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Asia-Pacific Research and Training Network on Trade
Working Paper Series, No 62, March 2009
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* Dr. Mostafa Abid Khan is Joint Chief, Bangladesh Tariff Commission (BTC). **Mohammad Farhad
is a Research Associate at the Bangladesh Foreign Trade Institute (BFTI). An earlier version of this
paper was presented by the authors at a seminar organized by BFTI on 4 December 2008. The
technical support of the United Nations Economic and Social Commission for Asia and the Pacific is
gratefully acknowledged. The opinions, figures and estimates are the responsibility of the authors and
should not be considered as reflecting the views or carrying the approval of the United Nations,
ARTNeT, BTC or BFTI. Any remaining errors are the responsibility of the authors. The principal
author can be contacted at abidshaon@yahoo.com
The Asia-Pacific Research and Training Network on Trade (ARTNeT) is aimed
at building regional trade policy and facilitation research capacity in
developing countries. The ARTNeT Working Paper Series disseminates the
findings of work in progress to encourage the exchange of ideas about trade
issues. An objective of the series is to get the findings out quickly, even if the
presentations are less than fully polished. ARTNeT working papers are
available online at www.artnetontrade.org. All material in the working papers
may be freely quoted or reprinted, but acknowledgment is requested, together
with a copy of the publication containing the quotation or reprint. The use of
the working papers for any commercial purpose, including resale, is prohibited.
Contents
Abstract ..................................................................................................................... iii
Introduction.................................................................................................................1
1. Methodology and data issues................................................................................1
2. LDC export profile................................................................................................2
3. Brief description of the DFOF Initiative of the Republic of Korea......................4
4. Potential benefits for least developing countries from the duty-free scheme
of the Republic of Korea……………………………………………….………..4
5. Potential benefits for Bangladesh from the duty-free scheme of
the Republic of Korea………………...……………………………………….....7
6. Conclusion ..........................................................................................................14
Annexes
1. Chapter-wise coverage of duty-free lines by the new initiative of the
Republic of Korea ………………………………………………………………14
2a. Top 20 tariff lines of Bangladesh’s exports to the Republic of Korea ….……..18
2b. Tariff lines among the top 20 lines covered by the duty-free scheme of
the Republic of Korea………………………………………………..…………19
3. Exportable items from Bangladesh under the duty-free scheme of the
Republic of Korea …………………………………………………………….. 20
4. Tariff lines covered by the APTA concession among Bangladesh’s top 20
tariff lines ……………………………………………………...……………….23
.
ii
Abstract
The paper attempts to assess the benefits of Duty-Free and Quota-Free Market
(DFQF) access initiatives of the Republic of Korea for least developed countries (LDCs),
which have been in place since 1 January 2008. Following a brief introduction on the
background of this initiative, this paper examines the exports profile of LDCs, reviews
the DFQF scheme of the Republic of Korea, and assesses the potential benefits of the
DFQF scheme for LDCs as well as Bangladesh.
The export profile of LDCs shows that the share of those countries in world
exports in recent years has increased; this can be attributed to price increases for
petroleum constituting a major share of LDC total exports. The Republic of Korea is the
tenth largest destination of LDC exports, which indicates that the DFQF initiatives of the
Republic of Korea for LDCs will have a positive impact on LDC exports.
The DFQF scheme of the Republic of Korea covers 6,967 tariff lines, representing
about 59 per cent of the all tariff lines of its Customs Schedule. There are at least 25
chapters where product coverage within the chapter is very low, notably below 10 per
cent. These include garments, made-up textiles, and major agricultural products including
fisheries. Among the DFQF lines, 1,464 lines are duty-free on a most-favoured nation
(MFN) basis. Hence, LDCs enjoy tariff preferences on 5,503 tariff lines, while the
average margin of preference on these lines is 7.89 per cent. The margin of preferences in
most cases is either 6 per cent or 8 per cent. In order to enjoy the preference granted
under the scheme, the products should be wholly obtained, or should have at least 50 per
cent value addition.
Analysis also reveals that the DFQF scheme covers 36.1 per cent of LDCs’ export
to the Republic of Korea in 2007, keeping 64.9 per cent of current LDC exports to that
country outside the purview of preferential treatment. Only three major export items from
LDCs – copper cathodes, raw tobacco and plywood – enjoy -free access. Bangladesh,
Congo, the Lao People’s Democratic Republic, Malawi, Myanmar, Tanzania, Uganda
and Zambia are likely to benefit from duty-free access for these items.
The Republic of Korea is the seventh-largest destination for Bangladesh exports.
Bangladesh enjoys preferential access to the Republic of Korea under the Asia-Pacific
Trade Agreement (APTA). DFQF access for LDCs adds 5,471 tariff lines for Bangladesh
under preferential access. However, analysis shows that the additional lines cover only
4.63 per cent of Bangladesh’s exports to the Republic of Korea in 2007. However, there
are important apparel articles in the scheme that may yield benefits for Bangladesh.
APTA continues to remain attractive to Bangladesh because of higher trade coverage and
more relaxed rules of origin. Nevertheless, the DFQF scheme currently offered by the
Republic of Korea is a milestone for the developing countries’ initiative for LDCs, and
one that is likely to lead to other countries coming up with similar initiatives. In time, the
Republic of Korea is likely to incrementally increase the product coverage, which will
lead to higher trade coverage and more favourable rules of origin, and will yield
significant benefits for LDCs.
iii
Introduction
Since the first World Trade Organization (WTO) Ministerial Conference held in
Singapore, the LDCs have been striving for duty-free access for their products to the
markets of major trading partners. During the High-level Meeting on LDCs held in 1997,
most of the developed countries and some advanced developing countries committed to
announcing duty-free treatment for LDCs. In the wake of the interest shown by some
developing countries, the WTO General Council in June 1999 decided to waive the MFN
principle for developing countries for 10 years to enable them to provide preferential
treatment to LDCs. The Republic of Korea was the first developing country that came up
with an initiative to provide duty-free access to all LDCs on 87 tariff lines at the 6-digit
HS code level, which came into effect on 1 January 2000.
Demand for duty-free market access became much stronger while preparing for
the Doha Ministerial Conference and thereafter. Consequently, at the Hong Kong
Ministerial Conference, while commitment to providing duty-free and quota-free market
access (DFQFMA) for all products of all LDCs was obtained from developed countries,
the developing countries were also urged to provide such access to LDCs if they were in
a position to do so. However, developing countries were allowed to phase in their
commitments and enjoy appropriate flexibility in coverage. In response to the demand by
LDCs, many developed countries improved their GSP schemes to provide DFQFMA to
LDCs both before and after the Hong Kong Ministerial Conference. Some other countries
expressed their intention to abide by the Hong Kong Ministerial Decision only after the
conclusion of the Doha Round. In contrast, there were a few developing countries that did
not have a binding commitment to provide DFQFMA for LDCs but which came up with
the new initiative to provide enhanced market access to LDCs without waiting for the
conclusion of Doha Round. The Republic of Korea was the first country among them to
unilaterally decide to provide duty-free access to a number of products originating from
LDCs. The duty-free scheme for LDCs became effective on 1 January 2008. This paper
attempts to review the new initiative of the Republic of Korea and to assess the potential
benefits for LDCs as well as Bangladesh from this initiative.
1. Methodology and data issues
Despite the fact that the Republic of Korea introduced the DFQF scheme in
January 2008, it has yet to notify the scheme to WTO. For this reason, there has been a
lack of awareness about this initiative. Tariff information on the recent initiative was
collected from the ESCAP1 website. The Republic of Korea maintains tariffs at the 10-
digit HS code level. However, export data of LDCs as well as Bangladesh, and import
data of the Republic of Korea, are available only at the 6-digit HS code level. Therefore,
it was necessary to convert the tariff data to the 6-digit HS code level; this required a
thorough examination of tariff data at the 10-digit level to ensure that each tariff line at
the 6-digit level used for analysing the potential benefits of the DFQF initiative contained
all 10-digit codes within the 6-digit codes. After conversion, the 6-digit duty-free HS
codes were matched with trade data available at the Trade Map website of the
1 http://www.unescap.org/tid/apta4.asp
1
International Trade Centre (ITC).2 It should be noted that trade data are available only
up until 2007. Moreover, the trade data do not contain any information regarding imports
under preferential access. Therefore, the findings of this report are confined to potential
benefits only. The actual benefits largely depend on the fulfillment of rules of origin and
other requirements of the scheme. Potential benefits from the duty-free scheme have been
looked at, using three indicators: (a) coverage of imports from LDCs and Bangladesh by
the Republic of Korea under the duty-free scheme in terms of relative share of imports
from LDCs and Bangladesh that have become duty-free in total bilateral imports; (b) the
coverage of exports by LDCs and Bangladesh in terms of share of exports from LDCs
and Bangladesh under the duty-free tariff lines in their total exports; and (c) market
access under the duty-free scheme in terms of import value in the Republic of Korea.
2. LDC export profile
Since 2001, exports from LDCs have registered steady growth. In fact, between
2001 and 2007, the growth of exports from LDCs was higher than that of world exports
(figure 1). As a result, the LDCs’ share of world exports increased significantly from 0.4
per cent in 2001 to 0.9 per cent in 2007 (table 1).
Figure 1. Growth of exports from LDCs vis-à-vis world exports
Source: Estimated from data available at Trade Map, ITC.
2 http://www.intracen.org/mat/lci/Default.aspx
2
Table 1. Exports from LDCs vis-à-vis world exports
(Unit: US$ million]
Exporters 2001 2002 2003 2004 2005 2006 2007
World 6 074 320 6 380 449 7 453 357 9 069 790 10 364 915 12 036 912 13 754 932
Least
developed
countries 25 335 35 284 41 805 59 090 80 401 104 201 120 797
Share
(%) 0.4 0.6 0.6 0.7 0.8 0.9 0.9
Source: Estimated from data available at Trade Map, ITC.
During the last 50 years of the twentieth century, LDCs were marginalized in
terms of their share of world exports, despite policy reforms undertaken by them to make
their economies export-oriented since the early 1980s. Reversal of the trend in the first
decade of the twenty-first century can be attributed to the increases in the prices of oil
and commodities. As shown in figure 1, five oil exporters3 that, as a group accounted for
54.5 per cent of total LDC exports in 2007, experienced much higher growth between
2002 and 2007. In contrast, manufacturing exporters among the LDCs experienced the
lowest growth, although their growth rates were slightly higher than world growth rates
during the same period. This is also evident from the composition of LDC global exports.
As can be seen from figure 2, petroleum and commodities accounted for 74 per cent of
LDC global exports in 2007.
Figure 2. Global exports by LDCs in 2007, by category
Source: Estimated from data available at Trade Map, ITC.
In terms of specific country markets, table 2 shows that the European Union and
the United States continue to be the most important destinations for LDC exports.
However, between 2001 and 2007, China became an important market accounting for
20.4 per cent of the LDCs’ global exports. The importance of the Republic of Korea as a
market for LDCs has declined slightly, but it remains among the top 10 markets for
3 Five oil exporters are Angola, Equatorial Guinea, Sudan, Yemen and Chad
3
LDCs. From this perspective, the preferential market access provided by the Republic of
Korea is important for the expansion and diversification of LDC exports.
Table 2. Top 12 markets for LDC exports, 2001-2007
(Unit: Percentage)
Rank Importers 2001 2002 2003 2004 2005 2006 2007
1 EU (27) 33.8 33.9 30.9 28.8 26.0 22.8 24.6
2 United States of America 26.8 23.9 24.4 21.6 24.0 23.9 22.3
3 China 8.0 8.7 13.3 16.9 18.8 19.8 20.4
4 India 3.6 3.3 3.1 2.7 2.8 4.7 5.3
5 Japan 3.0 4.0 3.4 4.0 4.3 5.2 4.5
6 Thailand 5.2 5.2 5.0 5.7 4.4 4.8 4.3
7 Taiwan Province of China 2.0 2.2 2.1 2.8 2.2 3.1 3.2
8 South Africa 0.5 0.6 0.5 1.1 0.9 1.2 2.3
9 Canada 0.9 1.0 1.6 1.5 1.9 1.5 1.9
10 Republic of Korea 2.7 2.5 1.9 1.7 1.4 1.8 1.8
11 Brazil 0.8 0.1 0.1 0.1 0.4 0.7 1.2
12 Saudi Arabia 0.7 1.1 0.9 0.9 0.7 0.7 0.9
Source: Estimated from data available at Trade Map, ITC.
3. Brief description of the DFQF Initiative of the Republic of Korea
The new scheme is an extension of Korea’s earlier initiative, which now covers
around 6,967 tariff lines at the 10-digit HS code level. These tariff lines cover around 59
per cent of total HS lines of the Republic of Korea’s Customs Schedule. However,
chapter-wise analysis shows that there are at least 25 chapters where product coverage
within the chapter is very low, notably below 10 per cent (annex 1). These include
garments, made-up textiles and major agricultural products including fisheries.
In view of the fact that the Republic of Korea did not notify its new initiative to
WTO, other features of the scheme were not available to Bangladesh Foreign Trade
Institute (BFTI). However, if the new Republic of Korea scheme is considered to be an
extension of the earlier scheme for LDCs, it can be safely assumed that other features of
the new scheme are similar to those of the previous one, which was notified to WTO in
April 2000. According to the Presidential Decree on Preferential Tariff for Least
Developed Countries notified to WTO4, in the case of agriculture products that are
eligible for minimum market access (MMA) in-quota, the preferential tariffs for LDCs
apply only to in-quota amounts. In order to enjoy the preference granted under the
scheme, the products should be wholly obtained or should have at least 50 per cent value
addition, measured at FOB value of the product minus CIF value of inputs not originating
in the exporting country or the Republic of Korea. There is a requirement for a certificate
of origin to be issued by the authority designated by the Government of the exporting
4 WTO document WT/COMTD/N/12/Rev.1, 28 April 2000.
4
country. There is scope for suspension of the preferential access for duly justified reasons
such as injury to the domestic industry.
4. Potential benefits for least developed countries from the duty-free
scheme of the Republic of Korea
Although the Republic of Korea’s current scheme extends duty-free treatment to
6,967 tariff lines, 1,464 lines are duty-free on an MFN basis. Hence, LDCs can enjoy
tariff preferences on 5,503 tariff lines; the average margin of preference on these lines is
7.89 per cent ranging from 1 to 800 (table 3). As can be seen from table 3, LDCs enjoy a
margin of preference at rates of between 1 per cent and 10 per cent on the majority of the
products, out of which the preference margins on most of the products are 6 per cent or 8
per cent.
Table 3. Frequency distribution of margin of preferences
Margin of preference Number of HS lines at the 10-
digit level
0<MP<=10 5 444
10<MP<=20 40
20<MP<=30 8
30<MP<=40 5
40<MP<=50 1
50>MP 5
Total 5 503
Source: Estimated from the tariff database of the Republic of Korea,
available at the ESCAP website.
It should be noted that there are 4,365 tariff lines that are not subject to duty-free
market access; the average tariff on these products is 24.7 per cent. Apparently, from the
point of view of margin of preference, those products are more attractive to LDCs.
As mentioned above, in order to assess the benefits of the scheme in terms of
trade coverage of LDCs, an analysis was carried out at the 6-digit HS code level, since
the trade data are available only at that level. In converting 10-digit duty-free lines into 6-
digit HS codes, it was found that 5,503 10-digit HS lines cover 1,819 tariff lines at the 6-
digit level. However, of those 1,819 tariff lines, LDCs enjoy preferential treatment on all
10-digit HS lines within each code of 1,722 6-digit HS lines. There are 94 6-digit HS
lines where LDCs enjoy duty-free access, either under MFN or under the duty-free
scheme for LDCs. Therefore, in practice, LDCs enjoy duty-free preferences on 1,816 HS
lines at the 6-digit level.
The share of imports from LDCs in the overall global imports by the Republic of
Korea is very small, although the figures in value terms have increased significantly in
recent years (table 4). However, the number of tariff lines of LDC exports declined
during the past three years. As shown in table 5, the increase in the value of imports was
5
basically due to increases in the prices of oil and metals, which together accounted for
around 80 per cent of LDC exports to the Republic of Korea in 2007. Moreover, the top
10 export products of LDCs represented 94 per cent of LDC exports to the Republic of
Korea (table 5).
Table 4. Republic of Korea imports from LDCs vis-à-vis its total imports
(Unit: US$ million]
Particulars 2005 2006 2007
Republic of Korea total imports 261 235 309 379 356 841
Republic of Korea imports from LDCs 1 159 1 881 2 072
Values
Share (%) 0.44 0.61 0.58
Republic of Korea total imports 5 028 5 034 4 858
Republic of Korea imports from LDCs 571 579 544
No HS
codes
Share (%) 11.36 11.50 11.20
Source: Estimated from data available at Trade Map, ITC.
Table 5. Top 10 products exported by LDCs to the Republic of Korea
(Unit: US$ million)
LDC exports to the Republic of Korea
HS code Description 2005 2006 2007
Total All products 1 159.29 1 881.60 2 072.29
270900 Petroleum oils and oils obtained from
bituminous minerals, crude 609.69 1 096.72 1 002.28
740311 Copper cathodes and sections of cathodes
unwrought 250.73 445.73 676.03
271011 Aviation spirit 2.57 50.30 117.65
260300 Copper ores and concentrates 95.55 72.37 35.68
240120 Tobacco, unmanufactured, partly or wholly
stemmed or stripped 4.16 6.55 26.17
440399 Logs, non-coniferous n.e.s. 29.63 26.51 24.75
410441 Full grain leather, unsplit, and grain split
leather, in dry state 14.14 16.96 23.26
740400 Waste and scrap, copper or copper alloy 3.19 7.46 16.78
410449 Hides and skins of bovines “including
buffalo” or equine animals 3.25 3.60 8.03
441231 Plywood consisting solely of sheets of
wood <= 6 mm thick - - 7.32
Sub-total 1 012.88 1 726.19 1 937.94
Share of top 10 items in total exports (%) 87.37 91.74 93.52
Source: Estimated from data available at Trade Map, ITC.
Potential benefits of the Republic of Korea’s duty-free scheme can be measured
using various indicators. The simplest indicator shows how much of the LDC exports is
covered by the new scheme of the Republic of Korea by measuring the value of imports
from LDCs that are duty-free under the new scheme against the total imports by the
Republic of Korea from LDCs :
LDCs) from imports (Total LDCs) from imports free-duty of (Value
ROK
ROK
=
a
I
6
where “ROK” indicates imports to Republic of Korea.
.Analysis shows that out of 544 HS lines of export items of LDCs to the Republic
of Korea only 144 lines may enjoy duty-free access under the scheme. These tariff lines
represent 36.1 per cent of LDC exports to the Republic of Korea. Therefore, around 64.9
per cent of current LDC exports to the Republic of Korea will still be outside the purview
of preferential treatment. It was found that only three tariff lines – copper cathodes, raw
tobacco and plywood – out of the top 10 LDC products exported to the Republic of
Korea now enjoy duty-free access under preferential treatment. Export statistics for
individual LDCs show that Congo, the Lao People’s Democratic Republic, Myanmar and
Zambia are major beneficiaries of duty-free access for copper cathodes, while
Bangladesh, Malawi, Myanmar, Tanzania and Uganda benefit from duty-free access for
tobacco. Myanmar is the only country that is likely to benefit from duty-free access for
plywood.
Another important indicator of the potential benefit of duty-free access is the
coverage of LDC global exports under the duty-free scheme:
rtofLDCsGlobalExpo
b
IROK of DFQFunder freeduty are that lines on tariff based LDCs of exports global of Value
=
It was found that LDCs have the capacity to export 1,446 lines that can enjoy
duty-free access in the Republic of Korea, representing only 15.6 per cent of LDC global
exports. This indicates that only the tariff lines with low export capacity in LDCs are
covered by the duty-free scheme of the Republic of Korea.
The last but certainly not the least important indicator of the potential benefit of
duty-free treatment is the market access indicator, which is measured in terms of value of
global imports by the Republic of Korea covered under the duty-free scheme5
Korea of Republic of imports totalof Value lines tariffDFQFon based Korea of Republic ofimport totalof Value
=
c
I
Analysis shows that there are 1,775 duty-free tariff lines in the new scheme of the
Republic of Korea, where the value of total imports by the Republic of Korea is US$ 94
billion. When these lines are matched with the exportable tariff lines of LDCs, import
demand in the Republic of Korea for duty-free imports from LDCs is found to amount to
US$ 79 billion (i.e., this is the value of tariff lines that are both on the DFQF scheme of
the Republic of Korea and are exported by the LDCs). Further analysis shows that in the
duty-free scheme there are at least 306 HS lines with LDC exports of at least US$ 1
5 Along similar lines, Indicator 8.6 of MDG 8 measures share of DFQF imports in national total imports of
developed country markets. More details on www.mdg-trade.org.
7
million (per line), where import demand of the Republic of Korea is worth of US$ 40
billion. Therefore, it can be deduced that although a significant portion of current LDC
exports to the Republic of Korea is outside the purview of duty-free treatment, the new
scheme may create an opportunity to expand LDC exports to the Republic of Korea if
LDCs enhance the production capacity of currently exportable goods and meet the rules
of origin criteria.
Table 6. Duty-free scheme coverage of LDC exports to the Republic of Korea,
LDC global exports, and global imports by the Republic of Korea, 2007
(Unit: US$ million)
Republic of Korea
imports from LDCs LDC global
exports Republic of Korea
global imports
Total imports 2 072 120 796 356 841
Import covered by duty-
free lines for LDCs 748 18 880 94 062
Share (%) 36.11 15.63 26.36
All HS lines 544 4 492 4 858
Duty-free HS line 144 1 466 1 775
Share (%) 26.47 32.64 36.54
Source: Estimated from data available at Trade Map, ITC.
5. Potential benefits for Bangladesh from the duty-free scheme of the
Republic of Korea
The issue of duty-free access to developed and developing country markets has
dominated the trade discourse in Bangladesh for quite some time. The main reason is that
Bangladesh is now a predominantly trading country rather than a predominantly aid-
recipient country. As the spokes country in WTO for the Group of LDCs, and as a major
exporter among the LDCs, Bangladesh’s policy makers have vigorously pursued the
issue of duty-free and quota-free market access in all the Ministerial Meetings of WTO.
As a major manufacturing exporting LDC, Bangladesh’s export sector has shown robust
performance exceeding global growth of export, although in 2007 its export growth was
lower than global export growth (figure 3).
8
Figure 3. Growth of Bangladesh exports vis-à-vis growth
of global exports
0
5
10
15
20
25
30
35
2003 2004 2005 2006 2007
Year
Growth in %
World Bangladesh
Source: Estimated from data available at Trade Map, ITC.
Bangladesh is among the few LDCs that are primarily manufacturing exporting
countries. More than 75 per cent of manufactured exports, which accounted for more than
90 per cent of the country’s total exports during the past 10 years, was from the apparel
sector (table 7). Therefore, unlike many other LDCs, it is important for Bangladesh to
secure duty-free access in the manufacturing sector.
Table 7. Composition of Bangladesh exports, 2003/04 to 2007/08
Total exports (US$ million) Percentage of total exports
Commodity
classification 2003/04 2005/06 2007/08 2003/04 2005/06 2007/08
1. Primary commodities 553.36 772.7 987.56 7.28 7.34 7.00
(a) Frozen food 390.25 459.11 534.07 5.13 4.36 3.78
(b) Tea 15.81 11.89 14.89 0.21 0.11 0.11
(c) Agricultural products 41.11 105.4 120.13 0.54 1 0.85
(d) Raw jute 79.7 148.27 165.06 1.05 1.41 1.17
(e) Others 26.49 48.03 153.41 0.35 0.46 1.09
2. Manufactured goods 7 049.63 9 753.46 13 123.24 92.72 92.66 93
(a) Woven garments 3 538.07 4 083.82 5 167.28 46.54 38.8 36.62
(b) Knitwear 2 148.02 3 816.98 5 532.52 28.25 36.26 39.21
(
c
)
Leathe
r
211.41 257.27 284.41 2.78 2.44 2.02
(d) Jute goods 246.45 361.03 318.34 3.24 3.43 2.26
(e) Fertilizer and chemical
p
roducts 121.46 205.58 215.78 1.6 1.95 1.53
(f) Footwear 68.3 95.44 169.6 0.9 0.91 1.2
(g) Ceramic products 24.07 27.55 38.33 0.32 0.26 0.27
(h) Engineering products 41.87 111.02 219.68 0.55 1.05 1.56
(i) Petroleum by products 37.02 88.43 185.11 0.49 0.84 1.31
(j) Handicrafts 4.2 4.3 5.49 0.06 0.04 0.04
9
Total exports (US$ million) Percentage of total exports
Commodity
classification 2003/04 2005/06 2007/08 2003/04 2005/06 2007/08
(k) Others 608.76 702.04 986.7 8 6.67 6.99
Total 7 602.99 10 526.16 14 110.80 100 100 100
Source: Export Promotion Bureau, Bangladesh.
The European Union and the United States are the major destinations for
Bangladesh’s exports, accounting for 83 per cent of Bangladesh’s global exports in 2007
(table 8). Although the Republic of Korea ranks seventh as an export destination, its share
in Bangladesh’s total exports has been increasing, which indicates that the importance of
the Republic of Korea as an export destination for Bangladesh is increasing. In this
context, the duty-free initiative by Republic of Korea for LDCs carries significant value
to Bangladesh.
Table 8. Top 10 markets for Bangladesh exports, 2001-2007
(Unit: Percentage)
Rank Export destinations 2001 2002 2003 2004 2005 2006 2007
1 European Union (EU 27) 48.9 50.8 55.1 58.1 54.9 56.4 56.8
2 United States of America 37.7 35.2 27.2 24.5 28.0 26.7 26.2
3 Canada 1.8 1.6 3.1 3.7 3.9 3.7 3.7
4 Turkey 0.3 0.5 0.5 0.8 1.0 1.3 1.8
5 India 0.9 1.0 0.9 0.6 1.2 1.7 1.7
6 Japan 1.7 1.7 1.6 1.4 1.5 1.2 1.3
7 Republic of Korea 0.4 0.3 0.4 0.4 0.4 0.5 1.0
8 China 0.3 0.5 0.4 0.6 0.8 0.8 0.8
9 Hong Kong, China 1.3 1.4 1.0 0.9 1.0 0.9 0.8
10 Switzerland 0.6 0.6 0.6 0.6 0.6 0.7 0.7
Source: Estimated using the data available at Trade Map, ITC.
While assessing the potential benefit for Bangladesh from the duty-free scheme of
the Republic of Korea, the trade relations of Bangladesh outside the WTO regime should
also be taken into consideration. Bangladesh and the Republic of Korea have been
members of the Asia-Pacific Trade Agreement (APTA) since 1975. Both countries
exchanged tariff concessions in three rounds of negotiations concluded under the
Agreement. Therefore, in order to assess the benefits, it must be considered whether
APTA concessions are superseded by the duty-free scheme of the Republic of Korea for
LDCs. It should be noted that as an LDC member of APTA, Bangladesh enjoys duty-free
access for 140 tariff lines and preferential access for 147 tariff lines in the Republic of
Korea.
In addition, Bangladesh enjoys tariff preference for 1,185 tariff lines as an APTA
member. The value addition requirement in the case of APTA is 35 per cent, which is
more relaxed than that under the duty-free scheme. Analysis shows that of a total of
10
1,472 tariff lines for which Bangladesh enjoys tariff preference under APTA, 797 tariff
lines enjoy higher tariff preference under the duty-free scheme than under APTA.
Although the rules of origin requirement is more stringent in this case, Bangladesh
continues to enjoy tariff preferences under APTA for the remaining 675 tariff lines, of
which 143 tariff lines are duty free. As shown in table 9, Bangladesh continues to enjoy a
higher margin of preference on those items that are duty free under APTA.
Table 9. Tariff treatment for Bangladesh by the Republic of Korea
Tariff treatment to
Bangladesh Number of
10-digit HS
lines
Average
MFN duty Average duty
faced by
Bangladesh
Margin of
preferences
enjoyed by
Bangladesh
Preference for all APTA
members 424 9.39 6.29 3.10
Duty-free treatment for all
APTA members 3 3.33 0.00 3.33
Preference for Bangladesh and
the Lao PDR under APTA 108 16.55 10.70 5.84
Duty-free treatment for
Bangladesh and the Lao PDR
under APTA 140 10.68 0.00 10.68
Duty-free treatment for all
LDCs 5 471 7.54 0.00 7.54
Duty-free treatment for all
countries on an MFN basis 1 860 0.00 0.00 0.00
Dutiable products for all
countries on an MFN basis 3 724 27.08 27.08 0.00
Total 11 730 12.73 8.92 3.81
Source: Estimated from the tariff database of Korea available at the ESCAP website.
Analysis of the duty-free treatment provided for LDCs under the duty-free
scheme shows that the lines offered for duty-free treatment cover 33 of 199 tariff lines of
Bangladesh’s exports to the Republic of Korea at the 6-digit level. These lines covered
only 4.63 per cent of Bangladesh’s exports to the Republic of Korea in 2007, which
means that coverage by the duty-free scheme in terms of exports by Bangladesh to the
Republic of Korea is very low. In fact, of the top 20 tariff lines exported by Bangladesh
to the Republic of Korea, only five tariff lines enjoy duty-free access under the duty-free
scheme (annexes 2a and 2b).
When the potential benefit is measured in terms of the coverage of Bangladesh’s
global exports under the duty-free scheme, this indicator is also not encouraging as it
produces a figure of only 22.35 per cent of the country’s global exports. However, in
value terms, the duty-free scheme accounts for US$ 3.1 billion of Bangladesh’s global
exports. The indicator related to import demand in the Republic of Korea shows that
there are 67 lines in the duty-free scheme where Bangladesh’s exports exceed US$
500,000 for each line; import demand in the Republic Korea for these lines is around US$
11 billion (annex 3). Therefore, if Bangladesh increases its production capacity for these
products, it may be able to enhance its exports to the Republic of Korea under the duty-
free scheme.
11
Table 10. Coverage of duty-free lines in Bangladesh’s exports to the Republic of
Korea, Bangladesh’s global exports and global
imports by the Republic of Korea, 2007 (Unit: US$ million)
Bangladesh exports to
the Republic of Korea Bangladesh global
exports
Global imports by
the Republic of
Korea
Total imports 141 13 859 356 841
Import covered by duty-
free lines for LDCs 6.56 3 097 94 062
Share (%) 4.63 22.3 26.36
All HS lines 199 1 724 4 858
Duty-free HS lines 33 498 1 775
Share (%) 16.58 28.89 36.54
Source: Estimated using data available at Trade Map, ITC.
To make a comparison between the potential benefit for Bangladesh from the
duty-free scheme and the preferences granted under APTA, a similar exercise was carried
out on 675 tariff lines for which Bangladesh continues to enjoy tariff preferences under
APTA in addition to the products covered by the duty-free scheme for LDCs. It was
found that of the 199 tariff lines of Bangladesh’s exports to the Republic of Korea,
Bangladesh enjoy tariff preferences for 69 tariff lines under APTA. These 69 tariff lines
represent 31.3 per cent of Bangladesh’s exports to the Republic of Korea (table 11). This
figure is much higher than that under the duty-free scheme. It was found that of the top
20 lines of Bangladesh’s exports to the Republic of Korea, Bangladesh enjoys
preferences on 10 tariff lines (annex 4). According to a study carried out by ESCAP, the
utilization rate by Bangladesh for exports to the Republic of Korea of preferences granted
under APTA was about 87 per cent from January 2006 to September 2006 (table 12).
Table 11. Coverage of Bangladesh’s exports to the Republic of Korea, Bangladesh’s
global exports, and global imports by the Republic of Korea under tariff
lines covered by APTA trade data for 2007
(Unit: US$ million)
Republic of Korea imports
from Bangladesh Bangladesh export
to world Republic of Korea
imports from world
Total imports
141.82 13 859.11 356 841.02
Imports covered by
APTA
44.39 2 903.82 80 699.07
Share (%) 31.30 20.95 22.61
All HS lines
199 1 724
4 858
Duty-free HS lines
69
231
335
12
Share (%) 34.67 13.40 6.90
Source: Estimated using Data available at Trade Map, ITC.
Table 12. Coverage ratio, utilization ratio, and utility ratio of imports by the
Republic of Korea from participating APTA member States
(Unit: Percentage)
November 2005-August 2006 September 2006-June 2007
Coverage
ratio Utilization
rate Utility
ratio Coverage
ratio Utilization
rate Utility
ratio
China 3.5 38.7 1.3 29.3 13.0 3.8
India 2.9 25.6 0.7 8.1 14.3 1.2
Bangladesh 9.4 63.1 5.9 59.6 87.7 52.3
Lao PDR 0.0 0.0 0.0 0.5 0.0 0.0
Sri Lanka 15.4 43.4 6.7 20.7 44.7 9.3
Total 3.4 38.1 1.3 27.8 13.4 3.7
Source: Reproduced from the “Study on review of the Third Round results: A pilot study of the real
trade flows under APTA between China and the Republic of Korea”, ESCAP, Bangkok.
13
6. Conclusion
The DFQF initiative undertaken by the Republic of Korea for LDCs is an
appreciable step towards making trade an engine of LDC development. Despite the fact
that coverage by the scheme, in terms of current LDC exports to the Republic of Korea, is
less than 40 per cent, the initiative has opened the door to the market in the Republic of
Korea, the import demand of which totals US$ 40 billion. The LDCs could benefit from
the scheme by enhancing their existing production and export capacities. However, the
rules of origin requirement may play an impeding role, which appears to be stringent
considering the level of development of LDCs. For Bangladesh, the duty-free scheme of
the Republic of Korea is unlikely to bring any substantial enhancement of its exports
unless Bangladesh increases its capacity to produce the commodities covered under the
scheme.
APTA remains a useful agreement for enhancing exports by Bangladesh and is
likely to yield benefits for two reasons: (a) the rules of origin requirement is relatively
relaxed; and (b) the current items exported by Bangladesh to the Republic of Korea are
covered by the concessions granted under APTA. There is also scope for demanding
benefits on items exported by Bangladesh under the new round of negotiations under
APTA. Nevertheless, the duty-free scheme currently offered by the Republic of Korea is
a start by that country in implementing the decision by the Hong Kong Ministerial
Conference on an autonomous basis, which is likely to lead to other countries coming up
with similar initiatives. In due course, the Republic of Korea is expected to incrementally
increase the scheme’s product coverage. It is likely that in expanding the scheme’s
product coverage, the Republic of Korea will take into consideration the export items and
the level of industrial development of LDCs in designing the rules of origin. Such an
approach may yield significant benefits for the LDCs.
14
Annexes
Annex 1. Chapter-wise coverage of duty-free lines by the new initiative of the
Republic of Korea
Chapter Harmonized description No. of HS
codes in the
tariff schedule
No. of tariff
lines with duty-
free access for
LDCs
Share
(%)
01 Live animals 56 0.0
02 Meat and edible meat offal 95 0.0
03 Fish and crustaceans, molluscs and other aquatic
invertebrates 300 11 3.7
04 Diary produce; birds' eggs; natural honey; edible
products of animal origin, not elsewhere specified or
included
65 0.0
05 Products of animal origin, not elsewhere specified or
included 68 9 13.2
06 Live trees and other plants; bulbs, roots and the like;
cut flowers and ornamental foliage 76 0.0
07 Edible vegetables, and certain roots and tubers 133 0.0
08 Edible fruit and nuts; peel of citrus fruit or melons 78 8 10.3
09 Coffee, tea, mate and spices 39 3 7.7
10 Cereals 32 7 21.9
11 Products of the milling industry; malt; starches;
inulin; wheat gluten 47 0.0
12 Oil seeds and oleaginous fruits; miscellaneous
grains, seeds and fruit; industrial or medicinal plants;
straw and fodder
138 4 2.9
13 Lac; gums, resins and other vegetable saps and
extracts 27 3 11.1
14 Vegetable planting materials; vegetable products not
elsewhere specified or included 21 1 4.8
15 Animal and vegetable fats and oils and their cleavage
products; prepared edible fats; animal or vegetable
waxes
100 3 3.0
16 Preparations of meat, fish or crustaceans, molluscs or
other aquatic invertebrates 91 0.0
17 Sugars and sugar confectionery 33 4 12.1
18 Cocoa and cocoa preparations 33 2 6.1
19 Preparations of cereals, flour, starch or milk; pastry
cooks' products 52 0.0
20 Preparations of vegetables, fruit, nuts or other parts
of plants 109 1 0.9
21 Miscellaneous edible preparations 72 0.0
22 Beverages, spirits and vinegar 52 0.0
23 Residues and waste from food industries; prepared
animal fodder 46 0.0
24 Tobacco and manufactured tobacco substitutes 25 11 44.0
25 Salt; sulphur; earths and stone; plastering materials,
lime and cement 145 88 60.7
26 Ores, slag and ash 56 38 67.9
27 Mineral fuels, mineral oils and products of their
distillation; bituminous substances; mineral waxes 144 37 25.7
28 Inorganic chemicals; organic or inorganic
compounds of precious metals, rare-earth metals and
radioactive elements
392 331 84.4
29 Organic chemicals 921 796 86.4
14
Chapter Harmonized description
No. of tariff
No. of HS
codes in the
tariff schedule
lines with duty- Share
free access for (%)
LDCs
30 Pharmaceutical products 154 141 91.6
31 Fertilizers 38 28 73.7
32 Tanning or dyeing extracts; tannins and their
derivatives; dyes, pigments and other colouring
matter; paints and varnishes; putty and other mastics;
inks
140 129 92.1
33 Essential oils and resinoids; perfumery, cosmetic or
toilet preparations. 68 35 51.5
34 Soap, organic surface-active agents, washing
preparations, lubricating preparations, artificial
waxes, prepared waxes
53 35 66.0
35 Albuminoidal substances; modified starches; glues;
enzymes 58 29 50.0
36 Explosives; pyrotechnic products; matches;
pyrophoric alloys; certain combustible preparations 22 20 90.9
37 Photographic or cinematographic goods 222 211 95.0
38 Miscellaneous chemical products 230 193 83.9
39 Plastics and articles thereof 233 157 67.4
40 Rubber and articles thereof 146 84 57.5
41 Raw hides and skins (other than fur-skins) and
leather 67 40 59.7
42 Articles of leather; saddlery and harnesses; travel
goods, handbags and similar containers; articles of
animal gut
117 30 25.6
43 Fur-skins and artificial fur; manufactures thereof 58 32 55.2
44 Wood and articles of wood; wood charcoal 285 224 78.6
45 Cork and articles of cork 7 0.0
46 Manufactures of straw, esparto or other plaiting
materials; basketware and wickerwork 20 20 100.0
47 Pulp of wood or of other fibrous cellulosic material;
recovered (waste and scrap) paper or paperboard. 29 16 55.2
48 Paper and paperboard; articles of paper pulp, paper
or paperboard 190 121 63.7
49 Printed books, newspapers, pictures and other
products of the printing industry; manuscripts,
typescripts and plans
35 30 85.7
50 Silk 37 8 21.6
51 Wool, fine or coarse, animal hair; horsehair yarn and
woven fabric 58 27 46.6
52 Cotton 181 104 57.5
53 Other vegetable textile fibres; paper yarn and woven
fabrics of yarn 47 16 34.0
54 Man-made filaments 127 84 66.1
55 Man-made staple fibres 247 214 86.6
56 Wadding, felt and non-wovens; special yarns; twine,
cordage, ropes and cables and articles thereof 50 24 48.0
57 Carpets and other textile floor coverings 21 1 4.8
58 Special woven fabrics; tufted textile fabrics; lace;
tapestries; trimmings; embroidery 60 24 40.0
59 Impregnated, coated, covered or laminated textile
fabrics; textile articles of a type suitable for
industrial use
30 13 43.3
60 Knitted or crocheted fabrics 45 3 6.7
Chapter Harmonized description
No. of tariff
No. of HS
codes in the
tariff schedule
lines with duty- Share
free access for (%)
LDCs
61 Articles of apparel and clothing accessories, knitted
or crocheted 152 11 7.2
62 Articles of apparel and clothing accessories, not
knitted or crocheted 169 7 4.1
63 Other made up textile articles; sets; worn clothing
and worn textile articles; rags 59 0.0
64 Footwear, gaiters and the like, parts of such articles 52 10 19.2
65 Headgear and parts thereof 16 0.0
66 Umbrellas, sun umbrellas, walking-sticks, seat-
sticks, whips, riding-crops and parts thereof 11 4 36.4
67 Prepared feathers and down, and articles made of
feathers or down; artificial flowers; articles of human
hair
21 3 14.3
68 Articles of stone, plaster, cement, asbestos, mica or
similar materials 89 47 52.8
69 Ceramic products 86 58 67.4
70 Glass and glassware 137 87 63.5
71 Natural or cultured pearls, precious or semi-precious
stones, precious metals, and metals clad with
precious metal and articles thereof; imitation,
jewellery; coin
118 80 67.8
72 Iron and steel 277 203 73.3
73 Articles of iron or steel 209 118 56.5
74 Copper and articles thereof 87 54 62.1
75 Nickel and articles thereof 25 16 64.0
76 Aluminum and articles thereof 60 34 56.7
78 Lead and articles thereof 20 19 95.0
79 Zinc and articles thereof 19 16 84.2
80 Tin and articles thereof 14 11 78.6
81 Other base metals; cermets; articles thereof 78 54 69.2
82 Tools, implements, cutlery, spoons and forks of base
metal; parts thereof of base metal 146 112 76.7
83 Miscellaneous articles of base metal 53 25 47.2
84 Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof 1 231 937 76.1
85 Electrical machinery and equipment, and parts
thereof; sound recorders and reproducers, television
imagers and sound recorders and reproducers, and
parts and accessories of such articles
787 636 80.8
86 Railway and tramway locomotives, rolling-stock and
parts thereof; railway or tramway track fixtures and
fittings
48 36 75.0
87 Vehicles other than railway or tramway rolling-
stock, and accessories thereof 192 156 81.3
88 Aircraft, spacecraft, and parts thereof 49 47 95.9
89 Ships, boats and floating structures 44 34 77.3
90 Optical, photographic, cinematographic, measuring,
checking, precision, medical or surgical instruments 440 346 78.6
91 Clocks and watches and parts thereof 89 42 47.2
92 Musical instruments; parts and accessories of such
articles 58 27 46.6
93 Arms and ammunition; parts and accessories thereof 87 80 92.0
94 Furniture; bedding, mattresses, mattress supports, 89 70 78.7
Chapter Harmonized description
No. of tariff
No. of HS
codes in the
tariff schedule
lines with duty- Share
free access for (%)
LDCs
cushions and similar stuffed furnishings; lamps and
lighting fittings
95 Toys, games and sports requisites; parts and
accessories thereof 94 76 80.9
96 Miscellaneous manufactured articles 88 46 52.3
97 Works of art, collectors' pieces and antiques 15 15 100.0
Total 11 730 6 967 59.4
Annex 2a. Top 20 tariff lines of Bangladesh’s exports to the Republic of Korea
(Unit: US$ million)
Bangladesh exports to
Republic of Korea
HS code Description 2005 2006 2007
TOTAL All products
45.50
68.89
141.82
271011 Aviation spirit
-
20.78
72.85
410441 Full grains leather, unsplit and grain splits leather,
in dry state
14.14
16.96
23.26
740400 Waste and scrap, copper or copper alloy
2.33
5.23
9.43
410449 Hides and skins of bovine "including buffalo" or
equine animals, in dry state
3.25
3.60
8.02
410792 Grain splits leather "including parchment-dressed
leather"
0.16
2.41
3.32
720421 Waste and scrap, stainless steel
1.01
-
2.43
620193 Men’s/boys’ anoraks and similar articles of man-
made fibres, not knitted
0.83
0.17
1.76
530310 Jute and other textile bast fibres, raw or retted
0.74
1.14
1.62
621133 Men’s/boys’ garments n.e.s., of man-made fibres,
not knitted
0.01
0.82
1.52
240120 Tobacco, unmanufactured, partly or wholly
stemmed or stripped
0.33
0.87
1.19
650590 Hats and other headgear, knitted or made-up from
lace or other textile materials
0.83
0.91
1.19
640399 Footwear, outer soles of rubber/plastics uppers of
leather, n.e.s.
0.85
2.88
1.17
530710 Yarn of jute or of other textile bast fibres, single
0.55
0.68
0.86
531090 Woven fabrics of jute or of other textile bast fibres,
o/t unbleached
0.51
0.67
0.78
620342 Men’s/boys’ trousers and shorts, of cotton, not
knitted
0.18
0.42
0.73
530390 Jute and other textile bast fibres, not spun, n.e.s.;
tow and waste of these fibres
0.85
0.83
0.66
030379 Fish, n.e.s., frozen, excluding heading No 03.04;
livers and roes
0.18
0.21
0.55
620333 Men’s/boys’ jackets and blazers, of synthetic
fibres, not knitted
0.28
0.46
0.52
410419 Hides and skins of bovine "including buffalo" or
equine animals, in the we
0.01
0.26
0.51
030614 Crabs frozen, in shell or not, including boiled in
shell
0.04
0.02
0.50
Sub-total 27.05 59.34 132.86
Share of the top 20 items in total exports (%) 59.46 86.14 93.68
Annex 2b.Tariff lines among the top 20 lines covered by the duty-free scheme of
the Republic of Korea (Unit: US$ million)
Bangladesh exports to the
Republic of Korea
HS code Description 2005 2006 2007
530310 Jute and other textile bast fibres, raw or retted 0.74 1.14 1.62
240120
Tobacco, unmanufactured, partly or wholly stemmed
or stripped
0.33
0.87
1.19
640399
Footwear, outer soles of rubber/plastics uppers of
leather, n.e.s.
0.85
2.88
1.17
530390
Jute and other textile bast fibres, not spun, n.e.s.; tow
and waste of these fibres
0.85
0.83
0.66
030379
Fish, n.e.s., frozen, excluding heading No. 03.04;
livers and roes
0.18
0.21
0.55
Annex 3. Exportable items from Bangladesh under the duty-free scheme of the
Republic of Korea (Unit: US$ million)
HS CODE
BD Description
Bangladesh
total
exports,
2007
Bangladesh
exports to
Republic of
Korea,
2007
Republic of
Korea’s
total
imports,
2007
530310 Jute and other textile bast fibres, raw or retted 141.02 1.624 2.03
240120 Tobacco, unmanufactured, partly or wholly
stemmed or stripped 17.94 1.189 131.00
640399 Footwear, outer soles of rubber/plastics uppers of
leather, n.e.s. 95.08 1.169 238.17
530390 Jute and other textile bast fibre, not spun, n.e.s.;
tow and waste of these fibres 3.78 0.658 0.66
030379 Fish, n.e.s., frozen, excluding heading No 03.04;
livers and roes 26.26 0.551 747.37
620630 Women’s/girls’ blouses and shirts, of cotton, not
knitted 170.89 0.31 93.96
620462 Women’s/girls’ trousers and shorts, of cotton, not
knitted 991.25 0.2 316.55
852990 Parts suitable for use solely/principally with the
application of headings 85.25 to 85.28 8.51 0.127 847.81
611020 Pullovers, cardigans and similar articles of
cotton, knitted 1 067.96 0.087 127.79
621210 Brassieres and parts thereof, of textile materials 94.46 0.085 53.15
611011 Jerseys, pullovers, cardigans, waistcoats and
similar articles, of wool 53.50 0.048 69.51
620463 Women’s/girls’ trousers and shorts, of synthetic
fibres, not knitted 118.99 0.025 72.79
611012 Jerseys, pullovers, cardigans, waistcoats and
similar articles, of Kashmir (cashmere) goats 36.93 0.015 19.68
030559 Fish n.e.s., dried, whether or not salted but not
smoked 9.61 0.004 37.82
950300 Tricycles, scooters, pedal cars and similar
wheeled toys; dolls'' carriages 1.20 0.002 267.12
900211 Objective lenses for cameras,
projectors/photographic enlargers/reducers 2.60 0.001 138.38
950662 Inflatable balls 0.79 0 13.39
051191 Fish, shellfish and aqua invertebrate products,
n.e.s., and dead animals of Ch 3, not for human
consumption 0.50 0 13.19
300420 Antibiotics, n.e.s., in dosage 6.00 0 54.27
310210 Urea, whether or not in aqueous solution in
packages weighing more than 10 kg 57.75 0 221.87
251710 Pebbles, gravel, broken or crushed stone used for
aggregates etc. 3.99 0 1.63
420211 Trunks, suitcases and similar containers with
outer surface of leather 0.60 0 26.54
420221 Handbags with outer surface of leather 4.10 0 161.76
790500 Zinc plates, sheets, strip and foil 1.88 0 8.39
847690 Parts of automatic goods-vending machine 18.11 0 10.43
611019 Jerseys, pullovers, cardigans, waistcoats and
similar articles 6.31 0 5.61
850300 Parts of electric motors, generators, generating
sets and rotary converters 0.57 0 294.22
HS CODE
BD Description
Bangladesh
total
exports,
2007
Bangladesh Republic of
exports to Korea’s
Republic of total
Korea, imports,
2007 2007
903289 Automatic regulating or controlling instruments
and apparatus, n.e.s. 0.79 0 663.77
610832 Women’s/girls’ nightdresses and pyjamas, man-
made fibres, knitted 16.19 0 1.12
640610 Uppers and parts thereof, other than stiffeners 1.90 0 95.62
903190 Parts and accessories for measuring or checking
instruments, appliances and machines, n.e.s. 0.62 0 361.42
840810 Marine propulsion engines, diesel 0.60 0 223.25
854370 Electrical machines and apparatus, having
individual functions, n.e.s. 0.74 0 1 162.26
611693 Gloves, mittens and mitts, n.e.s., of synthetic
fibres, knitted 0.55 0 10.72
392620 Apparel and clothing accessories (including
gloves), plastic 3.76 0 9.04
460219 Basketwork, wickerwork and other articles, made
directly to shape from material other than
vegetable materials 1.92 0 5.38
520531 Cotton yarn, >/=85%, multi, uncombed,
>/=714.29 dtex, not put up, n.e.s. 0.88 0 0.32
293399 Heterocyclic compounds with nitrogen hetero-
atom[s] only 0.51 0 177.25
420291 Containers, with outer surface of leather, n.e.s. 2.08 0 7.26
300490 Medicaments, n.e.s., in dosage 22.01 0 1,417.11
340111 Toilet soap and preparations, shaped; papers and
non-woven impregnated with soap, toilet use 1.60 0 21.28
080290 Nuts edible, fresh or dried, whether or not shelled
or peeled, n.e.s. 4.53 0 1.04
890399 Rowing boats, canoes, sculls and other pleasure
boats, n.e.s. 0.61 0 7.25
846595 Drilling or mortising machines for working wood
/cork/bone/hard rubber/hard plastic etc. 0.79 0 53.50
700510 Float glass etc. in sheets, non-wired having an
absorbent or reflecting layer 4.47 0 61.87
900290 Lenses, prisms, mirrors and other optical
elements, mounted, n.e.s. 1.02 0 79.34
901420 Instruments and appliances for aero-
nautical/space navigation (other than compasses) 0.61 0 10.75
170310 Cane molasses 0.51 0 58.66
300439 Hormones, n.e.s., not containing antibiotics, in
dosage, o/t contraceptive 1.25 0 88.35
390760 Polyethylene terephthalate 0.61 0 21.91
740990 Plate, sheet and strip of copper alloy, n.e.s. 0.72 0 52.75
900219 Objective lenses, n.e.s. 3.38 0 36.51
294190 Antibiotics n.e.s., in bulk 1.03 0 161.34
300440 Alkaloids or their derivatives, not containing
antibiotics or hormones, in dosage 4.36 0 107.52
580710 Labels, badges and similar woven articles of
textile materials 0.60 0 7.61
611692 Gloves, mittens and mitts, n.e.s., of cotton,
knitted 0.91 0 13.57
870421 Diesel powered trucks with a GVW not 0.97 0 1.66
HS CODE
BD Description
Bangladesh
total
exports,
2007
Bangladesh Republic of
exports to Korea’s
Republic of total
Korea, imports,
2007 2007
exceeding 5 metric tons
730729 Fittings pipe or tube of stainless steel, n.e.s. 1.89 0 26.23
847340 Parts and accessories of other office machines,
n.e.s. 2.83 0 55.33
391590 Plastics waste and scrap, n.e.s. 8.96 0 8.91
240110 Tobacco, unmanufactured, not stemmed or
stripped 3.10 0 19.61
300410 Penicillin or streptomycin and their derivatives,
in dosage 0.55 0 11.34
460290 Basketwork, wickerwork and other article made
up from other plaited materials 0.66 0 2.16
490900 Postcards, printed or illustrated; printed greeting
cards 0.72 0 5.12
510620 Yarn of carded, wool,<85% by weight of wool,
not put up for retail sale 0.56 0 2.28
851770 Parts of telephone sets, telephones for cellular
networks or other systems 0.86 0 1 881.69
871200 Bicycles and other cycles (including delivery
tricycles), not motorized 33.05 0 131.63
Annex 4. Tariff lines covered by the APTA concession among Bangladesh’s top
20 tariff lines (Unit: US$ million)
Bangladesh exports to Republic
of Korea
HS code Description 2005 2006 2007
410441 Full grains leather, unsplit and grain splits leather, in the
dry state 14.14 16.96 23.26
410449 Hides and skins of bovine "including buffalo" or equine
animals, in dry state 3.25 3.60 8.02
410792 Grain splits leather "incl. parchment-dressed leather", of
the portion 0.16 2.41 3.32
621133 Men’s/boys’ garments n.e.s., of man-made fibres, not
knitted 0.01 0.82 1.52
530710 Yarn of jute or of other textile bast fibres, single 0.55 0.68 0.86
531090 Woven fabrics of jute or of other textile bast fibres, o/t
unbleached 0.51 0.67 0.78
530390 Jute and other textile bast fibres, not spun, n.e.s.; tow and
waste of these fibres 0.85 0.83 0.66
030379 Fish, n.e.s., frozen, excluding heading No 03.04; livers
and roes 0.18 0.21 0.55
410419 Hides and skins of bovine "including buffalo" or equine
animals, in the wet state 0.01 0.26 0.51
030614 Crabs frozen, in shell or not, including boiled in shell 0.04 0.02 0.50
