TECHNICAL ASSISTANCE & CAPACITY BUILDING FOR TRADE FACILITATION

1. 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

2. Customs House Chittagong FEBRUARY 2001 – selected data Number % 2115*** 41.46 Bills of Entry Processed in 2 Working Days or Less *** 25% increase over past 12 months Bills of Entry Processed in 7 Working Days or More February 2001 January 2000 % % 21.86 25.69

3. 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]

4. 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

5. 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 IT Systems Stakeholder Participation Law Procedures Training

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