China has granted zero-duty benefit for 97 per cent of the country's export items, a development that might provide some respite to exporters who are struggling to remain afloat amid a plunge in orders from Western buyers.
The State Council of Ministry of Finance of China made the announcement by including 5,161 more Bangladeshi products in the Chinese market with zero-duty benefit.With the announcement, which will come into effect from July 1, a total of 8,256 Bangladeshi products will come under the 97 percent of products that would be exempted from tariff.
Bangladesh described it as a success of its economic diplomacy.
"We are glad to inform that as part of our economic diplomacy and the consequent outcome of exchange of letters between Bangladesh and China, Tariff Commission of the State Council of Ministry of Finance of the People’s Republic of China issued a notice on granting zero treatment to 97 percent of tariff products of Bangladesh," said an official at the Ministry of Foreign Affairs.
He said Bangladesh is getting this as an LDC.
This treatment is in addition to the preferential duties that we are already enjoying from China under Asia - Pacific Trade Agreement (APTA).
This announcement opens doors for Bangladeshi exporters to enjoy zero tariff for 5,161 items to enter into Chinese markets from July 1.“According to China’s commitment to zero tariff treatment for 97% of the tax products of the least developed countries that have established diplomatic relations with China,” said a notification issued on June 16 from the Ministry of Finance of China.
According to the exchange of letters between China and Bangladesh, since July 1, 2020, for 97% of the tax products originating in Bangladesh, the preferential tax rate of zero shall be applied, it reads.