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Decoding China’s duty-free facility for knitwear sector of Bangladesh: Tapping unexploited export potentials (Part-3)

Leading knitwear exporting items of Bangladesh in China

Bangladesh’s export of knitwear items to China grew by 54.33 percent to US$ 261.53 million from US$ 169.46 million in between CY 2015-2019, where, the below-mentioned top 25 knitwear items (Table-1) led Bangladesh to take a better bite of the pie.

China-Duty-Free-facility-Knitwear-Bangladesh-Tapping-unexploited-export-potentials
Figure: Bangladesh’s export of knitwear items to China grew by 54.33 percent to US$ 261.53 million from US$ 169.46 million in between CY 2015-2019.

Among the top 25 exporting knitwear items, as showed with green color in Table-1, 14 items experienced double-digit CAGR while 2 items showed staggering three-digit and 1 item registered four-digit CAGR in last five years, turning out these 3 items to be Bangladesh’s game-changing emerging knitwear items in China at next couple of years along with other items.

Table-1: Top 25 knitwear products exported by Bangladesh to China with CAGR during CY 2015-2019 (US$ in ‘000). Data Source: ITC Trade Map. Data Calculation: Latifee, E. H., and Uddin, M. M., 2020.

Data Source: China DF facility for LDCs

Sl# HS Code

(8 Digit Level)

Product label CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CAGR
1.        ‘61091000 T-shirts, singlets & other vests, of cotton, knitted or crocheted 64,332 78,578 81,993 108,104 112,521 15%
2.        ‘61102000 Jerseys, pullovers, etc, of cotton, knitted or crocheted 20,111 28,072 27,675 30,901 33,212 13%
3.        ‘61103000 Jerseys, pullovers, etc, of man-made fibres, knitted or crocheted 19,565 24,252 23,423 22,227 26,882 8%
4.        ‘61112000 Babies’ garments, etc, of cotton, knitted or crocheted 8,013 8,440 7,702 10,551 11,006 8%
5.        ‘61034200 Men’s or boys’ trousers, etc, of cotton, knitted or crocheted 7,005 8,298 5,874 7,563 10,868 12%
6.        ‘61142000 Garments of cotton, knitted or crocheted, nes 933 2,585 2,344 5,992 9,262 78%
7.        ‘61051000 Men’s or boys’ shirts of cotton, knitted or crocheted 5,958 7,888 7,847 8,310 9,053 11%
8.        ‘61099090 T-shirts, singlets, etc, of other textiles, nes, knitted/crocheted 18,117 5,972 12,967 6,120 7,916 -19%
9.        ‘61071100 Men’s or boys’ underpants & briefs of cotton, knitted or crocheted 1,010 1,450 2,854 3,059 7,733 66%
10.    ‘61044200 Dresses of cotton, knitted or crocheted 2,429 4,542 4,448 6,655 7,619 33%
11.    ‘61046200 Women’s or girls’ trousers, etc, of cotton, knitted or crocheted 5,883 6,997 7,017 9,295 7,585 7%
12.    ‘61034300 Men’s or boys’ trousers, etc, of synthetic fibres, knitted/crocheted 329 395 628 1,710 2,265 62%
13.    ‘61082100 Women’s or girls’ briefs & panties of cotton, knitted or crocheted 526 884 1,416 1,339 1,243 24%
14.    ‘61044400 Dresses of artificial fibres, knitted or crocheted 725 1,427 1,638 899 1,171 13%
15.    ‘61013000 Men’s or boys’ coats, etc, of man-made fibres, knitted or crocheted 465 815 808 802 1,087 24%
16.    ‘61012000 Men’s or boys’ coats, etc, of cotton, knitted or crocheted 470 1,191 1,033 2,053 1,064 23%
17.    ‘61046300 Women’s or girls’ trousers, etc, of synthetic, knitted or crocheted 764 678 797 1,261 997 7%
18.    ‘61143000 Garments of man-made fibres, knitted or crocheted, nes 458 667 491 873 947 20%
19.    ‘61083100 Women’s or girls’ nighties…, etc, of cotton, knitted or crocheted 568 471 462 778 774 8%
20.    ‘61033200 Men’s or boys’ jackets & blazers of cotton, knitted or crocheted 2,441 2,809 1,405 1,061 688 -27%
21.    ‘61022000 Woman’s or girls’ coats, etc, of cotton, knitted or crocheted 1 32 132 591 599 395%
22.    ‘61079100 Men’s or boys’ dressing gowns, etc, of cotton, knitted or crocheted 1 3 11 391 540 2,611%
23.    ‘61061000 Women’s or girls’ blouses, etc, of cotton, knitted or crocheted 737 808 472 921 531 -8%
24.    ‘61161000 Gloves, impregnated… with plastics or rubber, knitted or crocheted 2 0 121 839 436 284%
25.    ‘61072100 Men’s or boys’ pyjamas of cotton, knitted or crocheted 457 539 710 365 382 -4%

The ambit of tapping knitwear exports freshly by Bangladesh in China

It can be inferred from the cross-tabulation showed in Table-2 that we have an incredible opportunity to catch up more share of the pie addressing the top 10 imported knitwear items by China from the World.

 

For instance, in the Women’s or girl’s trousers category we may augment our export by 86.47 times and in total for top 10 knitwear items, Bangladesh can accumulate an amount of US$ 2.33 billion from the knitwear sector—if done, which will be up by 8.90 times of present knitwear exports by Bangladesh to China.

Table-2: Cross tabulation for Bangladesh’s untapped opportunity to clutch the knitwear market in China. Data Source: ITC Trade Map. Data Calculation: Latifee, E. H., and Uddin, M. M., 2020.
Sl# HS Code (8 Digit Level) Product Label Import by China in 2019 (US$ in ‘000) Export by Bangladesh in 2019 (US$ in ‘000) Opportunity Value for Bangladesh (US$ in ‘000) Amplification

can be done in the niche knitwear items

1.        ‘61091000 T-shirts, singlets & other vests, of cotton, knitted or crocheted 719,565 112,521 607,044 5.39 times
2.        ‘61102000 Jerseys, pullovers, etc, of cotton, knitted or crocheted 602,741 33,212 569,529 17.15 times
3.        ‘61103000 Jerseys, pullovers, etc, of man-made fibres, knitted or crocheted 310,282 26,882 283,400 10.54 times
4.        ‘61099090 T-shirts, singlets, etc, of other textiles, nes, knitted/crocheted 234,661 7,916 226,745 28.64 times
5.        ‘61101100 Jerseys, pullovers, etc, of wool, knitted or crocheted 175,946 60493 115,453 1.91 times
6.        ‘61034200 Men’s or boys’ trousers, etc, of cotton, knitted or crocheted 142,719 10,868 131,851 12.13 times
7.        ‘61051000 Men’s or boys’ shirts of cotton, knitted or crocheted 141,392 9,053 132,339 14.62 times
8.        ‘61112000 Babies’ garments, etc, of cotton, knitted or crocheted 97,560 11,006 86,554 7.86 times
9.        ‘61034300 Men’s or boys’ trousers, etc, of synthetic fibres, knitted/crocheted 90,030 2,265 87,765 38.75 times
10.    ‘61046300 Women’s or girls’ trousers, etc of synthetic, knitted or crocheted 87,211 997 86,214 86.47 times

Concluding remarks

It is evident from this three-sequel long multi-faceted analysis that Bangladesh has a true opportunity now to augment knitwear exports as the country is now getting more privileges than ever before.

At the post-declaration of China’s 97 percent DF facility, we are now eligible to export most of our top knitwear items to China with zero tariffs which lay 6 percent to 10 percent for many other countries under the MFN scheme.

Now, it is high time for joining in the jubilation and export escalation of the new inclination of zero-tariff schedule for Bangladesh. If Bangladesh can get into the market properly, the country may fetch billions of dollars just from the Chinese market by exporting knitwear items that will certainly support Bangladesh continuing bullish economic growth in the next couple of years amid COVID-19 havoc.

Major References:

  1. ITC Trade Map, 2020. Available online at, https://www.trademap.org/
  2. Office of the Customs Tariff Commission of the State Council, Ministry of Finance of the People’s Republic China, 2020. The product list of zero tariff treatment of 97% of the tax products originating from Bangladesh to China since 1st July 2020. Available online at, http://gss.mof.gov.cn/gzdt/zhengcefabu/201912/P020191230547817604455.pdf
  3. United Nations Conference on Trade and Development (UNCTAD), 2017. Handbook on the Special and Preferential Tariff Scheme of China for Least Developed Countries. Available online at, https://unctad.org/system/files/official-document/itcdtsbmisc76_en.pdf

Association of Southeast Asian Nations (ASEAN), 2020. ASEAN-China Free Trade Area: Building Strong Economic Partnerships. Available online at, https://www.asean.org/storage/images/2015/October/outreach-document/Edited%20ACFTA.pdf

Views expressed here are not from the organization that the authors represent.

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