Dhaka, Bangladesh
Trading Across Borders - A Sub Index of Ease of Doing Business: Problems and Issues

Trading Across Borders - A Sub Index of Ease of Doing Business: Problems and Issues

By Dr. Sonjoy Chakraborty

(From yesterday's issue) On the other hand, if the customs authority did not find any fault in the second time physical verification, then the cost of the second verification has to bear the informer including the yard charge of the port authority. Scanning of Export Goods: According to the condition of the ISPN, all the exported goods should be scanned before shipment. However, all the imported goods are scanned instead of export goods. Regulation of Export Back Container: When any container of export goods comes back to Bangladesh due to lack of compliance or any other difficulties, there is no section in the custom rules to resolve these types of problems. Sometime customs authority treated it as a import goods and the custom imposes an import duty, sometimes custom authority takes a declaration that the exporter will export it within the 6 months. So, this type of problems should be solved by issuing a circular. The circular may be that the return export goods will be considered as a duty free import goods. This will be examined as per the bill of entry of the concern export. Classification of Importer or Green Channel Importer or Automatic Risk Managements System: According to the Kyoto Convention, the good importer should not be examined. We can classify the importer and follow the rules of the Kyoto Convention. This will reduce the cost and time of export and import. But we have to select who will determine it. In the ASYCUDA system, the customs authority should introduce the list of the good importer and these importer will not be physically verified. This system is known as the Automatic Risk Managements System. Scanning Division Creation in Custom: The ARO are deployed for Scanning. They are given training for this work. ARO's are transferring frequently. Then the new untrained ARO's are coming in the area of scanning. The Chittagong custom has planned for scanning division and it has sent to the NBR. However,NBR, did not take any action for this purpose. There should be individual scan division who will work for scanning. IRD should take immediate initiative for the creation of separate scanning division. Leave Substitutefrom Custom Department: If any customs officer is on leave or engage any other purpose, there is no leave substitute for managing the present work. If the customs commissioner is absent, the Additional Custom Officer should work as leave substitute. But, this is not rightly working in the offices of custom. Effectiveness of SRO: Frequently, NBR is issuing SRO for the trade facilitation or the interest of the state. Suppose, an SRO is issued on 1st January, 2017 regarding the tariff of any import or export commodity. The government should mention that if any importer already opened any LC for the importation of the promulgated SROrelated commodity, they will not be effected. Because, an influential importer may import any commodity and when that commodity is nearer to the port, then he can issue an SRO by applying his influential capacity, which may be only for his personal interest of that importer but against the interest of the state. On the other hand, an importer may open any LC for the importation of any commodity for business or commercial purposes of calculating his profit. If the tariff rate changes after opening LC, he may be seriously affected. Case Studies of Customs: (1) MRS Nazul and Sons Engineering Workshop import 30 MT waste and scrap of tinned iron or steel through the land custom station of the Chapainababgong on 30-06-16. But the customs authority did not release the imported according to the section 29 (Kha)/4 of IPO (2015-2018). The section explains that the imported goods are secondary and substandard which is not permissible under the mentioned section. The importer applies to the Ministry of Commerce for the Clerence Permit (CP). But the Ministry of Commerce rejects their application without considering strong judicial ground. Then MRS Nazul and Sons Engineering Workshop again apply to the Ministry of Commerce for the Clerence Permit (CP) mentioning section 35 of IPO (2015-2018), where these commodities are permitted for the industrial purposes. Then the Ministry of Commerce sends it to the Tariff Commission for making recommendation regarding this matter. On the date of 30-04-2017, tariff Commission calls for a meeting where all the stakeholders were present. The importer has got the IRC from CCI&E after recommendation of the BOI for the import of this commodity for the industrial use. The importer will use this commodity to produce beam, Kodal, axe, tractor beam. But, the customs authority did not release by definingcommercial import which was not appropriate. The tariff commission decided to recommend to the Ministry of Commerce for providing Clerence Permit (CP). In the meantime, already 10 months have been passed. The importer has to carry huge amounts of port retention demurrage and has to carry the cost of capital. 12. Registrar of Joint Stock Company (RJSC) It is well known to us that, the RJSC is the only full automated office in Bangladesh.Inspite of this, the office has the following drawback. 1. In the case of foreign company registration, the encashment certificate has to carry manually. The system should be developed so, this encashment certificate need not to carry manually. 2. Liaison, Branch and Representative offices of the foreign company has to enroll their registration in BIDA and then again in RJSC. There is no justification of the double time registration. 3. There is a controller of certifying authority (CCA) under Information and Communication Technology Division of Ministry of Posts, Telecommunications and Information Technology. This organization has given the license to the six agencies for providing the digital signature to the people of the country. The Government intends to introduce digital signature in the country to reach the objectives of Paperless Government Correspondence.Electronic Document Signing or digital signature can be used fore-Procurement, e-Commerce, Internet Banking, Preventing Cyber Crimes and finally for the achievements of the e-Government. But few numbers of government official and very few numbers of citizenhave Digital Signature. At present around 3000.00 taka is required for purchasing a Digital Signature and every year it has to be renewed and then it is required 2500 takaagain. For this reason, people are not interested in the digital signature. So, this amount should be reduced to only 500 taka and renewal should be only after 10 years. The authority should take a crash program for the digital signing of the all government official within 1 year. 4. At present the fee of the RJSC has to pay manually. If the applicant provides an account number with sufficient money and the amount of the fee would be credited to the RJSC account, then the system will be completely automated. For this reason, payment gateway system has to be developed. There should be an understanding among the all schedule bank and the Bangladesh Bank regards the payment gateway system. 5. At present RJSC has to report Bangladesh Bank regarding the FDI. There is no automated system of the counting the FDI. This should be developed. 6. The present software is not completely updated to read the Memorandum of Association and Memorandum of Article. The RJSC outsourcing engineers are sufficient to update the existing software. 7. BIDA has to create a database of the all foreign and local companies database so that the information can be verified through online. (To be continued)

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