Businesses for resolving US tariff hurdles within 90-day suspension period

Leading business figures in the country today (13 April) said that non-tariff barriers, including lengthy lab tests and delays in product transportation, alongside tariffs and taxes cause significant obstacles to trade.

They put emphasis on resolving the issue within the 90-day suspension period of the reciprocal tariff imposed by the United States.

"If the issue is not resolved within the 90 days, Bangladesh risks losing the entire apparel export season," Syed Nasim Manzur, a leading businessman and managing director (MD) of Apex Footwear, said. 

He made these remarks at a breakfast meeting held at a hotel in the capital today. The event was organised by the American Chamber of Commerce in Bangladesh (AmCham) to express concerns and present recommendations regarding the US tariffs.

In his keynote speech at the meeting, Nasim Manzur said, "Most of our export products are seasonal. The 90-day deadline will end just when it's time to receive the biggest orders of the year. If the pricing of Bangladeshi products is not settled before then, we risk losing orders for the entire season. This could lead many factories to go bankrupt."

Criticising non-tariff barriers, the Apex Footwear MD said, "Non-tariff barriers have been a topic of discussion for quite some time. We are perhaps the only country in the world where radiation testing is still mandatory for importing food products. There are many other similar issues. These tests lead to a waste of both time and money and ultimately, it is the consumers who bear the burden."

At the meeting, Sharif Zahir, MD of Ananta Group, said, "Even during the three-month suspension, there is still an additional 10% tariff in place. Most buyer companies have asked us to share the burden of this extra 10% duty. If the 37% tariff is reinstated, the situation will become even worse."

He further said, "Our factories operate in such a way that we cannot survive if exports are halted or factories remain closed for three or six months. Therefore, we must make full use of every single day within this 90-day timeframe." He urged that the private sector be included in the decision-making process in this regard.

Abu Mokhles Alamgir Hossain, director of the Export Promotion Bureau (EPB), said that there is no alternative to increasing imports from the United States. He also recommended granting duty-free access to US products in Bangladesh.

Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, "Due to its high quality, we have always preferred to use US cotton. However, compared to our competitor countries, US cotton is more expensive and transportation costs are significantly higher. This reduces our competitiveness. 

"While the United States may not grant us duty-free access, it could offer preferential tariff benefits. The government can negotiate on this matter."

At the event, top executives from two companies that import products from the United States said various tests (such as lab tests) are required during the import process. However, due to the limited number of laboratories, it takes 3 to 4 days to obtain a basic report, and during public holidays, it can take 8 to 10 days. These delays increase both the time and cost of imports.

Belal Hossain Chowdhury, a member of the VAT department at the National Board of Revenue (NBR), said they are working on identifying which additional products can be imported from the United States. 

He said, "Another point that needs to be mentioned is that many products from US-owned companies operating in other countries are imported into Bangladesh. These products are not listed in the US import list. In such cases, if the invoice is issued from the United States as the country of origin, it will increase our import volume."

In his welcome speech, AmCham President Syed Ershad Ahmed called for immediate action regarding the counter-tariff with the United States. 

He said, "Non-tariff barriers are more prevalent in our country than tariff barriers. We can discuss with them (the United States) and propose a balanced settlement, which would help resolve these issues."