Eight years on, customs ports' green channel virtually remain ineffective

The green channel facilities offered to 15 large taxpayers have remained almost ineffective for the last eight years since its introduction due to inaction of the authorities concerned in this regard.

The privilege supposed to be enjoyed as the Authorised Economic Operators (AEOs) was introduced in 2017, offering a simplified and fast delivery system of goods from the customs ports.

Country's top 15 large businesses are currently entitled to the AEO facilities, including less customs assessments, audits and overall simplification of trade procedures.

Industry insiders said the assured facilities have not been provided yet while some are getting partial benefits which were available earlier.

They also alleged that there is no difference whether the AEO facilities exist or not.

Most of the AEOs have alleged that the customs has started making the process complex instead by imposing new rules, procedures, and auditing.

"We found the AEO facility immaterial now as the same complexities arising on import of raw materials as it was before," said a representative of one of the AEOs, preferring anonymity.

Each of the AEOs has to wait for two years to get the status after applying for the privilege, he added.

Customs member Kazi Mustafizur Rahman said the AEO facilities would be enhanced soon with the advanced configuration of the Asycuda world system of customs.

The companies awarded the AEO status are: Square Pharmaceuticals, Beximco Pharmaceuticals, Incepta Pharmaceuticals, Omera Cylinders Ltd, Fair Electronics Ltd. Towa Personal Protective Device Bangladesh Ltd, JIHAN Footwear (pvt) ltd, Cutting Edge Industries Ltd, MBM Garments Ltd, ACI Godrej Agrovet Private ltd, Shoeniverse Footwear Ltd, M/S Footsteps Bangladesh ltd, GPH Ispat Ltd, Bangladesh Steel Re-rolling Mills Ltd and Popular Pharmaceuticals Ltd.

Recently, NBR has framed three-tier formats to make the green channel facilities smoother for the businesses as well as full benefits to the compliant businesses.

Customs wing has issued a Standard Operating Procedures (SOP), defining the categories of importers to avail the benefits as an AEO.

In the SOP, the NBR has issued some prescribed format to apply for AEO benefits.

"We have found the SOP very complex and time consuming which might make trade more difficult," said another AEO representative.

The customs now ask AEO to conduct an audit of the last three years import documents to offer the facility.

The AEOs have aired concern over growing mistrust from the customs on awarding the facilities and allowing the declared transaction value of import.

The major facilitates that have attracted the businesses is to bring import goods directly to the factories where customs assessment would be done if needed.

"This vital privilege is still missing as, so far we know, the internal digital system of NBR has not been prepared yet for offering the benefits," said the representative.

Currently, some 50 applications for AEO status are under process, said customs member Mr Mustafiz. The NBR has a plan to award 100 businesses with AEO status by 2026, he added.

"There are three tiers under which AEO is getting the privileges on imports and exports," he said.

Businesses categorised for tier one would be able to assess 20 per cent of their own customs documents and valuation by themselves, he added.

"Customs would halve the random selection examination for AEOs," he said. They (AEOs) can avail deferred payment for seven days in case of any confusion on HS code and they can give undertakings instead of bank guarantee.

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