аЯрЁБс>ўџ ACўџџџ@џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅСq ПЎ7bjbjt+t+ )NAA”3џџџџџџ]fffffffzzzz8ВЦ,zs"0000008::::::$‹єм^f00000^Ќff00ЌЌЌ0@f0f08zzffff08ЌŒЌ8ff80ђ „p'˜зРzzp<8TECHNICAL ASSISTANCE & CAPACITY BUILDING FOR TRADE FACILITATION THE EXPERIENCES OF BANGLADESH Mobarak Ali Molla Member, National Board of Revenue, Bangladesh and Project Director, Customs Administration Modernisation Project May 2001 Mr Chairman, Distinguished Delegates Our theme for this Workshop is initiatives for trade facilitation, and I am delighted to have this opportunity to share some of the very recent and current experiences of Bangladesh in this regard. I will speak in the context of Customs reforms, but I should emphasise that these are taking place within the wider scope of export diversification and Government encouragement of the commercial sector to expand, diversify, and improve economic performance. Customs is at the very beginning of the struggle to modernise and simplify its systems and procedures. We came, perhaps rather slowly, to the realisation that drastic measures were needed, but we have already taken some large steps and are actively working on more that will be implemented over the next 12 to 15 months. In Bangladesh we have both sides of the same coin. Many Customs procedures are out-dated and cumbersome, but deeply entrenched. Changes are not easily made. Lack of transparency and over-complexity contribute to corruption and harassment of the importers. Information technology support for basic Customs functions is limited. Linkages to other agencies (for example the Chittagong Port Authority – Bangladesh’s major seaport) do not exist. Resources, both staff and budgets, are severely constrained. But of course Bangladesh, as a developing country, places a very high priority on maximising revenue collection. Customs duties are currently more than 25% of the Government’s total tax revenue, and all duties, taxes and other charges levied on imports total about 60%. Whilst it is the Government’s policy to expand the income and value-added tax bases and their nets – an important part of the over-arching revenue reform program within which Customs changes are being made - still there is an obvious importance to Customs’ collections from imported goods. The other side of the coin is the private sector. Whilst there are many honourable and law-abiding importers who voluntarily pay their dues, unfortunately there is also a high percentage of evaders and avoiders. Customs procedures, which in the past have lacked sophistication and have suffered from lack of IT support, must detect these wrong-doers – particularly where there is revenue at stake. Regretfully, it is often the case that the law-abiding suffer as much as the evaders from the delays and the costs of Customs procedures. Against this background I would like to mention the relatively modest successes Bangladesh Customs has achieved to date in improving trade facilitation, and to outline the very much more ambitious objectives we have set for the next 15 to 18 months and beyond. I hope that what I will outline today demonstrates the importance that both the National Board of Revenue and our Commissioners of Customs attach to simplifying and modernising Customs procedures. We share equally with the private sector the concerns and the frustrations that arise from how things are done today. We very much want to improve, so that Customs can make its contribution to trade and economic growth, and we aspire to take the stakeholders with us in a partnership for change. Arguably our most important – certainly the first - initiative was the introduction of Pre-Shipment Inspection or PSI, in February 2000. It was important because it set in motion the whole process of change. Three PSI companies are contracted by the Government to inspect the goods to be imported and certify the accuracy of information related to them. A 4th company is soon to be contracted to audit the activities of the other three. Accompanying PSI is a rule that limits the selection of shipments for physical examination by Customs to 5% of the total of all shipments. The remaining 95% are subject only to documentation checks prior to Customs release, and unless there is sound reason to the contrary the PSI company’s certification is taken to be the basis for assessment of duties and taxes. These procedures are a radical change from even recent days when Customs inspected each and every imported shipment. We have made a small start – which as I will explain shortly we are going to take very much further with the help of our team of consultants – by closely targeting the 5% of shipments to be examined and randomly selecting the officer who will appraise the shipment. Some, at least, of the harassment and delays of the old system have been removed. Today at our major shipping port, Chittagong, we are clearing about 40% of bills of entry in 2 working days or less. This is not as good as we expect it to become, BUT at the same time the average number of bills of entry cleared in 2 days or less has increased by very close to 25% per month. We have also been able to reduce from about 26% to around 21%, those bills of entry taking 7 days or more for clearance, usually because follow-up Customs enquiries are necessary. As I said, these are modest steps along our way, but we see no reason why we should not in the foreseeable future achieve targets of less than 2 working days for 100% of bills of entry except where the goods need to be fully inspected for Customs purposes. Mention of our team of consultants brings me to our next, and still on-going, major initiative – the Customs Administration Modernisation Project. I am the Project Director, and I have a team of international consultants on both policy and technical subjects together with locally recruited consultants, an implementation team of experienced Customs officers on secondment, and a large team of IT analysts, programmers and computer operators. Many, if not all, of the project’s objectives are related to trade facilitation. It is funded by a World Bank IDA loan for the support of Export Diversification – the complementary components of which are Customs reforms, Trade and Tariff Policy reforms, and support to companies seeking to develop export products and establish or expand their markets. But the project is also very much related to the National Board of Revenue’s long-term plan to modernise the whole of the revenue administration. And now some specifics about the coming changes in Customs…… Over the next 15 months a very large number of policy, procedural, system and organisational improvements will come together. The facilitation of import and export trade will be significantly enhanced. Customs procedures will be greatly simplified and more transparent; delays and harassment of importers will be reduced; Customs interventions will be targeted towards the highest risks of revenue evasion; and modern new systems supporting the clearance process will provide both quicker service to stakeholders and better quality management information to Customs. As I am sure this audience will know very well, an important objective in Customs reform is to encourage voluntary compliance with the law. Those who demonstrate that they represent the least risk will reap the greatest benefits, whilst the opposite will also be true. This fundamental change in perspective will not occur easily for either stakeholders or for Customs, but we all agree that it is essential if Bangladesh is to prosper as a small but growing trading economy. Although the project encompasses all import and export procedures, it also specifically targets one major export industry – the ready-made garment sector. For them the Customs clearance process will be made very much more efficient, both for imported materials and for their exported products. Customs controls over their operations will be simplified and targeted towards those who present the greatest risk. The success of these initiatives will enable our special bonded warehouse scheme to be extended to other export-oriented industries. Already we have established a new Commissionerate to manage and monitor such warehouse operations. Perhaps I should mention also some changes in the duty drawback scheme, which will refund duties and taxes very much more quickly than is the case today. A small but important improvement for a number of importers who also export or who supply to export industries. I would like to give you a small glimpse of the means by which the objectives will be met, and perhaps to emphasise the unprecedented scale of the reform programme. Very few stones will be left unturned…… Before I conclude, Mr Chairman, I would like to give a little more detail about some of the most important of the current initiatives, in the context of trade facilitation. I mention these in - as it were - “pre-Asycuda++” and “post-Asycuda++” format because although our project with UNCTAD to upgrade Asycuda is only just about to get under way, we have been making important changes based around the current system also. In fact, some of these have been very helpful in giving us experience and confidence with new techniques – one might say the modern–day “Customs philosophy” – of selectivity and risk management, before the advent of even more sophisticated technology and capacity. Right now we are implementing a selectivity system at our major seaport, Chittagong. Shipments are screened against pre-determined risk criteria, and directed towards the appropriate channel. Green channel imports are released with minimal documentation checks and no physical inspection of the goods. Yellow channel imports – at present the majority – receive full documentation check and if necessary may be upgraded to red channel. Red channel imports – about 10 to 12% of the total – receive full documentation check and physical inspection of the goods. Simultaneously we are developing a post audit capability to verify the accuracy of green channel and a sampling of yellow (if necessary also red channel) channel clearances. In addition we have developed a small but impressive sub-system that enables the importers’ declared values to be checked against pre-set criteria (such as a range of values for particular goods from particular countries) – both as part of the assessment process and as part of the post-clearance audit. Our plan in the immediate future is to extend the system to include exports at Chittagong which presently is a manual process, and to implement the system fully at our second major Customs House in Dhaka, and also at the Inland Container Clearance Depot in Dhaka. Our aim is to reduce even further the reduced clearance times that we have already achieved. Using a new SAD-based bill of entry introduced very recently, which will give us a wider and more accurate range of information about shipments and commodities, the system will be introduced with off-line data collection at several other locations. Pending the advent of Asycuda++, the better quality of information available – together with the networked communications capacity that will be established – will be the major benefits at these locations. The introduction of Asycuda++ over the next 15 months will, of course, establish an expanded and integrated database of imports and exports able to be accessed by all major Customs ports and stations. Speed and accuracy of processing will be further improved. And more importantly, Asycuda++ will provide us with the future platform for the electronic era, enabling even more ambitious trade facilitation benefits to be realised. Electronic data interchange, stakeholder on-line direct access to essential information, higher speed and accuracy of communications, and more sophisticated management tools all will deliver benefits to Customs and to stakeholders alike. Mr Chairman, I conclude by emphasising a point that I made when I started. The key to success, as we have learned from others who have been down this path of Customs reform, is partnership with the private sector. Although the environment within which Bangladesh has started this journey presents significant obstacles that we must overcome, it also presents many opportunities. Opportunities to demonstrate that the benefits of complying with the Customs laws are financially more rewarding, by way of reduced costs, more sales, and increased profits, than the benefits of evasion and avoidance. Opportunities for the private sector to demonstrate that it is the engine for Bangladesh’s economic growth, aided by a discriminating Customs regime applied with a “light hand” – except when the heavy hand of the law is needed. And opportunities for the Customs to demonstrate that it knows when and to whom to apply each kind of hand – in this way making its small but important contribution to protecting the Government’s need for revenue on the one hand and, on the other, its need for economic growth which is enabled by trade facilitation. I am pleased to say that in my country we are very much engaged in this partnership. Mr Chairman, distinguished delegates, thank you for this opportunity to speak to you today. _____________ PAGE  PAGE 6 @Hegqƒ 34=ќ!CP; H m ‡ †Œ’z–тф4DЃГv|<BŸПWz ЖJa„Гc!k!ц#э#ё$%Р%б%n&o&p&&u(~(5)B)Ѓ)Б)(*3*І*Д*…,Ѕ,ы-.Г/а/e1€1T2_2в3п3Ў4Л4”5Ѕ5г6ц6љєюььщьььььььььчьььььььььььььььуььььььььььььььь5CJH*CJ5 5OJQJOJQJ CJOJQJZ@ABCDEFGHfghijklmnopqƒ„ВГЗИїљїїїїїїїїѕђђђђђђђђђђђѕђђђђђђ$$dh@ABCDEFGHfghijklmnopqƒ„ВГЗИїјљњћќ§ўџ     34ћќќљіѓ№эъчфолиевЯЬЩЦУРНЗДБіѓчфЎЋЈЅЂŸœ™–“Š‡ќќЦУ„~ўџџџџџџџџeџџџfџџџgџџџhџџџqџџџrџџџsџџџtџџџuџџџvџџџwџџџxџџџyџџџzџџџэџџџюџџџ џџџиџџџйџџџкџџџлџџџмџџџнџџџоџџџпџџџрџџџсџџџтџџџ ИџџџЙџџџКџџџЛџџџМџџџНџџџОџџџПџџџРџџџ1їјљњћќ§ўџ     34ћќBC: ; l m …ќќќќќќќќќќќќќќњњјјјјјјјјјјјј$BC: ; l m …†‹Œy{34ЂЃvwžŸWX  IJ„…b!c!х#ц#№$ё$П%Р%o&p&t(u(Ѕ*І*„,…,ъ-ы-В/Г/d1e1S2T2б3в3­4Ў4“5”5в6г6(7)7†7”7Ї7ќљіѓ№эъчфсолиевЯЬЩЦТОЛИЕВАћщџџЖыџџЗыџџoэџџ pэџџ —юџџ˜юџџk№џџl№џџкёџџлёџџ“ѓџџ•ѓџџ‚ѕџџƒѕџџˆіџџ‰іџџЁјџџЂјџџгњџџдњџџЫќџџЬќџџ ўџџE…†‹Œy{34ЂЃvwžŸWX  IJ„…b!c!х#ц#§§§§§§§§§§§§§§§§§§§§§ћ§§§§§§§ц#№$ё$П%Р%o&p&t(u(Ѕ*І*„,…,ъ-ы-В/Г/d1e1S2T2б3в3­4Ў4“5”5в6г6(7§§§§§§§§§§§§§§§§§§§§§§§§§§§§§(7)7†7”77ž7Ÿ7Њ7Ћ7Ќ7­7Ў7§§§є№§є№§§§„h&`#$„јџ„ ц6)7M7”7•7›7œ77Ÿ7 7І7Ї7Ј7Љ7Њ7Ў7§іѓіѓіѓіюіѓ0JmH0J j0JU5Ї7Њ7Ћ7Ќ7­7Ў7ќќњњ ' 01h/R!Аа/ Ар=!А"А# $ %А [8@ёџ8 NormalCJ_HaJmH sH tH 2@2 Heading 1$@&5\8@8 Heading 3$$@&a$5\<A@ђџЁ< Default Paragraph Font, @ђ, Footer  ЦрР!&)@Ђ& Page NumberЎ3Nџџџџ ц6Ў7%ї…ц#(7Ў7 "#$Ї7Ў7!& !•!дџ•€X_ЄГ”3œ3Ÿ3Љ3Ќ3Џ3ГЖЗŸ  П Ъ ћ „ … { ­ К LVпПMTЂЃьћ6;Xы?H;K€ я Г!Н!д(ф(A+O+ж,н,›/Љ/”3œ3Ÿ3Љ3Ќ3Џ3::::::::333333333џџ Graeme LudlowUC:\My Documents\Reports to NBR\Correspondence with PD's Office\Mr Molla's Handout.doc Graeme LudlowA:\Mr Molla's Handout.doc Nora Neufeld (C:\Presentations\Mr Molla's Handout1.docџ@€E8 Ў30@G‡ŸTimes New Roman5€Symbol3& ‡ŸAriala&МArial Rounded MT BoldTahoma"1ˆ№аh—BUF—BUF—BUFv‡*Z‘#№ ДД0:4џџ?TECHNICAL ASSISTANCE & CAPACITY BUILDING FOR TRADE FACILITATION Graeme Ludlow Nora Neufeld ўџр…ŸђљOhЋ‘+'Гй0Ф˜ шє $4 LX t € Œ ˜ЄЌДМф@TECHNICAL ASSISTANCE & CAPACITY BUILDING FOR TRADE FACILITATIONECHGraeme LudlowSTraeraeNormalLNora Neufeld ST2raMicrosoft Word 8.0E@@ŠТ˜зР@ŠТ˜зР@ŠТ˜зРv‡*ўџеЭеœ.“—+,љЎDеЭеœ.“—+,љЎl( hp|„Œ” œЄЌД М фIZ:41 @TECHNICAL ASSISTANCE & CAPACITY BUILDING FOR TRADE FACILITATION Title˜ 6> _PID_GUIDфAN{173C4C1B-430C-11D5-BDBA-000255504683}  !"#$%&'ўџџџ)*+,-./ўџџџ1234567ўџџџ9:;<=>?ўџџџ§џџџBўџџџўџџџўџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџRoot Entryџџџџџџџџ РFцg'˜зРАw'˜зРD€1Tableџџџџџџџџџџџџ(WordDocumentџџџџџџџџ)NSummaryInformation(џџџџ0DocumentSummaryInformation8џџџџџџџџџџџџ8CompObjџџџџjObjectPoolџџџџџџџџџџџџАw'˜зРАw'˜зРџџџџџџџџџџџџўџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџўџ џџџџ РFMicrosoft Word Document MSWordDocWord.Document.8є9Вq