#1Implementation Status of Bangladesh Towards Paperless Trade Facilitation Rama Dewan Joint Chief Bangladesh Tariff Commission & A.H.M. Shafiquzzaman Deputy Secretary Ministry of Commerce#2Structure of the Presentation ⚫Bangladesh at a glance 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• Location: Bangladesh at a glance • Between 200 34' and 260 38' north latitude and between 880 01' and 920 41' east longitude • Boundary: • North: India (West Bengal and Meghalaya) • West: India (West Bengal) • East: India (Tripura and Assam) • South East: Myanmar • South: Bay of Bengal • Area: 147,570 square km. • Total population: 160 million Life expectancy at birth: 69 years ⚫ Political system: Parliamentary democracy • Capital: Dhaka (biggest city in Bangladesh)#4Growth Rate [Average till 2002, YoY from 2003] Trade growth of Bangladesh 50% 40% 30% 20% 10% 0% N 1972 1982 1992 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Exports of goods and services (USD billion) Imports of goods and services (USD billion) Exports of goods and services (% growth) -Imports of goods and services (% growth) Source: World Development Indicators (2015), World Bank 50 40 30 20 10 0 USD in Billion#5Trade Facilitation Initiatives in Bangladesh Bangladesh has already pursuing liberalized trading 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 which require special import permit for health, environment and other reason. • 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.#6Trade 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. • A selectivity system has also been implemented at the ports Chittagong Port Authority has introduced container management system (CTM), which has facilitated automation of import operations. • National Board of Revenue (NBR): Customs Modernization Strategic Action Plan 2014-2017#7Trade Facilitation Initiatives in Bangladesh (Cont....) Bangladesh Trade Portal: Hosted by 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 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 and to implement the system at other customs offices. • Draft of new Customs Act has been approved in principle by Cabinet, and will soon be placed in National Parliament for approval.#8Trade Facilitation Initiatives in Bangladesh (Cont....) • The introduction of Authorized Economic Operators (AEO) is under active consideration at the NBR Time Release Studies (TRS) of Chittagong Port and Benapole Port was conducted in 2013 and 2014. • Modernization activities under SASEC is ongoing. As per discussion of BIMSTEC Goa Declaration at 8th BRICS Summit it was decided to expedite BIMSTEC Agreement as well as to draft separate Trade Facilitation Agreement under BIMSTEC. Bangladesh as the host country of 21 BIMSTEC TNC meeting is working on the draft of BIMSTEC TFA.#9WTO Trade Facilitation Agreement (TFA) ⚫ Bangladesh has ratified WTO TFA on 27 September 2016 • National Trade facilitation Committee (NTFC): NBR has established a 19 members committee under the chairmanship of Member (Customs) comprising officials/representatives of relevant ministries/ departments / trade bodies#10Framework Agreement (FA) on Facilitation of Cross-border Paperless Trade in Asia and the Pacific Ministry of Commerce is collecting opinion from relevant stakeholders regarding FA • Inter-ministerial meeting will be held by the end of February 2017.#11National 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 Modernization) as the Project Director • NBR plans Memorandum of Understanding (MoU) 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.#12Implementation Challenges • Trade Facilitation measures involves ➤Customs & > Other Border/Government Agencies (OGAs) that are involved in trade Though Customs remains the key player, implementation of paperless trade facilitation requires modernization of both Customs and OGAS#13Implementation Challenges (Cont...) Other OGAS (in Bangladesh) having major responsibility include- ⚫ Chief Controller of Import & Export Plant Quarantine Department • Atomic Energy Commission ⚫ Drug Administration Directorate • Bangladesh Standard Testing Institute Bangladesh Export Processing Zone Authority • Port authorities#14Implementation Challenges (Cont...) • Customs has undergone significant changes since the early 1990s through many donor-funded reform programs. • Customs is more advanced in terms of its own modernization and implementation towards paperless trade facilitation measures but OGAS are not so advanced. Therefore, implementation of paperless trade facilitation measures remain critical challenges for OGAS. • Resource constraint for modernization of OGAS#15Development Partners Engaged in TF Implementation in Bangladesh • World Bank program • Asian Development Bank SASEC program. International Finance Corporation SARTI program ⚫ USAID Bangladesh program#16THANK YOU