BGMEA urges Customs to simplify short shipment certification process

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged customs authorities to simplify the process of issuing certificates related to short shipments of goods in exports.

In a letter to the commissioner of Chattogram customs house on Monday, BGMEA President Faruque Hassan also requested a meeting with the customs house to determine what factual documentation is necessary for the issuance of certificates for short shipments.

A short shipment occurs when the quantity and/or value of goods actually exported are lesser than what is declared in export shipping documents.

Sources said work is underway to update all information regarding post-export short shipment of goods in the Asycuda Word System – an integrated customs management system for international trade and transport operations in a modern automated environment, and the Bangladesh Bank's website, but the process has been hindered by various problems.

Even though exporters, the Bangladesh Bank, the National Board of Revenue (NBR), and the Chattogram customs house have held several meetings to address the issue, it could not be resolved due to various complications.

In such a situation, the NBR has directed exporters to collect short shipment certificates from customs houses and the Customs Bond Commissionerate, and then submit them to the Bangladesh Bank.

But, the BGMEA claims that customs houses seek many old and unnecessary documents from exporters for the certification, which is impractical for exporters to submit. As a result, it is not possible to give information about the short shipment of goods to the Bangladesh Bank.

BGMEA member exporters have informed the organisation that they are unable to submit old documents, particularly those older than five years, due to various reasons such as changes in commercial officers and changes in business office locations. This has resulted in difficulties in obtaining certificates related to short shipments, which is affecting normal exports.

The BGMEA has stated that several exporters are not receiving cash incentives due to complications with short shipments. Additionally, many are encountering challenges in releasing their export proceeds.

The readymade garments exporters' association has also reported that because the export proceeds are showing as overdue on the Bangladesh Bank's website, the Customs Bond Commissionerate is claiming that the export income has not reached the country in full.

Data from the Bangladesh Bank reveals that 21,124 cases of short shipments remained unsettled in the Asycuda World system between 2016 and 2020. Additionally, 4,800 cases remained unsettled in the Asycuda Plus Plus system during the 2012-2014 period, while another 1,324 incidents of short shipments remained unsettled during the transition period from 2015 to 2020.

The Bangladesh Bank has recently issued a letter to the managing directors of all banks operating in the country and various exporters' associations, requesting information on unsettled short shipments by 6 July to resolve the issue.