Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Bangladesh's import revenue from United States-origin goods fell by 11.41 per cent in the just-concluded fiscal year 2024-25, largely due to a government tax waiver on Liquefied Natural Gas (LNG) -- the country's second-largest import item from the US.
According to data from the Bangladesh Customs, analysed by The Financial Express (FE), both the quantity and value of US imports declined in FY25, leading to a drop in overall tax receipts.
In FY25, the National Board of Revenue (NBR) collected Tk 13.27 billion in import duties from over 1,200 US-origin items, down from Tk 14.98 billion the previous fiscal year.
The data, shared with the Ministry of Commerce ahead of upcoming negotiations with the Office of the United States Trade Representative (USTR) in Washington, shows that while import volumes decreased, revenue losses were primarily driven by policy decisions, especially the LNG duty exemption.
In FY24, Bangladesh collected Tk 1.05 billion in import duties from US-sourced LNG, which carried a Total Tax Incidence (TTI) of 22 per cent. This revenue was wiped out in FY25 after the tax exemption was introduced.
Meanwhile, revenue from US-imported motor cars stood at Tk 831 million, with a steep TTI of 212 per cent. Other top revenue-generating items included ferrous waste and scrap, contributing Tk 2.57 billion in FY25, up from Tk 2.36 billion a year earlier.
One notable increase came from the import of textile raw material -- artificial filament tow of cellulose acetate -- yielding Tk 1.27 billion in FY25, with a TTI of 58 per cent. Almond imports generated Tk 701 million, with a TTI of 58.6 per cent.
Among the top import items from the United States are vehicles, station wagons (CBU), petroleum oils and oils obtained from bituminous minerals (crude), diesel-electric locomotives, semi-bleached or bleached coniferous chemical wood pulp, soda, walkie-talkies, optical media incorporating computer software, artificial filament tow of cellulose acetate, ethylene-alpha-olefin copolymers, diagnostic or laboratory reagents, and polyethylene with a specific gravity of 0.94 or more, according to the FE analysis based on Bangladesh Customs data.
Overall, Bangladesh imported 3.44 million tonnes of US goods worth Tk 282.95 billion in FY25, down from 3.51 million tonnes worth Tk 307.06 billion in FY24.
A senior customs official told FE that import taxes from US goods constitute only a small portion of total revenue, noting that the FY25 budget offered tax waivers on 110 US goods, and cotton, a major US export, was already exempted for all countries.
Commenting on the upcoming trade talks, Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said Bangladesh remains unclear on USTR's exact conditions.
"However, the existing 37 per cent tariff will have a negative impact on our apparel exports," he warned.
Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said tariff issues were not the central concern in US-Bangladesh trade negotiations. "The government had limited room for a reciprocal negotiation -- it's more complex than just tariffs," he said. He cautioned against rushing into any economic partnership agreement without a thorough assessment of its implications.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, echoed similar concerns, noting the government's preparation was inadequate.
"We lack the data and evidence needed to convince the USTR. Apparel exports to the US could fall by as much as 25 per cent in the next six months," he added.
doulotakter11@gmail.com