SAT Desk
The effective tariff rate on the export of garment items from Bangladesh to the USA will be 36.5 percent, which includes a 20 percent reciprocal tariff and an existing 16.5 percent, said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), yesterday.
At a press conference held at the BGMEA office, he also mentioned that Bangladesh will enjoy a reduced tariff if 20 percent of the raw materials used in garment production are sourced from the USA.
For instance, if 20 percent of the cotton used in garment production is sourced from the USA and the finished products are then exported to the USA, the tariff will be reduced based on the value of the US cotton used, he explained.
Currently, 75 percent of the garments exported from Bangladesh are cotton-based items, the BGMEA president added.
Meanwhile, Commerce Adviser SK Bashir Uddin has stated that the information regarding the trade agreement, following negotiations with the United States, will be released after the agreement is signed, subject to the consent of the United States.
