We are experiencing the emergence of a new generation of small and medium-sized import-based enterprises across the nation as a direct result of the rising standard of living as well as the growing need for innovative products and designs.
Given the complicated nature of the import sector, this is essential guidance for beginners who are just getting their feet wet in the industry for the first time. Another essential component is having a solid grasp of both the product and the nature of the business itself.
Purchasing and selling goods and services across international borders is the essence of the export-import industry, sometimes referred to as international trade. It is an essential component of the global economy because it facilitates the trade of goods and services between nations, which in turn encourages the expansion and growth of economies around the world. Over the course of the last few decades, Bangladesh has achieved great headway in the field of international trade, becoming one of the South Asian nations with the most rapidly expanding economies.
Report of Export Promotion Bureau
The government of Bangladesh has been actively exploring prospects for exports and imports in an effort to boost the country’s commercial and investment climate. Because of this, foreign direct investment (FDI) has increased, reaching over $3 billion in the fiscal year 2022. The nation has also been striving to enhance its infrastructure, such as by creating ports, highways, and bridges, in order for it to be more competitive on the world market. This is being done in order for the nation to be more prosperous.
According to the data provided by the Export Promotion Bureau, the value of Bangladesh’s exports for the fiscal year 2021-22 was $52.08 billion, while the value of its imports was $65.48 billion. The majority of the country’s exports consist of ready-made garments, frozen food, leather products, and jute items, whereas the majority of the country’s imports include capital machinery, petroleum products, chemicals, and raw materials for the textile sector. Exports account for more than 80 percent of Bangladesh’s gross domestic product, with the ready-made apparel industry accounting for the vast majority of those exports.
Why is export-import a good way to run a business?
As a result of the rise of globalization and the expanding interconnectedness of the world, export-import businesses are more significant and relevant than they have ever been. Participating in the export-import sector can result in a multitude of positive outcomes. Choosing an export-import corporation for the following reasons:
Increasing Market Diversity:
Businesses can expand their reach, broaden their customer base, and lessen their reliance on a single market by investing in export and import activities. This can provide a reliable stream of income and reduce the impact of market fluctuations.
By entering new markets, businesses have the opportunity to boost their sales and revenues, which in turn can assist them in growing and expanding their operations. In addition, businesses can establish a global market for their products and boost their profit margins by exporting their wares to other countries.
More Successful Economies of Scale:
Companies can take advantage of economies of scale, which can help them cut costs and boost efficiency, by exporting their goods and services to other countries. This can help them cut their prices, which in turn makes their products more accessible to people on a budget.
Most products produced or imported into Bangladesh have trade groups that support newcomers. The Bangladesh Frozen Food Exporters Association (BFFEA), Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), Bangladesh Jute Goods Exporters Association (BJGEA), Bangladesh Garment Manufacturers & Exporters Association (BGMEA), Bangladesh Fresh Fruits Importer Association (BFFIA), Bangladesh Chemical Importers & Merchants Association (BCIMA), and others represent different sectors of the Bangladeshi economy. With these groups, business entrepreneurs can keep going despite all the hurdles they’ve faced.
How To Establish An Export-Import Company In Bangladesh
Market analysis and research
Businesses in Bangladesh benefit greatly from scarcity. A product’s demand can be boosted, and it can be imported and sold. A wide variety of goods, including food, construction materials, raw materials for industries, machinery, transportation equipment, televisions, air conditioners, ovens, refrigerators, and other household appliances, mineral oils, edible oils, fats, chemicals, medicines, food grains, baby food, soft drinks, and many more are imported into Bangladesh. You can bring them in and sell them domestically if they don’t interfere with or fail to meet the needs of the local market.
In the past, the only items that could be sold abroad were clothing, jute, leather, and tea. These days, even antiquated items might be shipped to bring in some extra cash. The export of fresh and dried fish is possible, as is the export of frog legs, crabs, shrimp, butternut squash seeds, betel nuts, vegetables, fruits, coconut husks, and tree roots.
Analyzing the competition is also essential. It’s more important to know who your customers are than who your competitors are. Export-import relies heavily on domestic and international market competition. If your product is truly unique, you’ll have a smaller pool of competitors from which to gather information about how to best serve your customers. If your product isn’t revolutionary, you may still use target market research to gauge the company’s longevity by looking at how well it fits consumer needs.
In order to start an export-import business in Bangladesh, you must adhere to a number of legal restrictions. You should keep up with the most recent laws and regulations because it’s crucial to recognize that these legal requirements vary over time. Additionally, you must get qualified legal counsel to make sure that your company complies with all applicable national laws. The essential paperwork you’ll need to run an export-import company in Bangladesh is listed below.
- Business Registration
- Import and Export Licenses
- Labor Law Compliance
- Tax Identification Number
- Customs Clearance
Depending on the nature of your export-import business, you may also need a fire service license, an environmental clearance certificate, a membership certificate from a relevant group, etc. Keep your paperwork up to date at all times in case law enforcement has any questions.
Sourcing and Procurement
A successful export-import business must place significant emphasis on sourcing and procurement. You may improve your ability to efficiently manage the sourcing and procurement process by following these steps:
You need to find suppliers who can offer the appropriate products at the appropriate pricing and with the appropriate level of quality. You can find suppliers through a variety of channels, such as online directories, trade exhibitions, and professional organizations in your field.
Contractual Discussion and Negotiation:
After you have located a potential provider, the next step is to discuss the terms of any contracts that will govern the supply, payment, and delivery of the goods. It is essential to have a comprehensive comprehension of the skills that the supplier possesses, which may include lead times, production capacity, and quality standards.
Taking Control of the Supply Chain
You are responsible for managing the entirety of the supply chain, from the procurement of raw materials through the production of finished goods and their distribution to end users. This requires communication and coordination with several parties, including freight forwarders, customs agents, and suppliers.
Keeping an Eye on the Quality:
In a business that deals in both exporting and importing, quality is an essential consideration. You have an obligation to keep an eye on the quality of the items your suppliers send you and to check that they are up to the standards of excellence expected by your end users.
You need to have an efficient system in place for managing your inventory in order to guarantee that you have sufficient supplies of the items your consumers desire. In order to maintain track of your inventory levels and manage goods in an effective manner, it is possible that you will need to put inventory management systems and processes into place.
The cost of your items may be affected by sourcing and procurement decisions. You need to have an efficient system in place for managing your costs if you want to be able to provide your clients with pricing that are competitive. If you want to bring down the expenses, you could need to haggle with the suppliers or look at other choices for sourcing.
These procedures will help you manage the sourcing and procurement process in your export-import firm and get the correct products at the right price and quality.
Logistics is crucial to export-import success. Logistics management involves a clear supply chain, cautious carrier selection, and precise record-keeping. Freight forwarders manage shipping, customs clearance, and paperwork. Inventory management involves tracking inventories, orders, and shipments. Real-time shipment tracking is essential for monitoring location, delivery time, and issues. By regularly reviewing and changing its logistics, the export-import organization can meet their changing needs.
Logistics of Shipping for International Trade
Bangladeshi ports are the main international commerce hubs. Air freight replaces maritime freight for perishable goods. Importers usually receive items from their own agency or a freight forwarder. Common, non-hazardous products like soap, leather, and clothing are packaged generically. Chemicals, gas oil, and other hazardous materials must be shipped in IMDG containers. Temperature-sensitive commodities must be shipped in reefer containers. The freight forwarder gives the container to port officials after completing documentation. The shipping agency subsequently gives the shipping line the bill of lading and Chamber of Commerce exporter origin certificate. The importer utilizes these to clear customs and receive delivery.
Sales and Marketing
Marketing your products requires knowledge of target market trends and preferences. Create a marketing plan that reaches your target demographic and highlights your products. Influencer marketing, email marketing, social media, and advertising should be used together. Today’s digital world requires a respectable website and active social media pages. Networking can also help you build export-import contacts. Attend trade shows and conferences to meet industry peers and suppliers.
Once you’ve found your perfect client, low prices and several payment options will set you apart and attract more business. Excellent customer service can also build a solid reputation and loyal customers. Respond promptly and professionally to customer inquiries and complaints.