Shipping guide from China to Bangladesh

China and Bangladesh share a significant trade relationship, with imports from China totaling US$24.1 billion. If you're a business looking to ship goods from China to Bangladesh, it's important to understand the customs procedures, import tariffs, and necessary documentation. This essential guide will walk you through the key aspects of shipping to Bangladesh and help you navigate the process smoothly.

Import tariffs, taxes, and duties in Bangladesh

When shipping goods to Bangladesh from China, understanding the applicable import tariffs, taxes, and duties is crucial. Most products such as general input items, basic raw materials, and intermediate and finished goods are subject to tariffs ranging from 5% to 25%. As Bangladesh has granted Most Favoured Nation (MFN) treatment to China, Chinese businesses enjoy a more favourable MFN tariff rate of 14%. But do note that there are higher rates for agricultural products as compared to industrial businesses.

Major imports from China typically exempt from tariffs include:

• Generators
• Information technology equipment
• Raw cotton
• Textile machinery
• Certain types of machinery utilised in irrigation and agriculture

Other imports exempt from tariffs that could represent export opportunities for Chinese businesses include:

• Information technology equipment
• Animal feed for the poultry industry
• Certain drugs and medical equipment
• Raw materials imported for use in specific industries 

Bangladesh offers concessions for the import of capital machinery, equipment, and specified inputs, making the determination of tariff rates a complex process. Additional charges on imports include a 5% advance income tax, a value-added tax ranging from zero to 15%, and a supplementary duty ranging from zero to 500% on luxury items such as cigarettes, alcohol, and perfume. 

Excise duties on locally produced goods and services have been abolished, except for specific cases such as taxes on banking services based on account balances and defined levels, and certain taxes apply to airline tickets. Familiarise yourself with the specific tariff rates and supplementary duties to ensure there is no delay in time for your goods to clear customs.

Restricted and prohibited items

1. China

China enforces an Export Control Law which places limitations on the export of specific categories of goods and commodities. These primarily encompass nuclear products, military items, and dual-use goods.

Under China's Export Prohibited and Restricted Technology Catalog, 33 technologies are prohibited for export unless shippers have a government licence. Notable technologies within this list encompass:

• Telemetry coding and encryption software or hardware
• Artificial intelligence
• Cryptography and security technology
• Advanced defence technology

2. Bangladesh

Bangladesh has regulations in place regarding the importation of certain goods for religious, social, health, or economic policy reasons. Prohibited items include illegal drugs, materials that would offend religious sensitivities, certain agricultural products and various types of reconditioned equipment. 

Additional items are restricted for various reasons, such as religious, social, health, security, or trade considerations. Importing abandoned ships (scrap vessels), for example, requires certification and a declaration stating that toxic or hazardous waste is not being transported. Some goods, such as milk, dairy products, edible oil, vegetable seeds, grains, and other food products, require mandatory nuclear radiation tests. Compliance with these restrictions and obtaining the necessary certifications and permissions is essential before shipping your goods from China to Bangladesh.

Essential import documents

To facilitate the smooth shipping process from China to Bangladesh, several essential documents must be submitted along with the declaration for all types of imports.

Below is a list of documents that businesses commonly require for exporting from China:

• Export licence
• Commercial invoice
• Packing list
• Certificate of origin
• Bill of exchange
• Insurance certificate
• Purchase order or letter of credit
• Customs bond
• Customs entry documents
• Additional certificates from partner government agencies, particularly for special goods like food items, cosmetics, or electronics.

Documents required by Bangladesh customs include:

• The Letter of Credit (L/C)
• Invoice
• Bill of Lading/Air waybill/Truck Receipt/Railway Receipt
• Packing list
• Country of Origin Certificate (except for coal and export-oriented garments industries)
• Insurance policy/cover note
• Value-added tax (VAT)/ Business Identification Number (BIN) Certificate. 

Proper documentation is crucial for customs clearance, so ensure all required documents are prepared accurately and submitted on time.

Labelling and packaging requirements

Complying with labelling and packaging requirements is essential when shipping goods to Bangladesh from China. The shipment box’s exterior should bear the consignee's name and port marks should be numbered according to the packing list, and boxes weighing over one tonne must have the gross weight written on the top and two sides. 

Imported goods, including shipping boxes, are prohibited from displaying any religiously sensitive words or inscriptions that could offend the religious beliefs of Bangladeshi citizens. Furthermore, imported goods should not contain obscene pictures, representations, writing, or inscriptions.

All goods must prominently display the country of origin in large indelible letters, preferably in English, on the label or shipping box. Certain products, such as drugs, pharmaceuticals, pesticides, insecticides, chemicals, milk, baby food, and food products, are subject to special marking or packing regulations. Pesticide containers, for example, must indicate chemical contents, manufacturer's name, net weight, and provide instructions for safe handling and use. Adherence to these requirements ensures compliance and facilitates smooth customs clearance.

Ship from China to Bangladesh with ease