Understanding the C&F industry in Bangladesh

Over the past four decades, the Customs Clearing and Forwarding (C&F) sector in Bangladesh has changed dramatically alongside the country's economic growth and deeper integration into global trade. As a second-generation leader in this industry, I have watched the shift from manual documentation and informal networks to an increasingly digital and structured logistics system. What was once dominated by paper trails and personal influence is now adapting to automation, regulatory reforms and the demands of global supply chains.

Digital Reform and the ASYCUDA Effect

The introduction of ASYCUDA World and the National Single Window has been the most consequential reform in the C&F sector. These platforms have digitalised customs processes that were once opaque, enabling real-time tracking of declarations and payments. Previously, officers had limited access to payment records, creating space for inefficiency and miscommunication. Today, automation allows immediate visibility of each transaction, speeding up clearance and improving compliance transparency.

Yet technology alone has not eliminated the human dimension of customs operations. Relationships remain vital to ensuring that processes move smoothly. Even with digital submissions, C&F agents must understand how to interpret regulations and communicate effectively with officers across multiple levels of authority. In 2025, the Bangladesh Freight and Logistics Market is projected to reach approximately USD 31.97 billion, growing at a compound annual growth rate (CAGR) of 3.13 per cent. This growth stems partly from the improved efficiency in customs processes enabled by ASYCUDA and other digital innovations.

Automation and Influence in a New Hierarchy

Automation has shifted the balance of influence within customs procedures, but it has not removed the importance of personal credibility. In the past, personal networks often expedited clearances, particularly for sensitive or high-value shipments in power, manufacturing, or other critical sectors. While digitalisation has made customs officers more informed and traceable, agents still need to demonstrate technical fluency, explaining specifications, HS classifications and regulatory nuances clearly.

This is particularly evident when managing project cargo or high-precision imports where documentation and product descriptions must match technical standards. A skilled agent acts as both translator and negotiator between clients and customs authorities, ensuring compliance while reducing delays. C&F agents must still work through a complex hierarchy of customs officers, ensuring they communicate effectively and comply with regulations. A well-structured relationship can significantly impact the speed and efficiency of the customs clearance process, which matters as the volume of container traffic in Bangladesh is projected to reach 2.81 million TEUs in 2025.

Common Compliance Mistakes and How to Avoid Them

Compliance remains one of the most frequent problems for importers. Typographical errors in invoices, mis-declarations in the Import General Manifest (IGM) or inaccuracies in HS code classification can delay clearance for days and incur unnecessary demurrage costs. These issues are particularly acute for holders of Commercial Import Registration Certificates (IRC), whose shipments often undergo stricter scrutiny than those of Industrial IRC holders.

Startups and SMEs can ill afford these delays. The solution lies in professionalising compliance practices through staff training, software-based document verification and proactive communication with customs officials. A deep understanding of tariff classifications is not simply bureaucratic detail; it directly affects competitiveness. Misclassified imports not only attract penalties, but also distort pricing and lead to reputational risk with both clients and regulators.

Customs Complexity and the Evolution of Timelines

Customs clearance today is far more complex than it was a decade ago. The diversification of imports and the multiplication of HS codes have increased both the technical and procedural burden on agents. Where once there was informal understanding between officers and forwarders, today there is formal scrutiny backed by digital traceability. Every product line must be justified through correct classification and valuation, and discrepancies can lead to unpredictable tax adjustments.

This growing sophistication reflects progress, but it also demands new capabilities. Modern C&F agents must blend legal literacy, technological competence and operational discipline. They must also anticipate and manage the increased uncertainty created by overlapping regulatory categories and rapidly changing import controls.

Building Trust between C&F Agents and Clients

The relationship between clients and C&F agents is often strained by a lack of transparency. Many importers have limited insight into customs processes and tend to attribute delays or disputes entirely to their agents. Miscommunication and the presence of informal intermediaries worsen mistrust.

To rebuild confidence, C&F agents must communicate openly about the procedural stages and potential risks inherent in customs operations. Clients, in turn, should vet their logistics partners, ensuring they engage with firms that demonstrate ethical practices and documented compliance systems. Transparency, supported by digital reporting and shared dashboards, can transform the client-agent relationship from one of suspicion into a working partnership that delivers measurable efficiency gains.

Market Growth Projections

The freight market is expected to expand from USD 24.5 billion in 2025 to USD 38 billion by 2030, reflecting roughly 9 per cent annual growth, while container throughput rises from 3.7 million to 5.6 million TEUs over the same period. This growth trajectory underscores the increasing importance of efficient customs operations and reliable C&F partnerships in supporting Bangladesh's trade expansion.

Learning from Regional Peers: Vietnam and Malaysia

Bangladesh's customs operations have improved substantially in recent years, yet the country still trails its regional competitors in efficiency. Data from the World Bank's Logistics Performance Index (LPI, 2022) illustrates this gap.

The LPI sub-score for the "efficiency of the customs clearance process" stands at 2.3 for Bangladesh, compared with 3.1 for Vietnam and 3.3 for Malaysia on a five-point scale.

This difference reflects deeper structural and institutional contrasts. Both Vietnam and Malaysia have invested heavily in process automation, risk-based inspections and trade facilitation measures that reduce physical intervention. Their customs administrations employ single-window digital systems that allow pre-arrival processing and streamlined clearance for low-risk consignments. Malaysia's model is built on consistent standard operating procedures and professional training within customs, while Vietnam has strengthened public-private collaboration and port coordination.

For Bangladesh, the policy implications are clear. First, the full implementation of a functional national single window, integrated with the ASYCUDA platform, would allow importers and C&F agents to complete documentation before cargo arrival, reducing congestion at ports. Second, introducing a risk-based control framework and an Authorised Economic Operator (AEO) programme could prioritise compliant traders for expedited treatment. Third, institutional capacity building must run parallel to digital reforms, ensuring customs officers are trained to interpret data and enforce standards consistently. Finally, performance should be measured publicly. Vietnam and Malaysia publish key indicators such as average clearance times and the proportion of shipments cleared without inspection. Replicating such transparency in Bangladesh could drive accountability and efficiency across the trade ecosystem.

Empirical evidence supports these strategies. Raising Bangladesh's customs efficiency score from 2.3 to even 3.1 could translate into measurable reductions in border time, shipping delays and demurrage costs. Studies based on the World Bank's Trading Across Borders metrics indicate that each incremental improvement of 0.5 in the customs efficiency score correlates with a 15-20 per cent reduction in clearance time for containerised cargo. For exporters operating on tight production schedules, such gains could materially improve competitiveness and reduce working capital strain.

The Path Forward

The evolution of the C&F industry in Bangladesh is not merely about technological adaptation; it reflects broader institutional maturity and market trust. As trade volumes expand and regulatory frameworks tighten, the role of experienced C&F partners becomes more strategic. Startups and emerging manufacturers, in particular, should view these agents not as administrative intermediaries but as logistics architects capable of guiding them through compliance, classification and coordination challenges.

The path forward requires convergence between digital infrastructure and human expertise, between regulatory oversight and business agility, and between national policy and private-sector execution. Bangladesh's trade competitiveness will increasingly depend on how effectively it can operationalise this convergence.

The C&F sector stands at an inflection point. Four decades ago, when S.F. Trading Corporation began operations, customs clearance was largely manual, relationship-driven, and opaque. Today, digitalisation has brought transparency and speed, but it has also introduced new complexities that demand both technical knowledge and interpersonal skill.

For Bangladesh to close the efficiency gap with Vietnam and Malaysia, three things must happen: full implementation of integrated digital systems, adoption of risk-based clearance protocols, and consistent investment in training customs personnel. These are not merely technical upgrades but shifts in institutional culture.

The private sector has a role too. C&F agents must move beyond seeing themselves as procedural facilitators and instead position themselves as strategic partners who add value through compliance expertise and supply chain optimisation. Clients must recognise that choosing a logistics partner based solely on price often costs more in delays, penalties and lost opportunities.

As trade volumes continue to grow and Bangladesh works to maintain its export competitiveness in a tightening global market, the C&F industry will either become a bottleneck or a competitive advantage. The choice depends on how seriously all stakeholders take the need for reform, transparency, and professionalisation. If executed with discipline, the next decade could see this sector shift from being a procedural necessity to a strategic asset in Bangladesh's export-led growth model.

The writer is Director of S.F. Trading Corporation and a second-generation leader in Bangladesh's C&F industry. rezwan.rahman12@gmail.com