Do you intend to establish an organic vegetable export business in Bangladesh? If so, keep reading to find out how to export vegetables from Bangladesh.
The export potential of organic products has experienced significant growth in recent years, driven by the global trend towards health consciousness. This trend has prompted many Indians to engage in the export of vegetables from Bangladesh to more than 40 different countries, primarily due to Bangladesh’s substantial organic export potential.
Given the critical role of agriculture in developing and densely populated nations like Bangladesh, the government has prioritized enhancing existing agricultural infrastructure, leading to various noteworthy discussions.
| Concerted efforts to enhance the country’s export potential have positioned Bangladesh as a key supplier of organic vegetables to more than 41 countries worldwide. |
Export of Organic Products: Challenges and Opportunities
Let’s delve into the challenges and opportunities associated with organic farming in Bangladesh.
Challenges in Bangladesh Vegetable Export Business
- Rise in the frequency of natural disasters due to climate change:
The increased occurrence of natural disasters linked to climate change poses a challenge to agriculture in Bangladesh.
- Media campaigns emphasizing the use of chemical fertilizers for better yields:
Influential media campaigns promoting chemical fertilizers for enhanced yields have posed challenges to the adoption of organic farming methods.
- Availability and accessibility of chemical fertilizers and pesticides:
Chemical fertilizers and pesticides are more readily available compared to natural manure, creating a hurdle for the adoption of organic practices.
- Smallholder farmers prioritizing short-term benefits:
Farmers, particularly smallholders, often focus on maximizing short-term benefits in crop farming, impacting the shift towards organic practices.
- Lower production per unit area due to water shortage:
Water scarcity contributes to lower production per unit area, presenting a challenge for organic farming.
Opportunities in Bangladesh Vegetable Export Business
- High foreign demand for organic rice:
There is a significant international demand for organic rice, presenting a lucrative opportunity for Bangladeshi farmers.
- Suitable land and climate for year-round organic farming:
Bangladesh’s favourable land and climate conditions allow for year-round organic farming, providing a conducive environment for such practices.
- Rampant soil degradation encouraging the shift to organic farming:
Widespread soil degradation has facilitated the convincing of farmers to transition to organic farming methods.
- High government contribution for sustainable infrastructure:
The government’s substantial investment in creating sustainable socio-economic and ecological infrastructure supports the growth of organic farming.
- Availability of sufficient labor at reasonable wages:
Bangladesh benefits from an ample supply of labor at reasonable wages, facilitating the labor-intensive nature of organic farming.
| Popular organic products exported from Bangladesh include cabbages, cucumbers, tomatoes, coriander leaves, brinjals, and lady’s fingers. |
Requirements for Export Vegetables From Bangladesh
Requirements for Exporting Vegetables From Bangladesh
- Legal Business Entity:
The exporter must be an established and legal business entity in Bangladesh.
- Tax Registrations and Licenses:
The exporter should possess valid tax registrations and other licenses, including a Trade License, TIN (Tax Identification Number), and VAT Certificates.
- Active Bank Account:
An active bank account from which transactions can be made is a prerequisite for exporters.
- Export Registration Certificate:
To export vegetables or any organic products, the exporter must obtain an Export Registration Certificate from the Chief Controller of Import and Export.
- Registration with Export Promotion Bureau:
Prospective exporters need to register under the Export Promotion Bureau and obtain a license from the relevant Sector Association.
- Identification of Foreign Buyers:
After obtaining the necessary certifications, exporters should actively seek interested foreign buyers.
- Additional Certification and Registration:
Depending on the specific vegetable product and the importing country, further certifications and registrations may be required.
- Shipping Agent Selection:
Once ready to export, the exporter must finalize a shipping agent who will facilitate the transportation of the goods.
- Custom Clearance Documents:
Acquiring necessary custom clearance documents from Clearing and Forwarding Agents is crucial to ensuring a smooth export process.
- Compliance with Import Regulations:
Interested exporters must thoroughly review the regulations of the importing nation to ensure compliance with specified labeling and packaging requirements.
Exporting Vegetables from Bangladesh
- Target Markets:
The majority of organic products exported from Bangladesh find their way to the European Union (EU) or the Middle East.
- Commonly Exported Organic Products:
Some of the frequently exported organic products include:
– Gourds
– Beans
– Chilli
– Papaya
– Leafy vegetables
- Export Procedures for the Middle East:
To export to the Middle East, exporters must adhere to the procedures outlined in HS code 07. Notably, exceptions to this rule include the codes 0701 and 0710-0713.
- Phytosanitary Certificate:
In addition to basic requirements, the export of organic vegetables necessitates a Phytosanitary Certificate, ensuring compliance with plant health standards.
- Horticultural Product Registration:
Organic products must have horticultural product registration from the Department of Agricultural Extension, emphasizing their compliance with agricultural standards.
- Certificate of Origin for the Middle East:
Exporting vegetables to the Middle East requires a Certificate of Origin, a crucial document for securing exemptions from import tariffs at Customs.
- Exporting to the EU:
– Engagement in Contract Farming: Exporters targeting the EU must adopt contract farming methods to ensure a consistent supply of fresh vegetables.
– GSP Certificate: To secure duty-free access, exporters must obtain a Generalized System of Preferences (GSP) Certificate from the Bangladeshi Export Promotion Bureau.
By following these specific procedures and obtaining the necessary certificates, Bangladeshi exporters can navigate the complexities of international trade and enhance their access to markets in the EU and the Middle East for organic vegetables.
What Are the Legal Requirements to Export Vegetables From Bangladesh?
- Membership Certificate from the Dhaka Chamber of Commerce and Industries
- Export registration certificate
- Vegetable and fruit production contract
- BFVAPEA membership certificate from the relevant sector’s association
- Horticultural products exporter registration
- Enrolment certificate from the export promotion bureau
- Agreement with clearing and forwarding agent for customs handling
- Airway Bill
- Gate Pass
- Final custom clearance after inspection and verification
Sanitation and Health Certificates Required to Export from Bangladesh
- Pest-free certificate
- Phytosanitary certificate
- Certificate of Origin
- Certification for organic products
- Health certificate indicating MRLs
- Radiation certificate
- Other specified documents if applicable
Tips to Obtain Export Orders for Vegetables From Bangladesh
- To establish a thriving business exporting vegetables from Bangladesh, you need to be able to generate enough buzz and get export orders.
- Market your products effectively through online campaigns to capture foreign interest.
- Launch a quality website and list all your products and their quality certificates to make it easy for interested buyers to contact you.
- Ensure you improve your SEO and maintain a steady blog to reach out to as many people as possible.
- Push and market your organic products via social media platforms like Twitter, YouTube, LinkedIn, and Facebook as well.
- Push to send samples, especially in the beginning to gain the trust of your buyers and assure them of your product quality.
- Attend trade fairs, exhibitions and farmer’s markets to exhibit your product and attract foreign buyers.
How Vakilsearch Can Assist?
Vakilsearch can provide valuable assistance in various aspects of your business operations, particularly in the context of incorporating your business overseas and navigating the legal landscape. Here are ways in which Vakilsearch can assist you:
- Incorporation Support:
Vakilsearch can guide and assist you in the process of incorporating your business overseas. This includes providing information on legal requirements, helping with documentation, and ensuring compliance with regulations.
- Licences and Certificates:
The team at Vakilsearch can help you obtain all necessary licenses and certificates required for your business operations, streamlining the process and ensuring compliance with relevant regulations.
- Annual Returns and Income Tax Filings:
Vakilsearch can assist you in filing the necessary annual returns and income tax returns in Bangladesh, ensuring that your business fulfils its financial and regulatory obligations.
- Legal Compliance:
Our team of experts can support you in maintaining legal compliance for your business in both India and Bangladesh. This includes staying updated on regulatory changes, ensuring documentation is in order, and addressing any legal compliance concerns.
- Documentation Assistance:
Vakilsearch can assist you in preparing and managing all necessary documentation to ensure that your business remains compliant with the laws of both India and Bangladesh. This support covers various aspects of business documentation and legal requirements.
FAQs
Which vegetables are popular for export from Bangladesh?
Bangladesh is known for exporting various vegetables, with popular choices including potatoes, onions, garlic, ginger, and green chilies. These items are in demand due to their quality and taste, making them sought-after commodities in international markets.
Do I need any special licenses or permits to export vegetables?
Yes, exporting vegetables from Bangladesh requires obtaining necessary licenses and permits from relevant authorities. These may include an Export Registration Certificate (ERC) and a Phytosanitary Certificate. Ensuring compliance with these regulations is crucial for a smooth and legal export process.
What are the financing options available for vegetable exporters in Bangladesh?
Vegetable exporters in Bangladesh can explore financing options such as trade finance, export credit, and loans from financial institutions. The Bangladesh Bank and specialised banks offer support schemes for exporters. Additionally, understanding international trade financing mechanisms can be beneficial for securing financial assistance.
What kind of documentation is needed for international vegetable shipments?
International vegetable shipments require essential documentation, including a commercial invoice, packing list, bill of lading, certificate of origin, and phytosanitary certificate. Adhering to international standards and regulations is crucial to facilitate smooth customs clearance and ensure the quality of exported vegetables.
How can I stay updated on international vegetable market trends and regulations?
Staying informed on international vegetable market trends and regulations is vital for success. Utilise resources like industry publications, market reports, and global trade organisations. Engaging with trade associations and attending international trade fairs can also provide valuable insights into evolving market dynamics and regulatory changes.
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