Ease of doing business: NBR directs customs not to delay goods release unnecessarily

The National Board of Revenue has instructed customs authorities across the country to stop unnecessary harassment in the name of examining import and export consignments and avoid delays in releasing goods, responding to a long-standing demand from businesses.

The revenue board issued the directive to officials of all customs houses yesterday (30 August), outlining 13 specific instructions to simplify customs procedures.

Ifographics: TBS

Business leaders have welcomed the move, saying effective implementation at the field level could bring significant improvements in the ease of doing business.

Under the directive, businesses will not be required to submit documents beyond those stipulated under NBR rules. Documents submitted online will also not have to be submitted manually again.

Customs officials have been instructed not to send documents of low-risk consignments to senior officials unnecessarily unless there is a specific instruction from the authority.

A consignment should not undergo multiple physical examinations unless there is concrete information indicating duty evasion. Consignments should instead be selected for examination based on revenue risks, while the results of physical inspections should be used to determine whether further examination is necessary.

The directive also calls for avoiding unnecessary steps in customs assessment and coordinating with intelligence agencies to prevent repeated examinations.

Customs authorities have additionally been instructed to strengthen monitoring to prevent congestion at ports, expedite auction procedures and protect government revenue.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said effective implementation of the instructions could significantly improve the business environment and reduce costs.

"We have been raising these issues for a long time. If the NBR's decision is implemented at customs houses, genuine importers and exporters will benefit," he told TBS.

However, he cautioned that there is often a significant gap between decisions taken at the NBR's top level and their implementation by field officials.

"Many good initiatives fail to be properly implemented because of non-cooperation and bribe-seeking by field-level officials, particularly those at lower levels," Hatem said.

He said compliant businesses often face difficulties over minor mistakes, while unscrupulous traders manage to evade scrutiny. "Strict action must be taken against those who engage in irregularities." 

However, NBR officials said implementing the new instructions with existing capacity could be difficult and might create risks for revenue collection.

A senior Chattogram Customs House official, speaking to TBS on condition of anonymity, said the directive appeared to be based on an overly simplified view of the situation.

"The field reality is not that simple," he said.

He said the ASYCUDA World software used to identify risk criteria for consignments is not properly implemented at customs houses other than Chattogram Custom House.

"This needs to be ensured at all customs houses first. But the directive has overlooked this issue," he said.