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Complexity in Custom: Needs simplicity
Md. Ashraful Alam
In the last week, 26th January has been observed as the International Custom day in all over the world under the dedication of the World Customs Organization (WCO) with a view to facilitate free trade through mutual cooperation among the global trade partners. International Customs Day is a wonderful reminder of important role played by customs bodies in the world. Bangladesh is also celebrating the day with a new aspiration of modern customised code to strengthen national custom administration. But a question always arises as to the uniformity and transparency in custom administration due to the loopholes of related laws and regulation in Bangladesh. Procedural complexity always creates unexpected harassment and forced illegal payment in Bangladesh. Bangladesh custom administration is governed through several national policies and laws. The main laws governing custom in Bangladesh are the Imports and Exports (Control) Act 1950, Customs Act 1969, Customs Valuation Rules 2000, Foreign Exchange Regulation Act 1947, Foreign Private Investment (Promotion and Protection) Act 1980, Bangladesh Export Processing Zone Authority Act 1980, and Bangladesh Private Export Processing Zone Act 1996, all as amended. These acts have been supplemented by various rules and regulations. But the existing laws are never become good enough to ensure uniform application of the modern Customs Code.
Today global market is shaped on free trade open for all. Free trade means free flow of goods and services from one state to another state without any restriction. If there is any restriction, it is called barrier to free trade. Barrier to free trade is of two types. They are tariff barrier and non-tariff barrier. Non-tariff barriers are of three types. They are barrier as to quality or standard, barrier as to quantity and barrier as to procedure. Custom and Administrative Entry Procedures may be in the top of non-tariff barrier by procedure. Bureaucratic delays at customs have become a common phenomenon in custom sector of Bangladesh. Both exporter and importer always are of envied due to procedural harassment in custom. These include ambiguity and delay in valuation systems, tariff classifications, documentation requirements and determination of charges on imports. Bangladesh government may get persuasion from European Union. European Union has initiated some innovative process to avoid procedural complexity among European countries. They are- Common transit system, Community transit and export procedure. The common transit procedure may be used for the movement of goods within the states entered in any special bilateral trade commitment. The community transit system may be used for customs transit operations among regional countries in general applicable to the movement of non-Community goods for which customs duties and other charges at import are at stake. The export procedure may be taken as obligatory for Community goods leaving the country having neither bilateral nor regional trade commitment. This is due to the fact that this procedure must ensure the correct application of all export measures, e.g.: export restrictions and surveillance measures.
The world custom organization has formulated some common standard of principles for more effective and flexible procedures to be followed by custom administration. Bangladesh has a commitment to the aforesaid organization. Bangladesh government may take initiative to transform these principles. The principles are- Firstly, a simplified procedure to be used in allocating custom. An export declaration will be made on the Single Administrative Document (SAD) or its electronic equivalent. An oral (or sometimes implicit) declaration may also be made (at the customs office of exit) in certain circumstances. However, neither an oral nor an implicit declaration may be made for goods in respect of which export refund or repayment of duties is claimed or which are subject to restrictions or other special formalities. Secondly, the customs office to which the goods and the export declaration have been presented releases the goods for export on condition that they leave the customs territory in the same condition as when the declaration was accepted. Thirdly, when the goods and a copy of the export declaration are presented to the customs office of exit which satisfies itself that the goods presented correspond to those declared and supervise their physical departure will be discharged. Fourthly, the custom authority should arrange a custom Trade Consultation with representatives of industrial association. A trade contact group (TCG) may provide a platform for such a regular consultation with trade representatives who have their contacts and knowledge on the operational logistical processes. The Trade Information and Consultation Processes as agreed in the terms of reference will provide a structure for ensuring that the involvement of trade in the strategic as well as operational part of Community Customs initiatives takes place in a coordinated and appropriate way.
Now I would like to show the interrelation between custom and facilitation of trade. Trade facilitation is a key policy for customs. Trade facilitation brings benefits to both the national economy and the economies of our trading enterprises. Custom plays a major role at all levels to facilitate trade in three ways. They are- helping to define policy space, drawing up the framework and rules of implementation, and then putting into place the tools and processes at operational level. In general sense trade facilitation means the simplification and harmonisation of international trade procedures including import and export procedures. Trade facilitation includes simplification of requirements and formalities in respect of the release and clearance of goods, including, to the extent possible, collaboration on the development of procedures enabling the submission of import or export data to a single agency. Bangladesh government may appoint a commission which will unify the existing rules and regulations relating to custom administration. The Commission shall be responsible for Taxation and the Customs Union to provide advice on technical assistance and capacity building projects and programmes. This include the preparation of conceptual blueprints based on in-depth experience in the design and management of customs and tax administrations, and also includes resources for consultation, advice, planning, and co-ordination of actions in this field. The commission may consider the following recommendations. It is imminent to improve the working methods and ensure transparency and efficiency of customs operations system. The government should ensure reduction, simplification and standardisation of data in the documentation required by customs administration. Application of modern customs techniques, including risk assessment, simplified procedures for entry and release of goods, post release controls, and company audit methods should ensured. Provisions should be made to facilitate the importation of goods through the use of simplified or pre-arrival customs procedures and processes. It is a crying need for Bangladesh to Introduce a proper security controls to ensure the protection of the internal market and, in close cooperation with major trading partners in the world, the securing of international supply chains.
The writer is Senior lecturer of law, Uttara University.
