Al Amin :
Authorized Economic Operator (AEO) status should be tier-based to accommodate more trusted and compliant local companies into the facility.
The National Board of Revenue (NBR) is going to provide the AEO facility to the domestic companies, who are mainly involved with the cross-border trades, aiming at reducing time and cost.
As per the facility, the designated companies will be able to release their goods without any physical examination at ports, among other facilities.
The Customs Valuation and Internal Audit Commissionerate, which oversees the facility, recently published a circular in newspapers seeking application from companies by offering AEO status.
But, only 61 companies, mostly from pharmaceutical sector, applied for the status. Of these, one application was rejected after the deadline and the reset (60 applications) are under scrutinizing, NBR officials said.
Over 6500 companies are enjoying the facility under four categories in India and the number is increasing day by day.
Mohammad Enamul Hoque, Commissioner of the Commissionerate, told The New Nation, “The Number of application is comparatively low as the major portion of our businesses was unaware of the facility and many companies have not matched with the conditions imposed by the NBR.”
However, the situation will be changed when the designated companies will enjoy the facilities frequently, he said.
He also said that they have some shortcomings, which needs to be improved, in line with providing the facilities smoothly.
Businesses running activities continuously for five years in Bangladesh with satisfactory compliance record on customs, VAT and income tax laws will be eligible for the status, according to rules.
Applicants must have no record of proved offences or infringements of tax laws for last three years and all undisputed outstanding revenues must be paid before the application, it said.
The amount of penalty in any cases related to customs, income tax and VAT (except those under trial at courts) should not be above one per cent of total value of goods and services of last three years.
Businesses having at least Tk 15 crore as authorised capital and at least Tk 5 crore as paid-up capital or above Tk 5 crore as annual turnover for last three consecutive years will be eligible for the status.
In case of importer and exporter, the average value of import and export should be Tk 5 crore for immediate past three years for getting the status of trusted traders.
“The low respond is mainly for lack of transparency and accountability among the businesses,” said Dr Mahfuz Kabir, Research Director of Bangladesh Institute of International and Strategic Studies (BIISS).
“Besides, unawareness about the facility and uncertainty in trades for economic downfall caused by the Covid-19 pandemic and Russia-Ukraine war are the reasons for it,” he said.
He further said that the facility should be category or tier-based to accommodate more businesses.
A committee, headed by Enamul Haque, would scrutinise the application and decide the AEO status to the applicant.
The committee will also conduct audit of activities of AEOs every three years or any time based on necessity.
The commissioner will terminate the AEO certificate of any operator for various reasons including false declaration in import-export, tax and duty evasion and deviation from the criteria.
