Trade facilitation support services for business expansion

The present global trend is to examine the gaps in trade facilitation measures amidst the investment policy shift from liberalization to facilitation. Bangladesh has made several efforts to improve trade facilitation support services for a business-enabling environment; however, businesses still face challenges due to stringent customs procedures and high lead times. Exports remain confined to low-tech, labor-intensive products, resulting in lower income. There is potential to export a broader range of products.
To foster a favorable business environment, Bangladesh aims to implement various Acts, policies, and the WTO Trade Facilitation Agreement (TFA), streamlining procedures and enhancing coordination to reduce the time and cost associated with import and export activities. This involves modernizing customs procedures, certification processes, and risk management, with a strong focus on inter-agency coordination throughout the shipping and clearance process.
The National Board of Revenue (NBR) under the Ministry of Finance (Internal Resource Division) is one of the main bodies implementing trade facilitation (TF) measures. The National Single Window (NSW) is an example of TF measures that, if implemented properly, could provide relief to businesses. This project, initiated by the NBR in 2023, is expected to be completed by 2026.
A National Trade Facilitation Committee (NTFC) has been formed in the Ministry of Commerce (MoC), comprising 40 public institutions and 20 private institutions, including BUILD. The current rate of implementation commitments in this respect stands at 78.6% (WTO Database) within a timeframe from February 2018 to June 2030.
Different types of ports face various issues. For example, sea ports are experiencing congestion at Chittagong Port during peak seasons, inadequate depth in some areas, and a lack of efficient hinterland connectivity. Additionally, under-invoicing of imported goods leads to revenue loss. Airports also suffer from congestion during peak hours due to limited cargo handling capacity and a shortage of specialized customs personnel for handling high-value and sensitive items. Security concerns and challenges in detecting counterfeit and prohibited goods further complicate the situation.
Despite numerous efforts, Bangladesh still faces considerable challenges in its customs and logistics sector. Continued reforms and investments are necessary to enhance efficiency, reduce costs, and improve the competitiveness of the country's export-oriented industries. The logistics sector is a crucial component of global supply chains. To enhance efficiency, reduce costs, and meet increasing customer demands, several key areas require improvement.
There is a pressing need for investment in infrastructure development. Continued investment in ports, airports, and land ports, along with enhanced hinterland connectivity, is essential. The announcement of the National Logistics Policy 2024 has attracted local and foreign investors; now, implementation plans for the policy are critical. Immediate needs include the expansion and upgrading of infrastructure and the establishment of formal, specialized firms for the management of service provision, as well as overhauling both line haul and terminal infrastructure.
To facilitate trade and business, investment in the required areas through Public-Private Partnership (PPP) initiatives needs to be initiated. Encouraging private sector investment in logistics infrastructure and services, and allowing private participation in the development and maintenance of infrastructure-such as terminals and lines-could present significant opportunities. There is a heavy reliance on budgetary allocation for construction, maintenance, and other support services, which necessitates the planning of innovative investment schemes across diverse sectors to align with the needs of facilitating trade and business.
The writer is Chief Executive Officer, Business Initiative Leading Development (BUILD)