Fully automate customs – use big data techs, blockchain: Finmin to NBR

Finance Minister Abul Hassan Mahmood Ali has directed officials of the National Board of Revenue (NBR) to focus on fully automating customs processes by using advanced technologies like big data and blockchain to make trade cost- and time-effective.

Without making trade easier, it is not possible to reduce the cost and time of doing business, said the finance minister during a seminar organised on International Customs Day at the Revenue Building in Dhaka on Friday.

The ongoing modernisation of the revenue board cannot be slowed to increase tax contribution to the GDP, he said, adding that the current tax-to-GDP ratio is "not satisfactory". 

The minister also directed NBR officials to encourage law-abiding traders and take strict action against dishonest traders.

"It is the responsibility of customs to prevent trade-based money laundering," the minister said.

The seminar organised by the NBR was attended by senior officers of the organisation and business representatives. 

NBR member Masud Sadiq presented the keynote paper in the seminar presided over by NBR Chairman Abu Hena Md Rahmatul Muneem. 

Abdul Muktadir, managing director of Incepta Pharmaceuticals, called for effective automation by the NBR. "Seven years ago, my institution (Incepta) was approved as an authorised economic operator (AEO), but it was not implemented in practice," he said. 

With an AEO certificate, provided mainly to trusted traders, a company can directly bring the consignment from the port to its warehouse without any physical inspection. Later, the inspection is done in the warehouse, saving time and cost for the importing company. 

NBR initiated this initiative as part of its trade facilitation. Thus far, 15 institutions have received this certification. 

However, Muktadir's speech indicates that many AEO holders are not being able to take this benefit practically. 

Muktadir also highlighted several problems with customs procedures at ports. 

He mentioned that importing raw materials for pharmaceuticals can take seven to eight months for testing, and correcting mistakes in import documents can take three weeks. 

Besides, he noted that important medicines can lose their quality during customs testing. 

He also raised concerns about high 60% duties being charged when lower 1% duties could apply, especially for machinery. 

"Solve these issues, listen to us, sit with us at least once in three months or six months. Open a window for us for solutions," he told NBR officials. 

However, citing a study, NBR member Masud Sadiq said 75% of the time taken for the release of goods at the customs house is due to the importer and their representatives. 

Finance Secretary Md Khairuzzaman Mozumder in his speech said that after Bangladesh's LDC graduation in 2026, various benefits and incentives will need to be removed, potentially reducing their capacity. 

"Compensation for this loss is possible only through trade facilitation. In this case, customs have to play a big role," he said. 

At the event, along with 16 officers of NBR, the World Bank Bangladesh office, the agriculture ministry, and the National Telecommunication Monitoring Center were awarded WCO certificates of merit for their contribution to customs and revenue mobilisation.