Written by The Banking Post
A newly enforced 20 percent counter-tariff on Bangladeshi exports to the United States came into effect at 10:00am on Wednesday, driving a surge in shipments through Chattogram Port as exporters moved to beat the deadline.
Data from the Chattogram Port Authority (CPA) shows daily exports have increased by about 800 containers during this last-minute push, with port authorities providing priority clearance for outbound goods. As of 8:00am Wednesday, 15,400 twenty-foot equivalent units (TEUs) were logged across 19 port depots—most bound for the US.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said many exporters accelerated shipments ahead of the August 7 tariff implementation.
“Those who had completed production early managed to export before August 1,” he said, adding that overall exports rose 25 percent in July.
Abdus Salam, managing director of the Asian-Duff Group, reported that Bangladesh exported $3.96 billion worth of garments in July, of which $820 million went to the US. Around 60 percent of that volume was routed through Chattogram Port.
The counter-tariff rate—previously 37 percent—was reduced to 20 percent following the third round of bilateral talks on July 31. However, with average US tariffs exceeding 15 percent, the total duty burden on Bangladeshi goods remains above 35 percent. Prior to this measure, tariffs on ready-made garments averaged around 16.5 percent.
Trade analyst and former Bangladesh Tariff Commission member Mostafa Abid Khan explained that the tariff applies based on the time of port release. He noted Bangladesh still benefits from an exemption on countervailing duties for US-origin raw materials, such as cotton, which is a key input for the country’s garment industry.
According to Ruhul Amin Sikder, secretary general of the Container Depot Association, exporters delivered large volumes to depots in advance to sidestep the new duties.
“While monthly container exports typically range from 60,000 to 65,000, the figure jumped to 99,000 in July,” he said. “Of these, 81,000 have already been shipped.”
