to 
National Board of Revenue (NBR) in line with the respective DTAA. NBR will, then, issues a certificate 
which will enable that entity to remit profit from Bangladesh at the rate applicable for DTAA.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports  
 
Paragraph 3.4, page 40  
 
"During the review period, the regulatory and institutional framework was updated. The Customs 
Act, 1969 (amended in 2014) remains the main legislat ion governing imports…As at November 2018, 
the proposed new Customs Act, 2018 (entirely replacing the Customs Act, 1969) had been put before 
Parliament and is expected to come into force early 2019. The Bangladesh Customs Authority 
continues to operate und er the National Board of Revenue (NBR), which is the main body governing 
direct and indirect tax revenue collection in Bangladesh…" and WT/TPR/M/385/Add.1  
 
- 14 - 
 
  Paragraph 3.8, page 11 ( document WT/TPR/G/385)  
 
"Bangladesh has undertaken major reforms of the Customs Administration to facilitate trade. It has 
introduced ASYCUDA World in September 2013 and formulated a new Customs Act which is now 
waiting for the approval of the Parliament…"  
 
EU Question N°12: Could Bangladesh indicate in what ways the newly formulated Customs Act 
differ from the current Act and how it would improve its foreign trade regime in line with 
Bangladesh's obligations under WTO?  
 
Answer:  
 
Considering the provisions of WCO SAFE framework of  standards, Revised Kyoto Convention, 
WTO Trade facilitation agreement and International best practices the following provisions have been 
incorporated in the New Customs Act:  AEO and MRA, PCA, Non -Intrusive Inspection, Advance Ruling, 
National Enquiry Poi nt, Risk Management, Stakeholders Consultation, Advance cargo declaration, 
Digital Customs Environment, clarification of Inward processing and Outward processing and 
temporary importation, Mandatory electronic payment, Robust penal provision and reduction of 
discretionary authority of the officials.  
 
EU Question N°13: Upon enactment by the Parliament, would the new Customs Act be subject to 
a series of notifications to put it into effect? if yes, could the Government indicate how long would it 
take to imple ment the new Customs Act?  
 
Answer:  
 
NBR is working with the amendments of the existing rules as well as new rules. It is preparing to 
implement the act immediately after it is passed by the parliament.  
 
Paragraph 3.13, page 42  
 
"Despite ongoing efforts, recent reports and studies demonstrate that there is a need to further 
improve the efficiency of customs procedures in Bangladesh. According to the World Bank Group 
Doing Business Report for 2018, Bangladesh was ranked 173rd out of 190 economies (115th out  of 
183 in 2012) surveyed under its Trading Across Borders Index…"  
 
EU Question N°14: What further steps, if any, does Bangladesh plan to take in order to facilitate 
the import of foreign goods into Bangladesh, and to streamline the customs procedures?  
 
Answer :  
 
Bangladesh has undertaken a good number of initiatives to facilitate the import. These include 
modernization of risk management system, post clearance audit, pre arrival processing, authorized 
economic operator, non -intrusive inspection, e -paymen t, setting up National Single Window, bond 
automation and new Customs Act incorporating the provisions of RKC, WTO -TFA and international 
best practice. These had reduced the time for custom clearance of import. Government believes that 
if all these reform measures are taken into account, Bangladesh's ranking will be much higher than 
what it is mentioned in the report.  
 
Paragraph 3.18, page 43  
 
"The Customs Act also provides for Alternative Dispute Resolution (ADR). Any case or dispute 
pending before any Cu stoms authority or Bangladesh court in respect of a levy, an assessment, the 
collection or refund of duties or taxes, fines or penalties, or customs valuation issues can be dealt 
with and settled by ADR. Between July 2012 and October 2018, 597 cases were f ully settled (out of 
998 applications), while another 150 were partially settled ." and 
 
Paragraph 3.11, page 11 ( document WT/TPR/G/385)  
 
"The Customs Act of Bangladesh also provides for Alternative Dispute Resolution (ADR). Any case 
or dispute pending before any customs authority or Bangladesh court in respect of a levy, WT/TPR /M/385/Add.1  
 
- 15 - 
 
  assessment, collection or refund of duty and taxes, fines or penalties,  or customs valuation issues 
can be dealt with and settled by ADR."  
 
EU Question N°15: Could Bangladesh give information regarding the magnitude of pending court 
cases resulting from customs valuation issues, and whether the Government plans to minimise 
disputes related to customs valuation?  
 
Answer:  
The number of pending cases at the courts resulting from customs valuation issues is 
18,708  involving BDT 7,661.6 Crore. The Government encourages the private sector to take resort 
of Alternative Dispute Resol ution (ADR) for quick disposal of cases.  
 
3.2 Measures directly affecting exports  
Paragraph 3.46, page 52  
 
"Exports of agricultural commodities and manufactured goods are prohibited mainly for reasons of 
health, eco -balance, security, archaeological value, or maintenance of adequate domestic supply. 
Exports of certain items, such as wheat, onions, unprocessed shrimp, raw hides, and blue leather, 
are prohibited, so as to ensure adequate domestic supply…"  
 
EU Question N°16: Could Bangladesh please give information about the status of the export bans 
on raw hides and skins and wet blue? What is the legal basis of this ban and how is it justified under 
WTO law?  
 
Answer:  
 
Bangladesh continues to impose export bans on raw hides and skins and wet blue leathe r under the 
Imports and Exports (Control) Act, 1950. These products are agriculture products as defined by the 
Agreement on Agriculture and discipline on export prohibition of these products is not specific.  
 
3.3 Measures affecting production and trade  
 
Paragraph 3.71, page 59  
 
The Secretariat's report states that "…At the time of the previous TPR, the authorities were aware 
that if indirect taxes were applied uniformly on domestic production and imports, they would both 
reduce the anti -trade bias and inc rease government revenue…" Nevertheless, "According to the 
World Bank Group, inter alia , the tax system is complex, which encourages non -compliance, and the 
indirect tax system is distortionary, discretionary and narrow based. Furthermore, Bangladesh's 
trade policy appears to be influenced by considerations of revenue and assistance to local industries 
rather than trade competitiveness."  
 
EU Question N°17: With the expected graduation from the LDC status, Bangladesh would lose 
access to certain flexibilitie s in applying WTO rules, resulting in more international competition. Does 
Bangladesh plan to introduce further tax reform to support competitiveness of its industry? If yes, 
can it provide further details?  
 
Answer : 
 
The UN CDP and the Ministry of Planning have taken separate initiatives  for assessing the impacts 
of graduation on trade, economy and poverty.  Based on the findings of the se studies, Bangladesh 
will undertake reforms programmes including fiscal reforms.  
 
Paragraph 3.102, pag e 68 
 
The Secretariat's report states that "Transparency in the area of standards appears to remain a 
concern. According to a 2010 United Nations Industrial Development Organization (UNIDO) baseline 
study report, as the legislation is focused on technical regulations, many BDSs have remained 
unpublished for years; as at November 2018, there were about 1,500 (out of 3,768) unpublished 
BDSs…."  
 WT/TPR/M/385/Add.1  
 
- 16 - 
 
  EU Question N°18: Regarding the importance of establishing standards to maintain the quality 
goods, when does Bangla desh envisage to improve the current situation concerning industrial 
standards, taking into account that around 1500 of 3768 Bangladesh Standards remain unpublished?  
 
Answer : 
 
All the Bangladesh Standards developed by the BSTI  are available in printed form or in soft copy. 
All the mandatory Bangladesh Standards are printed on regular basis and are available in the BSTI. 
The voluntary Bangladesh Standards are not kept always in printed form. These are printed 
depending on demand . However, master copies of unpublished standards are available in the BSTI 
library . 
 
Paragraph 3.119, page 73  
 
"During the review period, the legal and institutional framework for competition was developed, in 
line with the Perspective Plan of Bangladesh (2010 -21)…"  
 
EU Question N°19: What is Bangladesh doing to ensure that uniform competition rules apply to 
both national and foreign companies? In view of Bangladesh being on course of graduating from LDC  
status in 2024, what priority measures will Bangladesh take to ensure non -discriminatory 
competition rules? What actions are foreseen to encourage foreign direct investments (FDI) and to 
improve legal security for businesses, including the pharmaceutical sector which in the future most 
probably will be a key sector for Bangladesh?  
 
Answer:  
 
According to "The Competition Act, 2012" Bangladesh Competition Commission is responsible to 
apply and ensure uniform competition rules for both national and foreign co mpanies. The 
Commission is trying its best to enforce the Act.  
 
In view of Bangladesh being on the course of graduating from LDC status in 2024, the Bangladesh 
Competition Commission aims at ensuring non -discriminatory rules for both private sector 
enterpr ises and SOEs as a priority measure. The priorities may be given on the best practices and 
the control of anti -competitive activities like, monopoly, oligopoly, predatory prices and cartels.  
 
The Bangladesh Competition Commission despite its limitations as  a nascent organization foresees 
to continue compliances of all best practices relating to the market competition and resist all sorts 
of anti -competitive activities with a view to encouraging foreign direct investment (FDI), 
improvement of legal security for businesses including the pharmaceutical sector in the future.  
 
Paragraph 3.136 and 3.137, page 79  
 
The Secretariat's report states that "…No data was available from the authorities, on the share of 
foreign suppliers in the procurement and public works market, the main categories of goods and 
services procured, or the main public -sector entities in the t otal value of procured goods and services 
and public works contracts, from 2012 onwards."  
"During the review period, Bangladesh continued to reform its government procurement system, 
with World Bank Group support…"  
 
EU Question N°20: Currently no data is a vailable from Bangladesh related to the procurement and 
public works market. What concrete measures does Bangladesh envisage to increase transparency 
in its public works procurement?  
 
Answer:  
 
The most  significant steps ensuring transparency are as follow s: 
1. Public procurement plan at the agency level is taken and made publicity through website 
much ahead of advertisements for tender notices (Section 11(4) of PPA);  
2. Advertisements inviting tenders are published in widely circulated two dailies and CPTU 
websi te (Section 40 of PPA), published in DG Market/UN Gallery in case of International 
Tender);  WT/TPR /M/385/Add.1  
 
- 17 - 
 
  3. Tenderers are allowed sufficient time  (Rule 61(4) of PPR) to prepare and submit their tenders 
following different thresholds;  
4. Clarifications regarding any points of  tender conditions are provided to tenderers (Section 
45 of PPA) upon their queries;  
5. Provision for pre -tender meeting exists and based on the feedbacks of the participating 
tenderers clauses of tender may also be changed to ensure wider competitions (Secti on 44 
(4) of PPA);  
6. Tender is opened publicly while competitive method is followed (Section 47 of PPA)  
7. Evaluation is done only on the basis of pre -discussed criteria and documents submitted by 
the tenderers (Section 48 of PPA).   
8. Tenderers can also lodge co mplaints if they are aggrieved by any decision of the procuring 
entity. They can first lodge complaints at the administrative level of the procuring entity and 
if not satisfied, to the Review Panel at CPTU (Section 29 & 30 of PPA);  
9. Contract award information is shared with all contending tenderers (Section 53 of PPA);  
10. Tenderer may seek the reasons for not awarding him and PE is obliged to let him know (Rule 
37 (4) of PPR;  
11. Procuring entity arranges debriefing session for all participating tenderers after the award 
where explanation for award and limitations of others are given so that they can overcome 
in their next attempts.   
 
The above steps are followed to ensure transpa rency and accountability in the process of public 
procurement which the GoB has now transformed into a digital domain, ICT based procurement 
process called e -GP. The digitization has further increased competition, efficiency and removed 
physical obstructio ns in the processing of public procurement.  
 
EU Question N°21: Given the recognized need to improve the road and rail transport network, 
what will Bangladesh do to ensure that these markets are open to foreign competition? What priority 
will Bangladesh giv e to take into account sustainable development requirements?  
 
Answer:  
 
Development of road and rail transport infrastructure is one of the top priorities of the Government. 
Accordingly, a number of First Track and Mega Projects have been undertaken by the  Government 
where the lead contractors are foreign firms. In addition, the Government also invites Public Private 
Partnership (PPP) in developing transport infrastructure where there is no restriction on participation 
of foreign firms.  
 
Paragraph 3.142, pa ge 80  
 
"Bangladesh is neither a party nor an observer to the WTO Agreement on Government Procurement 
(GPA)."  
 
EU Question N°22: Does Bangladesh consider taking certain steps towards joining the Agreement 
in the future, for example, seeking Observer status?   
 
Answer:  
 
The Government of Bangladesh did not yet  consider  of becom ing an observer to the GPA.  
 
Paragraph 3.147, page 82  
 
"During the review period, no further IPR  protection enhancement through the expansion of 
international commitments was undertaken. As at August 2018, Bangladesh continued to participate 
in only 2 out of the 26 treaties administered by the World Intellectual Property Organization 
(WIPO)…"  
 
EU Que stion N°23: What reasons are preventing Bangladesh from signing additional treaties 
administered by the WIPO, considering it is currently participating in only 2 of 26 such treaties?  
 WT/TPR/M/385/Add.1  
 
- 18 - 
 
  Answer : 
 
The Government is currently conducting the domestic procedures including stakeholder consultations 
about joining PCT and Madrid System.  
 
Paragraph 3.157 and 3.158, page 85  
 
"…Since January 2018, an e -filing system for trade mark applications is in place; r egistered 
trademarks are published in the domestic press…."  
"…The GI Act provides for registration as a means of protection of GIs,…"  
 
EU Question N°24: Based on the content of the Secretariat Report, the EU would be interested to 
know whether there will b e a publicly available database set up in the future for trademarks and 
geographical indications, which will contain all the applications and registrations of these IP rights.  
 
Answer:  
 
The Department of Patent, Design and Trademarks has a plan to open the  data for registered patent, 
design and trademarks. It publishes journals in every three months. In these journals, applications 
which are approved for further proceed are published. The DPDT has database for the registered 
trademarks though it is not publ ic. But anybody who wants to search whether a specific mark is 
registered or not can send an application to the DPDT and the DPDT then allows to see the database. 
In future, DPDT had a plan to open the database for the public.  
 
Paragraph 3.158, page 85  
 
"Bangladesh enacted the Geographical Indications of Goods (Registration and Protection) Act, 2013 
(GI Act), and the Geographical Indications of Goods Rules, 2015…"  
 
EU Question N°25:  Could Bangladesh clarify whether the Geographical Indications of Goods 
(Registration and Protection) Act of 2013 (GI Act) also covers foreign GIs?  
 
Answer:  
 
According to the Geographical Indication of Goods (Registration and Protection) Act, 2013,  any 
National and Foreign applicant can file an application for registration of Ge ographical Indication.  
 
Paragraph 3.170, page 88 (and Paragraph 3.19, page 12 document WT/TPR/G/385)  
 
The Secretariat Report states that "certain provisions of the Customs Act, 1969 allow for measures 
to protect against imported goods infringing trademarks  and industrial designs, but not copyright"… 
and the Government Report states that "the proposed Customs Act 2018 also include a provision to 
inspect, seize, and detain shipments of any counterfeit or pirated goods".  
 
EU Question N°26:  Could Bangladesh cla rify, whether enforcement through customs procedure – 
in light of the new Customs Act – would be extended to geographical indications as well?  
 
Answer:  
 
The enforcement functions related to Geographical Indications (GI) are covered under the new 
Customs Ac t 
 
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
 
Paragraph 4.66, page 103  
 
"…Despite the increase in generation, demand for electricity cannot be met, due to transmission and 
distribution bottlenecks…"  
 
EU Question N°27:  How is transmission and distribution grid capacity allocated between public and 
private electricity producers in a context of scarce grid capacity?  WT/TPR /M/385/Add.1  
 
- 19 - 
 
  Answer:  
 
A policy has been formulated to encourage private sector to generate electricity under Public -Private-
Partnership (PPP) and Independent Power Plant arrangements (IPP). Power Grid Company of 
Bangladesh Ltd. (PGCB) is responsible for operation, maintenance and development of transmission 
system all over Bangladesh. At present six organizations are respon sible for electricity distribution: 
Bangladesh Power Development (BPDB), Bangladesh Rural Electrification Board (BREB), Dhaka 
Power Distribution Company (DPDC), Dhaka Electric Supply Company (DESCO), West Zone Power 
Distribution Company (WZPDC), Northern E lectricity Supply Company (NESCO ).  
 
4.4 Services  
 
Paragraph 4.105, page 112  
 
"Bangladesh's GATS commitments cover less than 10% of all services subsectors…"  
 
EU Question N°28: Does Bangladesh foresee an increase of its GATS commitments to cover more 
service subsectors?  
 
Answer:  
 
During the Hong Kong Ministerial Conference held in 2005, Ministers agreed as follows: We recognize 
the particular economic situation of LDCs , including the difficulties they face, and acknowledge that 
they are not expected to undertake new commitments. Accordingly, Bangladesh was not expected 
to undertake any new commitment in trade in services. However, Bangladesh may consider 
increasing its commitment under GATS in the process of service negotiation under Doha 
Development Agenda.  
 
Paragraph 4.124, page 116  
 
"The capital shortfall in some banks,…and weakening corporate governance across the board have 
affected the stability of the financial s ector. The Government's reform strategy to address the banks' 
losses and improve operations entails improved governance, gradual recapitalization, credit growth 
limits, and automated financial reporting…Moreover, the Bangladesh Bank has appointed observers  
to banks, to ensure governance of the banking companies. At present, 14 observers have been 
appointed in 14 different banks…"  
 
EU Question N°29: Has Bangladesh considered the participation of international institutions for the 
management of an adequate ma nagement environment in the financial system and for the reduction 
of non -performing loans in the financial system?  
 
Answer : 
 
Bangladesh Bank has been adopting global best practices in formulating the guidelines and necessary 
directives to maintain the utm ost prudence in the financial system. To address, measure, and 
monitor the operational and managerial risks of the financial system, BB has issued comprehensive 
risk management guidelines, such as Credit Risk management, Asset -liability management, Interna l 
control & compliance management,  Operational risk management, Foreign Exchange risk 
management, Environmental risk management, Money Laundering & Terrorist Financing risk 
management and Capital management. BB has also established several monitoring tools  to oversee 
the performances of the banks and non -bank financial institutions using on -site and off -site 
supervision mechanisms.  
 
Considering its existing rules, directives, and monitoring mechanisms, Bangladesh Bank has not 
considered the participation of  international institutions for the management of an adequate 
management environment in the financial system and for the reduction of non -performing loans in 
the financial system. Nevertheless, with the evolving of the global complex financial systems and 
interconnectedness among the institutions, in future, it may be required to request the international 
institutions to share, disseminate, and provide necessary assistances to the financial system of 
Bangladesh through strengthening the knowledge, skills, a nd competencies of the peoples and 
effectiveness of the policies concerned.  
 WT/TPR/M/385/Add.1  
 
- 20 - 
 
  EU Question N°30: How will Bangladesh try to achieve the independence of the appointed 
observers for the different banks, and their managers?  
 
Answer : 
 
Bangladesh tries to achieve  the independence of the appointed observers for the different banks in 
the following ways:  
 
• Under the Bank Company Act, 1991 (Amended up to 2018), Bangladesh Bank (the central bank 
of Bangladesh) is empowered to appoint observers in the banks. To ensure g ood governance 
and the compliance of Bank Company Act, 1991, related laws and the prudential regulations, 
Bangladesh Bank appoints observer in the banks with poor CAMELS rating or in the banks those 
suffer from corporate governance issues. The senior and e xperienced central bankers (General 
Manager/Executive Director) are appointed as observers and Bangladesh Bank independently 
nominates the observer for specific bank.  
 
• The observers are prohibited to take any financial or other benefits from the banks. Mor eover, 
the observers are not allowed to take any loan from the banks without prior approval from 
Bangladesh Bank.  
 
There is a well -defined Terms of References (TOR) for the observer to perform his/her duties and 
responsibilities. S/he has to submit a detailed report on the observations of the meeting and instant 
feedback to the competent authority of the Bangladesh Bank. As the observers are accountable only 
to the highest authority of Bangladesh Bank, they can independently express their opinion in th eir 
report and as a regulator Bangladesh Bank can take necessary actions accordingly.  
 
• In the light of Bank Company Act, 1991 (Amended up to 2018), Bangladesh Bank appoints 
competent observers in vulnerable banks to ensure enforcement of prudential regulat ions, good 
governance and to help revive them from continuous financial deterioration. Bangladesh Bank 
tries to achieve the independence of the appointed observers through different measures. 
Competence, past records, ethical standards etc. are strictly ma intained while appointing an 
observer by the approval of the highest authority of Bangladesh Bank. Well defined Terms of 
References (TOR) and a quick reference guide are in effect to help the observers outline their 
duties & responsibilities precisely. S/h e has to submit a detailed report on the observations and 
instant feedback on each meeting activities to Bangladesh Bank within three days of the 
respective meeting. Board meeting minutes of the respective bank along with the observer 
report are analysed c arefully and the findings are presented to the higher authority for 
decision/action. An observer is liable to the governor for the actions s/he undertakes. The tenure 
of an observer in a single bank has been limited to two years. Besides, the observer is n ot 
entitled to get any direct or indirect honorium/allowance, etc., or any financial benefit from the 
concerned bank, such as a loan or credit card, or higher interest or lower fees on deposit 
accounts.  
 
Paragraph 4.148, page 121  
 
"Bangladesh adopted unive rsal service obligations (USOs) in November 2011, including: voice 
services (individual mobile cellular services as part of the universal service definition); and Internet 
services (broadband as part of the universal service definition)…Operators under uni versal 
access/service obligation include: network/facilities -based operators; and incumbent fixed line 
operators. Since the last quarter of 2011, the operators have been contributing 1% of their gross 
revenue to a USO fund, on a quarterly basis. The amount  had reached BDT 1,070.47 crore as at 
September 2017.144 It seems that the Commission kept the money as a bank deposit because of 
the absence of any initiative from the Government to use it."  
 
EU Question N°31: How, and in what sector or sectors, is Bangl adesh planning to utilize the funds 
available through its USO fund, which currently stands at over BDT 1,000 crore?  
 
Answer:  
 
Bangladesh Telecommunication Regulatory Authority is yet to develop modalities for utilization of 
this fund, which would ensure av ailability of services in remote areas . 
 WT/TPR /M/385/Add.1  
 
- 21 - 
 
  Paragraph 4.153, page 122 and 123  
 
"The Bangladesh Flag Vessel (Protection) Ordinance, 1982 continues to provide that at least 40% of 
the sea -borne cargoes relating to the country's foreign trade be carried by Bangladesh -flag vessels…"  
 
EU Question N°32: We understand that Bangladesh has decided to further increase this 
requirement to 50%. What has been the basis for increasing the requirement of sea -born trade done 
by Bangladesh -flag vessels from 40% to 50%?  
 
Answer:  
 
The Bangladesh Flag Vessels (Protection) Ordinance, 1982, ensures that at least 40% of sea -borne 
cargo relating to foreign trade is carried by national flag vessels, in conformity with the 
UNCTAD  Code of Conduct for Liner Conferences. However, in keeping with the needs of the country's 
foreign trade, these provisions of the 1982 Ordinance are relaxed time to time through general 
waiver notices.  
 
WT/TPR/G/385 – Government's Report  
 
2 RECENT ECONOMIC PERFORMANCE  
 
Paragraph 2.6 and 2.7, page 6  
 
The report states that "…The country has been endeavouring to create employment opportunities 
through enhancing the skills and quality of the workers, improving working environment as well as 
creating new opportunities in public and private sectors. To this en d, the country has formulated the 
'National Skill Development Policy 2011'…"  
 
"Bangladesh Economic Zone Authority (BEZA) has taken an initiative to create employment of 
around 10 million people by establishing 100 Economic Zones (EZs) throughout the countr y in the 
next 15 years…"  
 
EU Question N°33: How does Bangladesh incorporate labour protections in its national skill 
development, training and employment generation programmes?  
 
Answer:  
 
The Government has established a high powered National Skills Development Council (NSDC) 
headed by the Hon'ble Prime Minister to coordinate skills development, training and employment 
generation  programmes under 23 ministries/ divisions and NGOs. To facilitate these programmes, 
it has also recently established a Nati onal Skills Development Authority (NSDA). Besides these, the 
Skills for Employment Investment Programme (SEIP) is set up to facilitate skills development, 
training and employment generation, and ensures employment of 70% of the trainees.  The 
Government in collaboration with the ILO has enacted new labour law and rules and EPZ law to 
ensure labour protection.  
 
Paragraph 2.8, page 6  
 
The report states that "Most important achievement during this period is that the Government has 
gradually reduced dependence on import duty on tax revenue with gradual increase of value added 
tax and income tax revenue."  
 
EU Question N°34: The information that Bangladesh has gradually reduced dependence on import 
duty is commendable. Could Bangladesh explain know how the shift f rom excessive reliance on 
import duty reflects positively in favour of promoting trade taking into account the fact that a 
multitude of additional duties remains in place?  
 
Answer:  
 
While the Government has shifted its reliance from trade taxes to non -trade taxes, it has also 
ensured facilitation of trade and automation of customs processes. The benefits that the country has 
witnessed from these initiatives include - reduction in anti -export bias, enhancement of productivity WT/TPR/M/385/Add.1  
 
- 22 - 
 
  due to lower cost of imported ca pital machineries and technology products, and increased 
competitiveness.  
 
EU Question N°35: Will Bangladesh work out a plan and a time -frame to move away from the 
current large range of supplementary duties (SD) and regulatory duties (RD) which, according  to 
data available from the Dhaka -based Policy Research Institute (PRI), accounts for almost 50% of 
the nominal protection?  
 
Answer : 
 
Bangladesh has gradually rationalizing its tax policies and attempting to use domestic sources for 
collection of revenues.  Although  SDs are imposed on both imported and domestic goods, the 
imposition of SDs on domestic goods is limited in scale.  Regulatory duties (RD) are imposed on 
specific products on a temporary basis which would be reformed soon to apply at a limited scal e. 
The Government of Bangladesh is formulating a new VAT act repealing the previous one which is 
expected to rationalize SDs.  
 
3 TRADE POLICY AND TRADE FACILITATION  
 
Paragraph 3.12 and 3.13, page 11  
 
The Report states that "Chottogram  (Chittagong) Sea Port, the major sea port in Bangladesh, 
handles 92% of the country's total ocean containers…Considering the enormous importance of the 
port, the Government has taken a number of modernization programmes in enhancing efficiency of 
the port  and promoting trade facilitation…"  
"Along with this, Government has taken several initiatives for improving the capacities of the Mongla 
port to turn it into a sea port with all modern facilities."  
 
EU Question N°36: Port capacity remains a constraint on Bangladesh's ability to engage effectively 
in international trade. What steps is Bangladesh considering to  encourage private investment in port 
facilities, and private -sector participation in port operations?  
 
Answer:  
 
Port Capacity is no more a constrain t on Bangladesh's ability to engage in International trade. 
Bangladesh's GDP Growth in last few years is almost 8% which is one of the highest in the world. 
We are the Second largest Ready Made garments (RMG) exporter in the world after China. Per  capita 
Income of the country has increased to more than 1700 US Dollar in last few years. As stated 
Chattagram Port is handling 92% of Country's trade, Chattagram Port is playing a vital positive role 
behind all those achievements.  
 
However, Bangladesh took numer ous initiatives to increase Port Facilities to meet up future demand 
of the Country. Out of those – Patenga Container Terminal (PCT), Laldia Terminal, Bay Terminal and 
Matarbari Port are important. The Government is working to implement Laldia Terminal in Public 
Private Partnership (PPP) Model. Several Proposals from different Private sectors are under 
consideration for Bay Terminal – the Largest Port Project in Bangladesh. JAICA is working with 
Matarbari Port.  
 
In existing Chattagram Port, Private Sectors  are working as Terminal Operator and Berth Operator. 
Cargo and Container Handling, Labour engagements, Empty Container Handling and some Cargo 
and Container handling equipments  along  with the operation of 10 Quay Gantry crane in Chattagram 
port are perfor med by Private Sectors. There are 17 Off Docks (Commonly termed as Dry Port) are 
operated by Private sector in the close vicinity of Chattagram Port.  
 
Paragraph 3.16, page 12  
 
The Report states that "With a view to ensuring the ease of doing business, the  office of the Registrar 
of Joint Stock Companies and Firms has introduced online registration system to enable the 
companies and firms to get registration within four hours from the time of submission of 
application…"  
 WT/TPR /M/385/Add.1  
 
- 23 - 
 
  In view of ensuring the ease of doi ng business, it is noted that Bangladesh declared (in October 
2018) that it plans to create a special service unit ("International Taxpayers' Unit" (ITU)) for 
multinational companies to facilitate their activities and formalities in Bangladesh.  
 
EU Questio n N°37: Is the ITU already in operation? Could Bangladesh Government provide more 
details concerning this project?  
 
Answer : 
 
ITU is not in operation yet. A proposal to set an ITU to deal with MNCs  is in its final stage. Hopefully 
it will be in place by the end of 2019.  
 
  WT/TPR/M/385/Add.1  
 
- 24 - 
 
  EUROPEAN UNION – FOLLOW -UP QUESTIONS  
WT/TPR/S/38 5 – WTO Secretariat's Report  
 
3 ECONOMIC ENVIRONMENT  
 
EU initial question No 2 :  
 
Bangladesh has taken steps to improve finance sector governance and pursue needed reforms, and 
we encourage Bangladesh to continue to prioritize reforms in this area. How does Bangladesh ensure 
that tax policy does not discriminate between foreign and dome stic firms? What steps is Bangladesh 
considering to reducing the bureaucratic burden associated with repatriation of profits which would 
contribute to foreign investment in key sectors?  
 
Answer:   
 
Tax policy does not discriminate between foreign and domes tic firms. Article 4 of the Foreign Private 
Investment (Promotion and Protection) Act, 1980 ensures fair and equitable treatment to foreign 
private investment. In respect of foreign private investment, the transfer of capital and the returns 
from it and, i n the event of liquidation of industrial undertaking having such investment, of the 
proceeds from such liquidation is guaranteed by this Act. Beside this, the Industrial Policy 2016 also 
ensure same treatment to local and foreign investment in all areas.  
 
In accordance with paragraph 28 & 29, chapter 10 of the Guidelines for Foreign Exchange 
Transactions (GFET), 2018 (Vol. -1), branches of foreign firms and companies, foreign banks, 
financial institutions and insurance companies operating in Bangladesh may remit profits abroad 
through their nominated Authorized Dealers (ADs) without prior approval from Bangladesh Bank. 
Moreover, as per paragraph 31, chapter 10 of GFET, 2018 (Vol. -1), ADs are also allowed to remit 
dividends to the non -resident shareholders wi thout prior approval from Bangladesh Bank.   
Therefore, there is no bureaucratic burden associated with repatriation of any kinds of returns from 
the foreign investments including profits . 
 
EU follow -up questions :  
 
1. Could Bangladesh verify if the section  2 of the Foreign Private Investment (Promotion and 
Protection) Act -1980 ensures fair and equitable treatment to foreign private investment in both 
production and services sector alike?  
 
Answer:  
 
Yes, as per the relevant section of the Foreign Private Investment (Promotion and Protection) Act -
1980, fair and equitable treatment is ensured and practiced. In the prevailing laws applicable to 
investment no discrimination is done to local or foreign inv estors. Besides Bangladesh has signed 32 
Bilateral investment treaties which has specific provisions regarding fair and equitable treatment.  
As per the industrial policy 2016 the treatment to manufacturing and service sectors are treated in 
equal manner.  
 
2. In view of the fact that Bangladesh 's LDC graduation by 2024, the vision for becoming upper 
middle income country by 2021, and the new investments in 100 Special Economic Zones (SEZs) by 
local and foreign entities will heavily depend on the quality of its infrastruct ure and the logistic 
services, the EU would appreciate if Bangladesh could clarify  regarding the foreign investment 
regime in Bangladesh 's logistics sector, freight forwarding in particular, which according to the 
National Board of Revenue's  (NBR' s) statuary regulatory order ( SRO) 247 of 2017 allows only 49% 
foreign ownership in this services sub -sector?  
 
Answer:  
 
Developing q uality infrastructure and logistics sector is considered essential for meeting the growth 
need of the economy is very important. Bangladesh is working in that direction. Major infrastructure 
development is under way.  Regarding logistic  services  government maintains some restriction on 
equity participation of foreign investment, which is being gradually relaxed .  The matte r regarding 
freight forwarding services is under discussion with the stakeholders to further improve the policy .  WT/TPR /M/385/Add.1  
 
- 25 - 
 
  UNITED STATES  
Questions on the Report by the Secretariat (WT/TPR/S/385)  
 
1. ECONOMIC ENVIRONMENT  
2. TRADE AND INVESTMENT REGIMES  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Section 3.1.6 Anti -dumping, countervailing, and safeguard measures  
 
Page 49, Paragraphs 3.39, 3.40 : As in its 2012 TPR (see WT/TPR/G/270, Page 13, paragraph  25), 
Bangladesh reports that it amended the Customs Act in order to introduce  provisions for 
anti-dumping, countervailing, and safeguard measures in accordance with the relevant 
WTO Agreements, and that rules governing the investigation and duty assessment procedure for 
dumping and subsidy measures and laws, regulations, and admini strative procedures relating to 
safeguard measures were notified to the relevant Committees. However, it does not appear that 
Bangladesh has made complete notifications of its amended Customs Act or any rules governing 
investigation procedures for anti -dumping, countervailing, or safeguard measures. 
GADPN1BGD1.doc and GADPN1BGD1C1.doc, which were circulated by the Secretariat in April and 
May 2007, respectively, indicate that an English translation of Bangladesh's laws and regulations 
relevant to the AD Agr eement would be submitted in June  2007. During its 2012 TPR, Bangladesh 
reported that authentic English translations would be notified to the WTO Committees in due course. 
However, no English translations are available via the WTO Member database. On 
Septe mber 17 2002, Bangladesh circulated an amendment to its Customs Act of 1969 
(GSGN1BGD1.doc) pertaining to the imposition of safeguard duties. It is not clear whether this 
notification is a complete notification of Bangladesh's laws for imposing safeguard d uties or merely 
an update to a portion of its legislation. Bangladesh further indicated during its 2012 TPR that rules 
regarding imposition of safeguard measures were introduced in 2010. However, no laws, regulations, 
or procedures have been notified to th e Subsidies and Countervailing Measures Committee.  
 
1. Please advise when Bangladesh will provide full notifications of these laws, 
regulations, and administrative procedures to the relevant committees.  
 
Answer:  
 
Before the establishment of the WTO , the Custo ms Act of Bangladesh did not have any provision for 
imposition of anti -dumping, countervailing and Safeguard duties. Soon after the establishment of 
the WTO, Bangladesh brought necessary amendment in Customs Act in order to enable the 
Government to impose these duties. WTO consistent rules and procedures for imposition of 
antidumping and countervailing duties were introduced in 1996, while the imposition of safeguard 
duties was introduced in 2010. All these rules are published in Bangla language. Referring to those 
rules, Bangladesh notified to the relevant committees. However, Bangladesh could not notify the 
English version of those rules  due to capacity constraints. It is to be noted that as of now Bangladesh 
did not even initiate any investigation on those matters, which might concern the members of the 
WTO.     
 
3.3.2 Standards and other technical requirements  
 
Page 66, Paragraph 3.94 : We note that the Bangladesh Standards and Testing Institution Council 
is listed as the institution responsible for maintaining the national Enquiry Point for notifications on 
technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures to t he WTO. 
However, the United States discovered that when attempting to submit requests for Bangladesh to 
notify developing regulations to the TBT Committee, the Enquiry Point email address is 
non-functional or is non -responsive. Under Article 10 of the WTO TBT Agreement, Members are 
required to have a functioning Enquiry Point to efficiently coordinate responses to other Members' 
or interested parties' questions on regulations, standards, and conformity assessment procedures 
issued by the Member.  
 
 
 
 WT/TPR/M/385/Add.1  
 
- 26 - 
 
  2. Could B angladesh verify when the Enquiry Point will be re -established and able to 
coordinate and respond to questions from WTO Members?  
 
Answer:  
 
On 20 February 2019, the Ministry of Commerce submitted a notification for nominating a focal 
person and an alternate  focal person for WTO -TBT enquiry point. Now it is fully functioning and 
active in responding any query.  
3.3.2.3 Transparency and enforcement  
 
Page 68 -69, Paragraph 3.102 : The Secretariat Report notes that many Bangladesh Standards 
have gone unpublished an d that Bangladesh has never submitted draft measures for technical 
regulations or conformity assessment procedures to the WTO TBT Committee. In 2017, the 
United  States learned that Bangladesh drafted a regulation on the management of the Waste 
generated fr om Electrical and Electronic Equipment (WEEE), however, the WEEE regulation was not 
notified to the WTO TBT Committee and there was not an opportunity for interested parties or 
Members to comment on the proposed regulation.  
 
3. Could Bangladesh provide a time line for notifying the WEEE regulation to the WTO TBT 
Committee so that Members or interested parties may comment?  
 
Answer:  
 
The timeline for notifying the WEEE  regulation to the WTO TBT Committee is yet not decided as the 
draft regulation is still not ready for circulation.  
 
3.3.6.3 Procurement methods and related issues  
 
Page 80, Paragraph 3.141: The Secretariat Report explains that domestic 
manufacturers/producers are eligible for a price preference of up to 7.5% for works (construction) 
procurements, and up to 15% in the case of goods procurements, compared to international 
competitors with the same conditions.  
 
4. Does Bangladesh provide a pri ce preference to domestic companies for services 
procurements? If so, what is the price preference?  
 
Answer:  
 
Services are considered as works and 7.5% preference is provided to domestic service providers.  
 
Page 80, Paragraph 3.142:  Bangladesh notes that i t is neither a party nor an observer to the 
WTO Agreement on Government Procurement (GPA).  
 
5. Considering that Bangladesh takes on no market access commitments when becoming 
an Observer to the GPA, has Bangladesh considered applying to become an Observer?  
 
Answer:  
 
The Government of Bangladesh did not yet consider becoming an observer to the GPA.  
 
4. TRADE POLICIES BY SECTOR  
5. APPENDIX TABLES  
 
Questions based on the Government Report (WT/TPR/G/385)  
 
1. RECENT ECONOMIC PERFORMANCE  
2. TRADE POLICY AND TRADE FACILITATION  
3. BANGLADESH IN MULTILATERAL TRADING SYSTEM  
4. BANGLADESH IN BILATERAL AND REGIONAL TRADE AGREEMENTS  
5. WAY FORWARD  
  WT/TPR /M/385/Add.1  
 
- 27 - 
 
  UNITED STATES – FOLL OW-UP QUESTIONS  
Questions based on the Secretariat Report (WT/TPR/S/385)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.2 Standards and other technical requirements  
 
Follow Up Question for 3.3.2.3, #3  
 
3. Could Bangladesh provide a timeline for notifying the WEEE regulation to the WTO TBT Committee 
so that Members or interested parties may comment?  
 
Government of Bangladesh A nswer:  
 
The timeline for notifying the WEEE regulation to the WTO TBT Committee is yet not decided as the 
draft regulation is still not ready for circulation.  
 
USG Follow -Up Questions:  We are glad to hear that the regulation is in draft form. However, 
Bangladesh 's Department of Energy posted on its website a new version of the 2017 -2018 WEEE 
regulation.  The "draft" states that the regulations were immediately entered into force.   
 
1. Can Bangladesh confirm this is correct?   
2. Will the Government of Bangladesh notify the final draft regulation, and will it consider 
stakeholder comments?  
 
Answer:  
 
WEEE regulation is still in draft form.  It has not entered into force as of now. It will be notified to 
the WTO.  
 
 
 
  WT/TPR/M/385/Add.1  
 
- 28 - 
 
  HONG KONG, CHINA  
Questions on the Report by the Secretariat (WT/TPR/S/385)  
 
A. Economic Environment  
 
Structural Reforms and Privatization  
 
(WT/TPR/S/385: Page 17 & 18, paras 1.12 & 1.14 ) 
 
In the 7th Five-Year Plan (FYP) for 2016 -2020, the Government sees private sector businesses as 
central t o the country's future prosperity. State involvement in the economy continues to be 
prevalent, albeit at a declining rate; this tends to crowd out the private sector.  
 
Question:  
 
1. What are the concrete measures to facilitate the participation of the private  sector in the 
economy? What is the implementation time -frame of these measures?  
 
Answer:  
 
Since the early 80s successive governments of Bangladesh have been pursuing private sector led 
economic policies. As a result, contribution of the private sector in GDP growth, investment and 
employment generation have increased significantly. According to available statistics, in 2012 share 
of Government in manufacturing value added was only 2.56 %. The Economic Census 2013 reveals 
that the Government establishment in  total number of establishments was only 2.6% and person 
employed by the government including civil servant accounted for 8.4 % of the total employment in 
2013. Over the last six years those shares have declined. In FY 2016 -17, the total investment of 
GDP was 30.27%, out of which 23.01% was from the private sector and the rest 7.26%. We 
therefore, believe that the statement made at the Secretariat Report needs to be revisited as it is 
not validated by current statistics.  
 
B. Trade and Investment Regimes  
 
Polic y Objectives  
 
(WT/TPR/S/385: Page 27, para 2.12 ) 
 
The 7th FYP placed special emphasis on a diversified manufacturing base, including improving 
manufacturing efficiency and competitiveness, and recognized the relatively high nominal tariff 
protection on dom estically produced consumer goods.  
 
Question:  
 
2. Is there any plan to lower the tariff protection on domestically produced consumer goods?  
 
Answer:  
 
Government has been making every effort to increase competitiveness of domestically produced 
goods through ma ssive investment in ener gy sector, infrastructure and human resources. This will 
increase productive capacity of the country which would require huge revenue generation. With the 
increase of competitiveness, Bangladesh will gradually lower the tariff prote ction.  
 
C. Trade Policies by Sector  
 
Fisheries Subsidies Negotiations  
 
(WT/TPR/S/385: Page 29, para 2.21; Page 97, para 4.40 ) 
 
Bangladesh remains a supporter of the rules -based multilateral trading system. The main 
WTO issues of interest to Bangladesh include, inter alia , the fisheries subsidies negotiations.  
 WT/TPR /M/385/Add.1  
 
- 29 - 
 
  Bangladesh is one of the world's largest inland fishing nations. The fisheries sector contributed 
slightly more than 3% to GDP. The contribution of inland aquacult ure, inland capture and marine 
fisheries to total fish production were 56.44%, 28.14% and 15.42% respectively in 2016/17. 
Fisheries products are exported to 50 markets, including Hong Kong, China.  
 
Question:  
 
3. Given the importance of the fisheries sector to  its economy, what are the objectives and overall 
ambition of Bangladesh in the on -going fisheries subsidies negotiations?  
 
Answer:  
 
Major focuses of Bangladesh in the negotiations on fisheries subsidies are to ensure exclusion of 
aquaculture and inland f isheries from the discipline; exemption from obligation on providing 
subsidies to unreported and unregulated fishing unless capacity is developed through technical 
assistance; not to consider fish in overfished condition due to absence of assessment; exemp tion 
from obligation on artisanal and small - scale fishing within EEZ, exemption from obligation on 
prohibition of subsidies for capacity building, transition period for graduated LDCs etc.  
 
Financial Services  
 
(WT/TPR/S/385: Page 115, para 4.121 ) 
 
Authori ties have adopted policies for an effective capital market. One of the approved reform plans 
included creating a database of existing investors, and linking them to the investors' National 
Identity Cards so as to improve monitoring and to reduce misuse.  
 
Question:  
 
4. Please elaborate on how the creation of database could contribute to the maintaining of an 
effective capital market.  
 
Answer:  
 
The Bangladesh Securities and Exchange Commission maintains a publicly available database for 
monitoring the activities of the companies and protecting the interest of the investors to the capital 
market, prevention of any fraudulent activities and smooth growth of the capital sector of the 
country. The information preserved in the database provides updated infor mation about the 
companies' performance, balance sheet, AGM reports, etc. which helps to monitor the performances 
and financial health of a company.  
 
Question:  
 
5. What are the types of information being kept in the database?  
 
Answer:  
 
The SEC Database cont ains information about the investors, registered entities, list of 
intermediaries, securities, brokers, merchant bankers, credit rating agencies, asset management 
companies, custodians, trustees and fund managers. It has also a Central Depository System wh ich 
works like a bank for shares instead of money.  
 
Question:  
 
6. Does this database cover both foreign and domestic investors?  
 
Answer:  
 
Yes. This database covers information of all the enlisted foreign and domestic investors.  
 WT/TPR/M/385/Add.1  
 
- 30 - 
 
  (WT/TPR/S/385: Page 119, para  4.137 ) 
 
In the insurance sector, the legislation stipulates that foreign companies need a minimum of 
Bangladeshi Taka (BDT) 100 crore for a joint venture with a local company to form a life insurance 
company, while local entrepreneurs need only a minimum of BDT 30 crore. In addition, the Insurance 
Development and Regulatory Authority requires foreign insurance firms to own at least 50% of the 
total paid capital of the BDT 100 crore in the joint venture company.  
 
Question:  
 
7. Why is there a differential treat ment between foreign companies and local entrepreneurs? 
Would the government consider phasing out this practice?  
 
Answer:  
 
As per the Industrial Policy 2016, the insurance sector is designated as one of the controlled 
industries. The Government of Bangladesh did not make any commitment in opening insurance 
subsector. The Government as such does not have any plan at this stage to make any changes of 
the existing provisions.  
 
Maritime Transport  
 
(WT/TPR/S/385: Page 122, para 4.153 ) 
 
The Bangladesh Flag Vessel (Protection) Ordinance, 1982 ("the Ordinance") continues to provide 
that at least 40% of the sea -borne cargoes relating to the country's foreign trade be carried by 
Bangladesh -flag vessels. As at November 2018, there was no container ship under  the Bangladesh 
flag. Foreign -flag vessels carry cargo to and from Bangladesh through waivers. The number of 
waivers increased from 2,500 in 2012 to 3,500 in 2018. A limited quantity of bulk, petroleum or 
chemical cargo is carried by Bangladesh -flag vessel s, which carry less than 40% of sea -borne goods. 
The remaining percentage of cargo is shipped by foreign -flagged vessels. Cargo for carriage by a 
third-country -flag vessel is allowed only when there is no available national -flag vessel or flag vessel 
of the trading country.  
 
Question:  
 
8. Under what circumstances will foreign -flag vessels be granted waivers under the Ordinance?  
 
Answer:  
 
Foreign Flag Vessels are granted waivers under section 3, 4 and 5 of the Bangladesh Flag Vessels 
(Protection) Ordinance 1982 . 
 
Question:  
 
9. It is noted that there was no container ship under the Bangladesh flag, and the threshold of 
having at least 40% of the sea -borne cargoes be carried by Bangladesh -flag vessels could not 
be achieved for various types of cargoes. In such case, what is the rationale for continuing the 
measure? Would the government consider phasing out this measure or modifying the 
Ordinance?  
 
Answer:  
 
The Bangladesh Flag Vessels (Protection) Ordinance, 1982, ensures that at least 40% of the 
sea-borne cargo relat ing to foreign trade is carried by national flag vessels, in conformity with the 
UNCTAD Code of Conduct for Liner Conferences. The provision applied in Bangladesh is irrespective 
of the type of vessels. However, in keeping with the needs of the country's f oreign trade, this 
provision of the 1982 Ordinance are relaxed time to time through general waiver notices.  
  WT/TPR /M/385/Add.1  
 
- 31 - 
 
  ICELAND  
Questions on the Report by the Secretariat (WT/TPR/S/385)  
 
On the occasion of the 11th Ministerial Conference in Buenos Aires more than 120 WTO Members 
and observers launched a joint declaration on women and economic empowerment that aims , 
inter alia, at sharing best practices and working together at the WTO to remove barriers for women's 
economic empowerment and increase their participation in trade. The Trade Policy Review provides 
an excellent opportunity for an exchange of information and best practices on women and trade.  
 
The report of Bangladesh mentions that noteworthy progress has b een made in increasing gender 
equality and women empowerment in Bangladesh and that ministries have identified specific targets 
in line with the SDGs. The report explains the policy goal to increase GDP, by inter alia 
mainstreaming women in the industriali zation process and developing women entrepreneurship. 
Furthermore, information is provided on the specific ceiling interests as regards loans for women 
entrepreneurs to encourage women to start small businesses.  
 
Could Bangladesh provide information on th ese initiatives and the specific targets 
Bangladesh has identified to increase women's economic empowerment and participation 
in trade?  
 
Answer:  
 
Number of Government institutions exists particularly to cater the women entrepreneurs. The 
Directorate of Wo men Affairs, SME Foundation, Export Promotion Bureau, Ministry of Industry, 
Bangladesh Parjatan Corporation, Business Promotion Council and other GOs are providing different 
kinds of supports such as allocation of dedicated loans for the women entrepreneur s, providing 
training, marketing support, participation in fairs for strengthening the women entrepreneurship. 
The most common supports offered from the Government organs are access to finance, training, 
consultancy, credit facilities, donations, etc. The Government has drafted a Child Day Care Policy to 
facilitate women in trade and economic activities.  
 
In recent years the Government has been implementing a number of programmes for bolstering 
women access to finance. Bangladesh Bank encourages all banks a nd Financial Institutions to 
provide loans to women entrepreneurs at 10% interest rate. A dedicated woman entrepreneur desk 
has been established in the SME and Special Programme Department of Bangladesh Bank. A total 
of 15% SME loans has been reserved excl usively for the women entrepreneurs.  
 
For providing assistance to women entrepreneurs, an allocation of BDT 1 billion was dedicated for 
Women Development Fund in the budget for FY 2013 -14.  
 
Could Bangladesh provide information about the results of these policies and on whether 
any additional measures have been put in place or being developed?  
 
Answer:  
 
The major initiatives undertaken by the Government so far included establishment of a separate 
ministry on women affairs, formulation of the National Poli cy for Advancement of Women 2008 and 
National Action Plan which was prepared in response to the Beijing Platform for Action (BPfA). The 
Women Development Policy consolidated in national vision for social, legal and economic 
empowerment of women and guided a set of actions and resources for all stakeholders.  
 
Among the total number of entrepreneurs in Bangladesh, above 10% are women. Many women have 
showed and proved their skills and bid their main counterpart in Small and Cottage Industries 
especially in t he handicraft sector.  
 
Which particular barriers have been identified that limit women's participation in trade?  
 
The barrier includes access to capital and land, skills and business management knowledge, 
identification of markets, marketing products and export specific knowledge, etc . 
 WT/TPR/M/385/Add.1  
 
- 32 - 
 
  Are the effects of trade policy on women and men measured and monitored in 
Bangladesh? If so, how?  
 
Answer:  
 
In recent years the Government has been implementing a number of programmes for bolstering 
women access to finance. Bangladesh Bank encourages all banks and Financial Institutions to 
provide loans to women entrepreneurs at 10% rate of interest. A dedicated woman entrepreneur 
desk has been established in the SME and Special Programme Department of Bangladesh Ban k. 
 
The Government of Bangladesh conducts annual assessments of the gender specific requirements 
of funds. It also regularly monitors allocation, disbursement and utilization of gender specific funds. 
Different studies are also conducted for analysing the impacts of different policies including the trade 
policies on women entrepreneurs. As a result of these initiatives, Bangladesh secured 47th position 
in women empowerment among 144 countries in 2017 (Global Gender Gap Report, 2018). The 
number of working w omen increased to 18.6 million in 2016 -17 from 16.2 million in 2010 -11. 
 
 
  WT/TPR /M/385/Add.1  
 
- 33 - 
 
  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/385 ) 
 
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.3 Policy objectives  
 
Page 27 (Para 2.13)  
 
According to the Report the Cabinet approved the Export Policy 2018 -21 in November 2018, which 
aims to raise the country's export earnings to USD 60 billion by 2021.  
 
Question:  
 
1. Ukraine would kindly ask Bangladesh to elaborate on  the measures (incentives) that will be 
introduced under the Export Policy 2018 -21 to achieve the goal of substantial export 
improvement.  
 
Answer:  
 
Bangladesh aims raising its export earnings to US $60 billion by 2021. To achieve this target, 
government will strengthen institutional capacities of the trade related organizations such as Export 
Promotion Bureau, port authorities, Bangladesh Standard and  Testing Institute, Custom Authorities 
and the six Business Promotion Councils, introduce automation and e -Governance for promoting 
trade facilitation and reducing lead time, providing market intelligence information to the private 
sector, setting up Singl e Window Service Center, raising awareness of the private sector about 
international trade rules & regulations, enhance productivity of the workers and managers of the 
manufacturing units through training and skill development program, providing supports f or 
up-gradation of technologies, continue lobbying for getting duty -free/preferential market access and 
participation at international fairs and sending delegation for showcasing potential products and 
assisting entrepreneurs for diversification of product  basket and export market with necessary 
information and technical supports.  
 
Page 27 (Para 2.14 )  
 
The Report notes, "Bangladesh continues to lack a comprehensive trade policy (CTP). The 7th FYP 
entrusted the MOC with developing a CTP. To this effect, the  European Union provided technical 
assistance under the Bangladesh Trade Policy Support Programme, which had the overall objective 
of developing an integrated national trade policy."  
 
Questions :  
 
2. Ukraine would appreciate if Bangladesh could inform whether the Ministry of Commerce (MOC) 
has assessed implications of Bangladesh's possible graduation from LDC status while 
developing a comprehensive trade policy.  
 
Answer:  
 
Bangladesh will possibly graduate in 2024. The triennial review 2018 of CDP has re vealed that 
Bangladesh has fulfilled all the three criteria for graduation.  CDP has been working for another review 
which is due in 2021. In the meantime, the Ministry of Planning has undertaken a project for 
assessing the impacts of graduation on trade, e conomy and poverty. Bangladesh has also formulated 
Export Policy 2018 -21 taking into consideration of possible impacts of graduation. Bangladesh will 
review all policies related to trade upon completion of the study undertaken by the Planning 
Commission.  
 
3. If so, what are possible changes of Bangladesh's trade policy in areas relating to market access 
and WTO commitments expected to ensure smooth graduation from LDC status?  
 WT/TPR/M/385/Add.1  
 
- 34 - 
 
  Answer:  
 
After having the findings of the study conducted by the Planning Commiss ion, Bangladesh will revisit 
its trade policies in order to ensure smooth graduation from LDC status. Bangladesh however expects 
to lose its market share due to loss of preference margin. It therefore, urges the developed country 
members and other preferen ce giving developing countries to continue DFQF market access and 
other supports for the newly graduated countries at least for five years after graduation for 
prevention of any unexpected set back and ensuring smooth graduation.  
2.2.4 Trade laws and regul ations  
 
Pages 27-28 (Para 2.16 )  
 
The Report mentions, "No regulatory reform to streamline burdensome regulations and reduce the 
regulatory burden to stakeholders was undertaken during the review period. No qualitative 
assessment on the existing regulatory  burden and benefits from its possible reduction was available 
from the authorities. No Regulatory Impact Assessment (RIA) is used in the preparation of legal 
texts."  
 
Question :  
 
4. What steps and initiatives are being taken by Bangladesh to address the i ssue of burdensome 
regulations and to improve the business environment?  
 
Answer:  
 
During the period under review, Bangladesh has undertaken massive automation programmes for 
modernization of customs administration, registration of Joint Stock Companies and  Firms, 
automation of the Chief Controller of Import and Export (CCI&E) office, Bangladesh Bank. E -filing 
have been introduced in all Government offices since 2016. The Government has also introduced 
Grievance Redressal System (GRS), which allows anyone to  lodge complaint for non -performance 
by any government officials/entities. A number of laws have been amended and One Stop Service 
(OSS) Act, 2018 has been enacted to facilitate trade and investment in Bangladesh. The OSS Act 
aims at ensuring delivery of 3 1 investment related services from a single point of four service 
provider government organizations (BIDA, BEZA, BEPZA and Bangladesh High -tech Park Authority) 
to the investors. Number of documentation requirements has been reduced substantially for the 
offices of CCI&E, RJSC, EPB, DPDT and the fees have been rationalized for promoting trade and 
investment. The observation of the Secretariat regarding the regulatory reforms does not reflect the 
real situation of the country.  
 
In October 2017, the Legislativ e and Parliamentary Affairs Division of Ministry of Law, Justice and 
Parliamentary Affairs signed an agreement with the International Finance Corporation on Legislative 
Impact Assessment. This agreement will put in place a framework to understand the costs  and 
benefits of new laws.  
 
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
2.3.1.1 Features  
 
Page 29 (Para 2.21 )  
 
The Report states, that one of the main WTO issues of interest to Bangladesh is work on S&D 
provisions, fisheries subsidies negotiations, the Work Programme on Electronic Commerce, and work 
relating to the implementation of TRIPS Article 66.2.  
 
Questions :  
 
5. With a view to its current LDC status, could Bangladesh kindly provide additional information 
on its vision regarding further activit ies under Work Program on Electronic Commerce within 
the WTO ? 
 WT/TPR /M/385/Add.1  
 
- 35 - 
 
  Answer:  
 
Bangladesh's position in e -commerce discussions are clearly described in the submission of 
Bangladesh made prior to 11th WTO Ministerial Conference (JOB/GC/152/Rev.1). Discussions on 
work programme on e -commerce reinvigorated every year by WTO Ministerial Conferences have not 
been exhausted as of today. Bangladesh is of the view that the WTO should conclude discussions of 
each of the elements of work programme with specific recommendations to the GC for its 
considerations and decisions.  
 
6. Could Banglades h also elaborate on its intention to participate in negotiations on domestic 
regulation disciplines, taking into account the process of Bangladesh's possible graduation 
from the group of LDCs by 2024?  
 
Answer:  
 
Article VI.4 of GATS mandates to develop disc ipline for measures relating to qualification 
requirements and procedures, technical standards and licensing requirements. Accordingly, 
negotiations on any necessary disciplines must be within the scope and coverage of the Article  VI.4 
mandate. Bangladesh feels that any necessary future disciplines must avoid intrusion into internal 
policy making processes, shall preserve the right to regulate of Members, and not hinder the 
regulatory capacity and policy space for development driven regulations by Members, specially 
developing countries and shall create export opportunity of developing country members. 
Bangladesh is ready to participate in discussions which cover the aforesaid issues.    
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 40 (Para 3.1 )  
 
Accord ing to the Report, Bangladesh undertook several trade facilitation initiatives during the review 
period. The transaction value method remains in general use, and the pre -set customs value or the 
minimum value continue to apply for numerous items.  
 
Question s: 
 
7. Could Bangladesh kindly clarify how the pre -set customs value or the minimum value are used 
in the process of customs valuation and for what items?  
 
Answer:  
 
The existing provision of the Customs Act has the provision that 'Government may, by notification 
in the official Gazette, fix, for the purpose of levying customs duties, tariff values [or minimum 
values] for any goods imported as chargeable with customs d uty ad valorem : Provided that any 
imported or exported goods, the declared value of which is higher than its tariff value fixed under 
this subsection, shall be chargeable with customs duties on the basis of its declared value.' A 
notification has been issu ed by the government in this regard.  
 
8. How does application of such minimum value correspond to the provisions of Article VII of the 
GATT 1994 and the Agreement on Implementation of Article VII of the GATT 1994?  
 
Answer:  
 
Bangladesh is using this provision only recently as a temporary basis. After using the mandatory 
Pre-Shipment Inspection System for valuation and tariff classification for a long time since 2000, 
Bangladesh finally abolished the mandatory Pre -Shipment Inspection System in July 201 3. In order 
to cope up with the growing tendency of under -invoicing among traders in the aftermath of the 
post-PSI period, the Government had to take resort to this provision on a limited scale in July 2016. 
It is pertinent to be mentioned that a comprehen sive valuation rule based on Article VII of GATT is 
already in force since 2001. In order to keep the deviation at a minimum level, minimum import 
values have been fixed as region/country specific for a limited number of commodities. The 
Government is curr ently working on improving its valuation practices and also on strengthening 
post-clearance audit activities so that it can discontinue with the provision of minimum value.  
 WT/TPR/M/385/Add.1  
 
- 36 - 
 
  3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import approval and restrictions  
 
Page 49 (Para 3.37)  
 
Under the Report, although import licences per se  are not required for imports into Bangladesh, in 
addition to the standard Letter of Credit Authorization (LCA) import procedure,  a permit, clearance, 
prior permission or approval may be required for certain controlled or restricted imports, thus 
implicitly imposing import licensing requirements.  
 
Questions :  
 
9. Could Bangladesh, please, clarify whether any agricultural products require prior permission 
to be imported into the country?  
 
Prior permission is required for importing following agricultural products:  
a. Plant and plant product  
b. Beneficial organisms  
c. Potato seeds  
d. Rice seeds  
e. Meat and bone meal  
f. Fish meal and protein concentrat e 
g. RBD Palm stearin  
h. Egg of poultry  
 
10. If so, what conditions should be fulfilled for importation of such products?  
 
Answer:  
 
Conditions to be fulfilled for importation of potato seeds : An import permit issued by the 
Plant Protection Authority should be submitted at the time of LC opening.  
 
Conditions to be fulfilled for importation of rice seeds : An import permit issued by the Plant Protection 
Authority for importing rice should be subm itted at the time of LC opening.  
 
Exporting country must need to fulfil the importing country's requirements to get Import Permit 
issued by Plant Quarantine Wing, Department of Agricultural Extension, Bangladesh. Import permit 
contain additional declaration what is different for specific commodity. A list of plants and plant 
products permitted for importation are also incorporated in Plant Quarantine Rules, 2018 as a Second 
schedule and available in the website of the Department of Agricultural Ex tension ( www.dae.gov.bd ). 
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Taxation  
3.3.1.1.2 Indirect taxation  
Value added tax (VAT)  
 
Page 60 (Para 3. 74)  
 
The Report states that VAT exempted p roducts include basic needs (food, medicine, education, etc.), 
agriculture, immovable property, and education items. The Budget Speech 2018/19 refers to 
VAT exemptions at the import, manufacturing and services (insurance) stages, to protect and 
support the  development of the agriculture, heavy engineering, textile and export sectors.  
 
Questions:  
 
11. Ukraine would appreciate if Bangladesh could elaborate on the list of agricultural products 
under VAT exemptions.  
 WT/TPR /M/385/Add.1  
 
- 37 - 
 
  Answer:  
 
All basic agricultural products (Unprocessed and essential for human consumption) are exempted 
from VAT. The list of the products is available at http://nbr.gov.bd/uploads/acts/5.pdf  
 
12. Could Bangladesh, please, indicate the 8 -digit tariff codes of VAT exempted agricultural 
products or provide the link to documents where they are published (in English, if possible)?  
 
Answer:  
 
The list could be found on http://nbr.gov.bd/uploads/acts/5.pdf  
 
13. Are those VAT exemptions the same on imported agricultural products and on products 
originating in Bangladesh?  
 
Answer:  
 
Yes. Those VAT exemptions are same for the imported agricultural products and the  products 
originating in Bangladesh.  
 
Supplementary duty (SD)  
 
Page 60 (Para 3. 75 )  
 
According to the Report Bangladesh continues to levy an supplementary duty (SD) to protect 
domestic industries from facing international competition and to restrict the u se of certain 
undesirable (on social, moral, religious or health grounds) or luxurious items. It currently covers 
1,767  HS eight digit tariff lines (1,267 tariff lines in 2012/13). In 2018/19, its rates ranged between 
10% and 500%, including items such as motor vehicles depending on their engine capacity (20% to 
500%), cigarettes (350%), cosmetics (45%), and perfume (30%); in 2012/13, the maximum rate 
was 250%. The SD is levied on the landed c.i.f. value of goods plus the amount corresponding to 
Customs dut y and RD. For the domestic supply of goods and services, SD is charged on their 
"reasonable imposable value" at the same time of the payment of VAT.  
 
Questions : 
 
14. Could Bangladesh, please, explain how imposition of the supplementary duty on or in 
connection with importation complies with the provisions of Article II of the GATT 1994?  
 
Answer:  
 
Supplementary duties are imposed under the Third Schedule of the VAT Act 1991 and are applicable 
both on imported goods and domestic production. It is therefore, consistent with the Article  II of 
GATT 1994.  
 
15. Are there any items, for which imposition of customs duties, regulatory duty and 
supplementary duty on or in connection with importation may exceed the WTO bound rate 
(please, specify such items,  if so)?  
 
Answer:  
 
According to our estimate, customs duties, regulatory duty and supplementary duty together do not 
exceed the WTO bound rate.  
 
16. What plans has Bangladesh to reduce dependence on such trade -related taxes as regulatory 
duty and suppleme ntary duty for revenue collection?  
 
Answer:  
 
The Government has been gradually increasing revenue collection from direct tax through widening 
the tax net and surveillance. VAT Act has also been modernized in order to ensure payment and 
collection of VAT i n efficient way. Besides, Government has undertaken a project for automation of WT/TPR/M/385/Add.1  
 
- 38 - 
 
  income tax and VAT collection system. The Government expects that upon implementation of these 
initiative Income tax and VAT collection will be increased substantially. This wi ll enable the 
Government to reduce supplementary and regulatory duty  
 
17. Has Bangladesh considered possibility of reduction of its rates or further elimination?  
 
Answer:  
 
Government of Bangladesh has been gradually reducing its tariffs structure since mi d-90s. The 
current tariff rates vary from 5 to 25%. RDs are imposed purely on temporary basis while SDs are 
imposed both on domestic and imported goods. The SDs will be rationalized with the implementation 
of the new VAT Act in 2019.  
 
3.3.1.2 Production i ncentives  
 
Pages 61 -62 (Para 3. 80 )  
 
The Report describes expenditure under the Annual Development Programme (ADP), which was 
almost tripled between 2011/12 and 2016/17. This expenditure was allocated, inter alia , to 
agriculture (13.7% of total ADP expenditure in 2016/17, 21.8% – for 2018/19).  
 
Questions:  
 
18. When and how does Bangladesh intend to notify support to agriculture under the Annual 
Development Programme (ADP) in its DS:1?  
 
Answer:  
 
Bangladesh intends  to notify the support to agriculture under the Annual Development Program 
(ADP) by the end of this year.  
 
19. Could Bangladesh, please, inform more of the ADP expenditures and support granted for 
agriculture?  
 
Answer:  
 
Achieving the target of self -suffici ency infood is one of prime  goals of thegovernment. To attain this 
goal, thegovernment has placed highest importance onthe overall development of agriculture 
sector.With a view to develo ping the agriculture sector,  the Government has taken a number of 
steps in its Annual Development Programme . These include expansion of small irrigation facilities; 
reduction of water logging; production of improved quality and high yielding varieties of seeds and 
their preservation and distribution; agricultural research fo r the development and expansion of the 
draught and saline tolerant varieties, introduce short -duration crops and varieties of crops adaptable 
to the weather and environment of a particular region and producing crops suitable for a particular 
kind of soil a s well as proper use of fertiliser and Integrated Pest Management (IPM) for pest control; 
invention of saline tolerant and short duration crop variety and using nuclear technology and 
bio-technology. These activities are covered under the Green Box subsidi es and will be notified 
accordingly.  
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.2 Energy  
4.2.2.1 Hydrocarbons  
4.2.2.1.1 Oil  
 
Page 101 (Para 4.58 ) 
 
The Report notes, "The Bangladesh Petroleum Corporation (BPC) remains the country's sole 
petroleum refining entity, and retains monopoly rights in downstream activities (i.e. retail trading). 
Since 2013, the Government broke the monopoly of the BPC by allo wing the private sector to import 
crude and refined oil, under the condition that the oil refined by them would be sold to the BPC for WT/TPR /M/385/Add.1  
 
- 39 - 
 
  commercialization; however, private power -generation companies have been allowed to import 
refined oil for their own use.  The BPC imports, acquires, stores and markets petroleum products."  
 
Question:  
 
20. Would Bangladesh, please, clarify the list of products which can be imported exclusively by 
the Bangladesh Petroleum Corporation and authorized private companies?  
 
Answer:  
 
The list of products, which can be imported exclusively by the Bangladesh Petroleum Corporation is 
as follows:  
a. Petroleum oil and all kinds of oil obtained from bituminous mineral crude (HS Code 
No. 27.09.00.00 under HS Heading No. 27.09)  
b. all petroleum p roducts except liquid paraffin (H.S.Heading no. 27.10 and all H.S. Code 
Numbers classifiable under it).  
 
However, Petroleum oil and all kinds of oil obtained from bituminous mineral crude are importable 
by private sector having a licence from the Energy Re gulatory Commission as per Energy Regulatory 
Commission Act, 2003 import with the approval from of the Ministry of Power, Energy & Mineral 
Resources & prior permission from the Ministry of Commerce. Private sector can import all types of 
finished lubricati ng oil, grease & transformer oil along with motor car engine of minimum two APISC 
or CC engine oil, lubricating oil of JASO -FB grade or TC for two stroke engines.  
 
4.3 Manufacturing  
4.3.5 Selected activities  
4.3.5.3 Pharmaceuticals  
 
Page 111 (Para 4.100 ) 
 
The Report states, "During the review period, the importance of the pharmaceutical sector to 
economic growth continued to increase, as Bangladesh kept taking advantage of the transition period 
during which LDCs do not have to protect or enforce patents and  undisclosed information relating to 
pharmaceuticals. According to the authorities, in 2017, 98% of total domestic demand for medicine 
was met by domestic production. In 2017, 267 pharmaceutical manufacturing units produced 
26,910  brands of medicine. Exports of finished pharmaceutical products increased from 
BDT 539.62  crore in 2012 to BDT 2,245.60 crore in 2016 (latest figures available). Furthermore, 
export destinations have increased from 87 countries in 2012 to 127 in 2016, including the 
European  Union, African countries, and the United States. According to the authorities, 
pharmaceutical imports are limited to high -tech products, such as blood products, bio -similar 
products, anti -cancer drugs, and vaccines."  
 
Questions:  
 
21. Could Bangladesh, pleas e, specify measures taken to expand the export of finished 
pharmaceutical products that are manufactured in the country?  
 
Answer:  
 
In order to expand export of pharmaceuticals products, cash incentive is provided on export. Active 
Pharmaceuticals Ingredients (API) Park has been established. Government of developed Active 
Pharmaceutical Ingredients, Reagents Production and Export Polic y 2018 which has prepared time 
bound action plan for the development of the sector.  
 
22. Has Bangladesh considered possibility of using the WTO's Paragraph 6 System, set out by the 
Protocol Amending the TRIPS Agreement, both for export and for import of p harmaceuticals?  
Answer:  
 
Since Bangladesh meets 97% of its demand of pharmaceuticals products with domestic production, 
Bangladesh does not feel the necessity of using Paragraph 6 System for import of pharmaceuticals. WT/TPR/M/385/Add.1  
 
- 40 - 
 
  As of today, no WTO Members have appr oached to Bangladesh to import medicine using the WTO's 
Paragraph 6 System.  
 
23. What steps does Bangladesh intend to apply, if any, for implementation of this System into 
domestic law?  
 
Answer:  
 
As of today, no steps have been taken.  
 
4.4 Services  
4.4.3 F inancial services  
4.4.3.1 Banking and finance  
 
Pages 113 -117 
 
The Report presents overviews of structure and relevant legislation, trade and regulatory regimes 
for the banking sector in Bangladesh.  
 
Questions : 
 
24. Could Bangladesh, please, describe indicators of a non -transparent ownership structure and 
approaches to revealing banks' beneficial owners?  
 
Answer:  
 
Individuals (natural person) or business entities (juristic person) or both can be the owners of a 
bank-company. If there is no clear information about the beneficial owners there might be 
non-transparent ownership structure prevailing in a bank -company. Poor corporate governance, 
higher number of directors from any specific group of companies, high volume of related party 
transactions, high rate of absence in general meetings, high concentration of controlling power etc. 
are some indicators of non -transparent ownership structure.  
Bangladesh Bank (BB) applies several approaches to reveal information about bank's beneficial 
owners such as:  
 
- While processing application for new banks, BB analyse the information about beneficial 
owners;  
- Section 14Kha of the Bank -Company Act, 1991 (amended up to 2018) requires prior 
permission from BB to hold more than 5% share of a bank -company. It is mention able here 
that, BB issues license for banking companies under the said act;  
 
As per section 14Ka(3) of the Bank -Company Act, 1991 shares in anonymity will be forfeited in favor 
of BB.  
 
25. What are the types of activities subject to authorization/licensing ?  
 
Answer:  
 
Bangladesh Bank (The central bank of Bangladesh) is empowered by the Bangladesh Bank Order, 
1972 (President's Order No. 127 of 1972) to regulate and supervise banking companies and financial 
institutions in Bangladesh. As per the Bank -Company Act, 1991 (amended up to 2018), every 
bank-company must obtain banking license to carry out banking business in Bangladesh. The 
bank-companies must follow the prudential regulations, guidelines and instructions of Bangladesh 
Bank and applicable laws/acts o f the country. Following are key activities subject to 
authorization/licensing from Bangladesh Bank:  
- To carry out banking business in Bangladesh;  
- To establish, relocate, merge and close of any business centers;  
- To conduct foreign exchange business;  
- Agent B anking, Mobile Financial Service, Offshore Banking;  
- To appoint bank's directors and Managing Director/Chief Executive Officer;  
- To establish subsidiary companies.   
 WT/TPR /M/385/Add.1  
 
- 41 - 
 
  26. Would Bangladesh specify key requirements to applicants, approval procedure (including 
verification of sources of funds used for capital formation, assessment of financial standing, 
business reputation and transparency of applicants' ownership structure)?  
 
Answer:  
 
Section 31 of the Bank -Company Act, 1991 (amended up to 2018) empowers Bangladesh Bank (BB) 
to issue banking license for operating banking business in Bangladesh. For completing licensing 
process, BB meticulously follows a transparent and systematic process. The process starts with the 
submission of application and ends with the issuance of banking license or rejecting the application. 
The key requirements to applicants and approval procedure of banking licensing are as follows:  
 
• Application in prescribed format with supporting documents as per the 'Guidelines to 
Establish a B anking Company in Bangladesh' as effective at time [published on 
Bangladesh Bank website ( www.bb.org.bd) ]. Major required documents/information 
are: 
• Feasibility Report on the proposed banking company including macroeco nomic 
environment and financial system analysis of Bangladesh, as well as, a business plan for 
the proposed bank, financial projections and sensitivity analysis;  
• Biographical Reports and proof of citizenship for each promoter/director, CEO/MD and 
Heads of major departments of the proposed bank;  
• Board Resolution/Minutes of the shareholders (sponsors) meeting;  
• Written agreement of the shareholders to organize the banking company;  
• A business plan where management strategy should be elaborately defined;  
• Draft Memorandum and Articles of Association;  
• For a corporate promoter: Board Resolution, Articles of Incorporation and By -laws, list 
of directors and officers, list of shareholdings, audited financial statements for the latest 
two years, certified copies of the  Memorandum and Articles of Association approved by 
RJSC;  
• Joint Venture agreement, in case of foreign equity participation;  
• Sponsors' net worth declared in the Tax Return Form to the Tax authorities; Credit 
Information Bureau (CIB) Inquiry Forms of Sponsor s'; 
• Sponsors  holding  5% or more shares  shall have to sign a Capital  Maintenance Agreement 
(CMA)  stating  that they  would,  jointly  and severally  inject  additional  capital  if the bank 
ever falls below the minimum capital requirement;  
 
I. Upon receiving the appli cation Authorized officials of BB examine and scrutinize the 
application and related documents meticulously. The credit status, sources of funds, 
criminal records and relevant information of the promoters/directors of the proposed 
bank are verified from th e competent authorities. For example, the proposed capital 
contribution by any sponsor must be covered by his/her net -worth declared in the tax 
return to National Board of Revenue (NBR), Bangladesh and Bangladesh Bank verifies 
sponsors' funding information  from NBR.  
II.  While verifying the information, the authorized officials would be keen to find out 
beneficial owners or the persons who have a significant or controlling interest on the 
directors/shareholders and also collect criminal records of those identi fied beneficial 
owner, if any;  
III.  BB evaluates applications based on different factors such as: (a) Macroeconomic 
Background/Environment in Bangladesh (b) Financial System and Structure (c) Business 
Plan of the Applicant Bank (d) Business Projection, Econom ic Justification and Financial 
Analysis (e) SWOT Analysis of the Applicant (f) Strategy for survival and growth in the 
long run (g) Sensitivity Analysis (h) Management of the proposed bank including Fit and 
Proper Test for Sponsors/Directors  
IV. After verific ation and evaluation, if BB becomes satisfied that the applicant has fulfilled 
all the required criteria, BB issues license in favor of the applicant with applicable terms 
and conditions.  
 
27. What are the role and status of legislative regulation of the a ppointment of the observers to 
banks, to ensure governance of the banking companies?  
 WT/TPR/M/385/Add.1  
 
- 42 - 
 
  Answer:  
 
In terms of the Bank Company Act, 1991 (Section 49(1)), Bangladesh Bank appoints observers in 
various banks to ensure enforcement of prudential regulations, good governance and to help revive 
them from financial deterioration. Within the Terms of References (TOR) and a quick reference guide, 
observers perform their duties & responsibilities. S/he submits a detailed report for each of the 
meeting on the basis o f his/her observation and feedback to Bangladesh Bank within three days of 
the respective meeting. Board meeting/EC meeting minutes of the respective bank along with the 
observer report are analysed carefully and the findings are presented to the higher au thority for 
decision/action.  
 
28. What results can be achieved by such appointment?  
 
Answer:  
Appointment of observers to banks brings results with regards to good corporate governance, 
enforcement of rules and regulations, bring down non -performance loan ( NPL), increasing capital 
base and enhancing good financial health of the concerned bank.  
 
Since long BB is appointing observers to banks. When BB thinks fit for a bank to be appointed an 
observer, BB considers appointing observer in that Bank.  
 
There are adequate examples where BB appointed observers, and the bank consistently doing better 
and finally BB withdrew observer.  
 
PART II: QUESTIONS REGARDING THE Report BY BANGLADESH (WT/TPR/G/385 ) 
 
2 RECENT ECONOMIC PERFORMANCE  
 
Page 6 (Para 2.5 )  
 
The Report no tes, "Bangladesh has signed 29 bilateral Trade and Investment Cooperation 
agreements for promotion and protection of foreign investment." However, according to Para 2.63 
of the Secretariat Report (page 39) Bangladesh maintains bilateral investment treaties  with 
32 countries, for the promotion and protection of investments.  
 
Question:  
 
29. Could Bangladesh, please, enumerate countries with which bilateral Trade and Investment 
Cooperation agreements  have been signed?  
 
Answer:  
 
So far Bangladesh has signed 33 Bilateral Investment Agreement (BITs) with different countries.  
The countries are: England, Germany, Belgium, France, The USA, the Republic of Korea, Rumania, 
Turkey, Italy, Canada, Netherlands, Malaysia, Pakistan, China, Poland, Philippines, Indonesia, Ja pan, 
Democratic  People's Republic of Korea, Uzbekistan, Switzerland, Austria, Iran, Thailand, Singapore, 
Viet Nam, India, Denmark, United Arab Emirates, Belarus, Cambodia, Bahrain, and Kuwait.  
 
3 TRADE POLICY AND TRADE FACILITATION  
 
Page 10 (Para 3.5 ) 
 
It is mentioned in the Report that National Industrial Policy 2016 was announced with a target to 
achieve GDP growth rate at 10% by 2021. The Policy envisages increased contribution of the 
industrial sector to GDP from present 30% to 40% of GDP and employm ent from present 16% to 
25% by 2021. The underlying objectives of the Industrial Policy 2016 include sustainable and 
inclusive industrial growth through generation of productive employment, creating new 
entrepreneurs, mainstreaming women in the industriali zation process and development of 
international market linkage.  
 WT/TPR /M/385/Add.1  
 
- 43 - 
 
  Questions:  
 
30. Could Bangladesh kindly provide more details on policy and incentive tools that are envisaged 
in the National Industrial Policy 2016?  
 
Answer:  
 
Chapter four of the National Industrial Policy 2016 is dedicated for providing investment facilities for 
ensuring smooth growth of the industrial sector of the country. The facilities as announced are as 
follows:  
• Different investment incentives will be provided to the prioritized sect ors and subsectors to 
ensure dynamic and sustainable industrialization. National Board of Revenue, Investment 
Board and the Central Bank will take proper actions in this regard.  
• Investment incentives for the industrially and economically backward areas wi ll be as 
follows,  
   a. Subsidy on capital investment;  
   b. Tax and duty exemption for manufactured product;  
   c. Subsidy on the interest of current capital;  
• Area wise industrial sectors and subsectors will enjoy tax exemption and depreciation facility  
in accordance with the existing income tax regulations.  
• Issues like, tax exemption, exemption from double taxation, imposing tax at a lower rate 
and special incentives will be considered based on the existing income tax ordinance and 
VAT Act. High priori ty sectors will get priority in these issues.  
• Import duty for industrial raw materials required for manufacturing industrial products will 
be rationalized.  
• Duties and taxes on import of goods which are produced locally will be higher than those 
applicable to import of raw materials for producing such goods.   
• Import duty for the imported materials by local manufacturer will be lower than the duty for 
that imp orted material.  
• Tariff schedule will be reviewed in considering the demand for local manufacturing industries 
and there will be a special tariff facility for the local manufacturing industry.  
• In case of rural micro industry, agriculture and fisheries sect or, livestock sector, Eco -product 
and dairy firm industries, VAT will be minimum and in some cases will be exempted.  
• Full-fledged and local production -oriented industry Refrigerator, Motor Cycle, Hardboard etc. 
creating employment opportunities through val ue addition for the protection of the local 
industry will be exempted from the value added tax as an incentive.  
• Cash Incentive systems will be updated for comparatively more participation in trade, 
priority sector and high priority sector.  
• Tax holiday faci lities for the small and cottage industry will go on and for accession of this 
facility, the limit of investment in capital machineries and annual turnover will be increased 
in turn for handicraft, cottage and micro industries.  
 
Incentives for Non -resident  Bangladeshis (NRBs ) 
• Investment of NRBs will be treated at par with FDI.  
• Profit and dividend are completely transferrable. Profit or dividend reinvested by a foreign 
investor will be considered as fresh investment.  
•  NRBs can buy newly issued shares/ deben tures of Bangladeshi companies. In case of the 
quota facility of the primary general share, regulations of the Securities and Exchange 
Commission will be applicable.  
• The custom of awarding CIP to the NRB who is (a) an investor in the industrial sector (b) a 
sender of foreign exchange (c) an importer of local products the foreign countries will 
continue as usual. Other Incentives  
• 'Expatriate Bangladeshi Industrial Investment Trust Fund' will be established under 
management of ICB.  
 
Other Incentives  
• Exemptio n of Double tax on royalties, technical know -how fees received by any foreign 
collaborator, firm, company and expert in the light of the agreement/treaty of Exemption of 
Double Tax with the countries concerned.  
• Tax exemption to those countries which are no t bound by the agreement of Exemption of 
Double Tax so that the govt. can provide the tax exemption to others if and when proper 
and necessary.  WT/TPR/M/385/Add.1  
 
- 44 - 
 
  • To ensure uninterrupted supply of electricity, necessary gas supply and supply of sufficient 
energy, necessary m easures will be taken with maximum effort.  
• Special initiatives will be provided under existing rules for the industry/factory having their 
own power generating facilities or using biomass or solar or windmill based power and to 
enterprise for setting up e nvironment friendly industry. Besides, recognition on a presidential 
level will be awarded to the fuel -efficient industries and factories.  
• Incentives will be provided to import substituting industries capable of producing 
cost-effective quality products t o lessen reliance on import of materials needed to meet the 
internal demand.  
•  Large industries will get the same facility as EPZ industries in a case to case basis in 
considering the size of investment, use of eco -friendly technology, technology transfer a nd 
facilitate the possibility of enhancing the capacity of the economy etc.  
• There will be no discrimination in case of duties and taxes for the same type of industries 
set up by foreign and local investors and in the public and private sectors.  
• financing in risky but potential sectors will be encouraged through venture capital financing 
and special incentives.  
• Capital market will be strengthened for alternative financing in industry.  
• Public and private sector will be treated without any discrim ination in terms of receiving tariff 
and duty facility.  
 
31. Have the Export Policy 2018 -21 and the National Industrial Policy 2016 been adopted within 
implementation of the Perspective Plan of Bangladesh (2010 -2021) "Vision 2021"?  
 
Answer:  
 
The Export Po licy 2018 -21 and the National Industrial Policy 2016 have been adopted taking full 
account of the Perspective Plan of Bangladesh (2010 -2021) and "Vision 2021"  
 
Page 11 (Para 3.8 ) 
 
According to the Report Bangladesh has undertaken major reforms of the Customs Administration 
to facilitate trade. It has introduced ASYCUDA World in September 2013 and formulated a new 
Customs Act, which is now waiting for the approval of the Parliament.  
 
Question : 
 
32. Could Bangladesh, please, clarify the amendments, which have been included into a new 
Customs Act as well as provide with information on its adoption by the Parliament?  
 
Answer:  
 
Considering the provisions of WCO SAFE framework of standards , Revised Kyoto Convention, 
WTO Trade facilitation agreement and International best practices, following provisions have been 
incorporated in the New Customs Act:  
 
AEO and MRA, PCA, Non -Intrusive Inspection, Advance Ruling, National Enquiry Point, Risk 
Management, Stakeholders Consultation, Advance cargo declaration, Digital Customs Environment, 
clarification of Inward processing and Outward processing and temporary importation, Mandatory 
electronic payment, Robust penal provision and reduction of discretio nary authority of the officials.  
 
 
  WT/TPR /M/385/Add.1  
 
- 45 - 
 
  SINGAPORE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
QUESTION:  
 
2 Trade and Investment Regimes  
 
Page 25 (Para 2.3 ) 
 
1. The WTO Secretariat Report notes that Bangladesh has 17 controlled sectors that require prior 
clearance/permission for foreign investment. Could Bangladesh provide more information on 
these 17 sectors, and whether Bangladesh has plans to liberalise these s ectors for foreign 
investments in the future?   
 
Answer:  
Industrial Policy 2016 defines 22 sectors (not 17 as mentioned in the Secretariat Report), where 
prior permission from the concerned Ministry/authority is required for establishing an industry by 
domestic as well as the foreign investors.  
 
These sectors are strategic in nature and have separate regulators, which define the modus operandi 
of the investment. These sectors include infrastructure, financial sector, power sector, energy sector, 
aviation,  telecommunication sector etc.  
 
There is no quantitative restriction to invest in these sectors or in any other sectors in terms of 
capping in percentage or amount of equity.  
 
2.4 Investment Regime  
 
Page 35 (Para 2.49)  
 
2. We welcome the WTO Secretariat Repo rt's observation that Bangladesh offers a range of 
investment incentives under its industrial policy and export -oriented growth strategy with few 
formal distinctions between foreign and domestic private investors. Could Bangladesh 
elaborate on these distin ctions between foreign and domestic private investors, and how they 
affect the disbursement of investment incentives to foreign investors?  
 
Answer:  
Industrial Policy 2016 does not make any distinction between foreign and domestic private investors. 
Rather  it stipulates same treatments for domestic and foreign investors.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Nil  
 
  WT/TPR/M/385/Add.1  
 
- 46 - 
 
  THAILAND  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
1. Economic Environment  
1.2 Recent Economic Developments  
1.2.5 Balance of payments  
 
Page 22, paragraph 1.25  
 
Bangladesh's largest export market in 2017/18 was the EU -28, followed by the United States, 
Canada, and Japan (Chart 1.2 and Table A1.3). The share of the EU -28 rose considerably, as did 
that of Japan, while th e shares of the United States and Canada declined. A plausible reason for the 
change is duty -free imports into the EU -28 under the Everything but Arms scheme.  
 
Question : Thailand notes that the majority of Bangladesh's exports go to the EU and the United 
State and Bangladesh's share of total exports to the EU also increased considerably during the review 
period. Thailand would like Bangladesh to provide the information on her plans and measures to 
promote export and diversify her exports to other markets.  
 
Answer:  
 
Government of Bangladesh has been trying to diversify its export baskets for reducing its high 
dependency on readymade garments. It has already identified 13 highest priority sectors (high value 
garments, ITES, pharmaceuticals, plastics, footwear,  jute goods, agro -products, shipbuilding, 
furniture, home textile, home finishing, luggage and API) and 19 special development sectors 
(electrical goods, ceramics, light engineering, high valued frozen items, papadam etc.) and prepared 
a set of support pro grams for boosting up exports of these products. Along with this, government 
had also set up sector specific business promotion councils in collaboration with the private sector 
for leather and leather goods, agro -products, fish, IT services, plastic produ cts and medicinal plants 
products for diversification of exports and providing technical supports for improving quality and 
standards and exploring new markets. Beside this, it has initiated Export Competitiveness for Jobs 
(EC4J) Project under the World Ba nk support for export diversification. The project is designed to 
enhance growth and competitiveness of selected sectors such as leather and leather goods, 
footwear, light engineering and plastics to create better job opportunities along with diversifying 
export baskets through enhancing productivity; improving environmental, social and quality 
standards; and collective infrastructure facilities. The Government's massive program for setting 
100 economic zones will not only attract foreign investment, will a lso boost up export of many 
different non -traditional items. The existing Export Processing Zones are also contributing to this 
end. Bangladesh regularly participates various international trade fairs in showcasing its capacities 
of exporting different pro ducts. Beside this, foreign mission abroad are also diligently working for 
promoting exports and introducing our diversified products to the importers of different countries.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
 
Page 30, paragraph 2.27  
 
Bangladesh attaches importance to deepening intra -regional trade through regional economic and 
trade cooperation arrangements, inter alia , because of the possible impact of its graduation on 
preferential market access. It is party and founding member to several regional trade agreements 
(RTAs), of which only the APTA, the South Asian Association for Regional Cooperation (SAARC) 
Preferential Trading Arrangement (SAPTA) and the South Asia Free Tra de Agreement (SAFTA) have 
been notified to the WTO. Many of these arrangements have limited product coverage and trade 
relevance for Bangladesh. Bangladesh is also negotiating other RTAs with its trading partners. Since 
its last Review, it has taken initia tives to negotiate FTAs with a number of countries, including China, 
Indonesia, Malaysia, Sri Lanka, Thailand, and Turkey.  
 
Question : Thailand acknowledges that Bangladesh attaches importance to regional economic and 
trade cooperation arrangements and Ban gladesh already has several regional trade agreements 
(RTAs) in place such as APTA, SAARC, SAPTA and SAFTA. In addition, Bangladesh has taken WT/TPR /M/385/Add.1  
 
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  initiatives to negotiate FTAs with several countries, namely, China, Indonesia, Malaysia, Sri Lanka 
and Turkey. We  would be very appreciated if Bangladesh could provide Thailand updates on the 
status of these FTA initiatives. What is Bangladesh's FTA policy and criteria for selecting FTA partner.  
Answer:  
 
Bangladesh has already initiated negotiation with Indonesia. I nitiating FTA negotiations with other 
countries are in the study phases. Bangladesh has already developed an FTA Policy Guidelines in 
2010. A number of economic tools and techniques are applied to examine the possibility of signing 
FTAs with potential coun tries. Initiation of negotiation for signing an FTA is undertaken either by 
country's own initiative or at the request of the trading partner(s). Bangladesh Tariff Commission 
then conducts a study about the feasibility of the FTA. Based on the findings of the study, the Ministry 
of Commerce consults with the stakeholders for determining the terms and conditions, concessions, 
products coverage and other relevant issues to be included in the negotiation. It then starts 
negotiation based on these mandates.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import approval and restrictions  
 
Page 49, paragraph 3.38  
 
In 2007, Bangladesh notified to the WTO Committee on Import Licensing that its import licensing 
system was abolished in FY 1983/84, and that no import licence was required for any item entering 
the country. According to the authorities, some items require prior permission equivalent to 
automatic import licen sing. Bangladesh's notification under the 2012 Decision on Notification 
Procedures for Quantitative Restrictions is pending.  
 
Questions : The report by secretariat sates that Bangladesh's notification under the 2012 Decision 
on Notification Procedures for Q uantitative Restrictions is pending, Thailand would like to ask 
Bangladesh to clarify the reasons that Bangladesh has not submitted a notification on quantitative 
restrictions to WTO in according to her obligation.  
 
Answer:  
 
Bangladesh maintains import res trictions on few products primarily for health, public morale, food 
security, environment and national security reasons. Some of those restrictions may be categorized 
as quantitative restrictions. A full review of these import restrictions is necessary to identify 
quantitative restriction for submitting the notification as per 2012 Decision on Notification Procedures 
for Quantitative Restrictions. Once review is completed Bangladesh will make necessary notification.  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.3 Transparency  
 
Page 73, paragraph 3.117  
 
3.117 So far, Bangladesh has not submitted any notification to the WTO Committee on Sanitary and 
Phytosanitary Measures, and neither has it been subject to SPS-related specific trade concerns.  
 
Questions : According to article 7 of SPS Agreement of the WTO, members shall notify changes and 
provide information on their sanitary or phytosanitary measures. Thailand would like to ask 
Bangladesh to clarify the reas ons that Bangladesh has not submitted a notification on SPS measures 
to the WTO.  
 
Answer:  
 
Bangladesh generally follows the guidelines of CODEX Alimentarius IPPC and OIE in adopting SPS 
measures. No measures are adopted which results in a higher level of s anitary and phytosanitary 
protection than would be achieved by measures based on the relevant international standards, 
guidelines or recommendations. In such case, there is no requirement for notification of SPS WT/TPR/M/385/Add.1  
 
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  measures under Article 7 and Para 5 of Annex  B. However, Bangladesh recently submitted 
four notifications regarding laws and regulations related to SPS measures. So the information 
provided at the Secretariat report regarding submission of notification by Bangladesh did not reflect 
the updated situa tion.  
 
3.3.4.2 Price Regulation  
 
Page 75, paragraph 3.127  
 
SOEs continued to influence domestic pricing in certain areas (Section 3.3.5). Since 2015, the 
Trading Corporation of Bangladesh has been mandated to build up buffer stocks for the stabilization 
of market prices of essential commodities. The state -owned Bangladesh Petroleum Corporation 
(BPC) remained the sole seller of crude and refined oil in the domestic market and did not adjust 
domestic retail prices to world price fluctuations (Sections 3.3.1. 2.4, 3.3.5 and 4.2.2.1); the price 
of refined oil is fixed by the BPC, and is not regulated by the Bangladesh Energy Regulatory 
Commission (BERC).  
 
Questions : We understand that Bangladesh regulates prices through different mechanisms such as 
the Trading Corporation of Bangladesh, the Bangladesh Petroleum Corporation and the Bangladesh 
Energy Regulatory Commission. The goods of which prices are determined, are mostly refined oil, 
power regeneration, gas transmission. Thailand would like Bangladesh to provi de information on 
other general laws or regulations that provide the Government power to regulate prices of goods or 
services, such as necessity goods or agricultural products.  
 
Answer:  
 
Bangladesh as such does not have any acts and rules for regulating th e prices of necessity goods 
and agricultural products that could affect the market forces. However, TCB sometimes sells 
essential commodities to poor and vulnerable people of the country at affordable prices. However, 
the quantity of essential foods sold b y TCB is negligible. During FY2017 -18, TCB only sold 1,199  MT 
of the total food consumption of 30 million MT.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Border measures and 4.1.4 Domestic support measures  
 
Paragraphs 4.22 and 4.28  
 
4.22. During the review period, Bangladesh did not submit any export subsidies notifications to the 
WTO Committee on Agriculture. According to its latest notification, no export subsidies were used to 
support exports of agricultural goods during FY 2000/01 -2006/07; and  
 
4.28. Most of the product -specific aggregate measures of support (AMSs) related expenditure was 
used for price support for rice and wheat, and non -specific AMSs mainly focused on subsidizing 
fertilizer imports. During the review pe riod, Bangladesh made no WTO notifications on domestic 
support for agriculture. Its most recent notification dates back to 2011, and covers the level of 
domestic support for FYs 2002/03, 2004/05 and 2006/07.  
 
Question : Thailand notes that Bangladesh impose d export subsidies (cash incentives) as well as 
domestic support for agricultural goods during the review period. However, Bangladesh has not 
submitted any notification to the WTO Committee on Agriculture. Could Bangladesh clarify reasons 
the reasons that Bangladesh has not submitted notifications on export subsidies and domestic 
support for agricultural goods to the WTO?  
 
Answer:  
 
Bangladesh provides minimal domestic supports to the farmers in terms of general services. 
Bangladesh has submitted notification on export subsidies and domestic support to the 
WTO Committee on Agriculture before the review period. It will submit updated notification soon 
covering the review period. As per WTO report (WTO document G/L/223/Rev.25, 21 February 2018) 
Bangl adesh's compliance with Agriculture Notification is more than 55%.  
 WT/TPR /M/385/Add.1  
 
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  4.4 Services  
4.4.3 Financial Services  
4.4.3.1 Banking and Finance  
 
Page 114, paragraph 4.118  
 
Foreign banks established in Bangladesh must be either a locally incorporated entity or a bra nch of 
a foreign bank.  
Question: Thailand would like Bangladesh to clarify about differences between the requirements to 
establish a locally incorporated entity and a branch of a foreign bank? What is the procedure to 
establish a branch of a foreign bank i n Bangladesh?  
Answer:  
The requirements to establish a locally incorporated entity and a branch of a foreign bank are almost 
the same as that of the local banks; but the following additional document/information is required 
for setting up branch of a foreig n bank:  
• Commitment of the parent bank/bank holding company;  
• Clearance from the regulatory authority of the parent bank/bank holding company;  
• Copy of the license issued by the home country regulatory/supervisory authority to the 
parent bank/bank holding company;  
• Audited financial statements for last three years.  
 
The procedure to establish a branch of a foreign bank:  
Section  31 of the Bank -Company Act, 1991 (amended up to 2018) empowers Bangladesh Bank (BB) 
to issue banking license for operating banking b usiness in Bangladesh both for locally incorporated 
entity and a branch of a foreign bank. For completing licensing process, BB meticulously follows a 
transparent and systematic process. The process starts with the submission of application and ends 
with t he issuance of banking license or rejecting the application. The key requirements to applicants 
and approval procedure of banking licensing are as follows:  
 
I. Application in prescribed format with supporting documents as per the 'Guidelines to 
Establish a Ba nking Company in Bangladesh' as effective at time [published on 
Bangladesh Bank website ( www.bb.org.bd) .] Major required documents/information 
are: 
• A bank draft amounting of USD 15,000 in favor of Bangladesh Bank is to  be attached 
with the Letter of Application; 
• Feasibility Report on the proposed banking company, including an analysis of 
Bangladesh's macroeconomic environment, financial system as well as a business plan 
for the proposed credit institution, financial pro jections and sensitivity analysis; 
• Biographical Reports and proof of citizenship for Head of Bangladesh operation/Principal 
Officer of the proposed bank branch; 
• Commitment of the parent bank/bank holding company;  
• Clearance from the regulatory authority of the parent bank/bank holding company;  
• Certified copy of the resolutions passed by the Board of Directors regarding the opening 
of the branch, as well as appointment of the Head of Bangladesh Operation;  
• Copy of the power of attorney executed by the proposed  banking company favoring the 
Head of Bangladesh Operation;  
• Copy of the license issued by the home country regulatory/supervisory authority to the 
parent bank/bank holding company;  
• Audited financial statements for last three years;  
• Certified copies of the Memorandum and Articles of Association.  
 
II. Upon receiving the application Authorized officials of BB examine and scrutinize the 
application and related documents meticulously.  
 
III. While verifying the information, the authorized officials would be keen to find out 
beneficial owners or the persons who have a significant or controlling interest on the 
directors/shareholders and also collect criminal records of those identified beneficial 
owner, if any;  
 WT/TPR/M/385/Add.1  
 
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  IV. BB evaluates applications based on different factors such as : (a) Macroeconomic 
Background/Environment in Bangladesh (b) Financial System and Structure (c) Business 
Plan of the Applicant Bank (d) Business Projection, Economic Justification and Financial 
Analysis (e) SWOT Analysis of the Applicant (f) Strategy for s urvival and growth in the 
long run (g) Sensitivity Analysis (h) Management of the proposed bank including Fit and 
Proper Test for Sponsors/Directors  
 
V. After verification and evaluation, if BB becomes satisfied that the applicant has fulfilled 
all the required criteria, BB issues license in favor of the applicant with applicable terms 
and conditions.  
4.4.3.2 Securities  
 
Page 118, paragraph 4.130  
 
In Marc h 2017, the Government relaxed investment rules, making it possible for foreign investors 
to use local currency to invest in local companies through the purchase of corporate shares. The 
DSE has attracted some foreign portfolio investors to the country's c apital market, and the volume 
of foreign investment has gradually increased as a share of total market capitalization. According to 
the authorities, the volume of foreign investments in capital markets increased during the review 
period, from BDT 19.04 bil lion in 2012 to BDT 114.48 billion in 2017  
 
Question : Thailand notes that Bangladesh has relaxed the investment rules to allow foreign 
investors to use local currency to invest in local companies; thereby increasing the volume of foreign 
investments in th e capital markets. We would like Bangladesh to provide the information on the 
relaxation of other investment rules for foreign investors.  
 
Answer:  
 
Bangladesh has been gradually improving its domestic rules and regulations for making foreign 
investment env ironment more attractive. Portfolio investment is allowed for foreign investors as 
well. It will further relax its foreign investment rules, if necessary.  
 
4.4.3.3 Insurance  
 
Page 118 -119, paragraph 4.133  
 
In 2017, initiatives to improve the private sector  insurance industry and the two state -owned 
insurance corporations (Shadharan Bima Corporation (SBC) and Jiban Bima Corporation (JBC)) were 
undertaken. These include the Bangladesh Insurance Sector Development Project (BISDP) in 2018, 
with the objective of  improving the capacity and effectiveness of the Insurance Development and 
Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA). During the review 
period, the state -owned general insurance sector growth rate shifted from 11.5% in 2012 to -7.7% 
in 2017 (June), while private -owned insurance decreased from 38.6% in 2012 to 20.85% in 2017. 
(June). For state -owned life insurance, growth accelerated from 11.5% in 2012 to 34.73% in 2017 
(June), whereas for private insurance it shifted from 4.5% i n 2012 to -7.94% in 2017 (June).  
 
Question : According to the Secretariat's report, from 2012 to 2017, there were decreases in growth 
rates of the state -owned general insurance, private -owned insurance, and private life insurance, 
except for state -owned lif e insurance. What were the factors that support growth rates of 
state-owned life insurance and what contributions the Bangladesh Insurance Sector Development 
Project (BISDP) has made to this sector? What would be the tendency of these sector growths in 
the future?  
 
Answer:  
 
In terms of total premium income industry has been growing every year though the growth rate in 
recent years is little lower than that of previous years. Due to inadequate public awareness and 
changing public sector perception, insurance sector could not a chieved expected level of growth. 
Whereas increasing trend of public confidence accelerates JBC's growth rate.  
 WT/TPR /M/385/Add.1  
 
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  Bangladesh Insurance Sector Development Project (BISDP) project has just been launched few 
months earlier. Out of 160 million people, only 10 m illion are under insurance coverage hence all 
the life insurers have huge opportunity to grab the market in upcoming years. In the same way, 
massive economic growth will open up the new opportunities for non -life insurers. IDRA has been 
taken several initi atives to stabilize the market through creating public awareness and BIDP project 
will have a huge impact in next few years. Hence, it is expected that insurance sector will grow in 
future.  
 
4.4.3.3 Insurance  
 
Page 119, paragraph 4.135  
 
The regulatory framework of the sector remained largely unchanged during the review period. It 
includes: the Insurance Act, 1938; the Insurance Rules, 1958; the Insurance (Amendment) 
Ordinance, 1984; the Insurance Regulations, 1990; the Insurance Ordinance, 2008; the Ins urance 
Act, 2010; and the Insurance Development and Regulatory Authority Act, 2010. The Asian 
Reinsurance Corporation Act was implemented as from 2013, in connection with the Insurance 
Corporation Act, 1973; and Labour Acts, 2006 and 2016 guide workers' co mpensation insurance. 
According to the authorities, five new rules and 13 regulations were published in the government 
gazette, and implemented.  
 
Question : Please provide more detail about the five new rules and 13 regulations that were 
published in the go vernment gazette, and implemented.  
 
Answer:  
 
Please find the following details over rules and regulations that were published and implemented 
during the review period 2012 -2017:  
 
Serials  Acts, Rules & Regulations relating to Insurance  
(Rules -5, Regulations -13) Status  
 Published Rules -5  
1 Registration Fees of Insurance Companies Rules, 2012  Published on 30.12.2012  
2 The Purchase or Holding of Shares by Foreign Entrepreneurs Rules, 
2013  Published on 26.02.2013  
3 Fees for Licensing of Branch and Office of Insurer Rules, 2012  Published on 30.12.2012  
4 Fees for Inspection of Instruments and Supply of copies Rules, 2014  Published on 01.01.2015  
5 Capital and Share Holdings of Insurance Company Rules, 2016  Published on 25.09.2016  
 Published Regulations - 13  
1 Insurance Development & Regulatory Authority (Management of 
Fund) Regulations, 2011  Published on 20.10.2011  
2 Insurance Development & Regulatory Authority (Advisory Board) 
Regulations 2011  Published on 20.10.2011  
3 Insurance Company (Appointment and Removal of Chief Executive 
Officer) Regulations 2012  Published on 03.01.2013  
4 Application for Grant of License of Branch and Office of Insurer 
Regulations, 2012  Published on 02.01.2013  
5 Insurance Development & Regulatory Authority (Dispute Resoluti on 
Committee) Regulations, 2012  Published on 02.01.2013  
6 Registration of Insurer Regulations, 2013  Published on 10.02.2013  
7 Obligations of Insurers to Rural and Social Sectors Regulations, 2012  Published on 02.01.2013  
8 Insurance Development & Regulatory Authority (Central Rating 
Committee) Regulations, 2012  Published on 01.01.2013  
9 Review of (Time, Form & Fee) Regulations, 2015  Published on 25.08.2015  
10 Reinsurance (Fixing Conditions) for Life Insurance Regulations, 2015  Published on 16.03. 2016 
11 Maximum Limit of Management Expense for Non -Life Insurers 
Regulations, 2016)  Published on 18.07.2016  
12 Life Insurance Policy Holder Protection Fund Regulations, 2016  Published on 02.04.2017  
13 Preservation of Insurer Register (Policy & Claim) Regulations, 2017  Published on 16.04.2018  
 WT/TPR/M/385/Add.1  
 
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  4.4.3.3 Insurance  
 
Page 119, paragraph 4.136  
 
The regulatory framework does not distinguish between domestic and foreign insurance firms. Both 
local and foreign companies, in the life insurance or non -life insura nce industry, must apply to the 
IDRA to obtain a registration certificate to run insurance business in Bangladesh. In terms of life 
insurance companies registered in Bangladesh, the minimum capital requirement is BDT 30 crore, 
of which 60% is covered by th e sponsor shareholders and 40% by the public. For life insurance 
companies incorporated outside Bangladesh, the minimum required capital is also BDT 30 crore. The 
minimum capital requirement for non -life insurance companies registered in Bangladesh is 
BDT 40 crore, of which 60% is paid by sponsor shareholders and 40% by the public. Similarly, for 
non-life insurance companies incorporated outside Bangladesh, the minimum required capital is 
BDT 40 crore.  
 
Question : In order to obtain a registration certificat e to run insurance business in Bangladesh, is it 
required to establish a company in Bangladesh? Can foreign insurance firms that have no branches 
or do not establish entity in Bangladesh provide cross -border insurance services (Mode 1)?  
 
Answer:  
 
To get a n insurance licence, it is mandatory to establish as a company. There is no opportunity to 
provide cross border insurance services.  
4.4.5  Transport  
 
Page 122, paragraph 4.150  
 
The institutional framework remains unchanged, and is entrusted to the following four ministries: 
the Ministry of Road Transport and Bridges; the Ministry of Civil Aviation and Tourism; the Ministry 
of Shipping; and the Ministry of Railways. A National Integrated Multimodal Transport Policy (2013), 
approved on 26 August 2013 and covering all modes of transport, was put in place to improve 
connectivity. The authorities have expanded the role of PPP investments, through a regulatory and 
institutional framework. A PPP office was set up to provide institutional support and identif y potential 
projects.  
 
Question : What does the PPP office do in providing institutional support for the projects? What are 
the PPP office's responsibilities? Please provide more details and give examples of projects that are 
considered "potential projects" . 
 
Answer:  
 
The PPP Office supports line ministries to identify, develop, tender and finance PPP projects. For 
interested investors and lenders, the PPP Office provides a professional, transparent, centralized 
portal to high quality PPP Projects. Staffed w ith both private sector professional and civil service 
resources, the PPP Office helps augment government sector line ministry project development efforts 
with world -class external PPP resources, with the goal of increasing the quality, attractiveness, and  
sustainability of PPP projects while realizing them in an efficient, cost -effective manner.  
 
 
  WT/TPR /M/385/Add.1  
 
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  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/385)  
 
1 Economic Environment  
1.2 Recent Economic Developments  
1.2.4 Structural reforms  
 
Page 16, Paragraph 1.12  
 
The report states:  "Trade and domestic reforms are considered intrinsically linked, under the 
7th FYP… Under the 7th FYP, the Government also sees trade as a vital ingredient in achieving 
economic development, poverty reduction, and job creation, and impro ving its competitiveness and 
productivity. To effectively mobilize long -term capital for investment, the financial sector would 
become more efficient, and reform the banking sector and develop capital markets, In this regard, 
the Government has taken certa in measures."  
 
Question 1  
 
Is Bangladesh able to provide further information on the measures the Government has taken to 
mobilise investment capital, reform the banking system and development capital markets?  
 
Answer:  
 
Reform in the banking system is a continuous process and Bangladesh Bank (BB) takes steps 
whenever necessary. Financial Sector Assessment Program (FSAP) by World Bank and IMF is 
currently going on. BB will implement the recommendations when it is completed. Financial Sector 
Support and Str ategic Planning Department (FSSSPD) is implementing a project on Risk Based 
Supervision with technical assistance from SARTTAC, India. In addition, the Government of 
Bangladesh and BB are jointly working on non -performing loan (NPL) management. Different 
committees have been formed to analyse the problem and to reform the existing rules and 
regulations to ease NPL management.  
 
To stabilize the capital market and levitate the confidence among investors it is extremely essential 
to increase supply of securiti es, raise institutional investors and ensure transparency and 
accountability among all parties associated with the capital market. Bangladesh Securities and 
Exchange Commission (BSEC) issues order regarding dissemination of price sensitive information, 
publishes gazette notifications exempting the Public Private Partnership (PPP) companies from the 
obligations of taking approval of the Commission as well as becoming public limited company and 
being enlisted in stock exchanges for capital raising, started ac tivity for establishment of a separate 
clearing and settlement company for settlement of transactions in stock exchanges and small cap 
platform in the stock exchanges to facilitate capital raising and transaction of shares of Small and 
Medium Enterprise (S ME). In this respect, the Commission issued a notification in the Bangladesh 
Gazette on 27 October 2016 regarding the Bangladesh Securities and Exchange Commission 
(Qualified Investor Offer by Small Capital Companies) Rules, 2016, disbursed a total of 
Tk.642.09  crore from the fund particularly created under special incentive scheme to support the 
affected small traders in stock markets and recovered Tk.511.79 crore in June 2017. It also 
participates in various campaign, publishes brochure, booklet and websi te as a part of financial 
literacy initiative and established the Financial Literacy Department at BSEC for its full 
implementation. By this time, financial literacy activities in divisional towns have been started, with 
the first one being held in Khulna in 2017. Under instruction of the Commission, Central Depository 
Bangladesh Limited (CDBL) has introduced sending of SMS alert to BO account holders at free of 
cost.  
 WT/TPR/M/385/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/385)  
 
2 Trade and Investment Regimes  
2.3 Trade Agree ments and Arrangements  
2.3. 1.3 LDC Graduation  
 
Page 30, Paragraph 2.25  
 
The report states: '[Bangladesh's] imminent graduation from LDC status, coupled with its elevation 
to the lower middle -income category by the World Bank, means that Bangladesh is like ly to face 
challenges with regard to preferential market access, S&D benefits in WTO, and lack of access to 
concessional loans. In 2017, the Government formed a committee to oversee the preparations in 
the lead -up to graduation, and to develop strategies t o address post -graduation challenges.'  
 
Question 2  
 
Is Bangladesh able to provide further information about the strategies it is developing to manage 
changes/loss to preferential market access, special and differential treatment benefits and 
concessional loans after it graduates from LDC status?  
 
Answer:  
 
Government of Bangladesh as well as UN -CDP has been assessing the impact of graduation on its 
export and investment. The Government is attempting to overcome the change/loss to preferential 
market access by enhancing its productivity and improving quality.  It is also working for ensuring 
'Ease of Doing Business' to improve its competitiveness by reducing the cost of production. 
Bangladesh expects that preference giving countries will continue preferential treatment for 
graduated LDCs for certain period in l ine with the General Assembly Resolution 59/209 in order to 
make graduation sustainable and avoid any unnecessary set back.  
 
The World Bank and the ADB do not consider LDC criterion for granting concessional loans. They 
consider low income, lower middle i ncome and upper middle -income country status in granting 
concessional loans. Since Bangladesh has already been elevated from low income country to lower 
middle -income country in 2015, it is now getting WB and ADB loans applicable for the lower middle 
incom e countries. In fact, the foreign loan has been gradually decreasing since 2000 and has now 
stands below 2% of GDP only.  
 
  WT/TPR /M/385/Add.1  
 
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  THE SEPARATE CUSTOMS  TERRITORY OF TAIWAN , PENGHU, KINMEN AND  MATSU  
Questions based on Report by the Secretariat (WT/TPR/S/385)  
 
PART  I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/385 ) 
 
1. Economic Environment  
1.3.2 Trends and patterns in FDI  
 
Page 24 (Para 1.28)  
 
Bangladesh has a liberal and investor -friendly investment regime, offering incentives to various 
sectors under many schemes (Section 2.4 and Section 3.3.1.2). This has resulted in a steady inflow 
of FDI, from approximately USD 1.2 billion in 2011/12 to nea rly USD 2.6 billion in 2017/18. FDI is 
concentrated in the energy sector, followed by the garment manufacturing sector, the financial 
sector, and telecommunications (Table A1.5). The largest investors are the United States; followed 
by the United  Kingdom; the Republic of Korea; Singapore; Australia; and Hong Kong, China. 
Furthermore, FDI originating from all has risen significantly, except from Australia, whose stock has 
declined. The stock of FDI in 2017 was nearly USD 15 billion (Chart 1.3).  
 
Question:  
 
Para 1.28 on Page 24 of the Trade Policy Review Report by The Secretariat states that Bangladesh's 
FDI is most concentrated in the energy sector, followed by the garment manufacturing sector, the 
financial sector, and telecommunications. Does the Government  of Bangladesh have any further 
plans to open its energy sector to foreign investments? Is there any mechanism to periodically review 
its FDI regime and restriction? What investment incentive measures are there to attract foreign 
investment?  
 
Answer:  
 
The energy sector is already open to foreign investment. Till September 2018, FDI stock in the 
energy sector stands at 3679.82 million USD mostly from USA comprising 2702.71 million USD, and 
849.26  million USD from Australia. Bangladesh has extensive mechanism  to quarterly collect and 
publish the FDI inflow in the country. Bangladesh offers a number of fiscal and non -fiscal incentives 
for the foreign investors that include:  
 
• Reduced import duty on machinery & spares  
• Bonded warehousing facility for export -oriented industries  
• 90% loans against letters of credit (by banks)  
• Funds for export promotion  
• Export credit guarantee scheme  
• Domestic market sales up to 20% allowed to export -oriented companies outside EPZ 
(relevant duties apply)  
• Cash incentives granted on the FOB values ranging from 5% to 20% on selected products  
• Corporate Tax Holiday from five to ten years in certain areas and sectors  
• Accelerated Depreciation on cost of machinery for new industries in lieu of tax holiday  
• Avoidance of Double Taxation under bilateral tax convention  
• Duty free import of raw materials of the export -oriented industries  
• 100% foreign equity is allowed  
• Unrestricted exit policy  
• Remittance of royalty, technical know -how and technical assistance fees  
• Full repatriation of dividends and capital is allowed  
 
3. Trade Policies and Practices by Measure  
3.3.7 Intellectual Property rights  
 
Page 82 (Para 3.151)  
 
Under IPO provisions, parallel imports are allowed only if accompanied by an IP certificate attested 
by the IP right holder of the exporting country of the concerned branded goods; in the absence of 
such certificate, Customs clearance is refused.  WT/TPR/M/385/Add.1  
 
- 56 - 
 
  Question : 
 
If the IP right holder of the exporting country is different from the local IP right holder in Bangladesh, 
and the imports are accompanied by an IP certificate attested by the IP right holder of the exporting 
country, will parallel imports still be allo wed? What will the Customs do in this situation?  
Answer:  
 
IP rights are protected by National law. Accordingly, IP certificate has to be issued by the right holder 
in Bangladesh. If IP certificate is issued by the right holder of the exporting country, par allel import 
is not allowed.  
 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/385 ) 
 
III. TRADE POLICY AND TRADE FACILITATION  
 
Page 12 (Para 3.16)  
 
With a view to ensuring the ease of doing business, Bangladesh ("the office of the Registrar of Joint 
Stock Companies and Firms") has introduced online registration system to enable the companies 
and firms to get registration within four hours from the time of submission of application. This step 
has shortened the start -up time of business by around 30 day s. 
 
Question:  
 
Would Bangladesh please explain the operating procedure or steps of the online registration system?  
 
Answer:  
 
For online registration, the company has to first take clearance for the name and then apply for 
registration. Procedures applied for name clearance and registration are as follows:  
 
Procedure of Name clearness : Name Clearance (NC) is a pre -requisite for registration of a new entity 
(other than Foreign Company and Partnership Firm).  The promoters of a new entity need to apply 
for and  get name clearance for the entity prior to  applying for registration. The promoters submit 
NC application to the designated RJSC office through website [roc.gov.bd] . The promoters pay 
NC application fee to the designated Bank. On receipt of a NC applicati on and fees, RJSC provides 
name clearance for the new entity upon satisfaction that it does not closely match or resembles with 
any of the already taken names (registered, booked or under the process of registration of the same 
entity type) within 24 hours . The name clearance remains valid for One eighty (180) days from the 
date of issue. The promoters need to apply for registration of the cleared name within the validity 
(as stated above) of name clearance.NC is not required for registration of a Foreign C ompany.  
 
Procedure for Registration  
The promoters of a new entity (having name clearance, where applicable) apply for registration with 
necessary documents, prescribed forms & schedules and fees, as appropriate to the entity type. The 
promoters – 
1. Prepare M emorandum/Articles of Association as appropriate to the entity type.  
2. Submit the registration application through website.  
3. Pay the registration fee at the designated Bank.  
4. RJSC's get confirmation regarding the initial subscription  through e -mail. 
5. RJSC to ch eck the submitted documents and register the entity.  
 
How does the "online registration system" to shorten the start -up time of business? What kinds of 
companies or firms could be applied to this online registration system?  
 WT/TPR /M/385/Add.1  
 
- 57 - 
 
  Answer:  
 
Earlier Service recipients had to wait for a long time to get certificate of submitted return filling and 
they need to maintain different manual formalities to do entity registration, return filing and payment 
government fee at various stages. Before online registration s ystem name clearness and registration 
of company took more than 30 days. At present due to online registration system name clearness 
takes 4/5 second and registration takes 24 hours, if submitted documents are valid as per company 
law. Accordingly, online registration system has shortened the start -up time of business.  
 
  WT/TPR/M/385/Add.1  
 
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  CANADA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
3. Trade Policies and Practices by Measure (Intellectual Property)  
 
Page 81 (Para 3.146 ) 
 
The Secretariat's Report noted that Ban gladesh's National Intellectual Property Policy 2018 
succeeded the National Industrial Policy 2010. The Report further notes that the Intellectual Property 
Policy will be implemented over a ten -year period from the date of its approval.  
 
Question:  
 
• Can Ban gladesh provide an update as to the proposed timelines for the implementation of 
its Intellectual Property Policy?  
Answer:  
 
Although as an LDC, Bangladesh is exempted from TRIPS obligation, yet the country has recently 
adopted t he Innovation and IP Policy 2018. It will however, will not succeed the Industrial Policy 
2010 (as updated in 2016). Both will prevail simultaneously. An action plan will be prepared for the 
implementation of the Innovation and IP Policy 2018.  
 
• Can Bangladesh provide additional detai ls on how its Intellectual Property Policy was 
developed, including with respect to public consultations?  
Answer:  
 
The Innovation and IP Policy 2018 was formulated through an extensive consultation with the 
stakeholders and policy makers. After receiving t he draft policy form the WIPO, the Ministry of 
Industry (MoI) circulated the draft for comments of the stakeholders. It was also published at the 
website of the Ministry for public comments. The MoI  then compiled the comments and arranged 
several meetings with the concerned Ministry/Division/Institutions/trade bodies for finalization of 
the draft. The draft was then placed before the Cabinet for approval and was then published in the 
Bangladesh Gazette . 
 
3. Trade Policies and Practices by Measure: Measures directly affecting imports: Customs 
procedures, valuation and requirement: MFN tariff bindings: paragraph 3.28, page  47: 
 
The Secretariat Report notes that with bindings covering 19% of all tariff lines, all at ad valorem 
rates, Bangladesh maintains a low binding coverage; all its agricultural products tariff lines 
(WTO -definition) are bound, compared to 3.8% on non -agricultural goods. In 2018/19, the overall 
gap between the simple averages of MFN applied and bound rates stands at 147.2 percentage points 
(Table A3.2); this is estimated at 168.3 percentage points for agricultural goods and 25.9 percentage 
points for non -agricultural goods. This gap, coupled with the low binding coverage, provides scope 
to raise MFN tariffs by applying higher or additional dut ies (Section 3.1.4) on several products to 
temporarily protect domestic producers.  
 
Question : 
 
• Could Bangladesh provide details on the criteria and mechanisms used to determine when 
and under what circumstances the applied tariffs are to be lowered/raised  within the bound 
limits?  
Answer:  
 
The Government considers modification of tariffs before budget announcement for next financial 
year. In pre -budget consideration, the Government considers two aspect of Tariff: revenue target 
and protection of industry. As per normal practice, in each budget the Government sets a revenue 
target, in which revenue from tariff constitutes a significant portion. Accordingly, the Government 
has to adjust its tariff. For the protection of domestic industry, the Government reviews the tariff WT/TPR /M/385/Add.1  
 
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  anomalies, if any, on the basis of the applications received from the domestic industry. In this 
process, the Government consults with all stakeholders inclu ding all Chambers of Commerce and 
industry and trade associations . 
3. Trade Policies and Practices by Measure: Measures directly affecting imports: Customs 
procedures, valuation and requirement: Tariffs: paragraph 3.32, page 48:  
 
The Secretariat Report not es that Bangladesh continues to levy a regulatory duty (RD) on imports 
(including preferential imports), aimed at compensating the backdrop of gradually decreasing 
customs duties to ensure revenue growth; it is levied on 3,311 HS eight -digit tariff lines i n 2018/19, 
mainly at a rate of 3% (3,207 tariff lines at MFN customs duty rates exceed 25%), but also at rates 
of 4%, 5%, 10%, 15%, 20%, 25%, 30% and 35% (HS 8706.00.39, chassis fitted with engines 
exceeding 4,000 cc) of the c.i.f. value plus a 1% landing charge; in 2012/13, the RD was charged 
at 5% on goods having a 25% customs duty, except those enjoying a concessionary rate.  
 
Question : 
 
• Given the flexibility provided by Bangladesh's bindings, could Bangladesh explain the 
purpose of continuing to levy ad ditional charges on imports?  
Answer:  
 
Tariffs are imposed under the Customs Act and fixed by the Parliament in its First Schedule. 
Regulatory duties (RDs) are imposed by the Government which gives the flexibility to the 
Government to withdraw, reduce and increase the regulatory duty at any time in any fiscal year. 
Regulatory duty is temporary and applicable till the end of a fiscal year unless it again imposed by 
the Government. Since early 90s , the Parliament has been reducing the tariff gradually despite  
flexibility available to Bangladesh under the WTO. The parliament has provided the flexibility to the 
Government to use RD to regulate import or increase revenue in a fiscal year. However, the duties 
including the levis and other charges remain within the  binding level as committed to the WTO.   
 
• What measures is Bangladesh planning to take to ensure compliance with its 
WTO commitments?  
Answer :  
 
Tariffs applied on imported products remain within the binding level and maintain the Commitments 
under the WTO . 
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 10 (Para 3.1 ) 
 
The Highest Priority Sectors include: high value -added readymade garment and garment 
accessories; software and IT enable services, ICT products; pharmaceutical products; ships and 
ocean going fishing trawlers; footwear and leather products; jute products; plastic products; 
agro-products and agro -processed products; furniture; home textiles and terry towel; home 
furnishing; and luggage. Special programmes have been designed to boost up export of these 
sectors.  
 
Questions:  
 
• Would Bangladesh be able to elaborate on the specific special programs that have been 
used to boost the exports of the identified high priority sector of ships and ocean going 
fishing trawlers sector (e.g., reduced interest rates, subsidies for utility services, etc.)?  
Answer:  
The G overnment of Bangladesh has identified a set of support programmes in its Export Policy 
2018-21 for the 12 Highest Priority Sectors includ ing the  ship and ocean going trawler for boosting 
up exports of these sectors. These programs include granting project  loan at reduced interest rates 
on a priority basis; income tax rebate; possible financial benefits or subsidies for utility services, 
such as electricity, water and gas in consistent with WTO Agreement on Agriculture, and Agreement WT/TPR/M/385/Add.1  
 
- 60 - 
 
  on Subsidies and Counte rvailing Measures; export credit at lower interest rates and on soft terms; 
air transportation facilities on priority basis; duty draw -back/bond facilities; facilities for setting up 
ancillary industries including infrastructural development for reducing c ost of production; expansion 
of institutional and technical facilities for improving and controlling quality of products; duty -free 
import of equipment for setting up compliant industry; accord assistance in production and 
marketing of products; provide as sistance in exploring markets abroad; and undertake necessary 
initiatives to attract foreign investments. Among these the duty draw back facilities, duty free 
imports of equipment, assistance in exploring markets and supporting to attract FDI are available  
for ship building industry. The Government is conducting studies for assessment of stocks at the Bay 
of Bengal. Based on this study, the Government will design programme for boosting up the sectors 
including exports of marine resources while maintaining i ts biodiversity.  
 
  WT/TPR /M/385/Add.1  
 
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  INDIA  
QUESTIONS ON SECRETARIAT REPORT (WT/TPR/S/385)  
 
PARAGRAPH 2.11, PAGE 26  
 
1. Bangladesh is requested to share its vision as to how it plans to achieve the targets set out in 
Vision 2021?  
 
Answer:  
 
In recognition of the long -term development challenges, the Government under the leadership of 
Prime Minister Sheikh Hasina adopted the Vision 2021  to celebrate the golden jubilee of 
Independence of Bangladesh . The Vision 2021 had been reflected in the associated Perspective Plan 
2010-2021, 6th and 7th Five Year Plan s, all the policies developed subsequently and also enumerated 
in the Annual Development Program.  Vision 2021 la id down a development scenario where citizens 
will have a higher standard of living, better education, ensure soci al justice, have a more equitable 
socio-economic environment, and the sustainability of development. To achieve the goals of Vision 
2021, t he econo mic policy was designed  within the framework of a market economy with appropriate 
government interventions to  correct market distortions, ensu ring equality of opportunitie s and 
equity. This has made significant contribution in achieving  the socio -economic development which 
led the country to elevate from a low income economy to a lower middle income country . 
 
2. Given the dependence on textile sector for exports, is there any plan to diversify exports? If so, 
the details thereof.  
 
Answer:  
 
Government of Bangladesh has been trying to diversify its export baskets for reducing its high 
dependency on textile sector f or export. It has already identified 12 highest priority sectors (high 
value garments, ITES, pharmaceuticals, plastics, footwear, jute goods, agro -products, shipbuilding, 
furniture, home textile, home finishing, luggage and API) and 14 special development sectors 
(electrical goods, ceramics, light engineering, high valued frozen items, papadam etc.) and prepared 
a set of support programs for boosting up exports of these products. Along with this, government 
had also set up sector specific business promotion  councils in collaboration with the private sector 
for leather and leather goods, agro -products, fish, IT services, plastic products and medicinal plants 
products for diversification of exports and providing technical supports for improving quality and 
standards and exploring new markets. Beside this, it has initiated Export Competitiveness for Jobs 
(EC4J) Project under the World Bank support for export diversification. The project is designed to 
enhance growth and competitiveness of selected sectors such a s leather and leather goods, 
footwear, light engineering and plastics to create better job opportunities along with diversifying 
export baskets through enhancing productivity; improving environmental, social and quality 
standards; and collective infrastruc ture facilities. The government 's massive program for setting up 
100 economic zones will not only attract foreign investment, will also boost up export of many 
different non -traditional items. The existing Export Processing Zones are also contributing to t his 
end. Bangladesh regularly participates various international trade fairs in showcasing its capacities 
of exporting different products. Beside this, foreign mission abroad are also diligently working for 
promoting exports and introducing our diversified  products to the importers of different countries.  
 
PARAGRAPH 2.12, PAGE 27  
 
3. Since Bangladesh is expected to graduate from its LDC status in 2024, what are the envisaged 
future strategies for DFQF program?  
 
Answer:  
 
Bangladesh  is expected to graduate from the LDC status in 2024. Presently, Bangladesh has been 
enjoying DFQF market access to 37 developed and developing country markets.  Graduation will 
lead loss of DFQF market access available for LDCs except in EU countries which has generously 
granted addit ional transition period. With limited export basket t he Government of Bangladesh has 
been attempting to overcome the  possible loss of market share by enhancing its productivity and 
improving quality. It has also been working for ensuring Ease of Doing Busi ness to improve WT/TPR/M/385/Add.1  
 
- 62 - 
 
  competitiveness by reducing the cost of production and promoting trade facilitation. Taking into 
consideration of the effect of graduation, the Export Policy 2018 -2021 has been formulated aiming 
to diversify export product basket and market  destinations. Government is also working for 
enhancing regional cooperation through strengthening the existing FTAs and initiating new FTAs with 
potential trading partners.  
 
Bangladesh expects that the preference giving countries will continue their preferential treatment 
for graduated LDCs for certain period in line with the General Assembly Resolution 59/209 in order 
to make the graduation smooth and sustainable.  
 
PARAGRAPH 2.14, PAGE 27  
 
4. What is the current status of CTP?  
 
Answer:  
 
Bangladesh still follows the separate Export Policy, Industrial Policy, Import Policy and other trade 
and investment policies. However, the spirit of CTP has been incorporated in all these policie s and 
7th Five Year Plan as well (Page 195 -196). 
 
PARAGRAPH 2.17, PAGE 28  
 
5. As per the Article 1.2.2 of WTO TFA  - Whenever practicable, the description referred to in 
subparagraph 2.1(a) shall also be made available in one of the official languages of the WTO. 
Bangladesh is requested to inform whether information regarding imports and exports is 
available in Bengal i or any of the official WTO languages?  
 
Answer:  
 
Bangladesh Trade Portal ( https://www.bangladeshtradeportal.gov.bd/ ) provides all information on 
imports and exports both in Bangla and in English as per Article 2.1(a) of TFA. The Website of the 
National Board of Revenue ( http://nbr.gov.bd/ ) has incorporated all the procedures of import  and 
export in Bangla and English.  
 
PARAGRAPH 2.49, PAGE 35  
 
6. What are the factors that may have led to decline in EODB ranking of Bangladesh?  
 
Answer:  
 
Bangladesh has recently undertaken several initiatives to improve its Ease of Doing Business by 
automa tion of the service delivery of the custom administration, the offices of Registrar Joint Stock 
Companies and Firms (RJSC), Chief Controller of Import and Export, Bangladesh Investment 
Development Authority. In the meantime, document requirements for grant ing approval of these 
institutions have cut down substantially, fees are reduced significantly and online integration of 
Bangladesh Bank and National Board of Revenue are established. The Government already passed 
the One Stop Service (OSS) Act 2018 for 25  investment facilitating agencies and regulatory 
authorities in providing registration, issue clearance, permits and other documents from one single 
window. The services will be provided from the Bangladesh Economic Zones Central One Stop 
Service Authority . Introduction of National Single Window, Authorized Economic Operator, Risk 
Management Based Clearance system have reduced the time, cost and process of custom clearance 
significantly. Considering the present initiatives undertaken, Government believes th at the report 
did not reflect the current situation of Bangladesh with respect to EODB.  
 
PARAGRAPH 2.57, PAGE 37  
 
7. Is there any national law/policy on E commerce? If so, Bangladesh is requested to provide details 
of the same.  
 WT/TPR /M/385/Add.1  
 
- 63 - 
 
  Answer:   
 
The Cabinet approved the National Digital Commerce Policy 2018 in July 2018 with the aim of 
ensuring safe digital transactions and improving trust between the buyers and the sellers in digital 
commerce. The Policy enumerated 15 goals and 61 targets. At present about 7 15 businesses are 
operating E -commerce business and total transaction stands about Tk  1,800 crore. In addition, there 
are 1,000 e -commerce -based sites and 10,000 Facebook pages that run online businesses. The 
Policy is formulated for the development of ind ustries, growing export and creating more jobs in the 
ICT sector. As per the policy, a Central Cell will be formed in the Commerce Ministry for proper 
implementation of the activities of digital commerce and protection of consumer rights. The Digital 
Secur ity Act 2018 and the Consumer Rights Protection Act 2009 are supportive to protect consumer 's 
rights and to provide safe guard from online fraudulent practices. Recently, UNCTAD has prepared 
an e-Trade Readiness Assessment Report on Bangladesh which detail ed out an Action Plan for 
accelerating e -commerce business.  
 
PARAGRAPH 2.63, PAGE 39  
 
8. Bangladesh is requested to share its experience with respect to BITs, especially in terms of ISDS.  
 
Answer:  
 
Bangladesh has so far signed 33 Bilateral Investment Agreements with different countries including 
England, Germany, Belgium, France, the USA, South Korea, R omania, Turkey, Italy, Canada, 
Netherlands, Malaysia, Pakistan, China, Poland, Philippines, Indonesia, Japan, North -Korea, 
Uzbekistan, Switzerland, Aust ria, Iran, Thailand, Singapore, Viet  Nam, India, Denmark, United Arab 
Emirates, Belarus, Cambodia, Bahrain, and Kuwait.  
With the growth of FDIs, regular contact with the investment partners becomes utmost important. 
The BITs  created avenues for discussing investment issues with the partner countries and solving 
investment disputes on priority basis. Bangladesh had already won three cases.  
 
PARAGRAPH 3.2.4.1, PAGE 52  
 
9. As per the information, Textile sector is the major benefic iary of the subsidies, what are the 
future plans of Bangladesh to reduce this overreliance of subsidies, in the backdrop of improving 
the competitiveness in the economy?  
 
Answer:  
 
Textile and clothing sector is the main export item of Bangladesh. Textile s ector is not primarily 
reliant on subsidies as because the major portion of the textile export does not receive any subsidies. 
The growth of the textile export mainly resulted from the DFQF market access granted by the 
developed and the developing countrie s under the WTO rules. Government has long term plan for 
improving competitiveness of this sector that provides around four million jobs, mainly the women. 
The Government and the private sector are working with ACCORD and ALLINACE, two buyers 
associations of Europe and North Americas in enhancing the work environment of the factories and 
to maintain the compliances set by the importing countries. It is also trying to improve the 
infrastructure for communication and energy. Special Economic Zones are establi shed for this sector 
and for the ease of foreign investors. Government has also planned to upgrade the capacity of the 
sector to produce high -end ready -made garments and to diversify its products for improvement of 
its competitiveness.  
 
PARAGRAPH 4.4, PAG E 89 
 
10. Bangladesh is requested to elaborate on its efforts to expand its industrial base.  
 
Answer:  
 
Government of Bangladesh has been continuously endeavoring to expand its industrial base. As 
mentioned in the Secretariat report, the Government adopted the  Industrial Policy in 2016, which 
targets to increase contribution of the industrial sector to the GDP to 35 % and promote inclusive 
development through diversification of industrial base.    For this purpose, industrial policy focuses 
on few priority sector s for investment and give emphasis on development of SMEs, promoting women WT/TPR/M/385/Add.1  
 
- 64 - 
 
  entrepreneurship, attracting foreign investment. The Policy also envisages several fiscal and non -
fiscal incentives to domestic and foreign private sector investors. These incentive s, among others, 
include various degree of tax exemption and depreciation facility depending on location of 
investment; policy support to capital investment and on the interest of current capital; tariff 
protection, technical know -how fees received by any foreign investor, firm, company and expert in 
accordance with the agreement on avoidance of double taxation; uninterrupted supply of electricity, 
natural gas and energy; etc. Government has also taken an initiative to promote investment and 
create employme nt of around 10 million people by establishing 100 Economic Zones throughout the 
country in the next 15 years. Approval has already been granted to establish 83  economic zones. 
The Government of Bangladesh has identified  a number of products  and designed programmes for  
supporting the industries to upgrade technolog y, provide funds and facilitate promotion of domestic 
and international markets.  As a result, new products, such as food processing, light engineering, 
plastic, textile are expanding rapidly  and the contribution of the industrial sector has increased from 
29% in 2012 -13 to 33.66% in 2017 -18. 
  WT/TPR /M/385/Add.1  
 
- 65 - 
 
  TURKEY  
THE GOVERNMENT REPORT  
 
3. Trade Policy and Trade Facilitation, pg. 10, 3.1  
 
It is stated in the Government Report that "Government formulated Export  Policy 2015 -2018 to 
promote and facilitate export, improve quality of the exportable items, use environment friendly 
technologies and produce high value added and labour intensive products. The Policy identified 
12 sectors as the Highest Priority Sectors and designated 14 sectors as the Special Development 
Sectors. The Highest Priority Sectors include: high value -added readymade garment and garment 
accessories; software and IT enable services, ICT products; pharmaceu tical products; ships and 
ocean going fishing trawlers; footwear and leather products; jute products; plastic products; 
agro-products and agro -processed products; furniture; home textiles and terry towel; home 
furnishing; and luggage. Special programmes ha ve been designed to boost up export of these 
sectors. "  
 
Question: Could Bangladesh provide further information about "Export Policy 2015 -2018" with an 
emphasis on Highest Priority Sectors, Special Development Sectors and special programmes that 
have been designed to increase exports of these sectors? (what is the difference between Special 
Development Sectors and the Highest Priority Sectors, what kind of programmes have been 
developed to increase exports and what kind of incentives have been provided by t he Government, 
etc.?)  
 
Answer:  
 
Export Policy 2018 -21announced 12 sectors as the Highest Priority Sectors and 14 as the Special 
Development Sector depending on the level of production and supply, potential contribution to the 
export sector, demand in the international market and, above all, the capacity to contribute to the 
socio-economic development of the country. The Government time to time, modifies this list, and 
provides special privileges to encourage the export of these products.  
 
The 'Highest Pri ority Sectors ' are referred to those sectors which have special exports potentials, but 
such potentials could not be utilized properly due to certain constraints. However, more success can 
be achieved if necessary supports are extended to them, while the S pecial Development sectors are 
those which have export potentials but whose production, supply and export bases are not 
strengthened to consolidate their export base.  
 
The government designs programmes in consultation with the stakeholders of the relevant sectors. 
Generally, they are supported for setting up ancillary industries including infrastructural 
development for reducing cost of production, expansion of instituti onal and technical facilities for 
improving and controlling quality of products. Companies receive assistance in production and 
marketing of products in terms of consultancy supports and participation at various national and 
international fairs in explorin g markets abroad. FDIs are also encouraged in these priority sectors.  
 
The incentives includes receiving project loan at reduced interest rates on a priority basis, income 
tax rebate, getting utility services, such as electricity, water and gas connection on priority basis 
and at concessional rates. They are also granted export credit at lower interest rates and on soft 
terms, air transportation facilities on priority basis, duty draw -back/bond facilities; and duty -free 
import of equipment for setting up co mpliant industry.  
 
THE SECRETARIAT REPORT  
 
2. Trade a nd Investment Regimes, 2.2. Trade Policy Formulation and Objectives, 
2.2.3.  Policy objectives, pg.27, 2.14, Footnote 6  
 
It is stated in the Secretariat Report that "The 7th FYP  contains the following seven guiding principles 
for the CTP: "(i) to promote diversified, export -led industrialization as the major engine for increased 
and sustained economic growth; (ii) to strengthen production networks of existing and new export 
produ cts, thereby improving Bangladesh's position in global value chains; (iii) to increase 
Bangladesh's international competitiveness by creating a conducive environment for private -sector 
trade and investment, including reliable infrastructure, an effective t ransport network, coherent and WT/TPR/M/385/Add.1  
 
- 66 - 
 
  enforceable trade -related policies, and strengthened institutions;(iv) to create favourable market 
access conditions through taking maximum advantage of existing trade agreements and engaging 
actively in the exploration of ne w bilateral and regional trade and investment agreements; (v) to 
make trade contribute towards poverty reduction through increased and diversified exports, higher 
income, and employment; (vi) to make Bangladesh's trade regime contribute towards sustainable  
development by making it fully consistent with its development objectives and existing international 
trade commitments; and (vii) to establish the MOC as the national competent authority  and apex 
organization in all matters relating to trade policy formul ation. " 
 
Question: Could Bangladesh provide detailed information about programs and sector -specific 
policies  to improve its position in global value chains?  
 
Answer:  
 
The fragmentation of production processes across different countries has given rise to Global Value 
Chains (GVCs) creating opportunities for intra -industry trade globally as well as between contiguous 
economies within a region. Although Bangladesh is yet to get benefit from the global value chain, it 
has already started its activities as a p ure 'assembler' in a low value added GVC, such as cutting and 
making of readymade garments (RMG) due to the initial infusion of FDI, bringing technology, 
management techniques, marketing access and information, both forward and backward linkages.  
 
Banglad eshi entrepreneurs involved in the light engineering, pharmaceutical products, footwear and 
leather products, home furnishing, value added frozen fish, printing and packaging, rough diamond 
& jewellery, rubber are expected to emerge as the manufacturers of  the intermediate goods as these 
have potentials to produce with competitive labour cost and available raw materials. The technical 
'know -how' needed for the production of an intermediate good in the GVC are obtained if the local 
entrepreneurs are not expo sed to such expertise. In this context, a prudent strategy for local 
entrepreneurs is opting for a collaborative production structure that builds long -run commitments 
between the local and foreign actors, so that the technical 'know -how' needed by the loca l actors is 
obtained by inviting Foreign Direct Investment.  
 
Bangladesh Government intends to integrate software and IT enable services, ICT products, ship & 
ocean going fishing trawler as an assembling hub by establishing strategic partnerships with 
estab lished transnational companies which assemble the final product in another location. The local 
entrepreneurs willing to devote resources in assembling activities choose a product where there is a 
high local demand in addition to high export demand. The sec urity of sales in the domestic market 
attracts FDI from the foreign firm, and a collaborative production structure helps diffusing the initial 
technical know -how needed.  
 
Bangladesh also had comparative advantage in many other low -skill intensive manufact uring 
productions – which could be in final consumer goods or intermediate goods. With this experience 
in the background, Bangladesh is vigorously looking for opportunities to integrate with Asian 
production networks and value chains.  
 
To benefit from the GVCs, Bangladesh needs efficient containerization, efficient land ports, 
information and communication technology and Export Processing Zones or Special Economic Zones. 
Other issues that also merit attention are: corporate tax regime with appropriate incen tives, import 
liberalization, strong intellectual property rights and a developed financial system.  
  WT/TPR /M/385/Add.1  
 
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  INDONESIA  
SECRETARIAT REPORT  
 
Page 36 Para 2.52  
 
"The BIDA maintains a one -stop website  (http://www.bida.gov.bd/), that provides relevant 
laws, rules, pr ocedures, and reporting requirements for investors. Aside from information on relevant 
business laws and licenses, the website includes information on the investment climate, 
opportunities for business, potential sectors, and how to do business in Banglade sh. Furthermore, 
it has an e -Service Portal for Investors, which provides services such as visa 
recommendations for foreign investors, approval/extension of work permit for 
expatriates, approval of foreign borrowing, and approval/renewal of branch/liaison and 
representative offices . The authorities indicated that the BIDA is a relatively new institution, and 
its online services will become gradually more effective. All visa and work permits are delivered 
online, with visa issuance taking one day. As at Nove mber 2018, more than 9,000 work 
permits and 6,600 visas had been issued online. " 
 
Question:  
 
1. Would the Government of Bangladesh give more elaboration on this BIDA one -stop website? 
The advantages of this website for the foreign investors since BIDA  claimed the website is 
one-stop service.  
Answer:  
 
One Stop Service (OSS) Act, 2018 was passed by the parliament in July 2018.  Through 
implementation of the ACT delivery of 31 investment related services will be done from a single point 
four investment facilitating authorities: Bangladesh Investment Development authority (BIDA), 
Bangladesh Economic Zone Authority (BEZA), Bangladesh export Processing Zone Authority and Hi -
tech Park Authority.   
 
The BIDA Website ( www.bida.gov.bd ) has an icon to lo gon into OSS page. After log on, the user 
may have access to a number of services which among others, include visa recommendation, work 
permit extension, work permit cancellation, outward remittance approval, BIDA registratio n, RJSC 
name clearance, investment registration, issuance of trade license, gas and electricity connection 
etc.  
 
2. Would the Government of Bangladesh give more results to the effectiveness of website for 
foreign investors?  
Answer:  
 
Foreign investors throug h using one stop services will be able to get all the start -up services from a 
single point and start their business in shortest period of time.  
 
Page 54 Para 3.51  
 
"Since 2012/13, the incentive (subsidy) amount has been rising , and was nearly 
BDT 4,480  crore in 2017/18, with nearly half of the subsidy outlay going to the textile sector  
(Table 3.5) " 
 
Question:  
 
3. Would the Government of Bangladesh provide further information on the implementation of 
the increase in textile product subsidies?  WT/TPR/M/385/Add.1  
 
- 68 - 
 
  Answer:  
 
Since 1990s Textile and clothing sector has been the main export item of Bangladesh.  Currently, 
Bangladesh export is around US D 31 billion. However, export of apparel does not rely on cash 
incentives. The cash incentive is provided to the sector for encouraging  export to search new markets 
and promoting SMEs. It is to be noted, lion share of the textile exports does not receive any cash 
incentives.  
4. In relation to that, Indonesia would like to seek clarification from the Government of 
Bangladesh whether this subs idy/incentive also provided to exporters who do not avail of the 
duty drawback facility or the bonded warehousing facility (refer to the Para 3.48)?  
Answer:  
 
Cash incentive is provided only to exporters who do not avail of the duty drawback facility or the  
bonded warehousing facility except for the export of textiles where cash incentive is provided to 
encourage searching new markets and promoting SMEs.  
 
GENERAL QUESTION  
 
At the first meeting of the Trade Negotiating Committee (TNC) Indonesia – Bangladesh P referential 
Trade Agreement (IB -PTA) held on February 27, 2019, Bangladesh has informally mentioned that 
there are 7 (seven) tariffs or custom duty outside of import duty imposed in Bangladesh, but there 
is no further explanation from Bangladesh regarding this matter. Could you provide a more detailed 
explanation of those seven items?  
 
Answer:  
 
The question needs further clarification. If the Indonesian Authority clarifies the meaning of 
'seven  tariffs or custom duty outside of import duty ', Government of B angladesh will then provide 
specific information about their query. It is however, to be informed that Customs duties are imposed 
under the first schedule of the Customs Act on imported goods.  
 
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