The Chinese Government may have offered duty-free market access to 97 per cent of Bangladeshi products to China but that isn’t helping much apparel exports to the Chinese market as more than one-third of Bangladesh’s total apparel exports to China is still out of duty-free benefit coverage.
This was underlined in an analysis being carried out by Bangladesh’s apex garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), as per reports.
The President of BGMEA, Dr. Rubana Huq, reportedly maintained that in financial year 2018-19, Bangladesh’s total RMG export to China was US $ 507 million, of which US $ 308.4 million worth apparel items was under duty-free facility, which effectively means, US $ 198 million apparel export was under duty.
Further, after the latest duty-free offer from China, products worth US $ 20 million out of the US $ 198 million would be included in the duty-free scheme, explained the BGMEA President, adding apparel exports worth US $ 178 million still remained out of duty-free benefit, on which Bangladesh paid 6-12 per cent tax, and which accounted for Bangladesh’s 33 to 38 per cent of total exports to China.
Dr. Rubana also reportedly expressed her apprehension on the revised rules of origin for 40 per cent value addition as set by China so as to enjoy duty-free market access, which the BGMEA President felt would be rather difficult for apparel manufacturers to comply with.
