Bonded-goods abuse threatens fair trade, Chinese investment: BCCCI

The illegal diversion of bonded goods into Bangladesh’s local market is distorting competition, undermining compliant businesses and threatening to deter potential Chinese investors, the Bangladesh China Chamber of Commerce and Industry (BCCCI) has warned.

The chamber placed the misuse of bonded-warehouse facilities at the top of its agenda during a meeting with Commerce Ministry Secretary Md. Ataur Rahman Khan at the Secretariat on Thursday, as it submitted a six-point proposal to deepen trade and investment ties between Bangladesh and China.

A BCCCI delegation led by its President Mohd. Khorshed Alam told the secretary that the unauthorised sale of bonded products in the domestic market was giving an unfair advantage to businesses operating outside the rules, while legitimate traders were being forced to compete on an uneven playing field.

The chamber warned that continued abuse of the bonded-warehouse system could damage investor confidence and discourage prospective foreign investors, particularly from China, at a time when Bangladesh is seeking to attract more investment and expand its export capacity.

The BCCCI called for tougher monitoring, stronger enforcement and strict compliance with existing laws governing bonded goods and warehouse facilities to curb the diversion of duty-free products into the local market.

The chamber said effective enforcement would restore a level playing field for compliant businesses and provide greater confidence to genuine domestic and foreign investors.

As part of its broader trade-expansion strategy, the BCCCI proposed establishing at least 20 permanent exhibition centres in China to showcase Bangladeshi products and help exporters penetrate the vast Chinese market.

It also urged the government to take stronger initiatives to increase Bangladeshi exports to China and ensure greater participation of local businesses in major Chinese trade fairs.

The chamber further sought government cooperation in facilitating the establishment of a Chinese bank branch in Bangladesh, saying stronger financial connectivity could help accelerate bilateral trade and investment.

BCCCI Senior Vice President Han Jingchao, Senior Vice President A. Z. M. Azizur Rahman, Secretary General Jamilur Rahman and Executive Director Md. Abu Taher were also present.