Bangladesh set to reduce import duties on over 100 goods to appease Trump: Reports

Dhaka: Bangladesh is set to reduce import duties on at least 100 types of goods with an aim to create favourable ground for negotiations in wake of the additional tariffs imposed by the US, a media report said here.

Chief Advisor Muhammad Yunus's interim government gave a provisional approval to reduce import duties in the forthcoming budget during a meeting with the National Board of Revenue (NBR) on Monday, newsportal bdnews24.com said.

US President Donald Trump on April 2 declared a 10 per cent baseline tax on imports from all countries and higher tariffs on at least two dozen nations, including a 37 per cent on Bangladesh. Trump later announced to suspend the additional tariffs for three months.

Media reports had earlier suggested that garment manufacturers and exporters in Bangladesh were worried about losing their share in the US market. Bangladesh's manufacturers had also claimed that their US buyers had halted orders.

“We proposed zero duties on 100 tariff lines, keeping in mind imports from the United States,” an official present at the meeting told bdnews24.com.

A tariff line, identified by an HS (Harmonised System) code, refers to a specific customs duty rate assigned to one or more similar products, it said, adding, customs duties for imports are determined based on these codes.

“The goods include nearly 15–16 items such as oil, gas, arms, fighter aircraft parts and missiles—products that are typically purchased only by the government or in order to lower the trade deficit,” it said, and added that the officials explained that since such government purchases come under special agreements with duty exemptions, “there’s no risk of revenue loss in these cases.” The meeting also discussed other tax proposals.

Unlike regular years, the budget won’t be discussed in the parliament, but instead, public discussion, talk shows, and reactions will help shape any necessary adjustments, which will later be formalised by passing the ordinance as the Finance Act, the newsportal said.

Monday's meeting was attended by the financial advisor and NBR chairman among others.

Meanwhile, another media report claimed the US has agreed, in principle, to pursue a Free Trade Agreement (FTA) with Bangladesh. Confirming this significant step to newspaper The Business Standard (TBS), Commerce Secretary Mahbubur Rahman hailed it as “a major breakthrough for Bangladesh,” adding, “The US has already requested a draft of the agreement to expedite the process.”

Stakeholders anticipate that such an agreement would grant duty-free access to Bangladeshi exports, notably including its crucial readymade garments (RMG) sector, thereby providing a significant impetus to the nation's exports to the lucrative American market, the TBS added on Sunday.