TECHNICAL 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

Customs House Chittagong Bills of Entry Processed in 2 Working Days or Less Number % 2115*** FEBRUARY 2001 – selected data *** 25% increase over past 12 months Bills of Entry Processed in 7 Working Days or More February 2001January 2000 % %

BANGLADESH EXPORT DIVERSIFICATION PROJECT [BDXDP ] Product and Market Development Support [Matching Grant Facility] Trade Management Capacity Building – * Protection Analysis & Trade Co-operation [PATC] * Project Co-ordination and Development Customs Administration Modernisation Project NATIONAL BOARD OF REVENUE REFORMS Customs Value-added Tax (VAT) Direct Taxes Revenue Administration Modernisation Programme [RAMP]

CUSTOMS ADMINISTRATION MODERNISATION ……………. the First 3 Years Import & Export Clearance Procedures Reduce clearance delays & costs Increase revenue & reduce evasion Improve management information & practices Special Bonded Warehouse Operations Reduce clearance times & costs Reduce revenue evasion & leakage Simplify Customs controls Improve management information & practices Extend coverage to other export industries Duty Exemption and Drawbacks Simplify procedures Reduce processing delays and costs Reduce fraudulent claims & revenue loss Improve management information & practices

CUSTOMS ADMINISTRATION MODERNISATION ……………. the First 3 Years Import & Export Clearance Procedures Reduce clearance delays & costs Increase revenue & reduce evasion Improve management information & practices Special Bonded Warehouse Operations Reduce clearance times & costs Reduce revenue evasion & leakage Simplify Customs controls Improve management information & practices Extend coverage to other export industries Duty Exemption and Drawbacks Simplify procedures Reduce processing delays and costs Reduce fraudulent claims & revenue loss Improve management information & practices Risk Management Selectivity Profiling Information Management Post Audit LawProcedures IT Systems Training Stakeholder Participation

Current Reforms Selectivity Green Yellow Red Reduced ClearanceTimes Reduced Revenue Evasion Limited Improvement in Data Quality Limited Communications Capacity TRADE FACILITATION CAPACITY BUILDING - Limited System Processing Capacity Next Steps (ASYCUDA++) Enhanced Risk Management Selectivity Profiling Intelligence Green Yellow Red Low Risk Imports Cleared Within 24 Hours Significant Reduction in Revenue Evasion Faster Processing Significantly Improved Information Matching Capacity New Bill of Entry – Extended Range & Quality of Data Customs-wide Network EDI Messaging With Clients Electronic Access to Customs Information