Chapter: 1

Background of the study

Bangladesh Tariff Commission (BTC) does the works for the protection and assistance of local
industries.BTC conducts time to time study on any sector/ sub-sector. Ceramic industry is one of
the major sectors and there is no proper study on this sector. The study on Study on Export &
Growth Potential of Ceramic Industries in Bangladesh is taken under own initiative.

1.1 Introduction
Ceramic Industry is one of the exports oriented and fast growing sectors in Bangladesh. These
industries have been playing a vital role in our economy by earning and saving foreign exchange
through export of ceramic goods after meeting the local demand. Almost 80% of the total demand
of ceramic goods is being met by local industries. Bangladesh followed rapid trade liberalization
during the last decade although the process was initiated even earlier under the auspices of
structural adjustment program. Trade liberalization policy aimed at reduction of tariff rates,
simplification of tariff structure, minimization of non-tariff barrier, simplification of trade law, etc.
One of the important objectives of the trade liberalization policy is to enhance national exports to
strike a balance in imports and exports. The export promotion incentives designed in the trade
policy continue to play a crucial, complimentary role on the liberalization process. The incentives
are to ensure that the export-oriented industries are able to procure inputs at world price, exports
are subsidized which enable those to compete with global market, investments in export-oriented
industries are encouraged and foreign direct investment in export-oriented industries in the EPZ is
promoted. Bangladesh has been able to achieve robust annual export growth rate of about 12%
over the last decade, due to introducing all of these incentives with favorable international
environment.

In this context Bangladesh Tariff Commission has taken comprehensive study to conduct on
ceramic manufacturing industry keeping in mind the importance of ceramic industry in the
economic development of Bangladesh.