7 Facts About the ceramics industry of Bangladesh.

All posts by Zuhayr Umran

7 Facts About the ceramics industry of Bangladesh.

Ceramics Sector is one of the rapidly Growing Sector of Bangladesh. The major products are Tiles, sanitary ware, Tableware .This Sector has seen some strong outside investments particularly From UAE and China. The main problem of this sector is He said the entire ceramics industry has to rely on import for raw materials, mostly from China, which is the main competitor of Bangladesh.

7 Facts About the ceramics industry of Bangladesh.

  • Bangladesh Ceramics is exported to 45+ Countries
  • The Export of ceramics in 2011-2012 are 33.75 Millions
  • Total Sector investment is 3000 crore , Local market size 1500 Crore
  • Bangladesh exports two types of ceramics Porcelain and Bone China
  • Largest Export Destinations:USA, Italy, Spain, France,New Zealand,Netherlands, Australia, Sweden
  • There are 21 Ceramics Unit Throughout the country.
  • Some White Clay Deposits have been discovered in Mymensingh,Sylhet and Netrokona.

L/C or T/T which one the Bangladesh Suppliers/Manufacturers Prefer

In any business be it in Retail, Wholesale or Export the most sensitive point is payment and how it will be disbursed. Around 90% of new business deals fell through because of agreement on Payment terms. However, this is more so, critical in Wholesale and even more in export transactions.

L/C of letter of credits put simply is a Bank Guarantee of payment upon displaying supporting documents as proof of sending the product to the buyers. Here the deal is done between the exporters and importers banks on behalf on their clients. All terms are agreed in written documents and discrepancies in submission will mean the Bank will not disburse the fund until correction.

T/T or Telegraphic transfer or telex transfer, often abbreviated to TT, is a historic term used to refer to one of the form of exchange of money which happens in some of the countries for ex (uk). A transfer charge is often charged by the sending bank and in some cases by the receiving bank.(Wiki). In the Simplest way, T/T means sending the money to the sellers account before the Shipment happens or Advance Payments.

The Main Benefits of L/C are:

For Sellers:

  • After Documentation the L/C is Irrevocable (unless otherwise mentioned, so,as long as seller does his part right , payment is assured from Bank
  • The seller will get proper specifications of product, quality standard and specific shipment Date.
  • The opportunity to get financing in period

For Buyers:

  • The Buyer can control the time period for Shipping of goods.
  • By a letter of credit, the buyer demonstrates his solvency;
  • Helps to avoid Pre-payment

In most international Import Payment, L/C is used for the security it brings for Buyers and sellers. However, In Bangladesh, T/T is the most preferred by the manufacturers and exporters.

Reasons Are:

  • Usually, for manufacturing Goods, a procurement of raw materials are involved. Most small manufacturers does not have the free cash to procure it. And for small orders or Small companies the banks aren’t willing for advance payment or Partial encashment of L/C
  • To get advance from bank an additional interest will need to be paid.
  • Without proper Financial Backing or transactions a Bank will not open L/C for the company
  • For Products where Buyers are Few yet Product supply is scarce and Controlled by few , then the Seller Himself may will want Advance TT
  • In general, L/C process is lengthy and most exporters wants to avoid it entirely for the hassle.

In Bangladesh, T/T and L/C both are widely used, it mainly depends on the scenario. T/T is a must even as a partial advance from most Manufacturers. Some will even want 100% of it as advance. L/C is used mostly the big companies and the Medium Size Enterprises that has a strong commercial department. However, T/T senders will likely have a strong bargaining power over the suppliers as the payment is received as advance. However, without a strong representative it is usually not advised to send T/T unless you are confident about the entire transaction.

7 facts you should know About Bangladesh Jute Industry?

Jute and Jute Made Products are a part of the Bangladesh Culture. Fondly called the “Golden Fibre”, in the past this sector were the primary Export products of Bangladesh. It still plays a Pivotal Role in Bangladesh Economy. Bangladesh exports 0.46 million (4.60 lakh) of Global Demand of 0.75 Million Jute Goods. Bangladesh has also the Patent of “Jute genome” or the patent holder of Jute DNA Structure formula.The Jute goods Market is worth which is worth 20.125 Million USD approx.

A number of Jute Goods manufacturers are Active in Bangladesh. Jute Fibre can be compressed and crafted into Consumer Products like fashionable bags, School Bags, Wine Bags, Wallets, Toys, Accessories, and Footwear etc. Also Jute is used to craft Socks, Sacks, hessian, Twine, Burlap etc.

7 facts you should know About Bangladesh Jute Industry:

 

  1. At the beginning of the twentieth century, Bengal could boast of only one manufacturing industry – jute
  2. There are 50 private jute spinning mills producing jute yarn/twine under Bangladesh Jute Spinners Association. The collective Production of of this sector is 0.29 million Tons of Jute Yarn/Twine. Exports annually 12 Million US Dollar.
  3. The Average production of Jute Goods are 6,63,000 Metric tons
  4. Jute bags is widely popularized as plastic bag Substitutes.
  5. Most of the New Jute Manufacturers are coming online to Trade.
  6. The Most Sought Jute Consumer Products are Jute bags. On Average a prices of Jute Bags Varies from $1-$8. It may differ depending on quality, Type of Bags, Level of Work etc.
  7. Jute Bags are Biodegradable and Eco-friendly.

 

(Want to see some Jute Goods, Click Here)

 

 

7 Key Facts About Light engineering Sector of Bangladesh

Light Engineering is also known as the “Mother of All Sectors” because this sector provides backward and Forward Linkage supports to all other Industries. The absence of Light engineering Means the Stoppage of Production of al Machine oriented Production. Because Through This Sector Most of the all the other sector receives Maintenance supports for their Machinery. Imagine a Plant being shut down because the machine cannot start without a “Screw or Nut” That needs to import from Japan. This is where Light engineering comes.  52% of the in house demand of Bangladesh are met up by our own Light engineering Companies. The annual Growth rate is almost 30% (Ref)

Some Products Are:

Castings, Spare Parts, Molds, Dices, Light Machinery, Switch, Light Shed, channel, cables, electrical Fans, Bicycle, fancy light fittings, construction equipment’s, battery, voltage stabilizer, carbon rod, automobile spares, electronic items, etc. Bangladesh exports engineering products

And there are many More.

7 Key Facts About Light engineering Sector of Bangladesh:

  • There are approx. 40,000 Small Scale Light Engineering Enterprise
  • Most of these Enterprises are Located in Dhaka
  • Major Importers: China, Japan, Korea, EU, India, Middle East.
  • 10,000 Unique Products are produced by our Enterprises.
  • This Sector achieved a 163.27% oversees export growth in 2012.
  • 6 Million people are involved in this sector
  • Strong Customization capacity makes it a lucrative Market.

 

How Can I Find Bangladesh Suppliers?

Bangladesh Suppliers are world widely popular in the world. It is termed as the “Tiger in the Night” by economist. Bangladesh has achieved a GDP Growth Rate of 7.05 Percent in 2016.This is an all-time High GDP growth for Bangladesh

Bangladesh has outperformed all other Asia Pacific Countries in merchandise shipments. With an annual export worth approx.: 34 billion Dollar. The Target for 2016-2017 is exporting worth of 37 Billion Dollar.

Bulk of the export of Bangladesh Comes from Knitwear and Woven products. However The Leather Sector of Bangladesh is booming as well as the Traditional Export sectors such as Jute and Jute Goods, Agriculture and Frozen Fish Shrimps. New sectors are booming silently such as Engineering Goods, Ceramics, and Cosmetics etc.

The Software and BPO section has shown great promise and a number of companies are opening offices in Bangladesh to outsource services. Current Software Export market is $151.83 million.

Bangladesh is a lucrative country to invest or to import from. However, where can I find the Data? Or a List of Suppliers from Bangladesh.

Here is some Organizations and their links if you are looking to source from Bangladesh.

  • Embassy: Contrary to all we think about embassy. Each embassy of a country is measured by the export they bring to their respective country. Usually, the data collected by Embassy is verified and Authentic. So, if you are an Importer and you want to buy from Bangladesh Seriously, Mail/Call the Commercial Department of Bangladesh Embassy of Your Country. The commercial person will provide you information Support and May even help you to create network with a Supplier.  Ex- Look at this Link of Bangladesh Embassy of Japan.
  • Associations: For most promising sectors, there are Associations who are responsible for the overall development of the sector. These are made collective suppliers and manufacturers are in general has a Detailed List of their Member. If you are a Buyer and Would Like to get the List Just Give Them a Call. Want to Know More, Read this.
  • Government Organizations: There are many Bangladeshi Govt. Organizations that are Directly Responsible for Export Market Development. These are also a Good Source to get Suppliers List. EPB or Export Promotion Bureau of Bangladesh arranges trade show all around the world and main a well categorized supplier List. Want to Know More about this news, Read this.
  •  B2B Business Directory/Marketplaces: Except the above three options , if you want to look at other options then the B2B marketplaces or the Business Directory are your another Option. They have a Huge List of Supplier and Exporters from all categories. More importantly, you can also view the products from this sites and contact the suppliers directly.

 

List of Business Associations in Bangladesh

Bangladesh Garments Manufacturers & Exporters Association (BGMEA)

BGMA is one of the largest and most active associations of Bangladesh. This Association Represents the Garments Industry, the most profitable and Main export product of Bangladesh.

BGMEA Helps:

  •         Developing the RMG Industry of Bangladesh
  •         Protect and Promote the RMG Industry.

What you can get?

Contact Information:

Head Office:

  • Email: info@bgmea.com.bd
  • Web: www.bgmea.com.bd

BGMEA Regional Office

  • BGMEA Bhaban (Level- 4 & 5), 669/E, Jhautala Road, South Khulshi, Chittagong.
  • Tel: 88-031-2867401-10 (PABX)
  • E-mail: info@bgmeactg.org

Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA)

This Association is represents the Knit wear Section of Bangladesh.

What you can get?

BANGLADESH FROZEN FOODS EXPORTERS ASSOCIATION (BFFEA)

What you can get?

Others Associations:

Bangladesh Ceramic & Glassware Importers Association

  • E-mail: bcgia@dhaka.net

Bangladesh Organic Products Manufacturers Association (BOPMA)

Animal Health Companies Association of Bangladesh (AHCAB)

Women Entrepreneur Association of Bangladesh (WEAB):

Bangladesh Frozen Foods Exporters Association (BFFEA)

The ICT Industry Association of Bangladesh / Bangladesh Computer Sanity (BCS)

  • Website: bcs.org.bd   

Bangladesh Association of Software and Information Services (BASIS)

  • Website: basis.org.bd   
  • Has List of Software Companies

Bangladesh Association of Pharmaceutical Industries (BAPI)

Bangladesh Indenting Agents Association (BIAA)

Bangladesh Freight Forwarders Association (BAFFA)

Website: www.baffa-bd.org  

Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA)

Leather goods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB)

Bangladesh Tanners Association (BTA)

  • Website: www.bangladeshtannersassociation.org

Bangladesh Fruits, Vegetables & Allied Products Exporters Association (BFVAPEA)

Website: www.bfvapea.com  

Bangladesh Ship Breakers Association (BSBA)

Website: www.bsba.org.bd  

Bangladesh Jute Mills Association (BJMA)

Bangladesh Jute Spinners Association (BJSA)

Bangladesh Jute Association (BJA)

Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA):

Advertising Agencies Association of Bangladesh (AAAB)

Animal Health Companies Association of Bangladesh (AHCAB)

Association of Travel Agents of Bangladesh (ATAB)

Tour Operators Association of Bangladesh (TOAB)

  • E-mail: toaboffice@yahoo.com / pr@toab.org
  • Website: www.toab.org  

Tourism Developers Association of Bangladesh (TDAB)

Bangladesh Association of International Recruiting Agencies (BAIRA)

Bangladesh Foreign Exchange Dealers Association (BAFEDA)

Bangladesh Insurance Association (BIA)

Bangladesh Insurance Surveyors Association (BISA)

List of Government Organization Supporting Export Industry In Bangladesh?

Ministry of Commerce, Bangladesh

The Wing of the government of Bangladesh that Overseer’s and Supports the Internal and External trade Development. The commerce ministry is the Main Policy Making Authority of Internal and External Commerce in Bangladesh.

http://mincom.portal.gov.bd/

List of Foreign Commercial Officials (AS Per Ministry of Commerce Website)

Bangladesh Foreign Trade Institute

Bangladesh Foreign Trade Institute (BFTI) is a non-profit research and training institution. Founded in 2003, it traces its inception to the concept of public-private partnership (PPP) between the Ministry of Commerce (MoC), Government of Bangladesh and the private sector. Its prime focus is on research, education, training and policy advocacy on international trade-related issues.  The beneficiaries of the institute comprise both the public and private sectors, engaged in trade-related activities.

http://www.bfti.org.bd/

Export Promotion Bureau (EPB)

International Business is mostly dependent on information flow in the present globalize world. Considering the success in export trade, Export Promotion Bureau has a modern and well equipped Trade Information Centre (TIC) in its Head Office Dhaka. TIC has been providing information and services to users since 1965 after its establishment. It is now working as a Centre of Excellence and Knowledge with modern facilities of information technology.

Customs House Chittagong

Chittagong Custom House is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environment, preparation of foreign trade statistics, trade compliance and protection of cultural heritage.

http://chc.gov.bd/imp/

Bangladesh Trade Portal

The Bangladesh Trade Portal is a one-stop point for information relating to export from and import into Bangladesh. Hosted by the Ministry of Commerce, the portal provides an accessible, logical, helpful window for traders to access important regulatory and procedural information needed to export and import.

http://www.bangladeshtradeportal.gov.bd/

Bangladesh Investment Development Authority

Established under Bangladesh Investment Development Authority (BIDA) Act 2016, the Bangladesh Investment Development Authority (BIDA) is the principal private investment promotion and facilitation agency of Bangladesh. The act is created on September 01, 2016.The act mandated BIDA for providing diversified promotional and facilitating services with a view to accelerating industrial development of the country. In addition, the government also entrusted BIDA with some more functions in its service list. This is the Website a Potential Large Importer Must Absolutely Study to  get a Total view Investment Opportunities in Bangladesh.

Website:

http://www.boi.gov.bd/  

5 easy way to shortlist a Bangladesh Supplier?

Today, there are too many marketplaces, too many directories, too many e-commerce sites and too many products. It’s not finding a supplier that is a problem. It is partnering with a RIGHT SUPPLIER that is the main problem. It is easier to find and contact with a supplier around the continent due to the rise of internet. However, how can you really judge a person from around the globe without psychically meeting? More importantly how do you conduct a wholesale Export-Import Business with him.

Chances are:

  • The Organization only exists in the web
  • The company is fake
  • They are not as capable in making the product as they boost on the website.
  • You may be dealing with a Trader rather than Manufacturer.

There is always such risk Factor involved. However, by going through a checklist a percentage of the risk involved can be reduced. The main thing is to judge a supplier before the order through a lance.

  • Online Availability:  Yes, we know, a supplier can be an excellent manufacturer and yet has near zero web literacy. But let’s be frank, in this digital age the best of group spends heavily on internet to showcase products and receive quotations. How are you to judge what type of Products that supplier can make if don’t visit his factory.
        • By Email
        • By What’s app/Snap Chat/WeChat
        • By Skype
        • By Viewing in Website
        • Can quotations be send from the Website directly?
        • Are there Customer List/Testimonials?

The problem is unless a supplier maintains a website or a merchant showroom it is very difficult to verify the products shown. Also, if a supplier owns a functioning website containing Product Description, Contact Info, Company Address, MOQ, and Order Procedure etc. that indicates they mean Business. More Importantly, That means they are open to receive new orders from internet Buyers

  • Enlistment in Directory: It is fairly easy to get a website build for any purpose. However, the real ones are usually get enlisted in Global Marketplaces and Business Directory. Do a search on the Home country’s local Directories or Marketplaces. Here you find the top “B2B Marketplaces of Bangladesh” Are the suppliers in? Does the information’s match?
  • Response Rate: Service and quarry response separates the best from the rest. A real supplier will likely to respond to a quotation quickly with quality Contents.
        • Number of days between Response and Sent
        • Level of Quality and structure
        • Are the information’s what you asked for?
        • Does the Lead Time seems appropriate?
  • Check Export Documentations: Before giving a final order, it’s better to check on some documents. However, It is better to ask for these Only in the middle stage of the deal. Because, most suppliers will not want to give away this things online before you earn their trust

Remember,

“Trust Goes two way, Supplier are also concerned whether You are the Real Deal”

There are too many fake orders now a days. So, most supplier will think the buyer as a “Wanna be buyer” who will send mail, give price and never responds again. So, only ask for documents, when you are sure to give a order.

Common Documents to check are:

        • Company Profile
        • List of Customers
        • Customer Testimonials
        • Export Certificate(Optional)
  • Cross-Check Terms: Double check the requirements of the supplier. The financial terms often will dictate whether the supplier can be partnered with.  A good supplier will have tougher trade terms. So, always check if the Financial Terms matches will the level of quality of the Supplier.Some things you can look through:
  • Are You dealing with manufacturer or trader
  • Size and Business Operations of the Company
  • Which Countries they usually export
  • Are there any known Export Restriction among Exporters Country and Yours.

Ex: A supplier that refused to show his testimonials but asking for 80% upfront. Showing no customer list etc. Ask the customers if they are associated with any buying house. Still, around 80% of procurement in Bangladesh is done through buying house or trading Company. Ask the supplier are they open if they negotiate with the trading company. There is no one way to do this. So, you are still uncertain better back out or have a Third Party Look at it.

Tedfo Express: First Online Guide to Export-Import Business in Bangladesh

Tedfo Express: First Online Guide to Export-Import Business in Bangladesh

Tedfo Express

First Online Guide to Export-Import Business in Bangladesh


Tedfo express is an export hotline for helping people who are interested in doing export import business. More precisely, to help exporters to know how to do export business.

Bangladesh is an export oriented country because of strong agricultural base and huge development of SMEs at rural levels. But due to lack of knowledge and support syetems, the export oriented SMEs are not being able to enter into the export business. As a result, Bangladesh is not being able to reach the desired position in the export business.

On the other hand, the international importers who want to import from Bangladsh do not have sufficient information about the procedure to import from Bangladesh.

Tedfo Express, with a vision to help both the exporters to know about how to do export business and at the same time it will allow them enrich the total export earning from Bangladesh. On the other hand, Tedfo Express will help the international buyers to get to know the import precedure to import from Bangladedsh and as a result alow them to be found by the exporters of Bangladesh.