Implementation Status of Bangladesh Towards Paperless Trade Facilitation: National Challenges and Issues

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1 The image part with relationship ID rid2 was not found in the file. Implementation Status of Bangladesh Towards Paperless Trade Facilitation: National Challenges and Issues Bangladesh Foreign Trade Institute (BFTI)

2 Structure of the Presentation Trade growth of Bangladesh Trade Facilitation Initiatives in Bangladesh WTO Trade Facilitation Agreement Framework Agreement (FA) on Facilitation of Cross-border Paperless Trade in Asia and the Pacific National Single Window Implementation Challenges

3 Trade growth of Bangladesh Value in Mn US$ Growth % Imports Exports Import Growth % Export Growth %

4 Trade Facilitation Initiatives in Bangladesh Bangladesh has already been pursuing liberalised trade regime All rules, regulations and statutory orders related to trade facilitation are published and made available in the website. Import licensing system was abolished back in 1985 for all products other than the products requiring special import permit for health, environment and other reasons. Number of pre-clearance signatures has gone down to 5 from 25, and export clearance time for 95% of consignments has been reduced from 72 hours in 1999 to 3 hours now and Customs is trying to further reduce the procedure and release time by automation.

5 Trade Facilitation Initiatives in Bangladesh (Cont.) ASYCUDA world has been put in all major Custom stations in Bangladesh In 2009, Customs installed four container scanners at the Chittagong port to detect contraband/illegal shipments and weapons, aimed at ensuring security while facilitating legitimate trade. Money for another six such scanners has already been sanctioned. A selectivity system for risk management has also been implemented by Customs Draft SOP on RM is being formulated by the NBR Chittagong Port Authority has introduced container management system (CTMS), which has facilitated automation of import operations. National Board of Revenue (NBR): Adopted the Customs Modernisation Strategic Action Plan to initiate reforms in key Customs areas and processes.

6 Trade Facilitation Initiatives in Bangladesh (Cont.) Bangladesh Trade Portal: Hosted by the Ministry of Commerce, the portal provides an accessible, logical, helpful window for traders to access important regulatory and procedural information needed to export and import. A dedicated Customs Portal, hosted by the NBR, provides easy access to Customs information, procedures, forms and documents A post-audit system is also under development to verify the accuracy of green channel and yellow channel clearances. The Government plans to extend the system to include both imports and exports at all customs offices. A PCA Manual is being formulated for transaction-based audits A pilot on system-based audit will be made at Chittagong Customs Draft of the new Customs Act has been approved in principle by the Cabinet, and will soon be placed in the National Parliament for approval.

7 Trade Facilitation Initiatives in Bangladesh (Cont.) The process of implementation of Authorised Economic Operators (AEO) has begun. Pharmaceutical sector has been chosen for the pilot program. Criteria and Benefits are currently being worked out Time Release Studies (TRS) of Chittagong Port and Benapole Port was conducted in 2013 and 2014, respectively. Modernisation activities under SASEC are ongoing. As per discussion of BIMSTEC Goa Declaration at 8 th BRICS Summit, it was decided to expedite BIMSTEC Agreement as well as to draft separate Trade Facilitation Agreements under BIMSTEC. Bangladesh, as the host country of 21 BIMSTEC TNC meeting, is working on the draft of BIMSTEC TFA.

8 Trade Facilitation Initiatives in Bangladesh (Cont.) GSP Automation went into full operation from 1 st September 2014, facilitating a much more improved process and the much-needed archiving of GSP documentation. Certification Marks Licences Software was developed for BSTI with funding from IFC. IFC is also supporting Plant Quarantine Wing in automating their certification process. Automation of CCI&E certification will hopefully become fully functional by the end of this year. BFTI has already been instructed by the MoC to conduct a study to find out gaps in certification of our exports.

9 WTO Trade Facilitation Agreement (TFA) Bangladesh has ratified WTO TFA on 27 th September 2016 National Trade and Transport Facilitation Committee (NTTFC): A committee of 28 members have been established under the chairmanship of the Honourable Commerce Minister, comprising officials/representatives of relevant ministries/ departments / trade bodies BFTI strongly feels that it should have a representation on the Committee.

10 Framework Agreement (FA) on Facilitation of Cross-border Paperless Trade in Asia and the Pacific The Ministry of Commerce is collecting opinion from relevant stakeholders regarding FA Inter-ministerial meeting will be held by the end of March 2017.

11 National Single Window (NSW) Government has decided to establish NSW NBR will act as the lead agency for setting up the NSW NSW working group has been established NSW would be established under the Regional Connectivity Project of the World Bank NBR formed a Project Implementation Unit to establish the NSW with NBR Member (Customs Modernisation) as the Project- Director NBR plans to sign MoUs with 60 OGAs to effectively implement NSW. A sub-committee will draft the MoU in consultation with the members of NSW Working Group. The Planning Commission has approved DPP.

12 Implementation Challenges Trade Facilitation measures involve Customs & Other Border/Government Agencies (OGAs) that are involved in trade Though Customs remains the key player, implementation of paperless trade facilitation requires modernisation of both Customs and OGAs

13 Implementation Challenges (Cont ) Other OGAs (in Bangladesh) having major responsibility include- Chief Controller of Imports & Exports Plant Quarantine Department Atomic Energy Commission Drug Administration Directorate Bangladesh Standard Testing Institute Bangladesh Export Processing Zone Authority Port authorities Bangladesh Bank

14 Implementation Challenges (Cont ) Customs has undergone significant changes since the early 1990s through many donor-funded reform programmes. Customs is more advanced in terms of its own modernisation and implementation towards paperless trade facilitation measures but OGAs are not so advanced. Therefore, implementation of paperless trade facilitation measures remains a critical challenge for OGAs. Resource constraint for modernisation of OGAs Both financial and technical assistance from development partners are required for this

15 Implementation Challenges (Cont ) Implementation of Co-ordinated Border Management and National Single Window has some unique challenges of its own Border agencies (Customs & OGAs) have different mandates with regard to goods & people crossing borders Such mandates vary from revenue assurance, migration, phytosanitary, radiological, transport, ecological & food safety controls These agencies tend to work independently, which means- They do not have a clear understanding & knowledge of what others are doing Often leads to multiple inspections of the same goods & considerable harassment for traders. Especially in NSW, difficulties in getting on board all stakeholders will be a big challenge Unwillingness to cede authority to Customs will be another challenge

16 Development Partners Engaged in TF Implementation in Bangladesh World Bank programme Asian Development Bank SASEC programme International Finance Corporation SARTI programme USAID Bangladesh Trade Facilitation Activity programme.

17 THANK YOU

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