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Munshi remains optimisticamid coronavirus fallout
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Third from right , Commerce Minister Tipu Munshi launches the latest edition of International Commercial Terms, or Incoterms 2020 at the InterContinental Dhaka yesterday. Second from right , ICCB President Mahbubur Rahman, third from left , ICCB Vice President Rokia A Rahman, second from left , ICCB Banking Commission Chairman Muhammad A (Rumee) Ali, extreme right, Mutual Trust Bank CEO Syed Mahbubur Rahman, and extreme left , ICCB Secretary General Ataur Rahman were present.
Star Business Report
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Bangladesh will face major challenges if coronavirus drags on as the local business community, especially those from the garment sector, is dependent on Chinese fabrics and raw materials, said Commerce Minister Tipu Munshi yesterday.
The government has been observing the situation closely and so are the business community.
“We are hopeful that the situation will improve soon as the ratio of new patients worldwide is declining,” he said while replying to queries from journalists at a programme held at the InterContinental Dhaka.
At the event Munshi unveiled the latest edition of Incoterms®, a set of rules published by the International Chamber of Commerce with the view to guiding individuals participating in the import and export of global trade on a daily basis.
Different practices and legal interpretations between traders around the world necessitated a common set of rules and guidelines. As a response, ICC published the first Incoterms® rules in 1936 and has been maintaining and developing them ever since.
After the introduction of Incoterms® in 1936 the first revision occurred in 1957 and thereafter in 1967, 1974, 1980, 1990, 2000 and 2010. The latest version of Incoterms® has become effective globally from January 1.
The flow of work orders into Bangladesh’s garment factories is yet to dry up as the manufacturers are still capable of catering to orders with their stock of raw materials, Munshi said.
“It is a matter of pleasure that the workers in China have started to return to factories defying the fear of coronavirus.”
China is the main source of fabrics and other raw materials for the country’s garment sector that rakes in 84 per cent of the country’s total export receipts.
Many factory owners in Bangladesh have been running their units with their old stock of raw materials and now they are looking forward to the return of normalcy in the supply chain.
Regarding the massive amount of money laundering through over-invoicing and under-invoicing, the minister said he does not have the accurate data of capital flight from Bangladesh through trade to take punitive actions.
The minister also said Bangladesh has been following all international trade tools for its export and imports.
Incoterms (International Commercial Terms) rules are one of them. The rules, which are internationally accepted standards, define the responsibilities of sellers and buyers for delivery of goods under sales contracts.
“As Bangladesh’s trade is expanding every year, the practice of Incoterms® 2020 will be essential,” Munshi said.
Bangladesh’s export earnings in 2019 was $39.33 billion, up 0.20 per cent year-on-year. Import payment in 2019 was $59.09 billion, down 2.31 per cent from the previous year.
Global economic growth has given most businesses greater access than ever before to markets all over the world, said said Mahbubur Rahman, president of the Bangladesh chapter of the International Chamber of Commerce (ICC-B).
“As a result, goods are sold today in more countries, in larger quantities, in greater variety, and at a faster pace.”
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