EU flags non-tariff barriers in Bangladesh: Commerce secretary

The European Union has raised concerns over Bangladesh's non-tariff barriers in trade, with a significant focus on customs procedures, Commerce Secretary Mahbubur Rahman said today (26 Janaury). 

Speaking at an event in Agargaon, Dhaka, marking International Customs Day, he revealed that a recent meeting with an EU delegation highlighted 15 key issues relating to customs processes and daily operations, urging simplification.

"Our import tariffs are among the highest in the world, which they accept legally. But non-tariff barriers are not acceptable," Mahbubur Rahman said. 

He added that excessive protectionist measures, such as mandatory 100% luggage scanning at airports, create long queues without meaningful benefits.

Zaidi Sattar, chairman of the Policy Research Institute (PRI), stressed the need for urgent trade policy reforms, noting that reforms delayed over the past 15 years must be implemented within the next three to five years to prevent Bangladesh from lagging behind competitors.

He highlighted that import duties currently raise $11 billion annually and should be reduced to 1% of GDP to promote trade and job creation.

Secretary Mahbubur Rahman told The Business Standard, "Currently, import tax collection is 2.5% of GDP. But it should not exceed 1%."

Mubinul Kabir, member of the Customs Policy wing, said programmes like the Authorised Economic Operator (AEO) and pre-arrival processing remain underutilised. "We are considering relaxing the conditions for AEO," he added.

NBR Chairman Abdur Rahman Khan acknowledged complaints regarding inconsistent service delivery. "The same product, imported from the same country on the same day, should not be assessed differently by two officers," he said. 

Regarding the duty-free import of raw materials under bond licenses, he said, "Many argue that without the bond facility, the country's industrialisation would have mirrored China's progress."

Nine companies get AEO recognition

At the event, nine companies were recognised as Authorised Economic Operators. They are: Hatil Complex Limited, Asia Paints (Bangladesh) Limited, BRB Cables Industries Limited, Footsteps Bangladesh Limited, Omera Cylinder Limited, Jihan Footwear, Shoeniverse Footwear, Cutting Edge Industries Limited, and MBM Garments Limited.

AEO-certified firms can move consignments directly from ports to their warehouses without physical inspection, with documents verified in advance. Customs officers may inspect the warehouse if needed. 

The facility, often called the "VIP pass of trade," is granted to companies with strong compliance records. Currently, fewer than 20 companies hold AEO recognition in Bangladesh.

Seventeen NBR officers received the Certificate of Merit from the World Customs Organisation for their service contributions.