businessnews24bd.com :
Lengthy procedures followed for clearing the import and export goods at the Chittagong Port have been listed as a major constraint to facilitating smooth international trade, a recent study has revealed.
The clearance of an import cargo at Chittagong port on an average takes more than 11 days and for an export consignment it takes nearly five days, the study said.
The study titled ‘Bangladesh Time Release Study’ (TRS) was conducted by the Chittagong Port Authority at the directive of the National Board of Revenue (NBR) at the seaport with the support of the International Finance Corporation (IFC), from October 23 to November 5, 2013.
The study recommended introduction of a paperless processing system, a robust risk management system and establishing some form of connectivity with the port authority to reduce the customs clearance time.
The National Board of Revenue (NBR) has finalised the report recently and it would be unveiled this week.
Org-Quest Research Limited (OrQuest), a Bangladeshi research company, was hired by the IFC to assist in conducting the TRS.
The study was based on the response to some 1,013 questionnaires on import and 1,185 on export.
The TRS identified some general problems that add to the cost of trade. These are port congestion, complicated and duplicative customs procedures, complex and non-transparent administrative requirements and high costs of processing information resulting from limited automation.
“Trade-related transaction costs such as freight charges and other logistical expenses are a crucial determinant of Bangladesh’s ability to participate competitively in the global market,” it said.
The NBR decided to carry out the study to assess the time taken from the arrival of goods until their release. It seeks to take necessary steps to minimise the time. The main objectives of the study are to examine existing procedures and identify constraints, and to propose measures to reduce the time required for the release of goods.
The TRS found that customs processes were not the only constraint to trade. Other departments were also responsible for the delay.
“Currently, customs release and clearance times are impacted by repetitive processes that allow other stakeholders to unduly influence the total overall time taken to release goods,” the study noted.
Procedures and practices should be reviewed as a matter of urgency to remove delays, duplication and unnecessary actions by customs, other government agencies, the port authority, shipping and clearing and forwarding (C&F) agents, it added.
“For customs, some improvements can be effected immediately to improve the situation pending transition to a fully electronic declaration and risk management system, which will allow for the effective risk segmentation of cargo to expedite simplified release procedures for low risk traders,” the TRS said.
It recommended a fully integrated electronic declaration system incorporating direct trader input, automated risk assessment and client segmentation.
The procedures should be reviewed within six months to one year with the aim to enhance efficiency, streamline or eliminate the problems.
The TRS also recommended introduction of a ‘system-generated random quality control provision’ on receipt of declarations replacing the existing 100 per cent physical checking.
