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Entrepreneurs trying to start a new export business face numerous obstacles at every step of collecting the documents necessary to start a new export venture.
From the banks to the government offices, everywhere they face harassment while trying to obtain the necessary documents and clearances.
Md Hasanuzzaman, the owner of HZ Trading, became interested in export business after sending fruits to Malaysia through one of his relatives.
In 2019, he bought 1,600 kg mangoes and 200 kg jack fruits from Jashore and delivered the fruits in Dhaka to the relative who later exported the fruits.
Making a lucrative profit of Tk 1 lakh from the venture, Hasanuzzaman became enthusiastic about the export business.
At first, he obtained an exporter license from Jashore municipality where he was forced to pay Tk 3,000 extra in addition to the government-fixed fee.
He then collected his business identification number (bin) and tax identification number (tin) which were necessary for export business.
To start his own export business, Hasanuzzaman then needed the membership certificate of a business association. He became a member of a traders’ association where he was forced to pay Tk 3,600 in addition to the membership fee.
After collecting the membership certificate, he needed the export registration certificate (ERC) provided by the Export Promotion Bureau (EPB). To obtain the EPB clearance, he was forced to pay Tk 4,000 more in addition to the government-fixed fee.
Hasanuzzaman then needed an export permit from any bank to start his own export business. But he was refused by two banks when he tried to obtain the permit as he was not an established businessman with good connections.
However, he finally succeeded in obtaining the permit from the third bank he approached.
In this whole process of collecting the documents needed for starting the export business, the entrepreneur had to spend more than Tk 50,000.
Like Hasanuzzaman, new entrepreneurs have to face one after another hassle to collect the documents necessary for starting an export business.
According to the World Trade Organisation (WTO), Bangladesh’s export business will decrease by nearly 14 per cent by 2027 due to the impact of the LDC graduation in 2026.
“For sustaining the export business in the future, Bangladesh needs to focus more on environment-friendly products, turning the manufacturing factories into green factories,” said Md Mirza Nurul Ghani Shovon, president of the National Association of Small and Cottage Industries of Bangladesh.
“It is high time to provide more policy support to CMSME manufacturers in order to expand the country’s export basket,” he said.
“I have brought many reforms for controlling illegal transactions in the IRC and ERC process, if we get any allegation we will take departmental action as the law,” claimed Md Masudul Mannan, controller, Office of the Chief Controller of Imports and Exports, Dhaka.
In reply to a query over why the banks are reluctant to provide export permits to aspiring exporters, Senior Principal Officer of Bangladesh Krishi Bank Md Mosharraf Hossain said, “It depends on the relationship between the customer and the bank. Sometimes the businessmen do not bring all the necessary documents.”
Contacted, Mohammad Jahir Uddin, secretary of the Small and Medium Enterprises Owner’s Association of Bangladesh, denied the allegation of taking extra charges from new members.
He said, “A few years ago, we sacked an employee after being involved in an illegal transaction. If we get any allegation then we take necessary steps.”
In order to expand the country’s export basket, the government should carry out market research for the manufacturers; so that the exporters can get their expected buyers, traders said.
Most of the CMSME traders do not know how to communicate with foreign buyers and showcase their products in the international market, said the manufacturers.
“The small and medium traders and manufacturers want a one-stop service for avoiding harassment in every step of the trading,” said Ali Zaman, president of the Small and Medium Enterprises Owner’s Association of Bangladesh.
