Sub: South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Week, Thailand Venue: InterContinental Bangkok Hotel, Thailand Date: March 25-28, 2013 Md. Sabur Khan President Dhaka Chamber of Commerce & Industry Experiences on Trade Facilitation Bottlenecks
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Sub: South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Week, Thailand
Experiences on Trade Facilitation Bottlenecks. Sub: South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Week, Thailand Venue: InterContinental Bangkok Hotel, Thailand Date: March 25-28, 2013. Md. Sabur Khan President Dhaka Chamber of Commerce & Industry. - PowerPoint PPT Presentation
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Sub: South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Week, Thailand
Venue: InterContinental Bangkok Hotel, Thailand
Date: March 25-28, 2013
Md. Sabur Khan PresidentDhaka Chamber of Commerce & Industry
Experiences on Trade Facilitation
Bottlenecks
SnapshotsIntroduction of DCCIBangladesh Economy –at a glanceIntroduction of SASECBenefits of Trade FacilitationTrade Facilitation Bottlenecks-ExperiencesTrade Facilitation initiatives in BangladeshDCCI-the lead private sector’s initiatives for TFDCCI Customs House Automation-a CaseWay Forward
DCCI- A prime and most active Chamber
Established in 1958 – the first point of contact for business as the first ISO Certified Chamber
Largest Chamber in the country works as one of the important economic watchdogs
Represents largely in the SME sector 14,000 members (Approx.), Multi sectoral business
constituencies Contributed largely for Private sector-led growth More than five decades of services to the private sector
achieved several successes & recognition both at home and abroad
Present Status of Bangladesh Economy
GDP at current price US $116 billion, 6.32% growth rate
GDP Composition: Industrial Sector 31.26 percent Agriculture 19.29 percent Service Sector 49.45 percent
Exports US $ 24.28 bn, Imports US$ 35.51 bn Remittance US $ 12.84 bn(increasing gradually) Foreign Exchange Reserve US$ 10.36 bn FDI Inflow US$ 1.13 bn Government Revenue US$16.62 bn Gross Investment is 25.45% of GDP
Present Status of Bangladesh Economy (2011-12)
SASEC
South Asia Sub-Regional Economic Cooperation
(SASEC) was set up in 2001 as an initiative of
Bangladesh, Bhutan, India, and Nepal.
Aims to promote domestic and regional prosperity
through stronger transport links and increased
trade and cooperation across sectors ranging from
energy, tourism, the private sector and the
environment
Trade Facilitation and SASEC
Trade Facilitation can help to achieve higher growth and economic development in SASEC countries
Trade Facilitation, can create possibility to go for more industrialization by expediting the movement, release & clearance of goods including goods including transit.
It is of course true that Trade alone can not create employment if it is not supported by the Domestic Policies.
Benefits of Trade Facilitation
TF not only help in having monetary gains, but increasing transparency, reducing cost of doing business & increasing business opportunity
It amplified customer value & improved security and increased revenue
SMEs in relation to larger companies are benefitted and can grow more efficiently
Trade Facilitation Bottlenecks
Key elements of Trade Facilitation
It is imperative that four key elements are present for a successful trade facilitation process:A strong political will;A clear strategic plan;A close co-operation with the business community;A well-funded and long-term technical assistance
program based on a partnership between donor and recipient.
Trade Discouraging NTBs faced by Business
Processing or clearance delays at borders or portsLack of transit and transport agreementCompliance with sanitary and phyto-sanitary (SPS)
standards Technical barriers to trade (TBT)Weak logistics systemsPoor infrastructure High administrative fees, storage and handling costs Limited IT usageLack of accreditation facilitiesExcessive documentationLack of cooperation and coordination among trade
supporting organizations
Possible NTBs in Trade in Services
Thresholds on the total value of service transaction
Restrictions on the number of service operations
Limits on the number of natural persons to be employed in case of supply for a particular service
Measures which force a service supplier to supply a service through a particular set of legal means
Limits on the percentage share of foreign investment which may be accounted for by foreign shareholders
Trade Facilitation Bottlenecks..Limited information about overseas markets and
marketing consumers goodsAdditional market entry barriersLack of attention behind and between bordersAbsence of comprehensive Aid for Trade AgendaBarriers to the international markets of goods and
procedures at and around the bordersSkilled human resources and technologyCost of trading remains high-prevents potential
exporters competing in the global and regional markets
Trade Facilitation BottlenecksCompliant with the TF Measures is almost impossible
for an LDC country like BangladeshAmong the 39 Measures some of the provisions have
partially been addressed but some provisions are very difficult to implement, such as; Detention, Test Procedures, Pre arrival processing, Establish and publication of average release time, Border agency cooperation, Use of international standards , Single window, Customs cooperation etc etc which will need more time.
Issues of Advance Ruling, Risk management issues also are similarly important and will require time
TF Bottlenecks contd…As an LDC Bangladesh has already identified
their Trade Facilitation Needs and Priorities and is trying to address these issues while the cost implications of these proposed measures is huge
Bangladesh needs to identify what type of Technical Assistance and support for Capacity Building is required to be compliant with these measures
LDCs are already suffering for infrastructural bottlenecks, Bangladesh is not an exception
Trade Facilitation Initiatives
Trade Facilitation Initiatives
Bangladesh has already pursuing liberalized trading regime
Customs procedures have been simplified & modernized substantially.
Infrastructure & facilities at different customs points, different sea & land ports have been improved.
Ministries have their own websitesASUCUDA ++ is also in place, ASUCUDA
World in in processChittagong Port is under several reforms.
Cont...Full Automation of Chittagong Customs
House & Automation of Dhaka Customs House
PSI has reduced physical inspection of consignments, from 100% in 1999 to around 10% now.
Number of pre-clearance signatures has gone down to 5 from 25, & export clearance time for 95% of consignments has been reduced from 72 hours in 1999 to 3 hours now
Appointed Tax Ombudsman to facilitate good governance in Tax & Tariff measures.
Cont...
New-mooring Container Terminal (NCT) at Chittagong Port is under construction.
It will ease the current vessel and container congestion a lot
Government and Private sector is working very closely
Initiatives for TF by DCCI
Dhaka Custom House AutomationTraining through DCCI Business InstituteEstablishment of a Public-Private Dialogue called
Business Initiative Leading Development (BUILD)Close interaction with government agencies
(Bangladesh Tariff Commission, NBR, EPB, Ministry of Commerce etc.) which are working for trade facilitation
B2B Matchmaking activitiesIssuance of Certificate of Origin (CO)Policy Advocacy and ReformsInitiatives through different projectsDCCI Help DeskMany more....
A TF case of DCCI under PPP-DCHA
DCCI in partnership with National Board of Revenue (NBR) has been implementing the project on Dhaka Customs House Automation (DCHA) under Public Private Partnership (PPP) model with a view to reduce cost of doing business, reduce bureaucratic tangles, reduce cumbersome process of paying taxes, create a hassle free business environment and increasing revenue by ensuring transparency
and accountability.
Contd..DCHA Benefits
Improved efficiency, save time for each stakeholder, improve productivity, accountability and compliant to WCO definition by introducing world class IT infrastructure
Reduced cost of doing business by at least 70%
Saved customs processing time by 80%
Cutting down the customs procedures to 6 steps in the place of existing 31
Monitoring international and domestic price
Transparency and level playing field ensured
Minimized risk & ensured better service delivery of the custom department
The way forward
The Way Forward
Harmonization of trade documents Adoption of the HS nomenclature and use of
internationally agreed standard data elementsOnline publication of relevant trade regulations and
procedures, including fees and charges, in the local language and in English
Establishment of a national trade facilitation committee,
Establishment of enquiry points and single national focal points for trade regulations and other trade facilitation issues, and
An effective appeal procedure for Customs and other agencies rulings.
DCCI is looking for support
Help Desk in the Chamber with connectivity of all relevant trade supporting organization