WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/168/Add.1 
10 November 2006 
 (06-5396) 
Trade Policy Review Body 
13 and 15 September 2006 Original:   English/ 
                 anglais/                  inglés 
 
TRADE POLICY REVIEW 
BANGLADESH 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Ms. Claudia Uribe (Colombia)  
 This document contains the advance written questions, and replies provided by Bangladesh.1 
 
 __________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
13 et 15 septembre 2006  
EXAMEN DES POLITIQUES COMMERCIALES 
BANGLADESH 
Compte rendu de la réunion
 
Addendum  
Présidente:  S.E. Mme Claudia Uribe (Colombia) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par le Bangladesh.
1 
 
 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
13 y 15 de septiembre de 2006  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BANGLADESH 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Claudia Uribe (Colombia) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Bangladesh.1 
 
                                                      
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/168/Add.1 
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WRITTEN QUESTIONS BY MEMBERS 
 
QUESTIONS BY ISRAEL  
Paragraph 68 of document WT/TPR/S/168 states th at according to the Import Policy Order 2003 – 
2006 "Imports from Israel, as well as goods carri ed on the flag vessels of this country, remain 
prohibited" .  It further states in paragraph 124 that "the overall ban on exports to Israel remains in 
place" . 
1. Could Bangladesh please explain how these meas ures are in conformity with Article I:1 of 
GATT, Article XI:1 of GATT, Article X III:1 of GATT and Article II:1 of GATS? 
2. Is Bangladesh ready to withdraw these me asures?  Please indicate the timetable for the 
withdrawal of the prohibition of trade with Israel. 
 
QUESTIONS FROM THE REPUBLIC OF KOREA  
 
I. Trade Policies Regime 
 
Foreign Investment Regime(WT/TPR/S/168 p.31 para.49)  
 
1. Recently due to disturbances in the Dhak a Export Processing Zone, damages such as 
shutdown of operations and acts of vandalism have occurred to foreign investment firms. 
 
- Does Bangladesh government have any plan to prevent recurrence of these affairs and 
to provide more friendly FDI environment?  
 
II. Trade Policies By Sector 
 
Maritime transport and related serv ices(WT/TPR/S/168 p.121 para.100)  
 
2. According to the Chittagong Port Authority all ships are received in Chittagong on a 'first 
come first served' basis. An excep tion to this rule is, however, maintained for the state owned flag 
carrier Bangladesh Shipping Corporation, BSC, whose sh ips are granted priority at the relevant jetties.  
 
- Does the Bangladesh government have an in tention of eliminating the discrimination 
depending on the flag of vessels?  
  QUESTIONS FROM COLOMBIA
 
 
1.  Given the growing amount of remittances and certain public debt, does the Bangladeshi 
Government consider that its economic growth is su stainable without a diversification of the sources 
that fund it? 
 
2.  Given the Government’s desi re, re-stated for the Trade Policy Review Body, of having duty free 
and quota free access to internati onal markets, how does the Bangl adeshi Government view that 
competitiveness may be achieved by its enterprises so  that they have a chance to compete in those 
markets, taking into account inefficiencies highlighted  by the report of the WT O Secretariat, such as 
difficulties to have more private-run enterprises and lack of hi-tech low-cost public services. 
 WT/TPR/M/168/Add.1 
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ADDITIONAL QUESTIONS FROM COLOMBIA
 
 
1. Relating to Section III (1) para. 4 of the Secretariat report 
 
- What are the red and yellow channels? 
- Since when were they set in place? 
- What has been their effect on trade? 
 2. Relating to Section III (2) (i) para. 14 of the Secretariat report 
 
- For how much time is the import registration certificate valid? 
- Are there any fees assessed to obtain an import registration certificate? - What documents are required to apply for an import registration certificate? - Is there any other information required by the Chief Controller of Imports and 
Exports before issuing an import registration certificate? 
- Is the importer allowed to transfer the import registration certificate to another 
importer? 
- Is there any paperwork that must be filed with the sponsoring authority in order to be 
able to import restricted items?  How is the recommendation procedure regulated? 
- Has there been any finding of corruption tied to the procedure for issuance of these 
recommendations? 
 
3. Relating to the Summary Observations of the Secretariat report para. 28 
 
- What are the tools used by the Government to implement its domestic drug policy, so 
as to increase the market share of domestically produced medicines? 
 
 
QUESTIONS FROM THE UNITED STATES OF AMERICA
 
TRADE POLICIES AND PRACTICES BY MEASURE Measures Directly Affecting Imports - Other Bo rder Charges and Levies - Supplementary Duty 
1. Paragraphs 57 and 58 on page 54 of the Secretariat Report discuss Bangladesh’s 
supplementary duties, noting that they are imposed on a wide range of products, including textiles.    
We would appreciate a more thorough descrip tion of Bangladesh’s policy on supplementary 
duties.  In particular, we would appreciat e information on the specific line items that 
supplementary duties are applied to, and the ra tes applied to each line item.  We note, for 
example, that the vast majority are in th e textile sector with rates as high as 350%.   
Measures Directly Affecting Imports – Import Prohibitions and Restrictions 
2. The United States is not aware of Bangladesh invoking non-application of the WTO 
Agreement with regard to any other WTO Member.   
Could Bangladesh please confirm that it has not invoked the non-application of the WTO 
Agreement with regard to any other WTO Member?   
3. Paragraph 62 on page 55 of the Secretar iat’s Report discusses Bangladesh’s import 
restrictions for balance-of-payment purposes.  We note that Bangladesh is the only WTO member that 
still has BOP restrictions in effect.   WT/TPR/M/168/Add.1 
Page 5 
 
 
Since the last TPR, has Bangladesh removed the restrictions on any products?  Does Bangladesh expect to request in early 2007 an  extension for any of the remaining products 
still subject to restrictions? 
Measures Directly Affecting Imports – Import Licensing 
4. In paragraphs 69-70 on page 56, the Secretar iat Report explains that import licenses are not 
required, per se, for any imports into Bangladesh, but that in addition to the standard LCA import 
procedure, a permit clearance, prior permission or approval may be required for a number of products 
included in a long list in table AIII.4.  These requirements implicitly impose import licensing.     
We encourage Bangladesh to describe the procedures to obtain these permissions and 
approvals through a response to the questionnaire on import licensing.  (Note:  The 
information provided in G/LIC/N/1/BGD/2 app ears to relate primarily to procedures to 
engage in importing, rather th an the importation of products.) 
5. Paragraph 71 on pages 56-57 of the Secretariat Report notes that some categories of restricted 
items “can be imported only by registered industrial consumers.”   
A) Please explain whether the products listed in paragraph 71 are the only products that 
can be imported only by “regis tered industrial consumers”? 
B) What are the requirements and process to become “registered industrial consumers”? 
6. Paragraph 73 on page 57 of the Secretar iat Report discusses import permits and clearance 
permits required from the Chief Controller of Imports and Exports. 
Please describe the difference between an import permit and a clearance permit. 
Measures Directly Affecting Imports - Standards and Other Technical Requirements - 
Standards, Testing, and Certification 
7. Paragraph 82 on page 59  states that “a Bangladesh Accreditation Act, 2006 was being 
finalized.”  
What is the current status of the Bangladesh Accreditation Act, 2006?  Please highlight how 
accreditation will be used in Bangladesh, e.g ., will it be mandatory for testing and/or 
certification bodies, or voluntary?  Will Bangladesh recognize accreditations performed by 
other competent bodies? 
Measures Directly Affecting Imports - Standards and Other Technical Requirements - Sanitary 
and Phytosanitary Standards 
8. We appreciate the sanitary and phytosanita ry information included in the Trade Policy 
Review documents.  We note that Bangladesh has not made any notifications to the WTO under the 
Agreement on the Application of Sanita ry and Phytosanitary Measures.   
What steps is Bangladesh taking to ensure the proper activation of its SPS inquiry point to 
ensure timely notification for public comment of future draft SPS measures?    
Measures Directly Affecting Imports - Standards and Other Technical Requirements - Labeling 
and Packaging 
9. Paragraph 89 on page 61 of the Secretariat Report notes that “a product labeling policy was 
introduced in 2004, but is awaiting the approval of  the Cabinet Division under the Prime Minister WT/TPR/M/168/Add.1 
Page 6  
 
(February 2006) to, inter alia , ensure that no barriers are created for import (and export) of goods and 
that imported products have proper labels.”  It is also explained that the “policy refers explicitly to 
international labeling standards to be observed in 13 sectors.” 
A) What is the current status of the labe ling policy?  Will a draft of the measure be 
notified to the WTO to give interested parties an opportunity to comment? 
B) Which sectors and international labeling sta ndards are being used as the basis for this 
policy?   
Measures Directly Affecting Imports - Local Content Schemes  
10. Paragraph 107 on pages 64 and 65 of the Secret ariat Report states that Bangladesh, through 
the Export Policy 2003-2006, provides “cash incentiv es for exports of certain items (including local 
fabrics, bicycles, agri-processed items), a higher currency retention quota, and eligibility for the duty 
drawback and special bonded warehouse schemes (at least 25% domestic content),” which are all 
linked to local-content or local value-added conditions .  In addition, incentives are to be provided for 
“exports of non-conventional and new industrial products.”  In order to benefit from these incentives, 
local value added must be at least 40% for the fi rst two years and 50% in subsequent years.   
Please explain how local content or local value- added percentages are determined under the 
various programs cited, and we would be in terested in Bangladesh’s view of the WTO 
consistency of these measures.  
Measures Directly Affecting Exports - Duty  Concessions - Special Bonded Warehouses 
11. Paragraph 136 on page 72 of the Secretaria t Report explains that “special bonded warehouses 
(SBWs) allow 100% exporters and ‘deemed’ exporte rs to import and stock inputs duty free.”   
What are the criteria to be a “deemed exporter”  for purposes of receiving this incentive? 
Measures Affecting Production and Trade – State-Owned Enterprises and Privatization 
12. The Secretariat indicated in paragraph 192 on pa ge 84 of its report that reform of state-owned 
enterprises has slowed down due to stiff opposition from vested interests.   
A) We would very much appreciate an update on Bangladesh’s privatization plans, 
including a prospective schedule, if any, fo r reducing the state’s direct involvement in 
production of goods and provision of services.   
B) Please identify any state companies that have exclusive and or special trading 
privileges either in law or in effect. 
Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights – 
Industrial Property 
13. Paragraph 204 on page  89 of the Secretariat Report discusses the Trade Marks Act and the 
Trade Marks Rules.   
Please highlight the TRIPS deficiencies that were identified in Bangladesh’s existing 
trademark legislation and describe how the proposed Trade Marks Act 2005 will address 
them. WT/TPR/M/168/Add.1 
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Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights - 
Copyrights and Related Rights 
14. Paragraph 206 on page 89 of the Secretariat Report refers to a copyright amendment that was 
passed in May 2005, Copyright Act No. 14, 2005.   
Was this the anti-piracy law prepared by the Ministry of Information?  Could we obtain a 
copy of the copyright amendment passed in 2005?   
15. The United States believes that adherence to th e WIPO internet treaties will help to provide 
adequate protection in the new digital world.   
A)  Has Bangladesh made any decision about joining those treaties? B)  Is Bangladesh considering implementing an effective optical disc law?   
Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights - 
Enforcement 
16. The United States is interested in the Minist ry of Cultural Affairs program to create public 
awareness on copyright and related rights, discussed in paragraph 208 on page 89 of the Secretariat 
Report. 
 Does Bangladesh have any additional informa tion on this program, or updates on progress in 
this area?   
17. According to paragraph 210 on page 89 of the Secretariat Report, the penalties for 
infringement of registered patents and industria l designs range from Tk 5000-Tk 10,000; for trade 
marks, there is a maximum two-years imprisonment a nd/or a fine fixed by the Minister.  For a second 
conviction of infringement, imprisonm ent could extend to three years, with or without a fine; and for 
copyrights imprisonment may extend to a maximum of four years (up to five years for the film sector) 
with a fine of Tk 200,000 (Tk 100,000 to Tk 500,000 for films).  
A) Applying the 2004-2005 exchange rate pr ovided in the Annex of the government 
report, the fine for patent and industrial design infringement amounts to only U.S. $81-160.  Does Bangladesh intend to increase these amounts to a level sufficient 
to serve as a deterrent to infringing patents and industrial designs that may have cost 
millions of dollars to develop? 
B) Please describe how the criminal penalty applies in the case of a trade mark 
infringement.  Does the Minister or the c ourt determine the term  of imprisonment?  
What factors are considered by the Minister in determining the amount of fine to impose?  What have been the amounts of fines imposed by the Minister in recent 
cases of trade mark infringement?  
C) What is the threshold to initiate a crim inal action against somebody who is making or 
selling counterfeit/pirated goods? Is it the num ber of goods?  Or is it an amount based 
on the value of the good?  If so, how is that  valuation calculated -- the value of the 
piratical good or the value of the bona fide good? 
D) What type of compensatory damages can an IP rights holder obtain in a civil case? 
E) What sort of provisional measures are available for an IP rights holder, such as 
temporary restraining order or injunctive relie f?  Is there seizure of counterfeit/pirated WT/TPR/M/168/Add.1 
Page 8  
 
goods before litigation in order to preserve ev idence?  What is generally done with 
the goods if they are found to be  infringing?  Are they destroyed? 
18. Paragraph 211 on page 90 of the Secretariat Report expl ains that the customs authority “can 
inspect, seize, and detain shipments of any counterfeit or pirated materials.” 
Do Customs Officials have ex officio aut hority?  Do Customs Officials destroy the 
counterfeit/pirated goods once they are found to be infringing? 
19. Paragraph 212 on page 90 of the Secretar iat Report explains that Bangladesh has no 
enforcement data (e.g. campaigns, raids, seizur es of counterfeit/pirated goods, cases brought at the 
courts, fines/penalties imposed, etc.).  
A) Will your government be collecting such da ta at any point?  If so, will that data be 
shared with other countries? 
B) U.S. copyright industries have expressed concerns with book, cable, and optical disc 
piracy.  Does Bangladesh have reports of any recent enforcement actions against copyright infringers?  
20. According to paragraph 213 on page 90, obser vers have reported that enforcement of IPR 
laws is lax, particularly with respect to comput er software, motion pictures, pharmaceutical products, 
CDs/DVDs, and audio- and video-cassettes. 
A) What steps is Bangladesh taking to step up enforcement of its IPR laws? 
B) We note in footnote 167 of the Secretariat Report that two CD manufacturing plants 
were reportedly operating in Dhaka.  W as the Government of Bangladesh aware of 
the existence of these plants?  If so, what action was taken in response? 
 
 QUESTIONS BY JAPAN
 
Report by Bangladesh (WT/TPR/G/168) 
V. BANGLADESH IN WTO NEGOTIATIONS 
(Page 23, paragraph 43) 
Japan has already accorded duty-free and quota-free mark et access for all textiles products originating 
from LDCs. According to paragraph 43, however, it can be understood that Bangladesh is concerned 
that duty-free and quota-free market access has not yet been accorded by Japan to readymade 
garment/apparels, which are major e xport products of Bangladesh, and that the items of major export 
interest of LDCs, including Bangladesh, may be incl uded in the 3% exclusion list of developed and 
developing countries.  
1. Please clarify that the Bangladeshi governmen t understands that Japan has already accorded 
duty-free and quota-free market access for all textile products originating from LDCs. WT/TPR/M/168/Add.1 
Page 9 
 
 
Report by the Secretariat (WT/TPR/S/168) 
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (7) F
OREIGN INVESTMENT REGIME  
(Page 31-33, Paragraph 49-56) 
Japan understands that the Bangladeshi trade policy favor able to foreign investor s has resulted in an 
annual increase of foreign investment.   
2. Please indicate specific policies such as the estab lishment of laws for foreign investors.    
III TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Customs clearance and administration  
(Page 41, paragraph 24) 3. Please indicate specific plans and policies regarding the simplification of trade procedures 
(for instance, reducing the number of signatures required for customs clearance). 
(iii) Customs clearance and administration  
(Page 41, footnote 22) 4. Please indicate what measures are taken to prevent malpractice, for instance, in ports, airports 
and post offices. 
(iv) Tariffs (b) Bound MFN tariffs 
(Page 43, paragraph 32) 5. Please confirm the validity of the cases mentioned in this paragraph. If they are valid, please 
indicate how they are consistent with the WTO Agreements. 
(b) Bound MFN tariffs 
(Page 45, paragraph 34) Japan believes that it is beneficial to Bangladesh, as well as extremely significant in order to maintain 
and reinforce a multilateral trading system, that Bangladesh, as a leader of LDCs, substantially 
increase the level of binding rates, on the basi s of paragraph 9 of Annex B in the framework 
agreements in July 2004, and reduce the differe nce between applied and bound rates in future.  
6. In this context, please indicate the results of  the verification by the BTC and the NBR.   
(v) Other border charges and levies 
(Page 52, paragraph 50) 
The Secretariat report states, “the Bangladesh Tariff Commission (BTC) in conjunction with NBR 
was in the process of reviewing these charges and tax es and their final position would to be notified in WT/TPR/M/168/Add.1 
Page 10  
 
July 2006 once the necessary revision/rationalization of  the structure of the tariff and other duties for 
the Budget 2006/07 is decided”.   
7. Please indicate the status or the results of the reviewing by BTC and the status of the revision 
of the Budget.  
(vi) Import prohibitions and restrictions 
(Page 55, paragraph 63) 
According to the Secretariat report, a new IPO inco rporating amendments was being prepared at the 
time of completion of this report. 
8. Please confirm whether the new IPO is now available and indicate the outline of the 
amendments. 
(vi) Import prohibitions and restrictions 
(Page 55 and 57, paragraph 66 and 73) 
Japan appreciates that due to the IPO 2003-2006 ( as at March 2004), the number of trade-related 
items on the control list was reduced to about half th e number of HS four-digit items, and to a third of 
them in July 2005. On the other hand, paragraph 73 states that apart from the restricted items in the 
control list, an important permit or clearance pe rmit is required from the CCIE for specific goods. 
These two statements are contradictory.    
9. Please indicate how many products have been substantially liberalized from the control list 
since the last Trade Policy Review of Bangladesh. 
(xii) Local-content schemes 
(Page 65, paragraph 108) The report by the Secretariat states that Bangladesh  has not notified these measures under the relevant 
provisions of the WTO Agreement on Trade-Related Investment Measures. 
10. Please indicate how the Bangladeshi government  hereafter will ensure the obligation on 
transparency in the WTO Agreement on Trade-Related Investment Measures. 
II. TRADE POLICIES BY SECTOR 
(5) M
ANUFACTURING  
(ii) Textiles and clothing 
(Page 107, paragraph 53) 
Japan appreciates that exports in the textiles and clothing sector show a favorably increasing 
tendency, despite the post-MFA threat. It is estimated that half of the employees are directly or 
indirectly employed by this sector. Japan, therefor e, recognizes that the growth of this sector is 
significant to contribute to poverty reduction in Bangladesh.  
11. As the Box IV.1 on page 108 states, Japan expects that the Bangladeshi government is 
conducting its structural reform by using the PRGF as well as by examining the Post-MFA Action Programme with assistance from intern ational development organizations. WT/TPR/M/168/Add.1 
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(6) S ERVICES  
(Page 110-111, paragraph 62 and 64) 
Paragraph 62 states, “services make up more than half of the Bangladeshi economy”, “their share in 
GDP rose from 46.9% in 1998/99 to 50.7% in 2004/ 05” and “Wholesale and retail trade; transport, 
storage and communications, community, social a nd personal services; and real estate and business 
services have been by far the leading service ac tivities in Bangladesh. The services sector employs 
about a third of the labour force”. On the other ha nd, paragraph 64 states that its Schedule of Specific 
Commitments covers the activities of five star hotel and lodging services and telecommunication 
services and that Bangladesh has not made any ser vices offer in the ongoing round of negotiations. 
12. Please indicate the concrete measures and futu re prospects for the Bangladeshi government to 
liberalize any services sector other than hotel and lodging services and telecommunication services. 
 
QUESTIONS FROM HONG KONG, CHINA  
Investment  
(WT/TPR/S/168, P. 18 -19, Paras. 38 -40; and P. 31 -33, Paras. 49 -56)  1. We note that foreign investment in sect ors like banking, insurance and other financial 
institutions are explicitly discouraged in Bangladesh. What are the reasons for pursuing this policy in 
these industries and are there any concrete plans to remove any/all of these industries from the 
"discouraged" list?  
Trade-related Investment Measures TRIMs)  
(WT/TPR/S/168, P. 64 -65, Paras. 107 -108; and P. 87, Para. 197)  2.  We note that Bangladesh maintains a num ber of local-content schemes under its Export 
Policy 2003-2006. Such measures include granting of  incentives for exports of certain items, a higher 
currency retention quota and eligibility for the duty drawback and special bonded warehouse scheme 
linked to local-content or local value-added c onditions. Can more details be provided for these 
schemes? Are those schemes prohibited under the WTO Agreement on TRIMS? If the answer is 
positive, we would like to encourage Bangladesh to  eliminate measures that are prohibited under the 
WTO Agreement on TRIMS and observe the notif ication requirement under the Agreement.  
Telecommunications  
(WT/TPR/S/168, P. 118, Para. 93)  
3. We note that Bangladesh currently mainta ins two MFN exemptions in international 
telecommunications services and the intended duration of the exemptions is 10 years. We would like 
to know whether Bangladesh would terminate tho se exemptions upon the expiry of the 10-year 
duration as scheduled.  
Maritime Transport Services  
(WT/TPR/S/168, P. 119, Para. 97)  4.  We note that Bangladesh adopted a new Na tional Shipping Policy in 2000 to lay down a 
framework in ship-owning business to encourage priv ate sector participation with clearly set business 
objective. We would appreciate if  Bangladesh could provide us with more details on this Policy. WT/TPR/M/168/Add.1 
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QUESTIONS BY THE EUROPEAN COMMUNITIES
 
 
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(3) D EVELOPMENT AND ADMINISTRATION OF TRADE POLICY  
 WTO Secretariat's Report, page 23, para 10 
 Several steps have been taken to improve trade policy co-ordination in Bangladesh, including as 
concerns the institutional set-up and the training of  staff.  Donors, including the EC, have also 
contributed funds to this end.   - Do the Bangladeshi authorities consider the av ailable resources sufficient to adequately 
represent Bangladesh in the WTO and pa rticipate in its various activities?  
- Are any further steps planned to reinforce capacities? 
(4) T
RADE POLICY OBJECTIVES  
 
Bangladesh remains heavily dependent on exports of  clothing (Ready-made Garments - RMG), and to 
a lesser extent textiles. By the same token, the manufacturing sector remains dependent on the labour-
intensive ready made garment sub-sector. It offers  employment to about 2 million workers – mostly 
women. The remarkable growth over the last year s in the manufacturing sector, which in turn has 
accelerated the overall economic grow th and development of the country, is mainly attributed to the 
RMG sector. [ WTO Secretariat's Report, pages 107-110, paras 53-61 ] 
- What measures / initiatives has the country undert aken to diversify its export base and what 
are its future plans? 
Bangladesh's largest export markets are by far the United States and the EC [ WTO Secretariat's 
Report, page 19, para 40 ]. 
- What measures / initiatives has the country unde rtaken to diversify its export markets? 
Reflections on the future of Bangladesh's trade and export policy are ongoing. 
 - When will the government release its future multi-annual strategy for its trade and export 
policies (the current multi-a nnual policy ends in 2006)? 
Sustainable development 
- In what ways does Bangladesh think trade policy can best contribute to sustainable 
development? 
- Does the issue of trade and sustainable de velopment fit into Bangladesh's overall 
development strategies? 
Trade and environment 
 
- What mechanisms does Bangladesh have in place to ensure adequate coordination of 
environmental policy and trade policy?  WT/TPR/M/168/Add.1 
Page 13 
 
 
Trade and social development 
 
Privatisation policy has caused the closure of trad itional industries and massive job loss for workers. 
- Have any measures been implem ented to assist workers during transition and to manage 
restructuring? 
Report by Bangladesh, page 15, para 19 
 
The present industrial policy aimed to increase the c ontribution of the industrial sector to 30-35% of 
GDP and absorb 35 percent of the labour force through strengthening agro-based and agricultural 
product processing industry, together with steps to face the challenges of globalization.  
 
- What steps is Bangladesh taking to train, re train and re-skill the labour force to enter 
expanding industrial sectors in the face of globalisation?  
- As well as labour market flexibility, what measu res are being taken to implement core labour 
standards to ensure labour quality and produc tivity, including in the readymade garment 
industry?  
(7) F OREIGN INVESTMENT REGIME  
- How do the Bangladeshi authorities see its forei gn investment policy evolving over the 
coming years?  
ANNEX II.1:   TRADE -RELATED TECHNICAL ASSISTANCE (TRTA) 
 
We strongly welcome that trade has been integrat ed in the Poverty Reduction Strategy Paper of 
Bangladesh [ WTO Secretariat's Report, pages 24-25, paras 13-18 ].  
 
- Could the Government please outline its main priorities in the area of Trade-Related 
Assistance. 
In 2005 the EC together with DFID and the Japanese Aid agency funded a comprehensive needs 
analysis and action programme in the area of trad e. The EC Aid for Trade to Bangladesh, which will 
be expended in the coming years, will be based on this action programme.   
- Does the government also seek funding fro m other donors and agencies for the 
implementation of this programme? 
WTO Secretariat's Report, page 34, para 1 
 
- Does the Government intend to join the extended IF? 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs valuation and inspection  WTO Secretariat's Report, page 39, paras 18-20 
A mandatory pre-shipment inspections system (PSI) was introduced in Bangladesh in 2000.  WT/TPR/M/168/Add.1 
Page 14  
 
- What plans, if any, does Bangladesh have for phasing out PSI?  
- Does Bangladesh have any technical assistance ne eds in the field of Trade Facilitation that 
would facilitate the elimination of PSI? 
(iii) Customs clearance and administration 
WTO Secretariat's Report, pages 40-42, paras 21-27 
The EC welcomes the stated commitment by th e Bangladeshi authorities to introduce some far-
reaching customs’ reforms. The EC also welcomes the use of a self-assessment and rapid clearance 
procedures. However, the WTO Secretariat Re port notes that a large agenda for customs 
modernization remains unmet.  
- What plans do the Bangladeshi authorities have for carrying reforms forward, including with 
regard to its customs regulations, transit and the operation of ports?  
At present, self-assessment procedures only see m available for a limited range of products.  
- In line with the intention expressed at the prev ious Review, what progress has been made in 
extending the coverage of the procedures to other imports?  
- Why do importers, as stated in the WTO report, f eel more comfortable referring their disputes 
to the High Court rather than customs?  
- Does Bangladesh have any technical assistance ne eds in the field of customs clearance and 
administration?  
(iv) Tariffs 
 
Bound MFN tariffs 
 WTO Secretariat's Report, pages 44-45, paras 33-34 
- Will it be possible for the authorities to improve the Tariff Structure by reducing its 
complexity and making it more predictable for traders? 
- Does the new framework, which was planned to be  submitted to the WTO Secretariat in July 
2006, address the problems of comp lexity and unpredictability? 
- Do the Bangladeshi authorities plan to increase the level of bindings (currently 15% of total 
number of tariff lines)? 
Rules of Origin 
 
Report by Bangladesh, page 24, para 43  
The authorities of Bangladesh request that the rules of origin under the GSP be simplified to ensure 
meaningful market access to the LDCs. 
However, in the case of the EC, the EC's relaxed regional cumulation (rules of origin) criteria for 
items eligible for GSP/preferential treatment has not yet been endorsed by Bangladesh (in order to 
protect domestic production of back ward linkage industries of the RMG sub-sector from competing 
industries in neighbouring SAARC countries). WT/TPR/M/168/Add.1 
Page 15 
 
 
 - Does the "simplification" of the rules of origin  as requested by Bangladesh mean "relaxation" 
of the criteria, in order for example to allow compliance with the GSP rules of origin for the 
clothing items made from non-EU or non-SAARC fabrics?  
- Does Bangladesh intend to take a stance officially  on the reform of the preferential rules of 
origin, as laid down in the EC Communication No 2005(100) of 16 March 2005? 
Other border charges and levies 
Report by Bangladesh, page 19, para 25 WTO Secretariat’s Report, page 54, para 56  
The information provided states that the Advanced  Value Added Tax of 1,5% is collected at the 
import stage for imported goods, due to the limited capacity of the tax administration in collecting 
VAT on imported items for trade at retail level.; sim ilar domestic items are also subject to the ATV at 
the wholesale level. 
- Please describe in more detail how the Advanced  Value Added Tax of 1,5% is collected on 
domestically produced goods. 
- What is the direction of reform of the indirect taxation system? 
- Are measures planned to broaden th e tax base for indirect taxation? 
(xi) Government procurement 
WTO Secretariat’s Report, pages 61-64  
- Paragraph 95:  How do Bangladeshi authorities explain that government procurement seems 
to represent only 1,7% of its GDP while in general such expenditure represent between 
10 and 20% of GPD? 
- Paragraph 97:  Which procurement opportunities does th e web site operated by the CPTU 
cover? 
- Paragraph 100:  Can the Bangladeshi authorities provide statistics of government 
procurement contracts given in 2005 or 2004  according to the five procurement methods? 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(x) Tax concessions 
- In the framework of the fiscal  reform process, does the government of Bangladesh intend to 
adopt measures to reform the monitoring system  for the different existing types of fiscal 
incentives? 
(xii) Export Processing Zones 
WTO Secretariat's Report, pages 73-74, para 142 
Whereas the Workers Association and Industrial Rela tions Act, effective as from 18 July 2004, makes 
provision for recognizing and enforc ing labour rights in EPZs, the fo rmation of labour unions and 
strikes have not yet been allowed in EPZs. WT/TPR/M/168/Add.1 
Page 16  
 
- Could further information be provided on measure s being undertaken to ensure the effective 
implementation of core labour standards in EPZs?  
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(x) Competition and Consumer Protection Policies 
- Do the Bangladeshi authorities plan to draft fra mework legislation in the area of competition 
policy?  
IV.  TRADE POLICIES BY SECTORS 
 
SERVICES  
 
Telecommunications 
 
- Could the Bangladeshi authorities explain what impact the new legal and regulatory 
framework (in particular, the Licensing Procedure Regulations 2004 and the Bangladesh 
Telecommunications Act 2001) has had on fu rther liberalisation of this sector? 
- What further consideration has the Bangladeshi government given to the use of the GATS 
framework and its own level of commitments, with  a view to boosting investor confidence in 
the telecommunications sector? 
Tourism services 
 
- Could the Bangladeshi government provide an assessment of the effect of the tourism sector 
in overall economic growth and employment, and in particular in other economic sectors such 
as financial services, construction, telecomm unications, transport and computer services? 
Maritime Transport 
 
Clause 6 of the Statutory Regulatory Order 307/  2006 of the Bangladeshi Government requires 
foreign-owned firms to deposit US $1m as a bank guarantee and US $ 1m as security in favour of the Licensing Authority, whilst national firms must only submit a guarantee of Tk 1.5 m (about US € 20,000).   
 
- Could the Bangladesh authorities explain why there is a significant difference in guarantee 
payments between national and foreign firms a nd its assessment of this entry barrier in 
relation to the development of Bangladesh?  
 
 
QUESTIONS FROM CANADA
 
 WTO Secretariat Report (WT/TPR/S/168)
 
 
Summary Observations (2) Trade Policy Framework, Pg. X, Paragraph 10: 
 
The Secretariat Report notes that w ith an aim to ensure among others, better policy coordination of 
trade and related WTO matters, a Bangladesh Fo reign Trade Institute was set up in 2004.  
 
1. Can Bangladesh advise when the Foreign Tr ade Institute, set up in 2004, will start 
functioning? 
 WT/TPR/M/168/Add.1 
Page 17 
 
 
Summary Observations, (2) Trade Policy Framework, Pg. X, Paragraph 11: 
 
The Secretariat Report notes that the government passed the Public Procurement Regulations 2003  as 
part of the legal and regulatory framework reforms.  Thus, Canadian companies claim that Bangladesh 
government does not follow its own “Public Procurement Regulations”. 
2. What is the status of bringing interna tional competitive bidding process in government 
procurement?  
 3. Are there any legal frameworks or consultation processes in place for the settlement of trade 
disputes?  
 
4. If there were none, would the government cons ider establishing such a legal framework? 
 
Summary Observations (3) Trade Policy De velopments, Pg. xii, Paragraph 24: 
 The Secretariat Report notes that work is under way to bring intellectual property rights laws into line 
with the WTO TRIPS Agreement. The areas are tr ademarks, patents, and copyrights. Bangladesh 
benefits from an extended time limit (until July 2 013) for the full implementation of the Agreement.  
 5. What actions has Bangladesh undertaken in this regard?  
 Part III. Trade Policies and Practices by Measu re (2) Measures Directly Affecting Imports (v) 
other border charges and levies, Paragraph 50: 
 
Bangladesh should be congratulated for its efforts to  simplify and rationalize its tariff structure and be 
encouraged to continue doing so. The Report by the Secretariat indicates that Bangladesh imposes 
border charges and levies that are above its bound rate  of 2.5%. The Secretariat report indicates that 
Bangladesh intends to review these charges and ta xes and will notify their final position to the 
Secretariat.   6. Could Bangladesh tell us if the review has taken place, and what was the result of it?  
 Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 116, Paragraph 84: 
 
The Secretariat Report notes that while the telecomm unications sector is open to private investment, 
the Government retains the authority to  determine the number of operators.  
 
7. What criteria and process does the Government u se in determining the number of operators it 
will allow? 
 
Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 117, Paragraph 87: 
 
The Secretariat Report notes that Bangladesh has a recently updated legal and regulatory framework. 
We note that many aspects of its regulatory framewo rk touch on some of the areas, as addressed by 
the Reference Paper, such as inte rconnection and universal service.  
 8. Would Bangladesh consider signing onto the Re ference Paper on basic telecommunications?  
 Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 117, Paragraph 88: 
 
The Secretariat Report lists some of the policy objectives of the Bangladesh Telecommunication Act 
2001 . Given that, one of these objectives is to encourage the introduction of new services… 
 WT/TPR/M/168/Add.1 
Page 18  
 
9. Has Bangladesh identified any priority services to  introduce into the market? If so, what are 
they? What activities does Bangladesh anticipate undertaking in order to encourage their 
introduction into the market? 
 10. How is Bangladesh working towards mee ting its objective of creating a favourable 
atmosphere for local and foreign investors? 
 
Part IV. Trade Policies by Sector, (6) Servi ces, (iii) Transport, Pg. 119, Paragraph 98: 
The Secretariat Report notes that the Bangladesh government works “coordinating with different 
agencies, to remove congestion at ports of entr y and speed up the movement of cargo”. However, 
Canadian companies have serious complaints a bout the congestion in ports and import clearance 
procedures which are onerous, time consuming and expensive. 
11. What is the status of trade facilitation measure s considered by the Bangladesh government on 
its entry to WTO in 1995? 
 Report by Bangladesh (WT/TPR/G/168)
 
 
Part III. Economic and Trade Developmen ts since 2000, Pg. 5-6; paragraph 8 
 
The Government Report notes that Bangladesh’s GDP growth remained steady and fairly robust in 
recent years.   
 
12. To what extent is economic growth hi ndered by ongoing strikes and “hartals”?  
 Transparency International Corruption Percepti ons Index has rated Bangladesh 158 of 158 in the 
country rank for the fourth year in a row.   
 
13. What steps has the government of Bangladesh  taken to increase the effectiveness of the 
National Anti-Corruption Commission?   
 14. What efforts have been undertaken in Banglad esh to tackle the problem of corruption and 
how has the government procurement re form been useful in this process? 
 
Part III:2 Private Investment and Foreign Dire ct Investment (FDI), Pg. 12; paragraph 13 
The Government Report cites that Bangladesh had “impressive growth of both local and foreign 
investment in recent years”.   
15. What factors does Bangladesh use to decide whet her to allow foreign direct investment? For 
example, the recent decision not to allow investment by TATA? 
 The Government Report cites that investment cost is cheaper in Bangladesh. However, other barriers 
related to business competitiveness, such as time fo r project approval & acceptance, governance, law 
and order situations, and in frastructure facilities remain. 
 
16. Are there any tangible measures being consider ed to reduce the time required for project 
approvals from different levels of government in Bangladesh?   
  
17. Can the Government of Bangladesh explain what  actions it has undertaken to reduce these 
barriers? 
 WT/TPR/M/168/Add.1 
Page 19 
 
 
Part III:11 External Sector: Trade Liberalization, Pg. 19; paragraph 26 
The Government Report by Bangladesh states that, “Bangladesh has been pursuing a liberal trade 
policy since 1990…reforms have been initiated to  dismantle both tariff and non-tariff barriers.” 
However, Canada has concerns regarding Bangl adesh's mandatory fumigation requirements for 
imports of pulses and grain crops. Canada's existi ng extensive inspection and testing program is the 
basis for certification by the Canadian Food Inspec tion Agency (CFIA) for absence of pests in pulse 
and grain shipments. In this regard, we do not see th e need to fumigate Canadi an grain shipments that 
are certified by the CFIA. Canada has written three letters to Bangladesh authorities raising concerns 
about the requirements, and requested a bilatera l meeting to discuss. In the meantime, Canada 
requests a scientific explanation for the mandatory  fumigation requirements, in accordance with the 
WTO Agreement on Sanitary and Phytosanitary Measures,  to facilitate resolution of this issue. In the 
absence of scientific justification, Canada consider s the fumigation requirements to be inconsistent 
with the WTO SPS Agreement and to  constitute a non-tariff barrier. 
  18. Is Bangladesh prepared to provide a scientific  justification for the fumigation requirements 
and, if not, to remove the requirement for imports of pulses and grain crops? 
Part III:14 Tariff Reduction: Pg. 20; paragraph 31 and  
Canada has provided Bangladesh with duty and quota free access to almost all of its products; as a 
direct result to which we have seen a strong growth in Bangladesh’s exports to Canada.  
19. Does Bangladesh have a plan to redu ce its tariff for Canadian imports? 
 
Part V. Bangladesh in WTO negotiations, page 24, paragraph 48 
Canada stands ready to pursue wo rk on Aid for Trade, including on the Enhanced Integrated 
Framework.   
20. Canada would be interested in hearing whethe r traditional technical assistance and capacity-
building initiatives has had an impact on Banglad esh's capacity to participate in the trade 
negotiations and to implement their WTO international obligations, including those 
mentioned in paragraph 48 (i.e . SPS and TBT requirements)?  
  
QUESTIONS BY SWITZERLAND
 
 
Report by the Secretariat (WT/TPR/S/168) 
III. TRADE POLICIES AND PRACTICES BY MEASURES (1) Introduction - p.36 - para.1 and footnote 1 and para. 2  
According to the Secretariat's report, Bangladesh h as pursued its trade liberalizing reforms. However, 
Bangladesh is still one of the most protected economi es in South Asia in 2004 (World Bank study). If 
tariffs are the second most important source of tax revenue, which steps does Bangladesh foresee to further reducing the large volume of illegal imports ? Does Bangladesh foresee to further reducing, for 
instance, some of its high import duties? WT/TPR/M/168/Add.1 
Page 20  
 
p.37 - para. 7  
According to paragraph 7 of the report, the im port and export regime remains complex. What 
measures does Bangladesh foresee to this regime a nd make it more efficient? When will Bangladesh 
notify the WTO the measures that em body local-content requirements? 
(2) Measures directly affecting imports - ii. Cust oms and inspection - b. Preshipment inspection - 
p.39, para. 19 and 20  
According to para. 19, it seems that almost all prod ucts whose value is above the floor c.i.f values, 
which are low, are subject to PSI, except those me ntioned in the said paragraph. Does Bangladesh not 
think that it would be more efficient to have a PSI regime based on risk assessment rather than on 
floor values of the goods? 
Paragraph 20 indicates that substantial penalties ha ve been imposed by customs authorities on several 
occasions. Could Bangladesh specify the number of cases and the average amount of penalties imposed in recent years? Have the allegations of misconduct by PSI been substantiated by evidences? 
Could Bangladesh specify when will the PSI audit agency be operational? 
iv. Tariffs - a. Structure - p. 42, paragraph 30  
According to paragraph 30 even though the proporti on of tariff lines with multiple rates at the HS 
four-digit level seems to have dropped, the existenc e of different rates within the same subchapter 
causes uncertainty and gives rise to disputes. Does Bangladesh intend to simplify its tariff structure at 
subchapter level in order to improve certainty an d how and within which timeframe will this be 
achieved? 
b. Bound MFN tariffs - p.43 - paragraph 31, 32 and footnote 30  and paragraph 34 
Could Bangladesh confirm the findings of the WTO Secretariat, i.e. that the 2005/2006 applied MFN 
rates for vanilla (HS 0905.00.10 and 0905.00.20) is 25% and that it exceeds bound ceilings at least for one item ? The same question applies to sparki ng plugs (HS8511.10.00) where the 2005/2006 applied 
rate is 13% and the bound rate is set at 3% for HS 8511.10.10. Which steps and when will Bangladesh 
undertake to bring these MFN applied rates in line with its WTO commitments? 
In addition, it appears that the other border char ges are at least 4%, which is higher than the bound 
rate for this type of levy (bound at 2.5%). C ould Bangladesh please provide an explanation regarding 
the reason why these charges are above the bound level?  
Paragraph 34 indicates that in February 2006 Ba ngladesh was revising/rationalizing the tariff and 
other duty structure for the Budget 2006/2007 and that it would notify its position to the Secretariat in 
July 2006. Could Bangladesh indicate what has been the result of this revision/rationalization and 
which changes have/will be introduced and when? 
e. Level of MFN tariff protection - p.46 - paragraph 38  
Could Bangladesh confirm that the list of goods subjec t to the peak rate in paragraph 38 is exhaustive 
? If not, please provide an exhaustive list. 
h. Tariff concessions - p.48 - 51 - paragraphs 41 - 44 and table III.4  
The report of the WTO Secretariat indicates th at Bangladesh seems to maintain some 20 
concessionary categories with rates ranging from ze ro to 15% and that three types of tariff 
concessions are in place.  WT/TPR/M/168/Add.1 
Page 21 
 
 
As indicated in paragraph 44, a study was being undertaken regarding various tariff-protection and 
related issues. The rationalization of the tariff structure was to be based on the conclusion of this study. Could Bangladesh indicate which have been  the conclusions of the study regarding tariff 
concessions and which changes, if any, have b een introduced through the budget process of June 
2006? 
In addition, some information is missing in table III.4. Could Bangladesh pr ovide the Tables 1 and 2 
for electrical and electronic part and the Annexes 1.A, 1.B and 2.A and 2.B for pharmaceuticals? 
(v). Other border charges and levies - p.52 - paragraph 50ss and table III.6  
Could Bangladesh indicate its final position regard ing the border charges and levies now that the 
revision/rationalization of the structure of the tariff and other duties for the Budget 2006/07 has been 
decided? 
(a) Infrastructural development surcharge (IDS) - p. 53 - paragraph 52  
According to paragraph 51 the Infrastructural de velopment surcharge has been introduced in July 
1997 as a temporary measure. Given that it is applied since 9 years now, it is difficult to consider it as 
a temporary measure. In addition this IDS increas es the overall average applied MFN tariff protection. 
Could Bangladesh indicate which have been the conc lusions of the revision of these charges by the 
Bangladesh Tariff Commission and which modificatio n, if any, will be implemented and when? 
e. Supplementary duty (SD) - p. 54 - paragraphs 57-60 and footnote 42  
Could Bangladesh provide an exhaustive list of go ods it considers to be luxury goods as well as the 
relevant legislation and the rates applicable fo r each item ? How often is the list of luxury goods 
modified and how are importers and exporters info rmed of these changes and how long in advance?  
As the rates of this supplementary duty are very high (between 20% and 350%) they are considered as 
tariffs in disguise and a tool for levying additi onal tariffs on any importables. Except from increasing 
tax revenues, which policy objectives or patterns is Bangladesh pursuing with this supplementary 
duty? 
According to paragraph 59 a proposal to protect domestic industries has been made in the budget 
speech 2005/2006 by imposing a 35% SD on imported mineral water. Has this proposal been 
implemented? Which are the proposals made  and adopted for the budget 2006/2007? 
f. Regulatory duty - p.54 - paragraph 61  
Could Bangladesh explain what are the objectives and the differences of the regulatory duty in regards 
of the other types of duties it levies. 
How many tariff lines will be subject to this regul atory levy under the 2006/2007 customs tariff? 
Please indicate the HS codes at the 8 digit tariff lin e level and the rates applied to the corresponding 
tariff lines. 
State Trading 
According to paragraph 78, Bangladesh has not ye t notified the WTO of any state-trading activities 
undertaken by entities within the meaning of Article XVII:4(a) of the GATT 1994. Could the 
authorities indicate if and when they are inte nding to notify of state-trading activities?  WT/TPR/M/168/Add.1 
Page 22  
 
Minimum Prices and Price Controls: 
On page 67, paragraph 122  deals with minimum prices and price controls. It seems that there is a 
certain doubt about the facts. This is indicated by the use of the word "apparently". We would like to 
invite the Authorities of Bangladesh to provide us with some clarifying comments on minimum prices 
and price controls. Furthermore, we would be interested to learn more about the Export Price 
Certificate for jute exporters. 
Trade Policies and Practices by Measure – Measures Affecting Production and Trade – 
TRIMS (viii) 
Para 197  suggests that the authorities did not provide any views regarding their use of TRIMS. Could 
the authorities indicate what measures in particular in  respect to local content – if any – are still in 
place and when they intend to remove them? 
Trade-related Property Rights 
Paragraph 213:   Substantial work remains to be done by Bangladesh in order to bring its legislation 
into line with the WTO TRIPS Agreement and other international commitments. Nevertheless 
Switzerland would like to commend Bangladesh on the c onsiderable efforts already made in the last 
years to improve the legal framework for intellectual property rights and would like to encourage 
Bangladesh on this way. However it is reported (paragraph 213. of the Report) that intellectual 
property rights protection in Bangladesh has worsened  and is becoming a serious concern, due to the 
fact that the enforcement of IPR laws is lax. C ould Bangladesh please give detailed information on the 
concrete measures it intends to adopt to reduce pira cy in the domains of computer software, motion 
pictures, pharmaceutical products, CDs/DVDs, and audio- and video-cassettes? 
Trade Policies and Practices by Measure – Measures Affecting Production and Trade – 
Competition and Consumer Protection Policies (x) 
Para 214 indicates that Bangladesh does not have a comp etition law. Could the authorities indicate if 
they have any plans to establish such a compe tition law and, if yes, could they provide some 
information on the expected characteristics of this new law.   
 
 
QUESTIONS BY TURKEY
 
WT/TPR/S/168 
II. TRADE POLICY REGIME : FRAMEWORK AND OBJECTIVES 
(7) F OREIGN INVESTMENT REGIME  
Para 49: 
Secretariat  report, para 49 mentions that alt hough Bangladesh’s investment policies remain friendly 
to foreign investment, it lags well behind its potentia l due to some reasons specified at the report.  
In the same paragraph, it is also stated that preferential access granted to Bangladesh’s exports in 
major markets is considered excellent attr action for foreign investors in Bangladesh.  
1) How does Government of Bangladesh plan to de al with the specific problems foreign investment 
counter in the country?  WT/TPR/M/168/Add.1 
Page 23 
 
 
2) Are there any statistics indicating the level of  increase in the foreign investment due to the 
preferential access opportunities in some exporting markets? 
WT/TPR/S/168 
III. TRADE POLICIES AND PRACTICES BY MEASURE (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) Input subsidies, pricing and marketing arrangements 
Para 183: 
According to the Secretariat report, there are administrative pricing for certain goods and services in 
Bangladesh including those on sugar and pharmaceutical products. 
1) Could Bangladeshi Delegation inform us if ad ministrative pricing on any goods and services 
remain? 
2) If so, we would like to learn on which products administrative pricing is retained, with the due 
rationale behind? 
WT/TPR/S/168 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Tariffs/ (b) Bound MFN tariffs 
Para 32: 
It is understood from the paragraph 32 of the Secret ariat report that while the 2005/2006 applied MFN 
tarif rates seem to meet tariff binding commitments , with limited exceptions, other border charges are 
applied in a manner exceeding bound ceilings. 
We will appreciate explanations of Bangl adeshi Delegation to clarify the issue. 
 QUESTIONS FROM AUSTRALIA
 
 II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
(5) T
RADE AGREEMENTS AND ARRANGEMENTS  
 
(iv) Other preferential arrangements 
 We note that, by January 2006, Bangladesh had not yet taken advantage of the EC’s offer in 2000 of 
regional cumulation and relaxation of value added criteria, which could expand its exports under the 
scheme (WT/TPR/S/168, page 30, para 42, also Chapter III, page 52, para 49).  The rules of origin for 
Australia’s duty free and quota free scheme for all products originating in LDCs provides for full 
cumulation among LDCs as well as cumulation with ot her developing countries for up to half of the 
required regional value content, so as to facilitate  market access.  Could Bangladesh clarify its 
position on this question of cumulation among developi ng countries in rules of or igin for preferential 
arrangements, such as duty free and quota free access for LDC? WT/TPR/M/168/Add.1 
Page 24  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(v) Other border charges and levies 
 
Bangladesh has continued to simplify and rationalize its MFN applied tariff structure.  At the same 
time, Bangladesh continues to levy a number of other duties and charges for revenue purposes, with 
these seemingly being in excess of WTO bindings on other duties and charges for covered lines, as 
identified by the Secretariat (WT/TPR/S/168, page 52 , para 50).  Given the high degree of flexibility 
provided by Bangladesh’s bindings, what is the pur pose of continuing to levy additional charges on 
top of the customs tariff?  Would it not be simpler and more transparent if such charges were rolled 
into the customs tariff?  
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
(i) Registration and documentation;  
(ii) Quality control and export clearance; (v) Export prohibitions and restrictions 
 
Bangladesh appears to maintain an unusually co mplex system of procedures and requirements and 
restrictions on exports.  What is the rationale for the requirement for all exporters, except those in 
export processing zones, to be required to obtain an Export Registration Certificate (WT/TPR/S/168, 
page 66, para 115)?  What is the rationale for pr ohibition of re-exports, unless re-export prices are at 
prescribed margins above import prices (WT/TPR/S/168,  page 68, para 126), and how is this enforced 
in practice?  
(x) Tax concessions 
 
Under the Income Tax Ordinance, a 50% rebate is provided on taxable income generated from any 
export business (WT/TPR/S/168, page 73, para 138).  Is Bangladesh able to quantify the amount of 
revenue foregone as a result of these rebates?   
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
(ii) Taxation   (a) Indirect taxation 
 
The Report by Bangladesh notes that the VAT is collect ed at import stage due to limited capacity of 
the tax administration in collecting VAT on importe d items for trade at retail level (WT/TPR/G/168, 
page 19, para 25).  Given this limited capacity, how  does Bangladesh ensure th at the VAT is applied 
uniformly across the board on all domestic i ndustries (WT/TPR/S/168, page 80, para 169)? 
 
IV. TRADE POLICIES BY SECTOR 
 
(3) A
GRICULTURE  
 
In its notification to the WTO Committee on Agriculture for the period 1995/96-1999/00, Bangladesh indicated that it does not apply export subsidies subject to reduction commitments (WT/TPR/S/168, page 95, para 15).  Since the last review, how ever, Bangladesh has introduced a system of cash 
incentives for exports of agric (vegetables/fruit) and agri processing commodities of 20-30% of the 
export value (WT/TPR/S/168, page 69, Table III.10), with disbursement in 2003-04 of Tk 7.7 million 
and in 2004-05 of Tk 100.0 million.  Could Bangla desh provide further details of the agricultural WT/TPR/M/168/Add.1 
Page 25 
 
 
products for which these cash incentives have been pr ovided, and the criteria for their provision?  
What is the rationale for these measures on agricu lture exports, including in relation to Bangladesh 
food security and sustainable development objectives?    
(4) E
NERGY  
 
(i) Natural gas 
 
We note that the shortage of gas supply is cons idered to be a serious bottleneck to growth 
(WT/TPR/S/168, page 103, para 42).  On the ot her hand, we understand th at the ban on export of 
natural gas is a factor directly constraining furthe r foreign direct investment in this sector.  Can 
Bangladesh provide any information on the formulat ion of a Gas Act?  Does Bangladesh have any 
plans to review its approach to the regulation of this sector so as to encourage further investment? 
  QUESTIONS BY BRAZIL 
 
 
WT/TPR/S/168 I (1) paragraph 01 page 01 
 According to the report "Since its previous Trade Policy Review in 2000, Bangladesh's real GDP has 
grown robustly, at an average annual rate of around  5.5% (with inflation averaging a modest 4%), 
partly as a result of prudent macroeconomic policies and ongoing structural reforms.  Concurrently, 
GDP per capita rose from US$368 in 1999/00 to US$438 in 2004/05.  
Furthermore, stronger state action and civic activism allowed for considerable improvement of social 
indicators;  as a result, Bangladesh graduated in 2003 from the low to the medium UN human development index category of countr ies, ranking 139th (out of 177). 
 Between 1990 and 2000, income poverty dropped (fro m 58.8% to 49.8% of the population living 
below the US$1 a day poverty line)..."  Could the Government of Bangladesh provide a more 
comprehensive overview regarding the measur es that made possible this positive scenario? 
 
WT/TPR/S/168 III (2) iv (j) paragraph 47 page 51 
 
Could the Government of Bangladesh inform what au thority is responsible for issuing the certificate 
of origin when it is required by importing countries? 
 
WT/TPR/S/168 III (2) iv paragraph 65 page 55 
 
Bangladesh informs that there are restricted items controlled for trade reasons.  Could the Government 
of Bangladesh inform which products are those in terms of the harmonized system? 
 
ADDITIONAL QUESTIONS BY BRAZIL 
 
 
1) In the Secretariat's Report (document WT/ TPR/S/168), on page 110, paragraph 62, footnote 
77, it is mentioned that "trade, hotel, restaurants services employ about a third of the labour force" in 
Bangladesh.  Please inform the conditions for supplying services under Mode 3 – Commercial 
Presence in these sectors, as per MTN.GNS/W/120 Sectors 4 – Distribution Services and 9 – Tourism and Travel Related Services;  2) Please inform the conditions of Market Access and National Treatment for supplying services 
in all Modes (1, 2, 3 and 4) of the followi ng services, as per MTN.GNS/W/120:  Sectors 1.A (d) 
architectural services;  (c) engineering services;  (f) integrated engineering services;  (g) urban WT/TPR/M/168/Add.1 
Page 26  
 
planning and landscape architectural services;  1.B co mputer and related services;  and 3. construction 
and related services.  3) In the Secretariat's Report (document WT /TPR/S/168), on page 116, chapter 84, it is 
mentioned that "the telecommunications sector is, in principle, open to private investment, the 
Government retains the authority to determine the number of operators".  In February 1997, 
Bangladesh submitted the commitments bound to the sectoral status quo, rather than further liberalizing the telecommunications sector.  Braz il would like to know which are the conditions to 
obtain a license to operate in the country , and other domestic regulation conditions? 
 
 
QUESTIONS FROM SINGAPORE
 
 
1. Paragraph 25 of the report by Bangladesh (W T/TPR/G/168) and paragr aph 56 of the report by 
the Secretariat (WT/TPR/S/168) stated that Advan ced Valued Tax (ATV) has been introduced since 1 
September 2004 and this tax is calculated assuming a minimum 10% value addition at the wholesale 
to retail level.  For imported items for trade at retail level, the tax is collected at import stage.  This 
measure would appear to discriminate against impo rted products viz-a-viz domestic-liked products. 
We would appreciate if Bangladesh could further e xplain how this measure works in practice and how 
it complies with GATT 1994 Article III National Tr eatment on Internal Taxation and Regulation. 
 
2. Paragraph 27 of the report by Bangladesh st ated that restrictions on import of commodities 
have been gradually withdrawn.  We would like to seek Bangladesh's clarification on what these 
restrictions were and the changes in circumstanc es which have resulted in these restrictions being 
withdrawn. 
 WT/TPR/M/168/Add.1 
Page 27 
 
 
REPLIES BY BANGLADESH 
 
 UNITED STATES OF AMERICA
 
TRADE POLICIES AND PRACTICES BY MEASURE 
Measures Directly Affecting Imports - Other Bo rder Charges and Levies - Supplementary Duty 
1.  Paragraphs 57 and 58 on page 54 of the S ecretariat Report discuss Bangladesh’s supplementary 
duties, noting that they are imposed on a wide range of products, including textiles.    
We would appreciate a more thorough descrip tion of Bangladesh’s policy on supplementary 
duties.  In particular, we would appreciat e information on the specific line items that 
supplementary duties are applied to, and the ra tes applied to each line item.  We note, for 
example, that the vast majorities are in the textile sector with rates as high as 350%.   
Currently, supplementary duties are levied on 1,0 55 items. Supplementary duties on majority of the 
products are 15% or 25%.   The Government ha s undertaken the task to gradually reduce the 
supplementary duties. Some textile items are also subject to supplementary duty and the highest rate 
for these products is 25%. 
Measures Directly Affecting Imports – Import Prohibitions and Restrictions 
2.  The United States is not aware of Bangladesh  invoking non-application of the WTO Agreement 
with regard to any other WTO Member.   
Could Bangladesh please confirm that it has not invoked the non-application of the WTO 
Agreement with regard to any other WTO Member?   
We will address the issue through bilateral consultations. 
3.  Paragraph 62 on page 55 of the Secretariat’s Report discusses Bangladesh’s import restrictions for 
balance-of-payment purposes.  We note that Bangladesh is the only WTO member that still has BOP restrictions in effect.   
Since the last TPR, has Bangladesh removed the restrictions on any products?  Does 
Bangladesh expect to request in early 2007 an  extension for any of the remaining products 
still subject to restrictions? 
Yes, since last TPR Bangladesh has removed the rest rictions on 34 items at 4-digit HS Code level, 
which were maintained under BOP.  These restrictions have been withdrawn as per phase out plan 
submitted by Bangladesh in 2000 (WT/BOP/N/54, 15 December 2000).   
In addition, out of 4 products (eggs, chicks, salt and carton), for which Bangladesh was allowed to 
maintain restrictions until 2009 (WT/BOP/R/64,  21 November 2002), restriction on carton has 
already been withdrawn and others are likely to be  withdrawn within the agreed time frame.  The 
United States will recall that it was not Bangladesh’s  intention to invoke Article XVIII:B for balance 
of payment restrictions.  What Bangladesh had form ally proposed was to invoke Article XVIII:C of 
GATT 1994. However, in a spirit of compromise, an d at the request of some countries including the 
United States, Bangladesh agreed to invoke Article XVIII:B, which refers to BOP.  The US delegation 
may recall that in the General Council Meeti ng that formally approved the compromise 
understanding, the US delegation had expressed support for it.  Given the circumstances, it would be 
unfair to blame Bangladesh for being the only country to maintain BOP restrictions.   WT/TPR/M/168/Add.1 
Page 28  
 
Measures Directly Affecting Imports – Import Licensing 
4.  In paragraphs 69-70 on page 56, the Secr etariat Report explains that import licenses are not 
required, per se, for any imports into Bangladesh, but that in addition to the standard LCA import 
procedure, a permit clearance, prior permission or approval may be required for a number of products 
included in a long list in table AIII.4.  These requirements implicitly impose import licensing.     
We encourage Bangladesh to describe the procedures to obtain these permissions and 
approvals through a response to the questionnaire on import licensing.  (Note:  The information provided in G/LIC/N/1/BGD/2 app ears to relate primarily to procedures to 
engage in importing, rather th an the importation of products.) 
Prior approval and permissions are required for im portation of a number of products mainly for 
security, health, and environmental reasons. A reply to the questionnaire on import licensing 
procedures was submitted on 4 April 2005. However, information regarding th e detailed procedures 
will be sent to the WTO through a response to the questionnaire on import licensing as soon as 
possible. 
5.  Paragraph 71 on pages 56-57 of the Secretariat Report notes that some categories of restricted 
items “can be imported only by registered industrial consumers.”   
A)  Please explain whether the products listed in paragraph 71 are the only products that can 
be imported only by “registe red industrial consumers”? 
B)  What are the requirements and process to  become “registered industrial consumers”? 
A)  Apart from items listed in paragraph 71,  RBD Palm Stearine and Tallow, Second-
hand/reconditioned machineries and recovered paper and pa per waste can be imported by registered 
industrial consumers. 
B)  "Industrial consumer" means a recognized industrial unit registered as an Industrial importer 
under the Importers, Exporters and Indentors (Registrati on) Order, 1981. In order to be registered as 
an industrial consumer industrial unit requires to  submit Trade License; Membership certificates 
from recognized Chambers/Trade Associations; Ta x Identification Number; Name of the nominated 
Bank; partnership deed (in case of partnership fir m); Memorandum and Articles of Associations and 
certificate of incorporation (in case of Limited Company) and recommendations  from the sponsoring 
authority - the Bangladesh Export Processing Zon es Authority (BEPZA), for industries located in 
EPZs;  the Bangladesh Small and Cottage Industries Corporation (BSCIC), fo r the small and cottage 
industries located in BSCIC Industrial estates;  th e Handloom Board, for handloom industries run by 
weavers' associations;  and th e Board of Investment (BOI), for all other private industries. 
6.  Paragraph 73 on page 57 of the Secretariat Report discusses import permits and clearance permits 
required from the Chief Controller of Imports and Exports. 
Please describe the difference between an import permit and a clearance permit. 
Import permits or clearance permits are issued for release of goods in certain cases, where import is 
permitted without LCA form or opening of L/C.  In these cases, import registration certificates are not 
required. Import permit is issued for authorized impo rts of goods on payment of normal duties, while 
clearance permit is issued for unauthorized im port of goods on payment of normal duties plus 
penalty.  WT/TPR/M/168/Add.1 
Page 29 
 
 
Measures Directly Affecting Imports - Standards and Other Technical Requirements - 
Standards, Testing, and Certification 
7.  Paragraph 82 on page 59  states that “a Bangladesh Accreditation Act, 2006 was being finalized.”  
What is the current status of the Bangladesh Accreditation Act, 2006?  Please highlight how 
accreditation will be used in Bangladesh, e.g ., will it be mandatory for testing and/or 
certification bodies, or voluntary?  Will Bangladesh recognize accreditations performed by 
other competent bodies? 
The Bangladesh Accreditation Act, 2006 has b een passed by the Parliament on 16 July 2006. 
According to the Act accreditation will be used in  Bangladesh for Testing Laboratories, Certification 
Bodies, Inspection Bodies, Training Institutions and Assessors working for conformity assessment on 
voluntary basis. Bangladesh will recognize accredita tion performed by other competent bodies only 
after entering into Mutual Recognition Arrangements with the newly established Bangladesh Accreditation Board. It may be mentioned that th e Bangladesh Accreditation Board has already been 
established on 03 September 2006 as an Autonomous Body through the appointment of a Director 
General as the Member Secretary of the Board. The new Director General of the Board has already 
joined on 04 September 2006. 
Measures Directly Affecting Imports - Standards and Other Technical Requirements - Sanitary 
and Phytosanitary Standards 
8.  We appreciate the sanitary and phytosanitary  information included in the Trade Policy Review 
documents.  We note that Bangladesh has not made any notifications to the WTO under the Agreement on the Application of Sanita ry and Phytosanitary Measures.   
What steps is Bangladesh taking to ensure the proper activation of its SPS inquiry point to 
ensure timely notification for public comment of future draft SPS measures?    
The Government of Bangladesh ta kes various SPS measures in order to protect human, animal or 
plant life or health. These SPS measures are taken  under different acts an d enforced by different 
Ministries/ departments.  Bangladesh will notify the future draft SPS measures to the WTO as and 
when it is prepared.  
Measures Directly Affecting Imports - Standards and Other Technical Requirements - Labeling 
and Packaging 
9.  Paragraph 89 on page 61 of the Secretariat Report notes that “a product labeling policy was 
introduced in 2004, but is awaiting the approval of  the Cabinet Division under the Prime Minister 
(February 2006) to, inter alia , ensure that no barriers are created for import (and export) of goods and 
that imported products have proper labels.”  It is also explained that the “policy refers explicitly to 
international labeling standards to be observed in 13 sectors.” 
A)  What is the current status of the labeling policy?  Will a draft of the measure be notified 
to the WTO to give interested parties an opportunity to comment? 
B)  Which sectors and international labeling st andards are being used as the basis for this 
policy?   
A) The Government has already adopted a Pro duct Labeling Policy, 2006. The policy will be 
published shortly and notified to the WTO. Relevant Laws and Rules will be made or amended as per 
Policy in due course.  WT/TPR/M/168/Add.1 
Page 30  
 
B) There are 15 classifications in the Policy.  These are agro-processing products; food, water, 
beverages, and tobacco; pharmaceutical products; fish and animal products; chemicals, petroleum 
and jwellery; cosmetics; textile and jute; elect ronics electrical products, mechanical engineering 
items and automobiles; civil engineering products; rubber and plastic products; medical equipment; 
leather and leather products; and glass, ceramic and sanitary products. International standards, 
where applicable will be used for the classifications. 
Measures Directly Affecting Imports - Local Content Schemes  
10.  Paragraph 107 on pages 64 and 65 of the Secr etariat Report states that Bangladesh, through the 
Export Policy 2003-2006, provides “cash incentives fo r exports of certain items (including local 
fabrics, bicycles, agri-processed items), a higher currency retention quota, and eligibility for the duty 
drawback and special bonded warehouse schemes (at least 25% domestic content),” which are all 
linked to local-content or local value-added conditions .  In addition, incentives are to be provided for 
“exports of non-conventional and new industrial products.”  In order to benefit from these incentives, 
local value added must be at least 40% for the fi rst two years and 50% in subsequent years.   
Please explain how local content or local valu e-added percentages are determined under the 
various programs cited, and we would be in terested in Bangladesh’s view of the WTO 
consistency of these measures.  
Local value addition requirement is estimated on the basis of value and volume of local component 
used in production of goods and determin ed by an Inter-Ministerial Committee. 
The cash incentives for certain products are provid ed only upon export performance with a view to 
diversifying the export base. The exporters, who do not enjoy the facilities of duty drawback and 
bonded warehouse, are entitled to get such incenti ves to cover the costs of handling, processing, 
upgrading, and freight charges (domestic and interna tional transport) for agric ultural products under 
Article 9.4 of the Agreement on Agriculture. Fo r industrial products these incentives are being 
provided with an understanding that these are not  prohibited for Bangladesh as an LDC under the 
Agreement on Subsidies and Countervailing Duties.  Moreover, as per decision taken during the 
Hong Kong Ministerial Conference Bangladesh may ma intain Trade Related Investment Measures 
that deviate from the obligations of the TRIMs Agreement for an extended transition period with a requirement that these will be phased out by 2020.  
Measures Directly Affecting Exports - Duty  Concessions - Special Bonded Warehouses 
11.  Paragraph 136 on page 72 of the Secretaria t Report explains that “special bonded warehouses 
(SBWs) allow 100% exporters and ‘deemed’ exporte rs to import and stock inputs duty free.”   
What are the criteria to be a “deemed exporter”  for purposes of receiving this incentive? 
Deemed exporters mean suppliers of inputs solely to the direct final exporters against payments in 
foreign exchange. This category of exporters like direct  exporters is not allowed to sell their products 
to the local market. 
Measures Affecting Production and Trade – State-Owned Enterprises and Privatization 
12.  The Secretariat indicated in paragraph 192 on pa ge 84 of its report that reform of state-owned 
enterprises has slowed down due to stiff opposition from vested interests.   
A) We would very much appreciate an update on Bangladesh’s privatization plans, including 
a prospective schedule, if any, for reducing the state’s direct involvement in production of goods and provision of services.   WT/TPR/M/168/Add.1 
Page 31 
 
 
B) Please identify any state companies that have exclusive and or special trading privileges 
either in law or in effect. 
A) Since the inception of Privatization Commission in 1993, a total of 65 enterprises have been 
privatized for reducing the state’s direct involv ement in production of goods and provision of 
services. Of those, 44 have been privatized through direct sale, and 21 through the sale of shares. 7 
more enterprises have already been se lected for privatization.  In addition, the Government is also 
encouraging private sector in physical infrastr ucture like power generation, Natural Gas and Oil 
Exploration, Tele Communication, Transport S ector, Port & Container Handling, Aviation & 
Tourism, which were earlier confined to public sector. 
B) Bangladesh Petroleum Corporation has the exclusive rights to import Petroleum. 
Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights – 
Industrial Property 
13.  Paragraph 204 on page 89 of the Secretariat Report discusses the Trade Marks Act and the Trade 
Marks Rules.   
Please highlight the TRIPS deficiencies that were identified in Bangladesh’s existing 
trademark legislation and describe how the proposed Trade Marks Act 2005 will address 
them. 
Trade Mark Act was enacted in 1940, about 55 yea rs before the TRIPS agreement was adopted. It 
could not therefore capture many of the issues covered in the TRIPS Agreement, particularly the 
protection of geographical indications and the reg istration of service marks and collective marks. 
Government of Bangladesh with assistance from WI PO has drafted a new trademark law, Trademarks 
Act, 2005, which is now awaiting the approval of  the parliament. The new law has incorporated the 
provisions of the TRIPS Agreement. 
Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights - 
Copyrights and Related Rights 
14.  Paragraph 206 on page 89 of the Secretariat Re port refers to a copyright amendment that was 
passed in May 2005, Copyright Act No. 14, 2005.   
Was this the anti-piracy law prepared by the Ministry of Information?  Could we obtain a 
copy of the copyright amendment passed in 2005?   
No. Ministry of Information did not prepare any An ti-piracy Law. In fact, the Copyright Act 2000 as 
well as the amendment to this Act was prepared  by the Ministry of Cultural affairs. It has 
incorporated the provision relating to anti-piracy.  The Copyright Amendment, 2005 is in Bengali, 
which is being transla ted into English.  
15.  The United States believes that adherence to the WIPO internet treaties will help to provide 
adequate protection in the new digital world.   
A)  Has Bangladesh made any decision about joining those treaties? B)  Is Bangladesh considering implementing an effective optical disc law?   
A) Bangladesh has not yet made any decision about joining WIPO Internet treaties. 
B) Optical disc is protected under the Copyright Act, 2000.  WT/TPR/M/168/Add.1 
Page 32  
 
Measures Affecting Production and Trade - Trade-Related Intellectual Property Rights - 
Enforcement 
16.  The United States is interested in the Ministry of Cultural Affairs program to create public 
awareness on copyright and related rights, discussed in paragraph 208 on page 89 of the Secretariat 
Report. 
Does Bangladesh have any additional informati on on this program, or updates on progress in 
this area?   
The Ministry of Cultural Affairs has taken step s for wide circulation of the Act along with its 
amendment in order to create awareness on copyrigh t and related rights. This includes sending of the 
Act to the district administrations for its wide publicity.  
17.  According to paragraph 210 on page 89 of th e Secretariat Report, the penalties for infringement 
of registered patents and industrial designs range from Tk 5000-Tk 10,000; for trade marks, there is a 
maximum two-years imprisonment and/or a fine fi xed by the Minister.  For a second conviction of 
infringement, imprisonment could extend to three year s, with or without a fine; and for copyrights 
imprisonment may extend to a maximum of four years (up to five years for the film sector) with a fine 
of Tk 200,000 (Tk 100,000 to Tk 500,000 for films).  
A)  Applying the 2004-2005 exchange rate provi ded in the Annex of the government report, 
the fine for patent and industrial design infringement amounts to only U.S. $81-160.  Does Bangladesh intend to increase these amounts to a le vel sufficient to serve as a deterrent to 
infringing patents and industrial designs that ma y have cost millions of dollars to develop? 
In the context of Bangladesh, where per capita  GDP is only US$ 445 and about 36% of the 
population lives below the poverty threshold of $1 a day, a penalty worth Tk. 5,000/- (US$ 81) seems 
reasonably high. The Government of Bangladesh does not have intention to increase the amount 
immediately, but it intends to improve the IP enforcement. 
B)  Please describe how the criminal penalty applies in the case of a trademark infringement.  
Does the Minister or the court determine the term of imprisonment?  What factors are 
considered by the Minister in determining the amount of fine to impose?  What have been the 
amounts of fines imposed by the Minister in recent cases of trademark infringement?  
Criminal penalty is imposed by the appropriate Court of Law. The Minister does not determine the 
term of imprisonment.  The court is guided by the provisions of the law in determining the amount of 
fine.  We do not maintain a separate data bank of the fines imposed or collected; it would be a painstaking and difficult process to collect, collate  and present the information regarding amounts of 
fines.  
C)  What is the threshold to initiate a crim inal action against somebody who is making or 
selling counterfeit/pirated goods? Is it the number of goods?  Or is it an amount based on the 
value of the good?  If so, how is that valuati on calculated -- the value of the piratical good or 
the value of the bona fide good? 
A case is initiated after taking into cognizance by the court on receipt of a written complaint from an 
aggrieved party in case of willful trademark count erfeit/copyright piracy on a commercial scale. 
There is no pre-determined threshold to initiate a criminal action against someone who makes or sells 
counterfeit/pirated goods.  
D)  What type of compensatory damages can  an IP rights holder obtain in a civil case? WT/TPR/M/168/Add.1 
Page 33 
 
 
The court determines the types and extent of compensatory damages considering the claims of the 
complainant and the circumstances. The existing la ws on trade marks and patents give the authority 
to the court to determine the types and extent of  compensatory damages, wh ile the Copyright Act, 
2000 gives the same authority to the court as well as copyright Board constituted there under. 
E)  What sort of provisional measures are availa ble for an IP rights holder, such as temporary 
restraining order or injunctive relief?  Is th ere seizure of counterfeit/pirated goods before 
litigation in order to preserve evidence?  What is  generally done with the goods if they are 
found to be infringing?  Are they destroyed? 
As a temporary measure, court can issue injuncti on prohibiting sale, distribution and marketing of the 
goods on which an order has been sought. The court can also issue an order for seizure and 
temporary restraint. The court can also seize c ounterfeit/pirated goods before litigation in order to 
preserve evidence. Decision on infringed goods is take n by the court, and it differs from case to case. 
18.  Paragraph 211 on page 90 of the Secretariat Report explains that the customs authority “can 
inspect, seize, and detain shipments of any counterfeit or pirated materials.” 
Do Customs Officials have ex officio aut hority?  Do Customs Officials destroy the 
counterfeit/pirated goods once they are found to be infringing? 
Yes, they can destroy counterfeit/pirated goods, if the act of infringement is proved by the court of 
Law. 
19.  Paragraph 212 on page 90 of the Secretariat Report explains that Bangladesh has no enforcement 
data (e.g. campaigns, raids, seizures of count erfeit/pirated goods, cases brought at the courts, 
fines/penalties imposed, etc.).  
A)  Will your government be collecting such data at any point?  If so, will that data be shared 
with other countries? 
Yes, efforts are being made for collecting such  data. The records/data in relation to seizure or 
confiscation are maintained by customs authority m anually in a register. Th ere are other enforcement 
agencies like BDR (Bangladesh Rifles), Coast G uards and Police who are also responsible for 
enforcement of copyright regulations within their respective jurisdictions. Such information can be 
shared when available and a request is received. 
B)  U.S. copyright industries have expressed concerns with book, cable, and optical disc 
piracy. Does Bangladesh have reports of any recent enforcement actions against copyright 
infringers?  
Yes, there are reports on enforcement action. Ho wever, since several agencies are involved in 
enforcement of copyright, no consolidated  information is available right now. 
20.  According to paragraph 213 on page 90, observe rs have reported that enfo rcement of IPR laws is 
lax, particularly with respect to computer software, motion pictures, pharmaceutical products, 
CDs/DVDs, and audio- and videocassettes. 
A)  What steps is Bangladesh taking to step up enforcement of its IPR laws? 
Bangladesh has amended its Copyrights Act (2000) in May 2005 for reducing piracy in the domains 
of computer software, motion pictures, phar maceutical products, CDs/DVDs, and audio- and 
videocassettes. Government has sent this Act to all district offices and requested them to take WT/TPR/M/168/Add.1 
Page 34  
 
necessary measures to enforce the la w.  The Government has also taken initiatives to amend the 
Copyright Rules, 1967 to make it consistent with the Copyright Act, 2005.  
B)  We note in footnote 167 of the Secretaria t Report that two CD manufacturing plants were 
reportedly operating in Dhaka.  Was the Govern ment of Bangladesh aware of the existence of 
these plants?  If so, what action was taken in response? 
We take note of the concerns exp ressed in the report. The ma tter is under investigation.  
 
EUROPEAN COMMISSION
 
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(3) D EVELOPMENT AND ADMINISTRATION OF TRADE POLICY  
WTO Secretariat's Report, page 23, para 10  
Several steps have been taken to improve trade policy co-ordination in Bangladesh, including as 
concerns the institutional set-up and the training of  staff.  Donors, including the EC, have also 
contributed funds to this end.  
− Do the Bangladeshi authorities consider the av ailable resources sufficient to adequately 
represent Bangladesh in the WTO and pa rticipate in its various activities?  
− Are any further steps planned to reinforce capacities? 
Since 2000 several steps have been taken to impro ve the institutional and human capacities within the 
Government to handle the WTO issues. During period between 2000 and 2005 a WTO cell and an International Trade Cooperation Wing have been  established respectively in the Ministry of 
Commerce and Bangladesh Tariff Commission. A WTO advisory Committee also meets regularly. In 
addition, a new institute namely Bangladesh Foreign Trade Institute has been set up in order to 
conduct research on WTO issues as well as disseminat e knowledge on international trade issues to 
the private and public sector. BFTI will be fu lly operational once the donors release the fund for 
strengthening the BFTI.  Nevertheless, the Governme nt feels that available resources are still not 
adequate to represent Bangladesh in the WTO and to  participate in its various activities. The 
Government plans to reinforce the capacity (both hu man and institutional) covering the following: 
a. To create awareness among stakehold ers about the WTO agreements and their 
impact on our economy; 
b. To enhance knowledge and negotiating skill of the officials; 
c. To Upgrade Bangladesh Standard and Testing Institute; 
d. To fully operationalize Bangladesh Foreign Trade Institute; 
e. To upgrade different testing laboratories.  
(4) T
RADE POLICY OBJECTIVES  
Bangladesh remains heavily dependent on exports of  clothing (Ready-made Garments - RMG), and to 
lesser extent textiles. By the same token, the manufacturing sector remains dependent on the labour-
intensive ready-made garment sub- sector. It offers employment to about 2 million workers – mostly WT/TPR/M/168/Add.1 
Page 35 
 
 
women. The remarkable growth over the last year s in the manufacturing sector, which in turn has 
accelerated the overall economic grow th and development of the country, is mainly attributed to the 
RMG sector. [ WTO Secretariat's Report, pages 107-110, paras 53-61 ] 
− What measures / initiatives has the country undert aken to diversify its export base and what 
are its future plans? 
In order to diversify the export products as well  as markets the government has been taking several 
steps.  The Government has identified a number of  non-traditional items having high export potential 
for their further development. These are software and ICT products , agro-processing products, light 
engineering products, leather products, and high priced  readymade garments etc.  In addition, items 
such as pharmaceutical products, cosmetics and to iletries, luggage and fashion goods, electronic 
products, C.R. coil, cards and calendar, stationary products, silk cloths, handicrafts and herbal 
medicine and medical plants are identified as sp ecial development sector in the present export policy. 
Various facilities including soft loan at concessional interest rate, air transport facility, assistance for 
market exploration and securing joint-venture partners are being provided to the exporter of new 
products. An Export Promotion Fund (EPF) was set  up to provide support to producers/exporters of 
new and non-traditional items for purposes of product development. 
Bangladesh's largest export markets are by far the United States and the EC [ WTO Secretariat's 
Report, page 19, para 40 ]. 
− What measures / initiatives has the country unde rtaken to diversify its export markets? 
In order to diversify the export markets the govern ment has been undertaking promotional activities 
as well as policy initiatives. During last fi ve years Export promotion Bureau has organized 
Bangladesh single country trade fair in Moscow, Yangon, Sydney, Kathmandu, China etc. Exporters 
of Bangladesh also participated in the internati onal trade fair in various countries. In addition, 
special marketing missions were sent to African countries in order to explore the potential of 
Bangladesh pharmaceutical products. At the same time, the government has taken initiatives to 
engage in regional trading arrangements. During the period under review the government has signed 
two free trade area agreements namely SAFTA and BIMSTEC FTA, and two preferential trading 
arrangements namely trade preferential system among the OIC countries and D-8 preferential trading arrangement.  The Bangkok agreement, wh ich was signed long time back, was revitalized 
following the accession of China renamed as Asia Pacific Trade Agreement (APTA). 
Reflections on the future of Bangladesh's trade and export policy are ongoing. 
− When will the government release its future multi-annual strategy for its trade and export 
policies (the current multi-a nnual policy ends in 2006)? 
Preparation of Export Policy and Import Policy Order is at the final stage and these will be published 
shortly.  
Sustainable development 
− In what ways does Bangladesh think trade policy can best contribute to sustainable 
development? 
Trade Policy has always been regarded as the most  important tools to foster development, Conducive 
trade policy boosts export earning and in turn pr omotes industrialization and generates employment. 
The Experience of Bangladesh shows that export has contributed to women empowerment and thus reducing poverty to facilitate sustainable development.   WT/TPR/M/168/Add.1 
Page 36  
 
− Does the issue of trade and sustainable de velopment fit into Bangladesh's overall 
development strategies? 
Yes, it does. The development strategies of Bangl adesh emphasizes on growth  and expansion of trade. 
Bangladesh’s trade policy thrusts on export le d growth. Increasing export in turn enhances 
production base. This has opened up avenues to  develop backward linkage industries, creates 
employment opportunities for both male and fema le and generates income. The Government can 
mobilizes more resources to spend for development purpo ses, which in turn are used for health care, 
nutrition, basic education, adult literacy and san itation. Employment opportunity created by the 
garment sector of Bangladesh helped ensuring women empowerment and reducing the fertility rates 
remarkably.  At the same time the Government has been allocating for protection of natural 
environment to ensure sustainable development. 
Trade and environment 
− What mechanisms does Bangladesh have in place to ensure adequate coordination of 
environmental policy and trade policy?  
Environment is inseparably linked with developm ent. Economic prosperity must therefore 
commensurate with the deliberate efforts in keep ing environmental and ecological balance. An 
integrated approach is, therefore needed for the sake of efficient management of environmental 
resources. The Government attempts to coordi nate environment and other policies including trade 
policy. The Government reviews trade policy as we ll as other national policies like agriculture, 
health, communication, fishery etc. from time to time and make necessa ry changes to make them 
consistent with the Environmental Policy, 1992. In addition, the Government made it mandatory to 
assess environmental effect of any new project before its initiation. 
Trade and social development  
Privatization policy has caused the closure of trad itional industries and massive job loss for workers. 
− Have any measures been implem ented to assist workers during transition and to manage 
restructuring? 
In order to mitigate the adverse effect of closure of  state owned enterprises workers loosing their jobs 
are adequately compensated through Voluntary Sepa ration Scheme (VRS). Training facilities have 
been provided for them to develop their skills. Effo rts are made to give prio rity to the retrenched 
workers for their rehabilitation after restructuring the industrial units. 
Report by Bangladesh, page 15, para 19
 
The present industrial policy aimed to increase the c ontribution of the industrial sector to 30-35% of 
GDP and absorb 35 percent of the labour force through strengthening agro-based and agricultural 
product processing industry, together with steps to face the challenges of globalization.  
− What steps is Bangladesh taking to train, re train and re-skill the labour force to enter 
expanding industrial sectors in the face of globalization?  
− As well as labour market flexibility, what measu res are being taken to implement core labour 
standards to ensure labour quality and produc tivity, including in the readymade garment 
industry?  
In order to attain the targeted growth the go vernment has taken various initiatives like developing 
agro-based and agro-processing industries; ove rcoming possible adverse conditions in the export-WT/TPR/M/168/Add.1 
Page 37 
 
 
oriented garment sector; and making vigorous efforts to develop the SMEs and cottage industries. In 
addition, to face globalization the Government is  giving importance to setting up special economic 
zones in different parts of the country, improving th e quality of industrial prod ucts to world standard, 
marketing of goods at competitive pr ices, and enhancing producti vity in the industrial sector. In this 
direction, Industrial policy envisages enhanced tr aining programme through existing institutions on 
management and quality contro l of goods, safeguarding cons umer’s interests, producing and 
repairing import-substitute spare-parts used in in dustries, manufacturing new tools necessary for the 
production of industrial goods that are in dem and, and improving efficie ncy and overall productivity. 
The policy also stipulates that the Tripartite C onsultation Council (the government, owners and the 
trade union), National Productivity  Council and other national-level organizations, will help the 
government formulate policies on employment expansion, productivity en hancement, training, 
efficiency development, etc.  
The Poverty Reduction Strategy paper (PRSP) recen tly adopted by Bangladesh emphasizes the need 
for enforcement of labour laws. In this direction th e PRSP emphasizes the need for coordinated effort 
by the government, NGOs, trade bodies, employ ers, trade unions and social organizations for 
creating decent work environment. A special ar ea of focus is gender sensitivity and gender 
differentials. To facilitate women’s enhanced pa rticipation, the creation of childcare centers, 
provision of housing and safe trans portation and health and sanitation facilities is also considered 
under PRSP initiatives.   
(7) F OREIGN INVESTMENT REGIME  
− How do the Bangladeshi authorities see its forei gn investment policy evolving over the 
coming years?  
Bangladesh has been targeting to attract more FD I in various sectors. GOB has adopted a policy of 
promoting Infrastructure Developmen t through private sector providing legal framework for private 
investment. For this purpose, a Private Sector Infr astructure Guideline (PSIG) has been enacted.  
Bangladesh would like to focus on fo llowing sectors in the coming years: 
− Infrastructure including Power & Energy 
− Textile & Clothing 
− Pharmaceuticals specially Active P harmaceutical Ingredients (API) 
− Agro-processing 
− Light Engineering 
− Consumer Electronics 
− Ceramic – Tableware, Sanitary ware, tiles 
− Leather & Leather Goods 
− ICT and related sub-sectors 
− Manufacturing supports 
− Other business services 
Other sectors included in the Thrust Sectors List of the Industrial Policy 2005 A
NNEX II.1:   TRADE -RELATED TECHNICAL ASSISTANCE (TRTA) 
We strongly welcome that trade has been integrat ed in the Poverty Reduction Strategy Paper of 
Bangladesh [ WTO Secretariat's Report, pages 24-25, paras 13-18 ].  
− Could the Government please outline its main priorities in the area of Trade-Related 
Assistance? WT/TPR/M/168/Add.1 
Page 38  
 
Main priorities in the area of trade -related assistance are as follows: 
− Development of a national quality policy and institutional arrangements to provide 
assistance for monitoring q uality control measures; 
− Strengthening Bangladesh Standards and Testing Institution (BSTI); 
− Trade specific initiatives to set up standards as per international requirements and 
support to enterprises to get internati onally recognized certification such as ISO 
9000; 
− Development of infrastructure and marketing s upport system to fully integrate supply 
chains for vegetables and fruits including reliable processing, storage and transportation capacities at the local and national level focusing on product 
standardization, food safety, sanitary and phyto-sanitary measures. 
− Assistance for reducing the cost of doi ng business through development of port and 
physical infrastructure; 
− Assistance for product and market diversification; 
− Enhancement of human and institutional capacity; 
In 2005 the EC together with DFID and the Japanese Aid agency funded a comprehensive needs 
analysis and action programme in the area of trad e. The EC Aid for Trade to Bangladesh, which will 
be expended in the coming years, will be based on this action programme.  
− Does the government also seek funding fro m other donors and agencies for the 
implementation of this programme? 
The government is aware of th e comprehensive trade needs analysis and action programme done for 
Bangladesh. The Government made some specifi c observations on the draft findings and action 
programme of this study. The Government feels that action programme in the areas of trade should be 
derived from the specific  needs in the context of improved market access; product and export 
diversification; supply side constraints and trade related capacity development.  Once the final 
version of the study is received from the EC, the Government will take appropriate action.  Bangladesh is ready to cooperate with any devel opment partner to take advantage of appropriate 
funding and assistance.  
WTO Secretariat's Report, page 34, para 1
 
− Does the Government intend to join the extended IF? 
The IF has been plagued by conceptual problems, as well as funding constraints. Bangladesh was 
among the first countries to take initiative for IF in  1997. However, no funding was available for the 
projects submitted. When the pilot scheme was introduced in 2001- 2002, the funds were inadequate to 
meet the needs of all LDCs. At that stage, Banglad esh offered to let other, more-needy LDCs to take 
advantage of IF first.  We are happy that a decision has been adopted for an enhanced IF, but the key 
is funding.  Bangladesh may join IF, if the funding and administrative requirements are appropriate.  WT/TPR/M/168/Add.1 
Page 39 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs valuation and inspection  WTO Secretariat's Report, page 39, paras 18-20
 
A mandatory pre-shipment inspections system (PSI) was introduced in Bangladesh in 2000.  
− What plans, if any, does Bangladesh have for phasing out PSI?  
− Does Bangladesh have any technical assistance ne eds in the field of Trade Facilitation that 
would facilitate the elimination of PSI? 
Bangladesh Customs under various reforms programs have undertaken to install container scanners 
as well as develop information technology infr astructure. Once those projects are successfully 
implemented, PSI system could be phased out. Bang ladesh Government expects to complete those 
reforms within next 2-3 years. The contract with  the PSI companies will expire in September 2008. 
Yes, it is needed. (iii) Customs clearance and administration WTO Secretariat's Report, pages 40-42, paras 21-27
 
The EC welcomes the stated commitment by th e Bangladeshi authorities to introduce some far-
reaching customs’ reforms. The EC also welcomes the use of a self-assessment and rapid clearance 
procedures. However, the WTO Secretariat Re port notes that a large agenda for customs 
modernization remains unmet.  
− What plans do the Bangladeshi authorities have for carrying reforms forward, including with 
regard to its customs regulations, transit and the operation of ports?  
Bangladesh Government has developed a Stra tegic Development Plan (SDP) under which a 
Modernization and Automation Project of the Natio nal Board of Revenue (NBR) has been initiated. 
The project aims at further streamlining of th e customs operations and procedures as well as 
integration of information systems used by direct taxation and indirect taxation wings of NBR. This 
should result in a more advanced, dynamic and transparent operation of Bangladesh’s Tax 
Administration. Under the project, extensive automa tion of customs procedure, which includes online 
submission and assessment of declarations as well as  cargo manifest, connec tivity between customs 
stations, electronic data interchange for bonded warehouse operators etc. is envisaged. 
At present, self-assessment procedures only see m available for a limited range of products.  
− In line with the intention expressed at the prev ious Review, what progress has been made in 
extending the coverage of the procedures to other imports?  
Product coverage for self-assessment would be br oadened as soon as necessary infrastructure to 
support that would be ready. 
− Why do importers, as stated in the WTO report, f eel more comfortable referring their disputes 
to the High Court rather than customs?  WT/TPR/M/168/Add.1 
Page 40  
 
Democracy in Bangladesh has become quite strong.  Like other democracies, the judiciary here enjoys 
total independence in discharging their responsibilit ies. As a result, the general tendency among the 
people to rely more on the judiciary is growing. Th is is applicable not only in customs matters, but 
also other issues like law and order, land di stribution, communication infrastructure etc. 
− Does Bangladesh have any technical assistance needs in the field of customs clearance and 
administration?  
Reforms in the field of customs clearance and admin istration are a continual process. The EU like our 
other development partners would be notified if any assistance is needed in future. 
(iv) Tariffs Bound MFN tariffs WTO Secretariat's Report, pages 44-45, paras 33-34
 
− Will it be possible for the authorities to improve the Tariff Structure by reducing its 
complexity and making it more predictable for traders? 
− Does the new framework, which was planned to be  submitted to the WTO Secretariat in July 
2006, address the problems of comp lexity and unpredictability? 
− Do the Bangladeshi authorities plan to increase the level of bindings (currently 15% of total 
number of tariff lines)? 
Since early 90s the Government has been regular ly reviewing the tariff structure and the related 
policies to make them more simple, predictable and transparent. At present, there are four slabs in 
tariff structure in Bangladesh with maximum rate of  25%. Incidence of changes in tariffs in between 
two budget sessions of the parliament has also declined  during the last five years. All these initiatives 
were taken to reduce the complexity  and make tariff policy predictable. 
The Bangladesh Tariff Commission and the National  Board of revenue have already initiated a 
review, in which they will also consider the pr oblems of complexity, if any. The Government is 
examining the possibilities of expanding the binding coverage. 
Rules of Origin 
Report by Bangladesh, page 24, para 43  
The authorities of Bangladesh request that the rules of origin under the GSP be simplified to ensure 
meaningful market access to the LDCs. 
However, in the case of the EC, the EC's relaxed regional cumulation (rules of origin) criteria for 
items eligible for GSP/preferential treatment has not yet been endorsed by Bangladesh (in order to 
protect domestic production of back ward linkage industries of the RMG sub-sector from competing 
industries in neighbouring SAARC countries). 
− Does the "simplification" of the rules of origin  as requested by Bangladesh mean "relaxation" 
of the criteria, in order for example to allow compliance with the GSP rules of origin for the 
clothing items made from non-EU or non-SAARC fabrics?  
− Does Bangladesh intend to take a stance officially  on the reform of the preferential rules of 
origin, as laid down in the EC Communication No 2005(100) of 16 March 2005? WT/TPR/M/168/Add.1 
Page 41 
 
 
The EC and others who make and enforce Rules of Or igin know fully well their implications. The 
Secretariat Report refers to the co mplexities associated with this subject, in the context of 
Bangladesh. We have found that our current policy ha s encouraged the growth of  our textile industry. 
In fact, the textile industry is one of the fastest growing industrial sectors of the country. 
The situation is not the same in all LDCs. Many LDCs are not in a position to take advantage of duty-
free market access, as the rules of origin are too restrictive. They require both relaxation and 
simplification.  
We understand the EC is in the process of revising its  rules of origin applicable for LDCs. We look 
forward to engaging in this process. 
Other border charges and levies 
Report by Bangladesh, page 19, para 25  
WTO Secretariat’s Report, page 54, para 56  
The information provided states that the Advanced  Value Added Tax of 1,5% is collected at the 
import stage for imported goods, due to the limited capacity of the tax administration in collecting 
VAT on imported items for trade at retail level.; sim ilar domestic items are also subject to the ATV at 
the wholesale level. 
− Please describe in more detail how the Advanced  Value Added Tax of 1,5% is collected on 
domestically produced goods. 
1.5% VAT at retail level on account of Domestic pr oductions is collected from the sales at their 
showrooms or the shops buying the merchandise from  them. These producers issue invoices (a copy is 
sent to local VAT office) where the names, address es, and VAT registration numbers of the buying 
entities are indicated. The VAT inspectors can tra ck the transaction from these invoices and ensure 
the payment of 1.5% VAT from them. These manufactu rers do not usually issue false invoices as they 
have a permanent setup. If they refrain from issui ng any invoices at all, their purchase, sales and 
stock data would not match. On the contrary, the importers use different addresses for their 
operations. Once the goods are out of the port, authority  finds it difficult to track them due to absence 
of dependable systems (social security no. etc.). 
− What is the direction of reform of the indirect taxation system? 
Reforms of indirect tax system are directed towa rds gradual reduction of the dependence on import 
duty as the major source of revenue collection. There have been initiatives to wards modernizing the 
customs and VAT administration alongside direct  taxation to augment more revenue through 
prevention of leakages and broadeni ng tax base. Capacity building and extensive automation efforts 
are also underway to enhance the quality of service as  well as to upgrade the professional skills of the 
revenue officials.   
− Are measures planned to broaden th e tax base for indirect taxation? 
During the period under review the Government has  substantially expanded the VAT and Income tax 
net. The Government is committed to  continue with this process.  WT/TPR/M/168/Add.1 
Page 42  
 
(xi) Government procurement 
WTO Secretariat’s Report, pages 61-64 
 
− Paragraph 95: How do Bangladeshi authorities expl ain that government procurement seems to 
represent only 1,7% of its GDP while in gene ral such expenditure represent between 10 and 
20% of GPD? 
In fact, it has been clearly stat ed at paragraph 95 of the Secretariat report referred to above that 
between 1999-00 and 2004-2005, th e national expenditure for procurement of goods and services 
grew by 1.6% and during the same period, expen diture on public construction and works rose by 
0.09%, thus totaling 1.69% or 1.7%. It is the incre mental growth of Procurement as percentage of 
GDP, but does not represent the total growth. 
It is evident that the government expenditure on development and non-development sector during the 
period from 1995-96 to 2005-06 ranged be tween 12.92% (1997-98) and 15.47% (2005-2006). 
− Paragraph 97: Which procurement opportunities does the web site operated by the CPTU 
cover? 
The CPTU’s websites covers information on natio nwide public procurement opportunities (paragraph 
97 of the WTO Report). The broad classification of those opportunities covers goods, works and services for national or international procurement. Currently, in consideration of the capacity of the 
handling operational aspects for the websites, th e procurement of goods, works and services with the 
following threshold values are being uploaded: 
 Goods: Tk. 10 million & above, US $ 1.5 million equivalent   Works: Tk. 10 million & above, US $ 1.5 million equivalent  Services: Tk. 05 million & above, US $ 75 thousand equivalent The coverage will be gradually extended with the enhancement of capacity of the CPTU and 
Procurement Entities in future. 
− Paragraph 100: Can the Bangladeshi authorities provide statistics of government procurement 
contracts given in 2005 or 2004 accord ing to the five procurement methods? 
As mentioned in the secretariat report the national vo lume of public procurement in Bangladesh is 
around US 3 billion. The central ministries handle very little procurement, essentially foodstuffs, 
printing and stationary. The major share of the public procurement is handled by the public sector 
corporations and semi-autonomous bodies. Apart from  city corporations, municipalities and other 
local government institutions there are about 21 3 public units that handled the government 
procurement. All procurement proceedings are traditionally recorded and p reserved for 10 to 20 
years. 
Besides, CPTU, IMED has the mandate to prepare and present Annual Report to the government with 
statistics on procurement during a year including th e number and value of contracts awarded, the 
methods used and the product category for each method and the nationality of the 
supplier/contractor/consultant. An MIS system is  being developed in CPTU to capture the above 
information. The requested information could be furnished   after complete development and 
operationalization of the system.  WT/TPR/M/168/Add.1 
Page 43 
 
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(x) Tax concessions 
− In the framework of the fiscal  reform process, does the government of Bangladesh intend to 
adopt measures to reform the monitoring system  for the different existing types of fiscal 
incentives? 
One of the cardinal objectives of the Moderniza tion and Automation Project  is to strengthen the 
management capability of the NBR. As part of t hat process a thorough overhauling of the audit system 
has been undertaken. Under the new audit system ex ternal audits alongside internal audits are 
restructured and revamped by recruiting qualified professionals and automation of procedure. 
(xii) Export Processing Zones 
WTO Secretariat's Report, pages 73-74, para 142  
Whereas the Workers Association and Industrial Rela tions Act, effective as from 18 July 2004, makes 
provision for recognizing and enforc ing labour rights in EPZs, the fo rmation of labour unions and 
strikes have not yet been allowed in EPZs. 
− Could further information be provided on measure s being undertaken to ensure the effective 
implementation of core labour standards in EPZs?  
The present system of Workers Repr esentative and Welfare Committee (WRWC) will continue until 
31st October 2006. If the workers express their w illingness to have the Worker s Association under the 
present legislation, a referendum will be held to t hat effect. The present legislation has provision for 
basic issues of workers, which can be negotiated by WRWCs. The issues are:  
a. Right to negotiate with the employer on working conditions;  
b. Remunerations or payment fo r productivity enhancement;  
c. Workers education programme.  
It may be noted that the issues are based on core labour standards of the EPZs. 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(x) Competition and Consumer Protection Policies 
− Do the Bangladeshi authorities plan to draft fra mework legislation in the area of competition 
policy?  
The possibility of introducing a competition law will be examined.  
IV.  TRADE POLICIES BY SECTORS 
SERVICES  
Telecommunications 
− Could the Bangladeshi authorities explain what impact the new legal and regulatory 
framework (in particular, the Licensing Procedure Regulations 2004 and the Bangladesh 
Telecommunications Act 2001) has had on fu rther liberalization of this sector? 
As a result of new legal and regulatory framework th e procedures for issuance of licences has become 
easy and quick.  Telecom facility has come to th e world standard. Teledensity has increased by WT/TPR/M/168/Add.1 
Page 44  
 
10 times compared to 2001 and tariffs have declined by 50%. The people of all walks of life including 
villagers are enjoying telecom facility. 
− What further consideration has the Bangladeshi government given to the use of the GATS 
framework and its own level of commitments, with  a view to boosting investor confidence in 
the telecommunications sector? 
Bangladesh has liberalized telecom sector and en couraging foreign investment with attractive 
facilities. Foreign investment and tax polici es in Bangladesh are friendly for investor. 
Tourism services 
− Could the Bangladeshi government provide an assessment of the effect of the tourism sector 
in overall economic growth and employment, and in particular in other economic sectors such 
as financial services, construction, telecomm unications, transport and computer services? 
The contribution of the tourism sector to the GDP of Bangladesh is only 0.02%. The study report 
titled “Bangladesh Tourism Vision 2020” stated that  the contribution of tourism to national GDP 
would increase 4 to 5 percent by 2020. Based on different data analysis, the Tourism Vision also 
reveals that more than 100,000 people are directly  involved in tourism industry and 200,000 are 
indirectly dependent on the sector for their livelihood.  
The tourism statistical report 2005 of Banglad esh Parjatan Corporation (National Tourism 
Organization) shows that foreign exchange earnings  from tourism in 2005 was US $ 70 million, 
which is 13.27% higher than the previous year 2004.  
Maritime Transport 
Clause 6 of the Statutory Regulatory Order 307/  2006 of the Bangladeshi Government requires 
foreign-owned firms to deposit US $1m as a bank guarantee and US $ 1m as security in favour of the Licensing Authority, whilst national firms must only submit a guarantee of Tk 1.5 m (about US € 20,000).   
− Could the Bangladesh authorities explain why there is a significant difference in guarantee 
payments between national and foreign firms a nd its assessment of this entry barrier in 
relation to the development of Bangladesh?  
The SRO has been issued in view of the serious a llegations made by the sh ippers of export products. 
The allegations were related to harassment in th e delivery of imported goods, non-repatriation of the 
export proceeds and wrong delivery.  The bulk of the businesses of freight forwarding are carried out 
by foreign companies having no permanent setup in Bangladesh. As there was no regulatory 
framework, no action could be taken against the unscrupulous freight forwarders. In order to 
streamline the business governme nt issued the above SRO. 
 
JAPAN
 
<Report by Bangladesh (WT/TPR/G/168) V. BANGLADESH IN WTO NEGOTIATIONS (Page 23, paragraph 43) Japan has already accorded duty-free and quota-free mark et access for all textiles products originating 
from LDCs. According to paragraph 43, however, it can be understood that Bangladesh is concerned 
that duty-free and quota-free market access has not yet been accorded by Japan to readymade WT/TPR/M/168/Add.1 
Page 45 
 
 
garment/apparels, which are major e xport products of Bangladesh, and that the items of major export 
interest of LDCs, including Bangladesh, may be incl uded in the 3% exclusion list of developed and 
developing countries.  
1. Please clarify that the Bangladeshi government understands that Japan has already accorded 
duty-free and quota-free market access for all textile products originating from LDCs. 
We deeply value the development assistance bei ng extended by Japan to Bangladesh. Yes, we are 
appreciative of the steps already taken to provide du ty-free access in many categories. Furthermore, 
we have been assured, and most recently at the G- 20 Meeting in Rio on 10 September, 2006, that 
within the year 2007 Japan will provid e duty-free access to LDCs in 98.1% of their tariff lines. Along 
with these initiatives, we would like Japan to also address the rules of origin as well as non-tariff 
measures, with a view to facilitating imports from LDCs. 
<Report by the Secretariat (WT/TPR/S/168)> II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (7) F
OREIGN INVESTMENT REGIME  
(Page 31-33, Paragraph 49-56) 
Japan understands that the Bangladeshi trade policy favor able to foreign investor s has resulted in an 
annual increase of foreign investment. 
2. Please indicate specific policies such as the establishm ent of laws for foreign  investors.    
Investment in Bangladesh is well protected by th e Act. The major legal framework for foreign 
investment is following: 
a. Foreign Private Investment (Promotion & Protection) Act 1980. 
b. BEPZA Act 1980 – only for export-oriented projects in the EPZs. 
c. BOI Act 1989 
d. The Companies Act 1994 
e. Bangladesh Industrial Policy 2005 
f. Annual National Budgets & Finance Bills 
g. Import Policy Order 2003-2006 and also as amended time to time. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Customs clearance and administration  
(Page 41, paragraph 24) 3. Please indicate specific plans and policies regarding the simplification of trade procedures 
(for instance, reducing the number of signatures required for customs clearance). 
Bangladesh Government has developed a Stra tegic Development Plan (SDP) under which a 
Modernization and Automation Project of the Natio nal Board of Revenue (NBR) has been initiated. 
The project aims at further streamlining of the customs operations through extensive automation of 
customs procedure which includes online submission and assessment of declarations as well as cargo 
manifest, connectivity between customs stati ons, electronic data interchange for bonded warehouse 
operators etc.  After implementation of this proj ect, trade procedures will be significantly simplified. WT/TPR/M/168/Add.1 
Page 46  
 
(iii) Customs clearance and administration  
(Page 41, footnote 22) 
4. Please indicate what measures are taken to prevent malpractice, for instance, in ports, airports 
and post offices. 
Extensive automation of customs procedure wh ich includes online submission and assessment of 
declarations as well as cargo manifest, connec tivity between customs stations, electronic data 
interchange for bonded warehouse operators etc., under the Strategic Development Plan (SDP) will 
be implemented with a view to preventing malpractices.  
(iv) Tariffs  
(b) Bound MFN tariffs 
(Page 43, paragraph 32) 
5. Please confirm the validity of the cases mentione d in this paragraph. If they are valid, please 
indicate how they are consistent with the WTO Agreements. 
As mentioned in the Secretariat report there is  mismatch between the applied rates and the bound 
rates for vanilla beans and Sparking plug for aircraft  and helicopter. This is due to changes in tariff 
nomenclature. The National Board of Revenue and the Bangladesh Tariff Commission have already 
examined the cases and they are of the opinion that  new HS codes should be inserted to remove the 
mismatch. It will be done as soon as possible. 
(b) Bound MFN tariffs 
(Page 45, paragraph 34) Japan believes that it is beneficial to Bangladesh, as well as extremely significant in order to maintain 
and reinforce a multilateral trading system, that Bangladesh, as a leader of LDCs, substantially 
increase the level of binding rates, on the basi s of paragraph 9 of Annex B in the framework 
agreements in July 2004, and reduce the difference between applied and bound rates in future.     
6. In this context, please indicate the results of  the verification by the BTC and the NBR.   
The issue is still under consideration of the Na tional Board of Revenue and Bangladesh Tariff 
Commission.  
(v) Other border charges and levies 
(Page 52, paragraph 50) 
The Secretariat report states, “the Bangladesh Tariff Commission (BTC) in conjunction with NBR 
was in the process of reviewing these charges and ta xes and their final position would to be notified 
in July 2006 once the necessary revisi on/rationalization of the structu re of the tariff and other duties 
for the Budget 2006/07 is decided”.   
7. Please indicate the status or the results of the reviewing by BTC and the status of the revision 
of the Budget.  
The National Board of Revenue and the Bangladesh  Tariff Commission have already initiated the 
review, which is yet to be completed.  WT/TPR/M/168/Add.1 
Page 47 
 
 
(vi)  Import prohibitions and restrictions 
(Page 55, paragraph 63) 
According to the Secretariat report, a new IPO inco rporating amendments was being prepared at the 
time of completion of this report. 
8. Please confirm whether the new IPO is now available and indicate the outline of the 
amendments. 
Preparation of the new Import Policy Order is at final stage and it will be published shortly. 
(vi)  Import prohibitions and restrictions 
(Page 55 and 57, paragraph 66 and 73) Japan appreciates that due to the IPO 2003-2006 ( as at March 2004), the number of trade-related 
items on the control list was reduced to about half th e number of HS four-digit items, and to a third of 
them in July 2005. On the other hand, paragraph 73 states that apart from the restricted items in the 
control list, an important permit or clearance pe rmit is required from the CCIE for specific goods. 
These two statements are contradictory.    
9. Please indicate how many products have been substantially liberalized from the control list 
since the last Trade Policy Review of Bangladesh. 
The paragraph refers to the cases where import is allo wed without LCA form or  opening of L/C. In 
such cases, import permit or cl earance permit is required.  
Since the Last TPR the number of items under cont rol list has been redu ced from 122 to 24.  
(xii) Local-content schemes 
(Page 65, paragraph 108) 
The report by the Secretariat states that Bangladesh has not notified these measures  under the 
relevant provisions of the WTO Agreemen t on Trade-Related Investment Measures. 
10. Please indicate how the Bangladeshi government  hereafter will ensure the obligation on 
transparency in the WTO Agreement on Trade-Related Investment Measures. 
The cash incentives for certain products are provid ed only upon export performance with a view to 
diversifying the export base. The exporters, who do not enjoy the facilities of duty drawback and bonded warehouse, are entitled to get such incenti ves to cover the costs of handling, processing, 
upgrading, and freight charges (domestic and interna tional transport) for agric ultural products under 
Article 9.4 of the Agreement on Agriculture. Fo r industrial products these incentives are being 
provided with an understanding that these are not  prohibited for Bangladesh as an LDC under the 
Agreement on Subsidies and Countervailing Duties.  Moreover, as per decision taken during the Hong Kong Ministerial Conference Bangladesh may ma intain Trade Related Investment Measures 
that deviate from the obligations of the TRIMs Agreement for an extended transition period with a requirement that these will be phased out by 2020. WT/TPR/M/168/Add.1 
Page 48  
 
II. TRADE POLICIES BY SECTOR 
(5) M
ANUFACTURING  
(ii) Textiles and clothing 
(Page 107, paragraph 53) Japan appreciates that exports in the textiles and clothing sector show a favorably increasing 
tendency, despite the post-MFA threat. It is estimated that half of the employees are directly or indirectly employed by this sector. Japan, therefor e, recognizes that the growth of this sector is 
significant to contribute to poverty reduction in Bangladesh.  
11. As the Box IV.1 on page 108 states, Japan expects that the Bangladeshi  government is 
conducting its structural reform by using the PRGF as well as by  examining the Post-MFA Action 
Programme with assistance from internationa l development organizations.        
Government initially drew a project worth US $ 40 million for implementation of Post-MFA Action 
Programme (PMAP) to mitigate the negative effects of the phase-out of MFA. But the project could 
not be implemented due to no n-availability of necessary fund. For addressing the post MFA 
challenges especially to retrain the retrenched wo rkers, Government took another project involving 
Tk. 200 million. Moreover, a tripartite committee comp rising policy makers, representatives of labour 
union, trade bodies is working to fix the minimum wages for the industrial workers particularly for 
the labours involved in the RM G sector. Recently, UNDP agreed to provide funds for strengthening 
the compliance Monitoring Cell (CMC) of the Export Promotion Bureau for ensuring better 
compliance of the working condition. 
(6) S
ERVICES  
(Page 110-111, paragraph 62 and 64) 
Paragraph 62 states, “services make up more than half of the Bangladeshi economy”, “their share in 
GDP rose from 46.9% in 1998/99 to 50.7% in 2004/05”  and  “Wholesale and retail trade; transport, 
storage and communications, community,  social a nd personal services; and real estate and business 
services have been by far the leading service ac tivities in Bangladesh. The services sector employs 
about a third of the labour force”. On the other ha nd, paragraph 64 states that its Schedule of Specific 
Commitments covers the activities of five star hotel and lodging services and telecommunication 
services and that Bangladesh has not made any ser vices offer in the ongoing round of negotiations. 
12. Please indicate the concrete measures and futu re prospects for the Bangladeshi government to 
liberalize any services sector other than hotel and lodging services and telecommunication services. 
During the Hong Kong Ministerial Conference it was ag reed that LDCs are not required to undertake 
new commitment in service sector. However, the Go vernment is taking different reform measures in 
service sector on an autonomous basis. 
 
 
 WT/TPR/M/168/Add.1 
Page 49 
 
 
CANADA  
WTO Secretariat Report (WT/TPR/S/168)  
Summary Observations (2) Trade Policy Framework, Pg. X, Paragraph 10: 
The Secretariat Report notes that w ith an aim to ensure among others, better policy coordination of 
trade and related WTO matters, a Bangladesh Fo reign Trade Institute was set up in 2004.  
1. Can Bangladesh advise when the Foreign Tr ade Institute, set up in 2004, will start 
functioning? 
Bangladesh Foreign Trade Institute (BFTI) has star ted working. The EC is funding a project to 
increase the capacity of BFTI. After completion of th e project BFTI is expected to run at full capacity. 
Summary Observations, (2) Trade Policy Framework, Pg. X, Paragraph 11: The Secretariat Report notes that the government passed the Public Procurement Regulations 2003  as 
part of the legal and regulatory framework reforms.  Thus, Canadian companies claim that Bangladesh 
government does not follow its own “Public Procurement Regulations”. 
2. What is the status of bringing international competitive bidding process in 
government procurement?  
The Public Procurement Act, 2006 was enacted by  the Government of Bangladesh on 06 July, 2006. 
Section-25 of the Act has the provision for open in ternational bidding to all persons regardless of 
nationality and/or race or any other crit eria unless otherwise decided by government. 
International competitive bidding process in govern ment procurement is adopted, where it reasonably 
appears that goods, works and services along with relevant experience and expertise are not 
available within the country. At the same time, th ere is no bar on participation of the foreign bidders 
in even national procurement proceedings provided that the international bidders accept the national 
conditions and contexts.  
Apart from CPTU’s websites, advertisements fo r international procurement opportunities are 
published in national daily English newspapers for wi de international circulation and also published 
in UN publication and in Bangladesh trade missi ons at home and abroad for ensuring international 
competitive bidding process in  government procurement. 
International competitive bidding in governme nt procurement has been increasing over the 
time. 
3. Are there any legal frameworks or consulta tion processes in place for the settlement 
of trade disputes?  
The settlement of trade disputes particularly relating to public procurement in Bangladesh is not new. 
All Standard Tender Document (STD’s) for internati onal competitive bidding in public procurement 
has the mechanism for settlement of disputes arising thereon.  
The Public Procurement Act, 2006 also includes alt ernative provision for resolution of disputes apart 
from international Arbitration procedures.  
The regulatory framework for Public Procurement Act, 2006 provides for lodging of complaints as 
well as submission of appeal  by the aggrieved party. WT/TPR/M/168/Add.1 
Page 50  
 
4. If there were none, would the governmen t consider establishing such a legal 
framework? 
Kindly refer to answer to the question above. Summary Observations (3) Trade Policy De velopments, Pg. xii, Paragraph 24: 
The Secretariat Report notes that work is under way to bring intellectual property rights laws into line 
with the WTO TRIPS Agreement. The areas are tr ademarks, patents, and copyrights. Bangladesh 
benefits from an extended time limit (until July 2 013) for the full implementation of the Agreement.  
5. What actions has Bangladesh undertaken in this regard?  
Considering the extended transition period to im plement TRIPS Agreement until 1 July 2013 the 
Government of Bangladesh is examining the whole gamut of issues relating to patent, trademark and 
copyright protection. 
Part III. Trade Policies and Practices by Measu re (2) Measures Directly Affecting Imports (v) 
other border charges and levies, Paragraph 50: 
Bangladesh should be congratulated for its efforts to  simplify and rationalize its tariff structure and be 
encouraged to continue doing so. The Report by the Secretariat indicates that Bangladesh imposes 
border charges and levies that are above its bound rate  of 2.5%. The Secretariat report indicates that 
Bangladesh intends to review these charges and ta xes and will notify their final position to the 
Secretariat.  
6. Could Bangladesh tell us if the review has taken place, and what was the result of it?  
The National Board of Revenue and the Bangladesh  Tariff Commission have already initiated the 
review, which is yet to be completed.  
Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 116, Paragraph 84: 
The Secretariat Report notes that while the telecomm unications sector is open to private investment, 
the Government retains the authority to  determine the number of operators.  
7. What criteria and process does the Government use in determining the number of 
operators it will allow? 
PSTN licenses are issued on first  come first serve basis through open tender. Mobile and other service 
licenses are issued through tender on the basis of market demand with an objective to fulfill 
government policy to achieve at least 10% tele-density. 
Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 117, Paragraph 87: 
The Secretariat Report notes that Bangladesh has a recently updated legal a nd regulatory framework. 
We note that many aspects of its regulatory framework touch on some of the areas, as addressed by the Reference Paper, such as inte rconnection and universal service.  
8. Would Bangladesh consider signing onto the Reference Paper on basic 
telecommunications?  
Bangladesh is considering the reference paper for appropriate action. WT/TPR/M/168/Add.1 
Page 51 
 
 
Part IV. Trade Policies by Sector, (6) Services, (ii) Telecommunications, Pg. 117, Paragraph 88: 
The Secretariat Report lists some of the policy objectives of the Bangladesh Telecommunication Act 
2001. Given that, one of these objectives is to  encourage the introduction of new services… 
9. Has Bangladesh identified any priority servi ces to introduce into the market? If so, 
what are they? What activities does Banglad esh anticipate undertaking in order to 
encourage their introduction into the market? 
Yes, Bangladesh is giving priority on basic telephone , Internet service, VoIP and ICT. It has already 
given PSTN licenses to 17 private companies and  6 mobile companies. Bangladesh will ensure 
operational and other ancillary facilities to them. 
10. How is Bangladesh working towards mee ting its objective of creating a favourable 
atmosphere for local and foreign investors? 
In order to create a favourable atmosphere fo r local and foreign investors the Government is 
pursuing liberal policy towards i ssuance of licenses, repatriation of profit & capital and providing 
technical & regulatory assistance. 
Part IV. Trade Policies by Sector, (6) Servi ces, (iii) Transport, Pg. 119, Paragraph 98: 
The Secretariat Report notes that the Bangladesh government works “coordinating with different 
agencies, to remove congestion at ports of entr y and speed up the movement of cargo”. However, 
Canadian companies have serious complaints a bout the congestion in ports and import clearance 
procedures which are onerous, time consuming and expensive. 
11. What is the status of trade facilitation measures considered by the Bangladesh 
government on its entry to WTO in 1995? 
More than 80% of the cargoes are handled in the Ch ittagong port and the rest 20% are handled in the 
Mongla port. So this unequal use of port in terms of handling cargoes is one of the main reasons for congestions in Chittagong port, wh ile the Mongla port is underutilized. 
Bangladesh government has undertaken a technica l assistance project. Under this project all 
regulatory issues, including maritime transport will be examined and streamlined taking into 
consideration of the WTO aspects. The matter in respect of removing congestions at port of entry and 
speed up movement of cargo will also be addressed in  the said programme. Fu rther to overcome this 
problem and with a view to catering the needs of the country’s foreign trade, the government of 
Bangladesh has taken a massive programme to establis h a deep sea port within its territory for which 
a technical-economic feasibility studies are going on. 
Report by Bangladesh (WT/TPR/G/168)
 
Part III. Economic and Trade Developmen ts since 2000, Pg. 5-6; paragraph 8 
The Government Report notes that Bangladesh’s GDP growth remained steady and fairly robust in 
recent years.   
12. To what extent is economic growth hi ndered by ongoing strikes and “hartals”?  
No official figures are available on impact of strikes and hartal.  WT/TPR/M/168/Add.1 
Page 52  
 
Transparency International Corruption Perceptions  Index has rated Bangladesh 158 of 158 in the 
country rank for the fourth year in a row.   
13. What steps has the government of Banglad esh taken to increase the effectiveness of 
the National Anti-Corruption Commission?   
In order to increase the effec tiveness of the National Anti-Corruption Commission, The Chairman and 
two Commissioners have already been appointed to run the anti-corruption Commission. Apart from 
this, the Commission has been reorganized with 650 posts so that it can discharge its duty.  
14. What efforts have been undertaken in Bangl adesh to tackle the problem of corruption 
and how has the government procurement reform been useful in this process? 
To tackle the problems of corruption the governme nt has constituted an An ti-Corruption Commission. 
The Public procurement Act has been enacted to  reduce the corruption in public procurement. 
The government procurement reform undertaken by  the government has significant impact on curbing 
the corruption through bringing transparency in  bidding, evaluation, selection process, awarding 
contract.  
Part III:2 Private Investment and Foreign Dire ct Investment (FDI), Pg. 12; paragraph 13 
The Government Report cites that Bangladesh had “impressive growth of both local and foreign 
investment in recent years”.  
15. What factors does Bangladesh use to deci de whether to allow foreign direct 
investment? For example, the recent deci sion not to allow investment by TATA? 
Bangladesh has specific policies to allow FDI and project approvals are based on the specified legal 
and policy framework designed to facilitate privat e investment from foreign sources with a view to 
contribute to sustainable economic development through accelerated indus trialization. FDI is 
encouraged in all sectors in Bangladesh except those (04) in the reserve list. The legal framework for 
FDI provides for, among others, a) equal treatmen t, b) safeguarding from state expropriation, c) 
capital / profit repatriation assurance and d) easy ex it provision.  However, in the process of private 
sector project approval – both FDI and local – respective approving authorities appraise the 
applications in terms of project feasibility (techni cal, financial & marketing), environmental impacts, 
market orientation, national security etc.  
The question of not allowing Tata’s proposal is not  true. The proposed project is multi-sectoral and 
complex in nature involving investment, public proc urement, environmental compliance, bilateral 
issues and simultaneous investment in infrastruc ture development by GOB. Such a large-scale 
strategic investment proposal needs detail and caref ul study. The evaluation of the proposal is under 
process. 
The Government Report cites that investment cost is cheaper in Bangladesh. However, other barriers 
related to business competitiveness, such as time for project approval & acceptance, governance, law 
and order situations, and in frastructure facilities remain. 
16. Are there any tangible measures being cons idered to reduce the time required for 
project approvals from different levels of government in Bangladesh?   
Bangladesh has been continuously trying to enhan ce the business competitiveness. It has undertaken 
a number of measures to reduce the time require d for project approval, like introduction of an 
effective one-window service of utility, formation of a national task force to address the complaints of WT/TPR/M/168/Add.1 
Page 53 
 
 
the foreign investors, introduction of online services fo r tracking down the progress of the case etc. It 
is evident from the World Bank Doing Business Indicators 2006 that Bangladesh has improved its 
competitiveness in some indicators.  
17. Can the Government of Bangladesh explain what actions it has undertaken to reduce 
these barriers? 
With a view to reducing barriers related to bus iness competitiveness, government is implementing a 
support project to identify the barriers and prepare a plan to address them. Necessary actions will be 
taken based on the recommendations.  
Part III:11 External Sector: Trade Liberalization, Pg. 19; paragraph 26 
The Government Report by Bangladesh states that, “Bangladesh has been pursuing a liberal trade 
policy since 1990…reforms have been initiated to  dismantle both tariff and non-tariff barriers.” 
However, Canada has concerns regarding Bangl adesh's mandatory fumigation requirements for 
imports of pulses and grain crops. Canada's existi ng extensive inspection and testing program is the 
basis for certification by the Canadian Food Inspec tion Agency (CFIA) for absence of pests in pulse 
and grain shipments. In this regard, we do not see th e need to fumigate Canadi an grain shipments that 
are certified by the CFIA. Canada has written three letters to Bangladesh authorities raising concerns 
about the requirements, and requested a bilatera l meeting to discuss. In the meantime, Canada 
requests a scientific explanation for the mandatory  fumigation requirements, in accordance with the 
WTO Agreement on Sanitary and Phytosanitary Measures,  to facilitate resolution of this issue. In the 
absence of scientific justification, Canada consider s the fumigation requirements to be inconsistent 
with the WTO SPS Agreement and to  constitute a non-tariff barrier. 
18. Is Bangladesh prepared to provide a sci entific justification for the fumigation 
requirements and, if not, to remove the requirement for imports of pulses and grain crops? 
The fumigation and/or other trea tment are internationally accepte d practice to prevent spread of 
store grain pests. This requirement has been in pl ace since introduction of Destructive Insects and 
Pest Rules, 1966 promulgated under the Destruc tive Insects and Pests Act 1914. Justification for use 
of such measures is provided for in the Interna tional Plant Protection Convention, 1999.  I doubt if 
anyone will question the need for us to protect our plants and plant products.  
Part III:14 Tariff Reduction: Pg. 20; paragraph 31 and  
Canada has provided Bangladesh with duty and quota free access to almost all of its products; as a 
direct result to which we have seen a strong growth in Bangladesh’s exports to Canada.  
19. Does Bangladesh have a plan to redu ce its tariff for Canadian imports? 
The Government of Bangladesh greatly appreciates the gesture of Canada to provide duty free and 
quota free market access on almost all products of ex port interest to LDCs.  This has had a positive 
impact on Bangladesh’s exports to Canada.   
Part V. Bangladesh in WTO negotiations, page 24, paragraph 48 
Canada stands ready to pursue wo rk on Aid for Trade, including on the Enhanced Integrated 
Framework.   
20. Canada would be interested in hearing whether traditional technical assistance and 
capacity-building initiatives has had an impact  on Bangladesh's capacity to participate WT/TPR/M/168/Add.1 
Page 54  
 
in the trade negotiations and to implem ent their WTO international obligations, 
including those mentioned in paragra ph 48 (i.e. SPS and TBT requirements)?  
Traditional technical assistance has had a positive impact on Bangladesh’s capacity to participate in 
the trade negotiations and also to implem ent WTO obligations. As regards TBT and SPS 
requirements, we need to develop our testing labor atories (BSTI, Plant Pr otection Wing, Department 
of Agriculture Extension BCSIR etc.) for which we would appreciate any assistance from Canada.  
 
HONG KONG, CHINA
 
Investment   
(WT/TPR/S/168, P. 18 - 19, Paras. 38 - 40; and P. 31 - 33, Paras. 49 - 56) 
1. We note that foreign investment in sect ors like banking, insurance and other financial 
institutions are explicitly discouraged in Banglad esh.  What are the reasons for pursuing this 
policy in these industries and are there any co ncrete plans to remove any/all of these 
industries from the "discouraged" list? 
Presently, there are 48 scheduled commercial banks of which 9 are foreign owned and the rest are 
locally owned. Of these, 4 are state owned banks (out of these, one is in the process of privatization). 
The total number of branches of these banks is 6, 412, which are spread all over the country. In 
consideration of the present socio-economic condi tion of the country, Bangladesh is not under-
banked. The present number of banks, insurance companies and other financial institutions appear to 
be sufficient to meet the requirements of the country. 
Trade-related Investment Measures (TRIMs) 
(WT/TPR/S/168, P. 64 - 65, Paras. 107 - 108; and P. 87, Para. 197) 
2. We note that Bangladesh maintains a num ber of local-content schemes under its Export 
Policy 2003-2006.   Such measures include grantin g of incentives for exports of certain items, 
a higher currency retention quota and eligib ility for the duty drawback and special bonded 
warehouse scheme linked to local-content or local  value-added conditions .  Can more details 
be provided for these schemes?  Are those sch emes prohibited under the WTO Agreement on 
TRIMs?  If the answer is positive, we woul d like to encourage Bangladesh to eliminate 
measures that are prohibited under the WT O Agreement on TRIMs and observe the 
notification requirement under the Agreement.    
The cash incentives for certain products are provid ed only upon export performance with a view to 
diversifying the export base. The exporters, who do not enjoy the facilities of duty drawback and bonded warehouse, are entitled to get such incenti ves to cover the costs of handling, processing, 
upgrading, and freight charges (domestic and interna tional transport) for agric ultural products under 
Article 9.4 of the Agreement on Agriculture. Fo r industrial products these incentives are being 
provided with an understanding that these are not  prohibited for Bangladesh as an LDC under the 
Agreement on Subsidies and Countervailing Duties.  Moreover, as per decision taken during the Hong Kong Ministerial Conference Bangladesh may ma intain Trade Related Investment Measures 
that deviate from the obligations of the TRIMs Agreement for an extended transition period with a requirement that these will be phased out by 2020. WT/TPR/M/168/Add.1 
Page 55 
 
 
Telecommunications 
(WT/TPR/S/168, P. 118, Para. 93) 
3. We note that Bangladesh currently mainta ins two MFN exemptions in international 
telecommunications services and the intended duration of the exemptions is 10 years.  We 
would like to know whether Bangladesh would terminate those exemptions upon the expiry of 
the 10-year duration as scheduled. 
Bangladesh needs to continue two MFN exemptions  in international telecommunication services. We 
will review the situation continuously with the obj ective of providing cost-effective services to meet 
the needs of the people.  
Maritime Transport Services 
(WT/TPR/S/168, P. 119, Para. 97) 
4. We note that Bangladesh adopted a new Na tional Shipping Policy in 2000 to lay down a 
framework in ship-owning business to encourage private sector participation with clearly set 
business objective.  We would appreciate if Bangl adesh could provide us with more details on 
this Policy. 
The Shipping Policy, 2000 encourages the private sect or participation in the shipping services. The 
necessity of development of public and private sector  has already been recognized in the policy. The 
Government is taking necessary initia tives to encourage the private sect or entrepreneurs with a view 
to providing more efficient and effective servic es to the customers. Considering the demand and 
economic importance, private sector investment is  encouraged in the sector. The policy aims at 
liberalizing and deregulating  the existing nati onal rules and regulations. The policy lays down 
certain principles. Most notable of these are: 
A. All existing rules and regulations in the shipping sector, except mandatory regulatory 
regime, need to be examined and streamlined in order to remove all barriers to provide 
services to trade and shipping, and 
B. The Bangladesh Flag Vessels (Protection) Ordinance has already been amended 
towards liberalization and shall also be  further re-examined inline with the WTO 
principles.  
The main objectives of the policy are to attract the most efficient and effective shipping services in 
order to help developing the nation. 
 
REPUBLIC OF KOREA  
I. Trade Policies Regime Foreign Investment Regime(WT/TPR/S/168 p.31 para.49)
 
1. Recently due to disturbances in the Dhaka Export Processing Zone, damages such as 
shutdown of operations and acts of vandalism have occurred to foreign investment firms. 
− Does Bangladesh government have any plan to  prevent recurrence of these affairs and 
to provide more friendly FDI environment?  WT/TPR/M/168/Add.1 
Page 56  
 
Yes. The Government of Bangladesh plans to preven t recurrence of these affa irs and to provide more 
FDI-friendly environment. This includes mainta ining physical security through access control, 
gathering of intelligence information, setting up of CCTVs and outsourcing of security personnel. 
Besides, awareness about the rights and responsibi lities of the workers will be enhanced through 
counseling, seminars, workshops and trainings. Th e Industrial Relations Department will also be 
strengthened.  
II. Trade Policies By Sector Maritime transport and related serv ices(WT/TPR/S/168 p.121 para.100)
 
2. According to the Chittagong Port Authority a ll ships are received in Chittagong on a 'first 
come first served' basis. An excep tion to this rule is, however, maintained for the state owned flag 
carrier Bangladesh Shipping Corporation, BSC, whose sh ips are granted priority at the relevant jetties.  
− Does the Bangladesh government have an in tention of eliminating the discrimination 
depending on the flag of vessels?  
Bangladesh’s state owned national shipping line, Bangladesh Shipping Corporation (BSC) had once 
owned more than 30 vessels of which 4/5 vessels w ere always available at Chittagong port, as the 
home port, in order to meet necessities. Furt her, it provides emergency and essential shipping 
services to the trade of the country, as and when required by the state. Hence, Chittagong Port 
Authority (CPA) provides one priority berth to BSC owned vessels like many other countries of the 
world.  But presently first come first serve principle is widely followed in most of the cases despite the 
provision of the rule. 
 COLOMBIA
 
1. Given the growing amount of remittances and certain public debt, does the Bangladeshi 
Government consider that its economic growth is su stainable without a diversification of the sources 
that fund it? 
Steady economic growth during last five years is larg ely attributable to a set of policies and reforms 
implemented by the Government in order to attain macroeconomic stability. These policies and 
reforms have resulted in gradual decline of budget deficit, high rate of export and import growth, 
attainment of current account su rplus for consecutive three years, steady rise of foreign currency 
reserve to a satisfactory level, increased foreign di rect investment flow.  The Government considers 
that continuation of policy reforms in future will make  it possible to sustain current economic growth.    
2. Given the Government’s desire, re-stated fo r the Trade Policy Review Body, of having duty 
free and quota free access to international markets,  how does the Bangladeshi Government view that 
competitiveness may be achieved by its enterprises so  that they have a chance to compete in those 
markets, taking into account inefficiencies highlighted  by the report of the WT O Secretariat, such as 
difficulties to have more private-run enterprises and lack of hi-tech low-cost public services. 
Despite difficulties to have more private run enterpris es, lack of high tech lo w cost public services as 
highlighted in WTO secretariat report, export se ctor of Bangladesh has shown robust performance 
during last 5 years. During this period export has  increased from US$ 6.47 billion in FY 2000-01 to 
US$ 10.45 billion in 2005-06. This robust performan ce of export sector is largely attributed to the 
duty-free and quota-free market access enjoyed by Bangladesh in many developed countries. The 
government is confident that market access oppor tunities in all developed countries and developing WT/TPR/M/168/Add.1 
Page 57 
 
 
countries through duty-free and quota-free market access  will further improve the export performance 
of Bangladesh. This will also help Bangladesh to diversify its export base.  
ADDITIONAL QUESTIONS FROM COLOMBIA 
1. Relating to Section III (1) para. 4 of the Secretariat report 
− What are the red and yellow channels? 
− Since when were they set in place? 
− What has been their effect on trade? 
Red Channel: This is a term used for cons ignments selected for physical inspection. 
Yellow Channel: This a term used for c onsignments selected for documents check. 
The system was set in place in February 2000. After the introduction of this system 10% of the total 
consignments are now selected for red channel or ph ysical inspection. The selection is made on risk 
management basis by computers. This has signifi cantly reduced the customs clearance time and 
helped facilitation of trade. 
2. Relating to Section III (2) (i) para. 14 of the Secretariat report 
− For how much time is the import registration certificate valid? 
− Are there any fees assessed to obtain an import registration certificate? 
− What documents are required to apply for an import registration certificate? 
− Is there any other information required by the Chief Controller of Imports and 
Exports before issuing an import registration certificate? 
− Is the importer allowed to transfer the import registration certificate to another 
importer? 
− Is there any paperwork that must be filed w ith the sponsoring authority in order to be 
able to import restricted items?  How is the recommendation procedure regulated? 
− Has there been any finding of corruption tie d to the procedure for issuance of these 
recommendations? 
⇒ Import Registration certificate is valid for one year and renewable every year. 
⇒ In order to obtain IRC Importers need to pay registration fees. 
⇒ In order to apply for import registration certificates Importers are required to submit the 
following documents: 
1. Trade License; 
2. Membership certificate from the Chamber; 
3. Tax Identification Number; WT/TPR/M/168/Add.1 
Page 58  
 
4. Bank Solvency Certificate; 
5. Treasury Challan; 
6. Nationality Certificate; and 
7. Recommendations from spons oring authority for obtaining IRC as Industrial 
Consumers. 
⇒ No, no other information is required except the above-mentioned documents. 
⇒ No, the importer is not allowed to transfer the import registration certificate to another 
importer 
⇒ Recommendation is provided upon registrati on of industrial unit with the sponsoring 
authority. 
⇒ There is no report of corruption. 
3. Relating to the Summary Observations of the Secretariat report para. 28 
− What are the tools used by the Government to implement its domestic drug policy, so 
as to increase the market share of domestically produced medicines? 
In 1982, the Government introduced a drug policy ba sed on the list of essential drugs adopted by the 
WHO. Most pharmaceutical multina tional companies closed their production facilities and left the 
country. Bangladeshi entrepreneurs set up produc tion facilities and have become competitive.  
The domestically produced medicines are much che aper than foreign imports. No specific government 
policies are required to meet the market share of domestically produced medicines. A large number of 
foreign medicines are imported and sold in the domestic market; but, being more expensive than 
domestically produced medicines, their demand is limited. 
 SWITZERLAND
 
Report by the Secretariat (WT/TPR/S/168) 
III. TRADE POLICIES AND PRACTICES BY MEASURES 
(1) Introduction - p.36 - para.1 and footnote 1 and para. 2  
According to the Secretariat's report, Bangladesh h as pursued its trade liberalizing reforms. However, 
Bangladesh is still one of the most protected economi es in South Asia in 2004 (World Bank study). If 
tariffs are the second most important source of tax revenue, which steps does Bangladesh foresee to further reducing the large volume of illegal imports ? Does Bangladesh foresee to further reducing, for 
instance, some of its high import duties? 
Customs duty is the most important source of ta x revenue of the government of Bangladesh. With a 
view to reducing the dependence on customs duty,  the Government has taken several steps through 
expanding the domestic VAT and Inco me tax net. Efforts have been made to increase number of 
border security forces, tighten th e security, develop infrastructure of the land port facilities and 
reduce import tariff with a view to reducing smuggling.   At the same time, th ere have been continuous 
efforts to modernize the customs adminis tration in order to reduce smuggling. WT/TPR/M/168/Add.1 
Page 59 
 
 
p.37 - para. 7  
According to paragraph 7 of the report, the im port and export regime remains complex. What 
measures does Bangladesh foresee to this regime a nd make it more efficient? When will Bangladesh 
notify the WTO the measures that em body local-content requirements? 
Import and Export regime in Bangladesh is not co mplex. Both import and export procedures have 
been simplified over the years, which have resulted in steady growth of both import and export. The 
Government considers that measures, such as a ssistance to exporters though concessional rates, duty 
draw back, special bonded warehouse, export proc essing zone, export subsidies etc. are directed 
towards promoting our export, which are required for increasing competitivenes s of the exporters.  
The Government will make necessary notifica tions after reviewing the measures. 
(2) Measures directly affecting imports - ii. Cust oms and inspection - b. Preshipment inspection - 
p.39, para. 19 and 20  
According to para. 19, it seems that almost all prod ucts whose value is above the floor c.i.f values, 
which are low, are subject to PSI, except those me ntioned in the said paragraph. Does Bangladesh not 
think that it would be more efficient to have a PSI regime based on risk assessment rather than on 
floor values of the goods? 
Paragraph 20 indicates that substantial penalties ha ve been imposed by customs authorities on several 
occasions. Could Bangladesh specify the number of cases and the average amount of penalties imposed in recent years? Have the allegations of misconduct by PSI been substantiated by evidences? 
Could Bangladesh specify when will the PSI audit agency be operational? 
The maximum value concept or floor  level was devised with the spir it to facilitate trade. Sometimes 
there are needs of importation of some small parts or spares for factories.  Moreover, samples are 
common imports by the apparel industries. To av oid complications and faster movement of goods 
these categories of imports are kept outside the purview  of PSI. Imports of this kind do not require 
any Letter of Credit and brought under warranty package , hence no room for PSI. Risk assessment is 
routinely carried out for all consignments  including the ones exempted from PSI. 
PSI companies are penalized through proper adjudication process. They are given enough 
opportunity to defend their cases both in writing and through hearing. Only when the case of any 
misconduct is proved beyond any reasonable doubt, the PSI companies are penalized under the rules 
on the basis of the nature and extent of offence. As  per provision of the la w, they have the right to 
appeal to higher courts of Bangladesh. As re gards the number of cases and average amount of 
penalty, information is not readily available. 
Appointment of the PSI Audit agency is under process. 
iv. Tariffs - a. Structure - p. 42, paragraph 30  
According to paragraph 30 even though the proporti on of tariff lines with multiple rates at the HS 
four-digit level seems to have dropped, the existenc e of different rates within the same subchapter 
causes uncertainty and gives rise to disputes. Does Bangladesh intend to simplify its tariff structure at 
subchapter level in order to improve certainty an d how and within which timeframe will this be 
achieved? 
There are 5,224 sub-headings in HS nomenclature. Out of these sub-headings, 4,889 lines (93.6%) 
have single rates within the same sub-heading. On ly 335 lines have multiple rates within the same 
sub-heading, which constitutes only 6.4% of total su b-headings. Therefore, it is unlikely to cause any 
uncertainty or to give rise to disputes. WT/TPR/M/168/Add.1 
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b. Bound MFN tariffs - p.43 - paragraph 31, 32 and footnote 30  and paragraph 34 
Could Bangladesh confirm the findings of the WTO Secretariat, i.e. that the 2005/2006 applied MFN 
rates for vanilla (HS 0905.00.10 and 0905.00.20) is 25% and that it exceeds bound ceilings at least for 
one item ? The same question applies to sparki ng plugs (HS8511.10.00) where the 2005/2006 applied 
rate is 13% and the bound rate is set at 3% for HS 8511.10.10. Which steps and when will Bangladesh 
undertake to bring these MFN applied rates in line with its WTO commitments? 
As mentioned in the Secretariat report there is  mismatch between the applied rates and the bound 
rates for vanilla beans and Sparking plug for aircraft  and helicopter. This is due to changes in tariff 
nomenclature. National Board of Revenue and Bangladesh Tariff Commission have already examined the cases and they are of the opinion that new HS cod es should be inserted to remove the mismatch. It 
will be done as soon as possible. 
In addition, it appears that the other border char ges are at least 4%, which is higher than the bound 
rate for this type of levy (bound at 2.5%). C ould Bangladesh please provide an explanation regarding 
the reason why these charges are above the bound level?  
The National Board of Revenue and The Bangladesh  Tariff Commission have already initiated the 
review, which is yet to be completed.  
Paragraph 34 indicates that in February 2006 Ba ngladesh was revising/rationalizing the tariff and 
other duty structure for the Budget 2006/2007 and that it would notify its position to the Secretariat in 
July 2006. Could Bangladesh indicate what has been the result of this revision/rationalization and which changes have/will be introduced and when? 
The National Board of Revenue and the Bangladesh  Tariff Commission have already initiated the 
review, which is yet to be completed.  
e. Level of MFN tariff protection - p.46 - paragraph 38  
Could Bangladesh confirm that the list of goods subjec t to the peak rate in paragraph 38 is exhaustive 
? If not, please provide an exhaustive list. 
List provided in paragraph 38 incl udes the products having tariff @ 25%. If 15% tariff is considered 
as threshold level for defining the peak, this list seems exhaustive.  
h. Tariff concessions - p.48 - 51 - paragraphs 41 - 44 and table III.4  
The report of the WTO Secretariat indicates th at Bangladesh seems to maintain some 20 
concessionary categories with rates ranging from ze ro to 15% and that three types of tariff 
concessions are in place.  
As indicated in paragraph 44, a study was being undertaken regarding various tariff-protection and 
related issues. The rationalization of the tariff structure was to be based on the conclusion of this 
study. Could Bangladesh indicate which have been  the conclusions of the study regarding tariff 
concessions and which changes, if any, have b een introduced through the budget process of June 
2006? 
In addition, some information is missing in table III.4. Could Bangladesh pr ovide the Tables 1 and 2 
for electrical and electronic part and the Annexes 1.A, 1.B and 2.A and 2.B for pharmaceuticals? 
The National Board of revenue in consultation with the Bangladesh Tariff Commission has already 
undertaken an exhaustive study to look  into the exemption issue further. 
Exemptions for electronic parts no longer exist. Pharmaceutical raw materials continue to enjoy 
certain level of exemptions.  WT/TPR/M/168/Add.1 
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(v). Other border charges and levies - p.52 - paragraph 50ss and table III.6  
Could Bangladesh indicate its final position regard ing the border charges and levies now that the 
revision/rationalization of the structure of the tariff and other duties for the Budget 2006/07 has been 
decided? 
The National Board of Revenue and the Bangladesh Tariff Commission have started the review work. 
Further time will be needed for providing such information. 
(a) Infrastructural development surcharge (IDS) - p. 53 - paragraph 52  
According to paragraph 51 the Infrastructural de velopment surcharge has been introduced in July 
1997 as a temporary measure. Given that it is applied since 9 years now, it is difficult to consider it as 
a temporary measure. In addition this IDS increas es the overall average applied MFN tariff protection. 
Could Bangladesh indicate which have been the conc lusions of the revision of these charges by the 
Bangladesh Tariff Commission and which modificatio n, if any, will be implemented and when? 
The National Board of Revenue and the Bangladesh  Tariff Commission have already initiated the 
review, which is yet to be completed.  
e. Supplementary duty (SD) - p. 54 - paragraphs 57-60 and footnote 42  
Could Bangladesh provide an exhaustive list of go ods it considers to be luxury goods as well as the 
relevant legislation and the rates applicable fo r each item ? How often the list of luxury goods is 
modified and how are importers and exporters info rmed of these changes and how long in advance?  
As the rates of this supplementary duty are very high (between 20% and 350%) they are considered as 
tariffs in disguise and a tool for levying additi onal tariffs on any importables. Except from increasing 
tax revenues, which policy objectives or patterns is Bangladesh pursuing with this supplementary 
duty? 
According to paragraph 59 a proposal to protect domestic industries has been made in the budget 
speech 2005/2006 by imposing a 35% SD on imported mineral water. Has this proposal been 
implemented? Which are the proposals made  and adopted for the budget 2006/2007? 
The Government of Bangladesh has been impos ing supplementary duties since 1991 under VAT Act, 
1991. Although initially supplementary duties were levi ed on luxury goods such as cars, cigarettes, 
alcohol, etc. it was extended to other products in  2000, when Bangladesh started implementing 
Agreement on Customs Valuation and abolished the minimum value system. This was done to avoid 
revenue loss due to under-invoicing. However, the Government has been gradually reducing the 
supplementary duty rates. At present, supplemen tary duty on mineral water is 25%.      
f. Regulatory duty - p.54 - paragraph 61  
Could Bangladesh explain what are the objectives and the differences of the regulatory duty in regards 
of the other types of duties it levies. 
How many tariff lines will be subject to this regul atory levy under the 2006/2007 customs tariff? 
Please indicate the HS codes at the 8-digit tariff lin e level and the rates applied to the corresponding 
tariff lines. 
Regulatory duty is imposed tempor arily and automatically expires w ith the end of the financial year 
unless re-imposed. As of September 2006, there is no regulatory duty in place. WT/TPR/M/168/Add.1 
Page 62  
 
State Trading 
According to paragraph 78, Bangladesh has not ye t notified the WTO of any state-trading activities 
undertaken by entities within the meaning of Article XVII:4(a) of the GATT 1994. Could the 
authorities indicate if and when they are inte nding to notify of state-trading activities?  
Bangladesh will notify the entities within the meani ng of Article XVII:4(a) of the GATT 1994 in due 
course. 
Minimum Prices and Price Controls: On page 67, paragraph 122 deals with minimum pri ces and price controls. It seems that there is a 
certain doubt about the facts. This is indicated by the use of the word "apparently". We would like to 
invite the Authorities of Bangladesh to provide us with some clarifying comments on minimum prices 
and price controls. Furthermore, we would be interested to learn more about the Export Price Certificate for jute exporters. 
Raw Jute and Jute goods were the major source of expor t earnings of Bangladesh in the 70s and early 
80s. At that time, Bangladesh Jute Mills Corporati on, a state owned enterprise (SOE) used to check 
the minimum export price of raw jute to ensure that  exports from different jute mills are compatible 
with the price of jute in the in ternational market. With the divesture of many of the state owned jute 
mills, the system is now virtually inoperative.  At  present, the Authorized Dealer (AD) Banks only 
verifies that the export price is internationally competitive.   
Trade Policies and Practices by Measure – Meas ures Affecting Production and Trade – TRIMS 
(viii) 
Para 197  suggests that the authorities did not provide any views regarding their use of TRIMS. Could 
the authorities indicate what measures in particular in  respect to local content – if any – are still in 
place and when they intend to remove them? 
The cash incentives for certain products are provid ed only upon export performance with a view to 
diversifying the export base. The exporters, who do not enjoy the facilities of duty drawback and bonded warehouse, are entitled to get such incenti ves to cover the costs of handling, processing, 
upgrading, and freight charges (domestic and interna tional transport) for agric ultural products under 
Article 9.4 of the Agreement on Agriculture. Fo r industrial products these incentives are being 
provided with an understanding that these are not  prohibited for Bangladesh as an LDC under the 
Agreement on Subsidies and Countervailing Duties.  Moreover, as per decision taken during the Hong Kong Ministerial Conference Bangladesh may ma intain Trade Related Investment Measures 
that deviate from the obligations of the TRIMs Agreement for an extended transition period with a requirement that these will be phased out by 2020. 
Trade-related Property Rights Paragraph 213 :  Substantial work remains to be done by Bangladesh in order to bring its legislation 
into line with the WTO TRIPS Agreement and other international commitments. Nevertheless 
Switzerland would like to commend Bangladesh on the c onsiderable efforts already made in the last 
years to improve the legal framework for intellectual property rights and would like to encourage Bangladesh on this way. However it is reported (paragraph 213. of the Report) that intellectual 
property rights protection in Bangladesh has worsened  and is becoming a serious concern, due to the 
fact that the enforcement of IPR laws is lax. C ould Bangladesh please give detailed information on the 
concrete measures it intends to adopt to reduce pira cy in the domains of computer software, motion 
pictures, pharmaceutical products, CDs/DVDs, and audio- and video-cassettes? 
Bangladesh has amended its Copy Rights Act (2000)  in May 2005 for reducing piracy in the domains 
of computer software, motion pictures, pharmaceutic al products, CDs/DVDs , and audio- and video-WT/TPR/M/168/Add.1 
Page 63 
 
 
cassettes. Government has sent this Act to all di strict offices and requested them to take necessary 
measures to enforce the law.  The Government has also taken initiatives to amend the Copyright 
Rules, 1967 to make it consistent with the Copyright Act, 2005. 
Trade Policies and Practices by Measure – Measures Affecting Production and Trade – 
Competition and Consumer Protection Policies (x) 
Para 214 indicates that Bangladesh does not have a comp etition law. Could the authorities indicate if 
they have any plans to establish such a compe tition law and, if yes, could they provide some 
information on the expected characteristics of this new law.  
The possibility of introducing a competition law will be examined. 
 
TURKEY  
WT/TPR/S/168 
II. TRADE POLICY REGIME : FRAMEWORK AND OBJECTIVES (7) FOREIGN INVESTMENT REGIME  
Para 49: Secretariat report, para 49 mentions that although Bangladesh’s investment po licies remain friendly to 
foreign investment, it lags well behind its potential due to some reasons specified at the report.  
In the same paragraph, it is also stated that  pr eferential access  granted to Bangladesh’s exports  in 
major markets  is considered excellent attr action for foreign investors in Bangladesh.  
1) How does Government of Bangladesh plan to  deal with the specific problems foreign 
investment counter in the country?  
The question is not clear. 
2) Are there any statistics indicating the level of increase in the foreign investment due to the 
preferential access opportunities in some exporting markets? 
At present, there is no specific study regarding the level of increase of FD I due to the preferential 
access opportunities. However, it is observed that most  of the FDI entities in manufacturing sectors 
consider market access opportunities as one of the key deciding factors. Examples include FDI 
projects in textile & clothing, bicycle etc. 
WT/TPR/S/168 
III. TRADE POLICIES AND PRACTICES BY MEASURE (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) Input subsidies, pricing and marketing arrangements Para 183: 
According to the Secretariat report, there are administrative pricing for certain goods and services in 
Bangladesh including those on sugar and pharmaceutical products. WT/TPR/M/168/Add.1 
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1) Could Bangladeshi Delegation inform us if ad ministrative pricing on any goods and services   
remain? 
2) If so, we would like to learn on which products  administrative pricing is retained, with the 
due rationale behind?   
There are currently administrative pricing system fo r few drugs, petroleu m products and public 
utilities. These are considered essential commodities and services. Considering the essentiality, 
affordability and welfare of the common people the go vernment generally administers these prices.   
WT/TPR/S/168 III. TRADE POLICIES AND PRACTICES BY MEASURE  (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Tariffs/ (b) Bound MFN tariffs Para 32: 
It is understood from the paragraph 32 of the Secret ariat report that while the 2005/2006 applied MFN 
tarif rates seem to  meet tariff binding commitmen ts,  with limited exceptions, other border charges 
are applied in a manner exceeding bound ceilings. 
We will appreciate explanations of Bangl adeshi Delegation to clarify the issue. 
As mentioned in the Secretariat report there is  mismatch between the applied rates and the bound 
rates for vanilla beans and Sparking plug for aircraft  and helicopter. This is due to changes in tariff 
nomenclature. National Board of Revenue and Bangladesh Tariff Commission have already examined the cases and they are of the opinion that new HS cod es should be inserted to remove the mismatch. It 
will be done as soon as possible. 
 AUSTRALIA
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(5) T RADE AGREEMENTS AND ARRANGEMENTS  
(iv) Other preferential arrangements We note that, by January 2006, Bangladesh had not yet taken advantage of the EC’s offer in 2000 of 
regional cumulation and relaxation of value added criteria, which could expand its exports under the 
scheme (WT/TPR/S/168, page 30, para 42, also Chapter III, page 52, para 49).  The rules of origin for 
Australia’s duty free and quota free scheme for all products originating in LDCs provides for full 
cumulation among LDCs as well as cumulation with ot her developing countries for up to half of the 
required regional value content, so as to facilitate  market access.  Could Bangladesh clarify its 
position on this question of cumulation among developi ng countries in rules of or igin for preferential 
arrangements, such as duty free and quota free access for LDC? 
Australia and others who make and en force Rules of origin know fully well their implications. The 
Secretariat Report refers to the co mplexities associated with this subject, in the context of 
Bangladesh. We have found that our current policy ha s encouraged the growth of  our textile industry. 
In fact, the textile industry is one of the fast est growing in industrial sector of the country. WT/TPR/M/168/Add.1 
Page 65 
 
 
The situation is not the same in all LDCs. Many LDCs are not in a position to take advantage of the 
duty-free market access as the rules of origin are too restrictive. They require both relaxation and simplification.  If Australia is p repared to review its rules of orig in applicable to LDCs, and want us 
to be associated, we will gladly engage in the process. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(v) Other border charges and levies 
Bangladesh has continued to simplify and rationalize its MFN applied tariff structure.  At the same 
time, Bangladesh continues to levy a number of other duties and charges for revenue purposes, with 
these seemingly being in excess of WTO bindings on other duties and charges for covered lines, as 
identified by the Secretariat (WT/TPR/S/168, page 52 , para 50).  Given the high degree of flexibility 
provided by Bangladesh’s bindings, what is the pur pose of continuing to levy additional charges on 
top of the customs tariff?  Would it not be simpler and more transparent if such charges were rolled 
into the customs tariff? 
The National Board of Revenue and Bangladesh ta riff commission has already initiated the review, 
which is yet to be completed.  
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation;  
(ii) Quality control and export clearance; (v) Export prohibitions and restrictions 
Bangladesh appears to maintain an unusually co mplex system of procedures and requirements and 
restrictions on exports.  What is the rationale for the requirement for all exporters, except those in 
export processing zones, to be required to obtain an Export Registration Certificate (WT/TPR/S/168, 
page 66, para 115)?  What is the rationale for pr ohibition of re-exports, unless re-export prices are at 
prescribed margins above import prices (WT/TPR/S/168,  page 68, para 126), and how is this enforced 
in practice? 
Export registration certificates are required for registration purpose only and procedure for 
obtaining this certificate is very simple.  
Re-export, as such is not prohibited. The only re quirement for re-export is to have 5% value addition. 
(x) Tax concessions 
Under the Income Tax Ordinance, a 50% rebate is provided on taxable income generated from any 
export business (WT/TPR/S/168, page 73, para 138).  Is Bangladesh able to quantify the amount of 
revenue foregone as a result of these rebates?  
With the assistance of IMF, the government has undert aken an analytical study to quantify the amount 
of forgone revenue on account of exemptions and rebates granted to the exporters.   WT/TPR/M/168/Add.1 
Page 66  
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(ii) Taxation  (a) Indirect taxation 
The Report by Bangladesh notes that the VAT is collect ed at import stage due to limited capacity of 
the tax administration in collecting VAT on importe d items for trade at retail level (WT/TPR/G/168, 
page 19, para 25).  Given this limited capacity, how  does Bangladesh ensure th at the VAT is applied 
uniformly across the board on all domestic i ndustries (WT/TPR/S/168, page 80, para 169)? 
1.5% VAT at retail level on account of domestic pr oductions is collected from the sales at their 
showrooms or the shops buying the merchandise from  them. These producers issue invoices (a copy is 
sent to local VAT office) where the names, address es, and VAT registration numbers of the buying 
entities are indicated. The VAT inspectors can tra ck the transaction from these invoices and ensure 
the payment of 1.5% VAT from them. These manufactu rers do not usually issue false invoices as they 
have a permanent setup. If they refrain from issui ng any invoices at all, their purchase, sales and 
stock data would not match. On the contrary, the importers use different addresses for their 
operations. Once the goods are out of the port, Custom Authority finds it difficult to track them due to 
absence of dependable systems (social security no. etc.). 
IV. TRADE POLICIES BY SECTOR (3) A
GRICULTURE  
In its notification to the WTO Committee on Agriculture for the period 1995/96-1999/00, Bangladesh 
indicated that it does not apply export subsidies subject to reduction commitments (WT/TPR/S/168, 
page 95, para 15).  Since the last review, how ever, Bangladesh has introduced a system of cash 
incentives for exports of agric (vegetables/fruit) and agri processing commodities of 20-30% of the 
export value (WT/TPR/S/168, page 69, Table III.10), with disbursement in 2003-04 of Tk 7.7 million 
and in 2004-05 of Tk 100.0 million.  Could Bangla desh provide further details of the agricultural 
products for which these cash incentives have been pr ovided, and the criteria for their provision?  
What is the rationale for these measures on agricu lture exports, including in relation to Bangladesh 
food security and sustainable development objectives?   
Cash incentives are provided for few items including some agricultu ral items. The agricultural items 
include products made of Hogla, straw, coir of s ugar cane (15-20%), agro-pr oducts (vegetables/fruit) 
and agro-processing (20-30%). These incentives are pr ovided for encouraging export of high value 
agricultural products, which have virtually no impact on food security.  In fact, export of high value 
items help the farmers to get better prices and thus contribute to increase farmers’ income. 
(4) E NERGY  
(i) Natural gas 
We note that the shortage of gas supply is cons idered to be a serious bottleneck to growth 
(WT/TPR/S/168, page 103, para 42).  On the ot her hand, we understand th at the ban on export of 
natural gas is a factor directly constraining furthe r foreign direct investment in this sector.  Can 
Bangladesh provide any information on the formulat ion of a Gas Act?  Does Bangladesh have any 
plans to review its approach to the regulation of this sector so as to encourage further investment? 
The gas market in Bangladesh has experienced su stained demand growth in recent years growing 
from 0.7 bcf in 1995-96 to 1.4 bcf in 2004-05. This  implies growth of 8% per annum, which is high by 
international standard. For inadequate reserves and increasing demand in the domestic market, WT/TPR/M/168/Add.1 
Page 67 
 
 
Bangladesh currently is not in a position to expor t gas. Government initiated program for holding 3rd 
round bidding in offshoring area for exploration of  oil/gas. This is a lucrative field for foreign 
investors. Estimated an investment requirement of  US$ 8 billion to find and develop the require 
reserves needed to meet demand upto 2025. Furt her oil/gas exploitation will facilitate foreign 
investment for industrial development. With a vision of maximizing the contribution of gas sector in 
the development process, government is going to fin alize Gas Sector Master Plan, Energy policy and 
Gas Act. These are under process. 
 BRAZIL 
 
WT/TPR/S/168 I (1) paragraph 01 page 01 According to the report "Since its previous Trade Policy Review in 2000, Bangladesh's real GDP has 
grown robustly, at an average annual rate of around  5.5% (with inflation averaging a modest 4%), 
partly as a result of prudent macroeconomic policies and ongoing structural reforms.  Concurrently, 
GDP per capita rose from US$368 in 1999/00 to US$438 in 2004/05. 
Furthermore, stronger state action and civic activism allowed for considerable improvement of social 
indicators;  as a result, Bangladesh graduated in 2003 from the low to the medium UN human 
development index category of countries, ranking 139
th (out of 177). 
Between 1990 and 2000, income poverty dropped (fro m 58.8% to 49.8% of the population living 
below the US$1 a day poverty line)..."Could the Government of Bangladesh provide a more 
comprehensive overview regarding the measur es that made possible this positive scenario? 
Poverty reduction is a very complex and multi-facet ed problem. Government of Bangladesh has 
undertaken a number of effective reform measures du ring the last one decade, which led to reduction 
of poverty. Between 1995-2005, GDP growth remained steady and fairly robus t at an average annual 
rate of 5.0%. This steady growth was mainly  the attributable to the industry and services sector. A 
pragmatic trade, fiscal and monetary policies with significant liberalization of trade and phenomenal 
expansion of export and remittance,  congenial domestic and foreign direct investment environment, 
increased involvement of the private sector in  the economic activities and the country’s success in 
checking population growth have largely contributed to  this growth. This growth in GDP, in turn, 
resulted in a steady increasing trend in per cap ita GDP and a declining trend in the number of 
population below the poverty line. 
WT/TPR/S/168 III (2) iv (j) paragraph 47 page 51 
Could the Government of Bangladesh inform what au thority is responsible for issuing the certificate 
of origin when it is required by importing countries? 
Export promotion Bureau of Bangladesh  is responsible for issuing certificates of origin, in respect of 
preferences granted by the importing Country on any products. However, the recognized Chambers of 
Commerce and Industries issue certificates of origin for the products not enjoying tariff preferences. 
WT/TPR/S/168 III (2) iv paragraph 65 page 55 Bangladesh informs that there are restricted items controlled for trade reasons.  Could the Government 
of Bangladesh inform which products are those in terms of the harmonized system? 
Currently, chicks (01.05), eggs (04.07), and common salt (25.01) are restricted for trade reason. WT/TPR/M/168/Add.1 
Page 68  
 
SINGAPORE 
 
1. Paragraph 25 of the report by Bangladesh (W T/TPR/G/168) and paragr aph 56 of the report by 
the Secretariat (WT/TPR/S/168) stated that Advan ced Valued Tax (ATV) has been introduced since 1 
September 2004 and this tax is calculated assuming a minimum 10% value addition at the wholesale 
to retail level.  For imported items for trade at retail level, the tax is collected at import stage.  This 
measure would appear to discriminate against impo rted products viz-a-viz domestic-liked products. 
We would appreciate if Bangladesh could further e xplain how this measure works in practice and how 
it complies with GATT 1994 Article III National Tr eatment on Internal Taxation and Regulation. 
1.5% VAT at retail level on account of Domestic pr oductions is collected from the sales at their 
showrooms or the shops buying the merchandise from  them. These producers issue invoices (a copy is 
sent to local VAT office) where the names, address es, and VAT registration numbers of the buying 
entities are indicated. The VAT inspectors can tra ck the transaction from these invoices and ensure 
the payment of 1.5% VAT from them. These manufactu rers do not usually issue false invoices as they 
have a permanent setup. If they refrain from issui ng any invoices at all, their purchase, sales and 
stock data would not match. On the contrary, the importers use different addresses for their 
operations. Once the goods are out of the port, Custom Authority finds it difficult to track them due to 
absence of dependable systems (social security no. etc.). 
2. Paragraph 27 of the report by Bangladesh st ated that restrictions on import of commodities 
have been gradually withdrawn.  We would like to seek Bangladesh's clarification on what these 
restrictions were and the changes in circumstanc es, which have resulted in  these restrictions being 
withdrawn. 
Yes, since last TPR Bangladesh has removed the rest rictions on 34 items at 4-digit HS Code level, 
which were maintained under BOP. These restrict ions have been withdrawn as per phase-out plan 
submitted by Bangladesh in 2000 (W T/BOP/N/54, 15 December 2000).  In addition, out of 4 products, 
on which Bangladesh was allowed to maintain restrictions until 2009 (WT/BOP/R/64, 21 November 
2002), restriction on one product has already been w ithdrawn and others are likely to be withdrawn 
within the agreed time frame. 
ISRAEL  
Paragraph 68 of document WT/TPR/S/168 states th at according to the Import Policy Order 2003 – 
2006 "Imports from Israel, as well as goods carri ed on the flag vessels of this country, remain 
prohibited" .  It further states in paragraph 124 that "the overall ban on exports to Israel remains in 
place" . 
1. Could Bangladesh please explain how these meas ures are in conformity with Article I:1 of 
GATT, Article XI:1 of GATT, Article X III:1 of GATT and Article II:1 of GATS? 
2. Is Bangladesh ready to withdraw these me asures?  Please indicate the timetable for the 
withdrawal of the prohibition of trade with Israel. 
We are aware that Members from time to time have imposed several types of restrictions including 
sanctions and blockage. We will consider the with drawal of any restriction that we have at an 
appropriate moment. 
 WT/TPR/M/168/Add.1 
Page 69 
 
 
REPLIES TO THE QUESTIONS POSED BY INDIA IN THE ORAL STATEMENT MADE 
ON 13 SEPTEMBER 2006  
Historically, Bangladesh and India have a good trade re lationship. India has been the largest   source 
of import of Bangladesh during the last 10 years.  During these years trade deficit with India has 
increased rapidly. Available statistics show that  while the import from India has increased @ 15.6%, 
Bangladesh’s export to India has increased @ 18.9% during the period between 2000 and 2005. 
Despite, trade deficit with India has increased substantially.  
Bangladesh’s Trade with India (Exp orts, Imports and Trade Balance)  
(Million US Dollar) 
 
2000 2001 2002 2003 2004 2005 Annual Average 
Growth Rate 
(2005 over 2000) 
Total Exports 5,590 5,736 5,443 6,229 7,586 8,494 8.73 
Total Imports 9,001 9,011 7,848 9,672 11,590 13,851 9.00 
Overall Deficit 3,411 3,275 2,405 3,443 4,004 5,357 9.45 
Exports to India 50 61 39 55 66 119 18.94 
Export to India as % Bangladesh’s total exports 0.89 1.06 0.72 0.88 0.87 1.40 - 
Imports from India 945 1,195 1146 1,490 1,745 1,951 15.60 
Trade Deficit with India 895 1,134 1,107 1,435 1,679 1,832 15.40 
Import from India as % of 
Total Import 10.50 13.26 14.60 15.40 15.06 14.08 - 
Source:  IMF, Direction Of Trade Statistic s (Dots) Yearbook, Relevant Issues. 
Bangladesh is committed to address the issues of bilateral trade interest with India. In this direction, a 
revised Bilateral Trade Agreement between Bangladesh  and India has been signed in April, 2006. A 
Joint Working Group has been established to address th e issues of bilateral trade interest. The meeting 
of this Group is held at regular interval.  The Group discusses the trade issues including trade-related 
infrastructure such as land customs stations, approach roads, railway links, banking and 
communication facilities, construction of ware houses, containerization, etc. As regards 
Benapole/Petrapole land customs stations, Banglad esh has already developed cargo handling capacity, 
infrastructure and banking facilities on the Bangladesh side. We would expect India to develop such 
facilities on the Indian side as quickly as possi ble to boost exports of both countries.  
A bilateral meeting has already been held in Se ptember, 2006 to discuss the bilateral Protocol on 
Inland Water Transit.   
As indicated in the Secretariat Report, majority of the sea borne cargo are handled at the Chittagong 
Port. Chittagong Port does not have enough capacity to  handle Bangladesh's cargo. As such at present 
it is not in position to handle the cargo of others  
In order to facilitate export from Bangladesh to India, initiatives have already been taken for 
recognition of certificates of the Bangladesh Sta ndard and Testing Institute (BSTI) by the Indian 
authority. Such recognition is in the process of finalization. 
Restrictions on import of certain items of bulk na ture have been imposed due to limited handling 
capacity of the existing land customs stations. With  the improvement of the infra-structure facilities 
such restrictions are being gradually withdrawn.   
One of the main objectives of National Drug Policy, 2005 is to produce good quality drugs in the 
country. To reduce dependence on imported drugs, the local pharmaceutical manufacturers will be 
offered necessary cooperation to produce quality medicine  in adequate quantities. The drugs 
registered for import in Bangladesh may be impo rted in prior approval of the drug Regulatory WT/TPR/M/168/Add.1 
Page 70  
 
Authority. The recently innovated life-saving drugs wi ll be preferred while cons idering registration of 
drugs for import. The application for registration of a drug for import are taken into consideration 
only if the drug is registered under the same brand name in at least one of the following developed 
countries: USA, UK, Switzerland, Germany, France, Japan and Australia. So, the restriction does not 
intend to impose any ban/control from any particular country. It is applied on MFN basis. It aims at 
protecting public health and hence, ca nnot be considered as an NTB.   
There are issues of non-payment of imported consignments from both sides. These are being 
addressed at appropriate bilateral level. 
The statement made by India that under the EC re gional cumulation rule, apparel manufacturers were 
eligible to use fabrics of regional origin for prod uction of garments and still benefited from zero tariff 
access to the EC market under its GSP Sc heme needs further clarification.  
__________