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Time and cost of trade are expected to shrink for paperless processing of exports and imports to pass through a hi-tech single window under a World Bank-aided project.
Dubai-based Webb Fontaine Group will implement the project worth Tk 5.85 billion to install the Bangladesh Single Window (BSW) trade-facilitation systems, officials have said.
The National Board of Revenue (NBR) has joined hands with the Group to get the works done successfully by 2026.
Webb Fontaine is dubbed one of leading providers of solutions for trade facilitation, powered by world-class technology, including artificial intelligence (AI). It would provide software and hardware support as supplier to the NBR as per the project deal.
The NBR signed an agreement on June 21 last with the firm under a contract price worth US$ 20.65 million or around Tk 2.23 billion. The contract price is inclusive of advance income tax (AIT) and value-added tax (VAT).
Under the agreement, the company would provide all technical support to customs authority so that it could establish a data centre and facilitate issuance of certificates by 19 government entities involved with export-import process, including Bangladesh Export Processing Zone (BEPZA) and Bangladesh Economic Zones Authority (BEZA).
The facilitator remains responsible for supplying, installation, and achieving operational acceptance and would support the information system of BSW software solution and automated risk management system (ARMS).
Under the deal the Dubai firm would design, supply, install, configure, set up, test, provide-related services and training.
The revenue board picked the company through inviting international tender earlier.
A senior official of the BSW said a Request for Proposal (RFP) would be invited for procurement of hardware for the entities, which may start in September.
“The NBR would form a separate BSW commissionerate to ensure smooth functioning of the work and keep it sustainable,” the official added.
BSW is one of the largest projects under the NBR which would help simplify import-export procedures through automation, cut cost and time of port clearance of goods.
Abul Bashar Md Shafiqur Rahman, Project Director, Bangladesh Regional Connectivity Project-1: NSW Implementation and Strengthening Customs Modernisation, signed the agreement on behalf of NBR as ‘purchaser’.
Navvneet Chauhan, senior vice president, sales, signed the deal on behalf of Webb Fontaine as supplier.
“The contract, spanning three years, encompasses the implementation, maintenance, and support of the project. Webb Fontaine’s expertise in trade facilitation, combined with its cutting-edge technology solutions, will play a pivotal role in streamlining trade operations in Bangladesh,” according to website of the company.
The integrated system will interface with 18 government ICT systems, catering to an estimated 700,000 users who process approximately 8.0 million transactions annually, it says.
Alioune Ciss, CEO of Webb Fontaine, stated: “We are honoured to partner with the Bangladesh National Board of Revenue for this transformative initiative. Webb Fontaine’s innovative Single Window and Risk Management solutions are tailor-made to address the unique challenges faced by Bangladesh’s trade ecosystem. By simplifying and accelerating trade processes, we will contribute to the country’s economic growth and create a favourable business environment for local and international traders.”
Webb Fontaine looks forward to commencing the implementation of the Single Window and Risk Management solutions, working closely with the Bangladesh revenue board and other stakeholders, to ensure a seamless transition towards a modern and digitised trade ecosystem, the group says.
Launched in 2019, BSW aims to expedite export-import trade and transit goods movement and check duty evasion.
A major part of the BSW project would be funded by the World Bank (WB) while the rest Tk 561 million by the government of Bangladesh.
In August 2018, the NBR signed a memorandum of understanding (MoU) with 38 departments and entities to implement NSW.
Earlier, the NBR chairman had said implementation of NSW depends on the capacity of all of the relevant entities or departments, not only the NBR.
“Unfortunately, many are not prepared yet for integration under a single window,” he said.
Once the BSW system is implemented, it will enhance trade operations by eliminating paperwork and reducing time through maintaining up-to-date information.
Goal of the NSW is to benefit 319,000 Bangladeshi traders by reducing time and cost of trading in the fifth year of operation.
The average processing time for imports is expected to be reduced to 122 hours, and for exports to 88 hours.
Bangladesh submitted its WTO TFA (World Trade Organisation Trade Facilitation Agreement) instrument of ratification in September 2016 with which it committed to implementing 37 measures of facilitating legitimate trade.
The National Single Window is under Article 10.4, which states “members shall endeavour to establish a single window”.