Digital hub to boost trade, investment

Undeniably, navigating the labyrinth of multiple desks and procedures to clear imported cargoes and ship export consignments has been a notoriously messy, tardy and costly affair so far. So, doing business encounters enormous hurdles and as such it is a disincentive, especially for foreign direct investment (FDI). As a way out of this bureaucratic maze, the National Board of Revenue (NBR), is reported to have launched an online export-import hub recently to provide customs and tariff-related information from a single centralised platform. Evidently, the aim of this digital hub is to make business operations smoother for international trade. Though belated, it is still a welcome development that the digitalised information providing system could finally see the light of day.

The need for a centralised information portal for external trade facilitation cannot be overstated. How the country was falling behind its regional as well as international competitors in trade and investment was made plain by the operator of a Korean investor in Bangladesh who spoke at the launching event of the digital hub in question. It is indeed a revelation that the said foreign investor admitted how he gave preference to its business operation in Vietnam instead of Bangladesh when it came to allocating funds while receiving export orders. It was for the simple reason that Bangladesh was far behind Vietnam regarding lead time. Evidently, the inordinate delays in processing export-related information and documentations at the customs were to blame for this. Now, the services the digital platform would provide include what is called Harmonised System (HS) code-specific document requirements, information on necessary certificates for imports and exports, applicable tariff rates and so on. It is believed the accessibility of the digital customs and tariff-related information hub by all concerned would also facilitate business operations of new entrants with the growth of national economy. In fact, it was a long-felt demand of the new businesses since earlier only big businesses could afford the necessary facilities including certificates for obvious reasons resulting in the growth of so many oligarchs in the country. Expectedly, the centralised online system to access customs and tariff-related information would break the barriers for the newcomers to develop and excel. Also, to facilitate submission of customs-related documents by compliant businesses certified as Authorised Economic Operators (AEOs), the NBR is learnt have launched a digital platform within the so-called Automated System for Customs Data (ASYCUDA) world. Obviously, the digital module will immensely benefit the AEO licence-holders from the customs authority since they would now be able to bypass physical inspection and transport their export-import cargo directly through the green channel from the ports to their factories or warehouses thereby saving time and costs.

Notably, the NBR has reportedly awarded AEO status to 9 out of 17 highly compliant businesses so they would be able to use the green channel to carry out overseas trade smoothly. The good news is that remaining eight firms will be eligible for the online service once they meet the necessary regulations involved. But for the business community to get the facility, full implementation of the AEO system would be necessary. Again, the system will also be of help for the regulatory authority, NBR as it would reduce a lot of work pressure on it.

In addition to the AEO module, the digital hub also aligns with the Customs Strategic Plan 2004-28 as part of integration with customs modrnisation efforts. Introduction of the digital hub to facilitate trade through streamlining customs procedures would hopefully boost business confidence and investment in the economy. However, efficient and seamless operation of the digital hub to provide services as and when required will remain essential precondition.