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Trade and Transport Facilitation Monitoring Mechanism (Ttfmm) in Bangladesh- Baseline Study

Report by Tengfei Wang, Mohammad Farhad, 2017

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As the key outcome of the baseline study of Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bangladesh, the current synthesis report is derived from a series of studies carried out by the same project team and is targeted for policy makers, governmental officials, and the general public. Given the nature of the baseline study, the current report is aimed to not only report current trade facilitation in Bangladesh but also to lay a foundation for future studies and the establishment of long-term sustainable TTFMM. Accordingly, this report covers topics such as the importance of trade facilitation, the crucial role of TTFMM for continued improvement of trade facilitation, the key methodology for data collection called Business Process Analysis Plus (BPA+), and the rationale for defining the scope of monitoring.

TRADE AND TRANSPORT
FACILITATION MONITORING
MECHANISM IN BANGLADESH
BASELINE STUDY


















 












 












 




ASIAN DEVELOPMENT BANK




ASIAN DEVELOPMENT BANK


Baseline study


Trade and TransporT
FaciliTaTion MoniToring
MechanisM in Bangladesh






Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)


© 2017 Asian Development Bank
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Some rights reserved. Published in 2017.


ISBN 978-92-9257-839-8 (Print), 978-92-9257-840-4 (e-ISBN)
Publication Stock No. TCS178833-2
DOI: http://dx.doi.org/10.22617/TCS178833-2


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iii


conTenTs


Figures and TaBles v


Foreword vii


acknowledgMenTs viii


aBBreviaTions ix


execuTive suMMary x


chapTer 1: Background and inTroducTion 1
1.1 Importance of Trade Facilitation 1
1.2  Important Measures and Initiatives on Trade Facilitation in Bangladesh 2
1.3  High Trade Costs Remain a Major Challenge for South Asia, Including Bangladesh 4
1.4  Importance of Monitoring and Measuring Trade Facilitation Performance 5
1.5  Key Functions and Features of Trade and Transport Facilitation Monitoring Mechanism 6
1.6 Objective of the Study 8
1.7 Structure of the Report and the Rationale 8


chapTer 2: scope oF The Trade and TransporT FaciliTaTion
MoniToring MechanisM Baseline sTudy in Bangladesh 10


2.1 Factors for Consideration in Defining the Scope of Monitoring 10
2.2  Process of Selecting the Scope of Monitoring in Bangladesh and Final Selection 12


chapTer 3: MeThodology For daTa collecTion and analysis 13
3.1  Business Process Analysis Plus as the Underlying Methodology 13
3.2  Data Collection and Validation Process for the Trade and Transport Facilitation


Monitoring Mechanism Baseline Study 16


chapTer 4: key Findings and policy recoMMendaTions 19
4.1 Burimari–Rangpur–Dhaka Corridor 19
4.2 Banglabandha–Rangpur–Dhaka Corridor 32




CONTENTSiv


chapTer 5: way Forward To esTaBlish Trade and TransporT FaciliTaTion
MoniToring MechanisM in Bangladesh 46


5.1 Institutional Arrangement 46
5.2 National Capacity Building 47
5.3 Resources 47
5.4 Continuation and Expansion of Monitoring 48
5.5  Alignment of Trade and Transport Facilitation Monitoring Mechanism


with Global, Regional, and National Initiatives 48


chapTer 6: suMMary and conclusion 50


reFerences 53


appendixes
list of participants of workshops for the Trade and Transport Facilitation
Monitoring Mechanism Baseline study in Bangladesh 55


A1  Inception Workshop on Trade and Transport Facilitation Performance Monitoring
26–27 November 2013, Bangkok, Thailand 55


A2  National Workshop on Trade and Transport Facilitation Monitoring Mechanism
28–29 April 2014, Dhaka, Bangladesh 57


A3  Trade and Transport Facilitation Monitoring Mechanism Meeting
21 October 2015, Wuhan, People’s Republic of China 59


A4  Workshop for the Implementation of Trade and Transport Facilitation
Monitoring Mechanism Baseline Studies
13–15 January 2016, Bangkok, Thailand 60


A5  National Validation Workshop on Baseline Study of Trade
and Transport Facilitation Monitoring Mechanism
31 July–1 August 2016, Dhaka, Bangladesh 62




v


Figures and TaBles


Figures
   Relationship of the Trade and Transport Facilitation Monitoring Mechanism Synthesis Report


and Five Separate Reports xii
 1.1 Overall Implementation of Trade Facilitation Measures in 44 Asia and Pacific Economies, 2015 3
 1.2 Enhancing Trade Facilitation and Performance Monitoring 5
 1.3 Step-by-Step Trade Facilitation: A Framework for Action 6
 1.4 The Trade and Transport Facilitation Monitoring Mechanism Framework Underlying


the Baseline Study in Bangladesh 7
 2.1 Buy–Ship–Pay Model 11
 3.1 Business Process Analysis Plus as the Underlying Methodology 13
 3.2 A Step-By-Step Approach to Implementing Trade Facilitation Measures 14
 3.3 Examples of Use Case and Activity Diagrams 15
 3.4 Evolution of Corridor Performance Measurement and Monitoring 15
 4.1 Time–Procedure Chart for Export of Plastic Kitchenware and Tableware to Bhutan


through Burimari Land Port 20
 4.2 Time Required for Completing Different Procedures 21
 4.3 Costs of the Trade Procedures Excluding Onetime Procedures 21
 4.4 Use Case Diagram of Exporting Plastic Kitchenware and Tableware


from Bangladesh to Bhutan 23
 4.5 Time–Distance along Burimari–Dhaka Corridor 31
 4.6 Time–Procedure Chart for Import of Lentils from Nepal to Bangladesh


through Banglabandha Land Port 33
 4.7 Time Required for Completing Different Types of Import Procedures 34
 4.8 Costs for Import Trade Procedures Excluding Onetime Procedures 36
 4.9 Use Case Diagram of Business Process of Import of Lentils from Nepal to Bangladesh 37
4.10 Time–Distance along Banglabandha–Dhaka Corridor 45


TaBles
 1.1 Intraregional and Extraregional Comprehensive Trade Costs in the Asia and Pacific Region


(Excluding Tariff Costs), 2008–2013 4
 3.1 Time Frame for Implementing Trade and Transport Facilitation Monitoring Mechanism


Baseline Study 16
 4.1 Transport Time through Dhaka–Burimari Corridor 19
 4.2 Results from Time Release Studies for Export at Burimari 20
 4.3 Costs Involved in the Export of Plastic Kitchenware and Tableware


from Bangladesh to Bhutan 22
 4.4 Documents Required for Export of Plastic Kitchenware and Tableware


from Bangladesh to Bhutan 24




FIGURES AND TABLESvi


 4.5 Submitting Export Documents: Manually or Electronically 25
 4.6 Speed and Time along Burimari–Dhaka Corridor 25
 4.7 Export of Plastic Kitchenware and Tableware from Bangladesh to Bhutan by Burimari:


Diagnosis and Recommendations According to Business Process Analysis 26
 4.8 Transport Time through Banglabandha–Dhaka Corridor 33
 4.9 Results from Time Release Studies for Import at Banglabandha 34
4.10 Costs Involved in the Import of Lentils from Nepal to Bangladesh through


Banglabandha Land Customs Station 35
4.11 Documents Required for Import of Lentils from Nepal to Bangladesh 38
4.12 Submitting Import Documents: Manually or Electronically 39
4.13 Speed and Time along Banglabandha–Dhaka Corridor 39
4.14 Import of Lentils from Nepal to Bangladesh through the Banglabandha Land Customs Station:


Diagnosis and Recommendations According to Business Process Analysis 40
 6.1 Key Indicators on Trade and Transport Facilitation Performance 50




vii


Foreword


Let us start with a fundamental question: why is trade facilitation important for developing countries especially the least developed countries and landlocked developing countries?
It is because trade facilitation is essential to lower trade costs, reduce trade time, and enhance the efficiency
of supply chains. These factors, in turn, enable a country to increase trade, be better integrated into global
value chains, enhance national competitiveness and productivity, and generate decent jobs. In this sense,
trade facilitation contributes directly to the realization of the United Nations 2030 Development Agenda and
achievement of Sustainable Development Goals—in particular the SDG 17.


This largely explains why the Asian Development Bank (ADB) and United Nations Economic and Social
Commission for Asia and the Pacific (UNESCAP), together with other partners, have been keen to support
countries in advancing trade facilitation, as reflected in the South Asia Subregional Economic Cooperation Program
and the SASEC: Powering Asia in the 21st Century.


Establishment of a Trade and Transport Facilitation Monitoring Mechanism (TTFMM) is critical for a country
to understand the current situation in order to identify bottlenecks and prioritize recommendations for the
implementation of trade facilitation measures. More importantly, it emphasizes national ownership and
sustainability and the means to achieve them: primarily through institutional arrangements and national
capacity building.


A baseline study is the first step to establish TTFMM. The current report—as an output of the baseline study—
reviews trade and transport procedures, reports relevant indicators, analyzes bottlenecks, and proposes a way
forward. Furthermore, this report provides detailed information on data collection and validation processes
which should be treated as a useful reference when similar studies under the TTFMM are carried out in
the future.


ADB and UNESCAP are proud to work with different stakeholders in Bangladesh in trade facilitation and we are
committed to such endeavors in the future.


ronald antonio Q. Butiong
Director
Regional Cooperation and
 Operations Coordination Division
South Asia Department
Asian Development Bank


susan F. stone
Director
Trade, Investment and Innovation Division
United Nations Economic and Social Commission
 for Asia and the Pacific




viii


acknowledgMenTs


In preparing this report, great support was received from the host country which was essential for completion of the study. Contribution from Md Nojibur Rahman, Firoz Shah Alam, Abdul Hakim, and Hasan Mohammad
Tarek Rikabder is gratefully acknowledged. Participants of the various workshops under the project, as detailed
in the Appendixes, substantially contributed their expertise to enhance the quality of the project.


The baseline study and the underlying project were managed by Tengfei Wang from the United Nations
Economic and Social Commission for Asia and the Pacific (UNESCAP) and Aileen Pangilinan from the Asian
Development Bank (ADB) under the guidance of Yann Duval and Ronald Antonio Q. Butiong. Tanya E. Marin,
Linel Ann Reyes-Tayag, and Alona Mae Agustin from ADB provided support for the logistical arrangements of
the workshops.


The report was prepared by Tengfei Wang and Mohammad Farhad based on five separate reports prepared
under the project. Vyonna Bondi provided critical review of the report. Chorthip Utoktham calculated trade
costs. Study design and supervision were provided by Tengfei Wang.


Constructive advice from the ADB staff in the process of preparing the report is gratefully acknowledged. This
includes contributions from Rose McKenzie, Cuong Minh Nguyen, Sonoko Sunayama, and Satish Reddy.
Mohammad Saeed from International Trade Centre shared his expertise with the project team. Mashuk
Al Hossain and Muhammad Minhaz Uddin Pahloan played crucial roles in organizing the Trade and Transport
Facilitation Monitoring Mechanism (TTFMM) national validation workshop on 31 July–1 August 2016 in
Dhaka, Bangladesh.*


Shigeaki Katsu from Customs Training Institute, Japan was nominated by the World Customs Organization
to  deliver training on Time Release Study while Fedor Kormilitsyn from UNESCAP delivered training on the
Time/Cost–Distance method at the national workshop on TTFMM in Dhaka on 28–29 April 2014.


Jeff Procak and Ying Qian from ADB shared tool kits and experience on conducting Corridor Performance
Measurement and Monitoring in Central Asia. The useful contribution from Prabir De is also acknowledged.


The TTFMM is funded under both ADB’s Technical Assistance Special Fund and the Japan Fund for Poverty
Reduction.


* South Asia Subregional Economic Cooperation. http://sasec.asia/index.php?page=event&eid=213&url=bgd-ttfmm-validation




ix


aBBreviaTions


ADB Asian Development Bank
ASYCUDA Automated System for Customs Data
BBIN Bangladesh, Bhutan, India, and Nepal
BPA business process analysis
C&F clearing and forwarding
CPMM corridor performance measurement and monitoring
LCS land customs station
SAFTA South Asian Free Trade Area
SASEC South Asia Subregional Economic Cooperation
TCD time/cost–distance
TFA trade facilitation agreement
Tk Taka
TRS time release study
TTFMM trade and transport facilitation monitoring mechanism
UML unified modelling language
UN/CEFACT United Nations Centre for Trade Facilitation and Electronic Business
UNECE United Nations Economic Commission for Europe
UNESCAP United Nations Economic and Social Commission for Asia and the Pacific
UNNExT United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific
VAT value-added tax
WCO World Customs Organization
WTO World Trade Organization
WTO TFA World Trade Organization Trade Facilitation Agreement




x


execuTive suMMary


As the key outcome of the baseline study of Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bangladesh, the current synthesis report is derived from a series of studies carried out by the
same project team and is targeted for policy makers, governmental officials, and the general public.


Given the nature of the baseline study, the current report is aimed to not only report current trade facilitation
in Bangladesh but also to lay a foundation for future studies and the establishment of long-term sustainable
TTFMM. Accordingly, this report covers topics such as the importance of trade facilitation, the crucial role
of TTFMM for continued improvement of trade facilitation, the key methodology for data collection called
Business Process Analysis Plus (BPA+), and the rationale for defining the scope of monitoring.


By examining the export of plastic kitchenware and tableware from Bangladesh to Bhutan through Burimari land
port and the import of lentils from Nepal to Bangladesh through Banglabandha land port and by conducting studies
on corridors and border crossings, the report presents a set of indicators which quantify current trade and
transport facilitation. For example, the report shows that the duration for a regular and new trader for completing
trade procedures is approximately half a month and a month, respectively; average speed along the transport
corridors is less than 30 kilometers per hour (km/h) while border crossing time for import and export is over
6 hours and 2 hours, respectively.


The indicators, together with a detailed analysis of trade procedures and documents, reveal bottlenecks and
areas for improvement in trade and transport facilitation. To list a few examples:


• For a regular trader to complete the export process, 11 documents are required and these documents
need to be submitted repeatedly—93 times. Similarly, for a regular trader to complete an import process,
18 documents are required and these need to be submitted for a total of 71 times.


• It is costly to complete onetime procedures for a new trader. In typical cases, a new trader needs to cover
approximately $840 to complete processes exporting plastic kitchenware and tableware from Bangladesh
to Bhutan through Burimari Land Customs Station (LCS) which includes Tk41,650 (or $533.97) for
completing onetime procedures for a new trader. A new trader needs to cover the costs of $1,450 for
completing the process of importing lentils from Nepal to Bangladesh through Banglabandha LCS, which
includes the cost of Tk43,950 (or $563.46) for completing onetime procedures for a new trader.


• The average speed with and without delays along corridors under study is 15–17 km/h and 24–27 km/h,
respectively, which is much lower than the average speed surveyed in Central Asia.


Key recommendations in this report are divided into short-term and long-term interventions. The former
includes (i)  implementation of online application, approval, issuance and renewal of license/certificate/
permit in a number of similar processes; (ii) installation and operationalization of Automated System for
Customs Data (ASYCUDA) World at Banglabandha LCS; (iii) rearrangement of internal workflows of Customs;




ExECUTIVE SUMMARY xi


(iv) removal of repetitive or redundant processes; (v) reduction of costs burden; (vi) harmonization of data and
documentary requirements, and (vii) strengthening professional relationships with all parties involved in the
trade procedures.


Long-term interventions include (i) introduction of SWIFT (Single Window Interface for Facilitating Trade),
(ii) ensuring legal consistency for the introduction of single window/electronic procedures, (iii) transparency in
legal requirements, (iv) establishment of authorized economic operator/trusted trader program, (v) upgrading
skills of the front line officials, and (vi) improving transport and border crossing infrastructure.


Most proposed procedures are covered by the World Trade Organization’s Trade Facilitation Agreement
(WTO’s TFA), indicating the importance of implementing TFA for advancing trade and transport facilitation
in a country. On the other hand, the report substantially adds value to implementing TFA because it identifies
trade facilitation measures that need to be administered in the short- and long-term, and therefore, supports a
country to prioritize the implementation if the country faces financial and human capacity constraints.


This report reveals the benefits and importance for the countries to join the emerging regional agreements
especially the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific.
Trade and transport procedures between Bangladesh and its two trading partners, Bhutan and Nepal, involve
transit country India. State-of-the-art cross-border exchange of data and information among these countries
is crucial for ensuring efficiency of trade process. However, relevant work in this area remains largely at the
nascent stage of development. These countries should consider joining the regional agreement to take full
advantage of the opportunities for accessing new technology and innovative practice, receiving technical
assistance and building capacity.


The report highlights the importance of monitoring trade and transport facilitation from a holistic perspective.
The report shows that border crossing and transport time may account for 1%–2% and 8%–9% of total trade time,
which means that optimizing border crossing and transport processes is important but not enough to enhance
the whole trade process. Other trade procedures must be taken into consideration in order to improve the trade
process.


In light of the Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicle Agreement, the report presents both
the challenges and enormous opportunities for enhancing transport efficiency along the BBIN corridors. On the
one hand, the current average speed of vehicle movement along the corridor is very low. On the other hand,
if the average speed can be improved to 30 km/h on average, 44%–50% of the transport time could be reduced.
Policy makers and other stakeholders should treat this as encouraging news because once the measures to
streamline trade and transport processes are in place, substantial improvement can be expected in transport
along the corridors.


To lay a foundation for similar studies in the future and the establishment of TTFMM, the report reviews the
most important aspects of establishing TTFMM in the country including institutional arrangement, national
capacity building, resources, continuation, and expansion of monitoring and alignment of TTFMM with global
and regional initiatives.




ExECUTIVE SUMMARYxii


It is important to note that this is based on five separate reports, prepared under the project, that feed into
the current report. The relationship of the reports is shown in the figure. As such, while the current report is
self contained, readers are encouraged to consider all of the separate reports to fully understand the details
of data, discussion and analysis. The studies and relevant discussions in these reports are fully in line with
the United  Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Recommendation
Number 42 on TTFMM published on 27 April 2017 and may serve as useful reference when similar work is
carried out in the future.


Figure:  relationship of the Trade and Transport Facilitation Monitoring Mechanism synthesis report
and Five separate reports


Synthesis report of the TTFMM baseline study in Bangladesh


BPA Report 1 BPA Report 2 TRS Report 1 TRS Report 2 CPMM Report


BPA 1: Export of plastic kitchenware and tableware (melamine products) from Bangladesh to Bhutan
BPA 2: Import of lentils from Nepal to Bangladesh
TRS 1: Burimari land border crossing station, Bangladesh
TRS 2: Banglabandha land border crossing station, Bangladesh
CPMM: Burimari–Dhaka and Banglabandha–Dhaka corridors


BPA = business process analysis, CPMM = corridor performance measurement and monitoring, TRS = time release study, TTFMM = trade and transport
facilitation monitoring mechanism.
Source: Prepared by the study team.




1


Background and inTroducTion
chapTer 1


This chapter provides background information on the baseline study. It reviews the importance of trade facilitation at the global, regional, and national level. Key initiatives and efforts made by Bangladesh in
advancing trade facilitation are highlighted. This chapter discusses the importance of measuring and monitoring
trade facilitation and introduces key functions and features of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM).


1.1 importance of Trade Facilitation
The importance of trade facilitation has been widely discussed and recognized at the global, regional, and
national levels. The Trade Facilitation Agreement (TFA), accomplished at the ninth World Trade Organization
(WTO) Ministerial Conference in December 2013, is the first major global trade agreement to have been
concluded since the establishment of WTO in 1995. The agreement provides evidence of a global consensus
on the importance of trade facilitation for sustainable economic development as well as a narrow but concrete
framework through which countries may simplify and enhance the transparency of their trade procedures.


The importance of trade facilitation needs to be interpreted in the context of Sustainable Development
Goals (SDGs) of the 2030 Agenda for Sustainable Development adopted by world leaders in September 2015
at a historic UN Summit.1 In particular, the SDG 17.11 states that countries should “Significantly increase
the exports of developing countries, in particular with a view to doubling the least developed countries’
share of global exports by 2020”. Trade facilitation is key to achieving this goal, as evidenced by the WTO
research that implementation of the WTO Trade Facilitation Agreement—narrow trade facilitation—has the
potential to increase global merchandise exports by up to $1 trillion per annum.2 Similarly, a study carried out
by the United  Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) shows that
implementation of cross-border paperless trade measures is expected to increase export potential of Asia and
Pacific countries by over $300 billion.


A WTO report reveals that improving trade facilitation can give a more powerful boost to exports of developing
countries because they have high trade costs, a large part of which are due to lack of trade facilitation. Delays
at customs and cumbersome procedures are far more frequently encountered in developing countries and
least developed countries. The report also highlights that trade facilitation often leads to increased FDI in small
economies, increased government revenues, and reduced customs fraud and corruption.3


1 United Nations. Sustainable Development Knowledge Platform. https://sustainabledevelopment.un.org/post2015/
transformingourworld


2 WTO (2015a).
3 WTO (2015b).




TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH2


At the Asia and Pacific regional level, adoption of an important United Nations treaty entitled The Framework
Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific—which opened for signature on
1 October 2016 at the United Nations Headquarters in New York—shows the commitment of the countries to
advance trade facilitation and paperless trade.4


The South Asia Subregional Economic Cooperation (SASEC) program fully recognizes the important role of
trade facilitation for regional integration by stating that “[t]he benefits of creating fast and efficient transport
infrastructure networks to move goods, people, and business around South Asia will never be fully realized
unless these developments are supported by simultaneous improvements in trade procedures and facilities.5
Intra-regional trade in South Asia could rise by as much as 60%, and the region’s trade with the rest of the world
could grow by 30% if trade facilitation systems could be raised to international standards, according to studies.”
In this respect, the Motor Vehicles Agreement signed by Bangladesh, Bhutan, India, and Nepal (or BBIN) shows
strong commitment by the participating countries in moving trade and transport facilitation forward.


1.2 important Measures and initiatives on Trade Facilitation
in Bangladesh


Important measures have been taken in Bangladesh to advance trade facilitation. The most recent and important
is Bangladesh’s ratification of the WTO TFA on 27 September 2016 which aims to expedite the movement,
release and clearance of goods, including goods in transit.6


The Bangladesh Trade Portal was launched in March 2016, with the support from the World Bank Group, to
facilitate the business community at home and abroad with a one-stop point of information on the country’s
export and importable items. The Bangladesh National Board of Revenue (NBR) is implementing the NBR
Modernization Plan 2011–2016 to develop a sound tax policy and law in line with international best practices
and to incorporate the latest (information and communication) technology for better compliance in all its land,
sea, and air ports. The board (NBR) is also implementing the Customs Modernization Strategic Action Plan
2014–2017 to promote a transparent, effective, robust, and accountable organizational structure and system
that delivers business outcomes in line with international best practices and national socioeconomic and cultural
environment. It is also intent on developing and implementing a whole-of-organization Risk Management
Framework that drives a philosophy of a risk-based, intelligence-led approach and of adopting a needs-based,
modern, and secure information and communication technology system. NBR has also developed a proposed
revision of the current customs framework law—the Customs Act, 1969—to provide an appropriate legal basis
for a modernized customs administration. The revision will take the form of a new law (draft titled the Customs
Act, 2015) to replace the current regime.7


4 United Nations. United Nations Treaties Collection.
5 ADB (2013).
6 WTO (2016a).
7 Dewan and Shafiquzzaman (2017).




BACKGROUND AND INTRODUCTION 3


From a more systematic perspective in terms of implementing trade facilitation and paperless measures in
the Asia and Pacific region, a recent survey conducted by UNESCAP and other regional commissions reveals
that the average level of trade facilitation implementation by the 44 Asia and Pacific economies, based on a
set of 31 trade facilitation and paperless trade measures, is 46.5%.8 Within the Asia and Pacific region there is
great variation in trade facilitation implementation rates. Australia, the Republic of Korea, and Singapore have
obtained scores in excess of 85%, while other countries have yet to achieve 15% implementation levels.


The survey also shows the level of implementation of trade facilitation measures in Bangladesh at 36%.9
Among the five core groups of trade facilitation measures, the most implemented in Bangladesh are “institutional
arrangement and cooperation” measures (55.6%). The least implemented are “crossborder paperless trade”
measures (11.1%).


8 UNESCAP (2016a).
9 UNESCAP (2016b).


Figure1.1: overall implementation of Trade Facilitation Measures in 44 asia and pacific economies, 2015


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Transparency Formalities Institutional arrangement
and cooperation


Paperless trade Cross-border
paperless trade


North Asia and
Central Asia
(41.5%)


Pacific Islands
Developing Economies


(25.2%)


South Asia and
Southwest Asia


(41.3%)


East Asia and
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(69.6%)


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New Zealand


(86.6%) Southeast Asia
(56.1%)


Lao PDR = Lao People’s Democratic Republic.
Source: UNESCAP (2016a).




TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH4


1.3 high Trade costs remain a Major challenge for south asia,
including Bangladesh


Countries in South Asia, including Bangladesh, often face high trade costs. According to the latest data from
the UNESCAP–World Bank International Trade Cost Database (Table 1.1), the intraregional trade costs of
Bangladesh, Bhutan, and Nepal amount to 186% tariff equivalent, which is the highest among the selected
countries in other subregions in Asia and the Pacific.


The overall cost of trading goods among the three largest European Union economies is equivalent to a 43%
average tariff on the value of goods traded. The People’s Republic of China, the Republic of Korea, and Japan
(East  Asia–3) come closest to matching the low intra-European Union trade costs, with average trade costs
among themselves amounting to a 51% tariff equivalent, followed by the middle-income members of the
Association of Southeast Asian Nations, whose intraregional trade costs stand at 76% tariff equivalent.


Table1.1:  intraregional and extraregional comprehensive Trade costs in the asia and pacific region
(excluding Tariff costs), 2008–2013 (%)


region asean–4 east asia–3


north and
central asia 3


+ prc
pacific


islands–2 sasec–3 aus–nZl eu–3


ASEAN–4 76 75 362 172 273 101 106


(7.7) (5.0) (16.3) (–10.1) (3.6) (3.7) (–1.0)


East Asia–3 75 51 197 175 228 88 85


(5.0) (–3.4) (–1.1) (–3.4) (–0.7) (–4.7) (–3.0)


North Asia and
Central Asia 3 + PRC


362 197 122 165 355 290 146


(16.3) (–1.1) (2.3) (–6.9) (–7.7) (–6.7) (–7.4)


Pacific Islands–2 172 175 165 132 440 83 209


(–10.1) (–3.4) (–6.9) (–9.8) (11.9) (–8.0) (–4.1)


SASEC–3 273 228 355 440 186 317 242


(3.6) (–0.7) (–7.7) (11.9) (5.9) (10.1) (7.1)


AUS–NZL 101 88 290 83 317 52 108


(3.7) (–4.7) (–6.7) (–8.0) (10.1) (–4.0) (–1.1)


EU–3 106 85 146 209 242 108 43


(–1.0) (–3.0) (–7.4) (–4.1) (7.1) (–1.1) (–4.9)


United States 86 63 179 163 229 100 67


(9.8) (0.2) (7.3) (–5.6) (6.9) (3.6) (0.7)


ASEAN = Association of Southeast Asian Nations, AUS = Australia, EU = European Union, NZL = New Zealand, PRC = People’s Republic of China,
SASEC = South Asia Subregional Economic Cooperation.
Notes: Trade costs may be interpreted as tariff equivalents. Percentage changes in trade costs between 2003–2008 and 2009–2014 are given in parentheses.
ASEAN–4: Indonesia, Malaysia, the Philippines, and Thailand; East Asia–3: the People’s Republic of China (PRC), Japan, and the Republic of Korea;
North Asia and Central Asia–3 + the PRC: Georgia, Kazakhstan, the Kyrgyz Republic, and the PRC; Pacific Islands–2: Fiji and Papua New Guinea;
SASEC–3: Bangladesh, Bhutan, and Nepal; AUS–NZL: Australia and New Zealand; EU–3: Germany, France, and the United Kingdom.
Source: UNESCAP–World Bank Trade Cost Database (June 2015 update).




BACKGROUND AND INTRODUCTION 5


Reduction of trade costs is essential for enabling economies to participate effectively in regional and global value
chains as well as continue to use trade as the main engine for growth and sustainable development. Recent
studies suggest that much of the trade cost reductions achieved during the past decade have been through
the elimination or lowering of tariffs.10 Therefore, further trade cost reductions will have to come from not only
tackling nontariff sources of trade costs, such as inefficient transport and logistics infrastructure and services,
but also cumbersome regulatory procedures and documentation requirements. Indeed, trade facilitation i.e.,
the simplification and harmonization of import, export, and transit procedures that include paperless trade
(the use and exchange of electronic data and documents to support the trade transaction process) has taken on
increasing importance.


1.4 importance of Monitoring and Measuring
Trade Facilitation performance


Implementation of trade facilitation measures should be regarded as a means to an end, rather than an end itself.
In other words, any executive body of trade facilitation reform should have particular target(s) in mind before
implementing trade facilitation measure(s) and ensure that the targets are effectively achieved.


Measuring and monitoring trade facilitation performance is essential to reviewing whether the targets are
effectively met. The importance of measuring and monitoring trade facilitation performance is specifically
emphasized in the SASEC Trade Facilitation Strategy 2014–2018. It states that “[t]he concrete action plans
to be developed to implement the strategic thrusts would need to have clear and measurable goals and a set of
indicators to monitor progress and gauge outcomes…. Baseline studies on outcome indicators will be conducted
and appropriate targets determined for a consistent
and regular monitoring and assessment of results.”
It also highlights the importance of an integrated
approach for measuring trade and transport facilitation
and states that “[a]n integrated transport and trade
facilitation methodology that will link the time release
survey, time/cost–distance survey, and the Business
Process Analysis (BPA) would also be developed.”


A number of international organizations emphasize
the importance of measuring and monitoring trade
facilitation performance. For instance, the World
Customs Organization proposes that data needs
to be collected to review and refine action plans
related to trade facilitation (Figure 1.2). Similarly,
ADB and UNESCAP prescribe a similar approach on
policy reform and performance measurement and
monitoring (Figure 1.3).


10 For example, see UNESCAP (2011).


Figure1.2:  enhancing Trade Facilitation and
performance Monitoring


Make recommendations


Report


Identify findings


Analyze data


Calculate results


Test/validate data


Collect data


Plan


Source: Derived from World Customs Organization (2011).




TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH6


Figure1.3: step-by-step Trade Facilitation: a Framework for action


Collect information,
analyze, identify,


and prioritize needs


Establish
the trade facilitation
institutional structure


Implement prioritized trade facilitation measures


Implement
eective trade
and customs
enforcement


Revise and
improve


dissemination of
trade regulation


Rationalize
trade documents


and related
procedures


Review and assess results


Implement
eective trade
and customs
enforcement


Other trade
facilitation
measures


Source: ADB and UNESCAP (2013).


Many countries in the world—recognizing the strengths and weaknesses of international indicators—have taken
actions to collect more detailed information on trade and transport facilitation to support policy making. In the
case of Bangladesh, a preliminary study carried out in 2012–2013 on Business Process Analysis for selected
products provides a solid basis for more systematic studies.11


1.5 key Functions and Features of Trade and Transport Facilitation
Monitoring Mechanism


The guide on TTFMM was initially developed by UNESCAP and ADB in consultation with national governments
and experts to address the pressing need for the countries in the Asia and Pacific region to establish their own
sustainable mechanism for monitoring the effectiveness of trade and transport facilitation reforms and measures
and identifying solutions to streamline and optimize the trade and transport process.


Many countries around the world, including those in Asia and the Pacific, have made efforts to facilitate
trade and transport. Few, however, have established sustainable mechanisms to monitor the effectiveness of
policies and procedures that facilitate trade and speed up international supply and value chains. Several global
trade facilitation performance surveys and databases are now available and very useful as benchmarking and
awareness-raising tools. However, they do not provide sufficiently detailed information to develop or update
national trade facilitation action plans. Trade and transport facilitation assessments have also been conducted in
some countries. In many cases these are typically ad hoc, with little coordination among development partners,
and limited support from relevant government agencies.


11 UNESCAP (2014).




BACKGROUND AND INTRODUCTION 7


There is, therefore, a need for countries to establish sustainable national trade and transport facilitation
mechanisms to measure and assess progress in trade and transport facilitation and assist in formulating,
updating, and prioritizing recommendations for trade and transport facilitation.12


TTFMM has two interrelated functions: (i) to measure and assess progress in trade and transport facilitation;
and (ii) to assist in formulating, updating, and prioritizing recommendations for trade and transport facilitation.
More specifically, adoption of the TTFMM will bring the following benefits:


• streamlined trade and transport procedures, improved trade efficiency, and enhanced trade competitiveness;
• reliable, systematic, consistent, and harmonized data available for policy making and modernization;
• cost-effective and sustainable monitoring of trade and transport facilitation; and
• enhanced national human capacity for trade and transport facilitation.


The TTFMM framework underlying the baseline study in Bangladesh is outlined in Figure 1.4. It is important that
TTFMM be anchored within a national trade and transport facilitation committee (or an equivalent institution)
and that it can rely upon national resources to make it sustainable and affordable.


12 Detailed discussion on TTFMM is available at http://www.unescap.org/resources/towards-national-integrated-and-sustainable-
trade-and-transport-facilitation-monitoring. More recently, a project was launched to develop a UN/CEFACT recommendation
on TTFMM (http://www.unece.org/tradewelcome/un-centre-for-trade-facilitation-and-e-business-uncefact/projects/current-
projects.html).


Figure1.4:  The Trade and Transport Facilitation Monitoring Mechanism Framework
underlying the Baseline study in Bangladesh


Baseline trade and transport facilitation assessment study


Trade and transport facilitation reform implementation


Measure and assess progress in trade and transport facilitation


Institutional arrangement


Integrated Methodology (BPA+)


Formulate/update and prioritize recommendations
for advancing trade and transport


National human resources


BPA+ = Business Process Analysis Plus, TTFMM = Trade and Transport Facilitation Monitoring Mechanism.
Source: UNESCAP-ADB (2014).




TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH8


Underpinning TTFMM is the methodology called Business Process Analysis Plus (BPA+), which is built on
the Business Process Analysis methodology, supplemented by Time Release Studies (TRS) and Time/Cost–
Distance (TCD) methodologies.


1.6 objective of the study
The baseline study in Bangladesh was conducted as a part of a broad initiative to establish sustainable TTFMM
in the country in the long term. The country baseline study is part of a TTFMM project under the SASEC program
in helping three member countries—Bangladesh, Bhutan, and Nepal—develop effective monitoring systems of
their respective trade and transport facilitation reforms and measures, with the aim of better identifying solutions
to streamline and optimize trade and transport processes.


The TTFMM baseline study aims to


(i) explain the rationale for establishing TTFMM and key methodology for data collection and analysis;
(ii) provide a set of indicators and underlying data on trade and transport facilitation performance in Bangladesh.


Such baseline data will ensure that the progress or setbacks in trade facilitation performance in the country can
be benchmarked;


(iii) diagnose key bottlenecks and make recommendations for removing bottlenecks by simplifying trade procedures.
In this respect, the study provides policy recommendations to policy makers and stakeholders; and


(iv) propose a way forward to maintain the sustainability of TTFMM. Sustainability is at the core of the design of
TTFMM. In this respect, this report provides specific recommendations on how to maintain sustainability of
TTFMM including institutional arrangement, data collection and analysis, and the best use of the study output.


1.7 structure of the report and the rationale
The key factors for consideration in deciding the structure of this report include the needs for the study report to


(i) not only inform the stakeholders of the current status of trade and transport facilitation but also explain the
rationale and background of TTFMM so the report can be used as a reference document in future preparation
of similar TTFMM studies, and


(ii) be structured so it would be useful for different audiences. For instance, the current report is more targeted
toward policy makers and the general public while the technical details of the study are placed in five
supporting reports.


This chapter provides detailed information on the importance of trade facilitation at global, regional, and national
levels. It reviews the key initiatives and efforts made by Bangladesh in advancing trade facilitation. It highlights
the importance of measuring and monitoring trade facilitation and touches on the rationale for conducting a
national TTFMM.




BACKGROUND AND INTRODUCTION 9


Chapter 2 provides an overview of key principles for deciding the scope monitoring. It reports the process
of selecting specific products and corridors for monitoring as the framework of TTFMM baseline study in
Bangladesh.


Chapter 3 introduces the key methodology adopted for the TTFMM baseline study, namely, BPA+ which
builds upon the UNNExT Business Process Analysis13 and is supplemented by TRS and TCD/CPMM methods.
Chapter 3 also contains information on data collection and validation.


Chapter 4 reports the key indicators which reflect “as-is” trade and transport facilitation performance for the
selected products and corridors. The chapter also reports on the identified bottlenecks and singles out the
recommendations for removing bottlenecks.


Chapter 5 reviews the most important aspects of establishing TTFMM in the country including institutional
arrangement, national capacity building, resources, continuation and expansion of monitoring and alignment of
TTFMM with global and regional initiatives.


Chapter 6 concludes the report.


13 UNNExT, UNESCAP, and UNECE (2012).




10


scope oF The Trade and TransporT
FaciliTaTion MoniToring MechanisM
Baseline sTudy in Bangladesh


chapTer 2


An essential and initial step, in conducting the Trade and Transport Facilitation Monitoring  Mechanism (TTFMM) baseline study, is to define the scope of monitoring. In  principle, the scope of monitoring
should be decided by each country according to its specific situation; two different countries may have different
priorities for the monitoring. For instance, a landlocked country may be keen to monitor the procedures at land
border posts while an island country is concerned about the performance at ports and shipping connectivity.
This chapter introduces key factors for consideration in defining the scope of monitoring and reviews the process
of defining scope of monitoring under TTFMM baseline study in Bangladesh.


2.1 Factors for consideration in defining the scope of Monitoring
In defining the scope of monitoring for the TTFMM baseline study in Bangladesh, the following factors are taken
into consideration.14


2.1.1 general principle for defining scope of Monitoring


In defining the scope of monitoring, the Specific, Measureable, Achievable, Relevant, and Time-bound (SMART)
principle should be adopted whenever appropriate.


Specific: The areas for monitoring need to be clear and unambiguous


Measureable: Quantitative indicators should be collected and monitored


Achievable: A country needs to review its resources and capacity for the monitoring exercise. If monitoring is
carried out for the first time, the country may be focused on a small number of some strategically
important procedures, products, or trade routes. Over time, with the enhanced national capacity
and experiences, more products and trade routes can be included for monitoring.


Relevant: The areas of monitoring need to be strategically important and relevant for the country.


Time-bound: The time frame and target dates for the monitoring exercises need to be clear to all stakeholders.


14 These factors are in line with the UN/CEFACT recommendation 42 on TTFMM. https://www.unece.org/fileadmin/DAM/
cefact/recommendations/rec42/ECE_TRADE_C_CEFACT_2017_8E_R1_Rec42.pdf




SCOPE OF THE TTFMM BASELINE STUDY IN BANGLADESH 11


The country may consider process, products, or trade routes and corridors in defining the scope of monitoring,
as elaborated in sections 2.1.2 through 2.1.4.


2.1.2 selection of process or procedures for Monitoring


The countries, whenever appropriate, should consider adopting a whole-of-supply-chain approach for defining
the scope the monitoring. In this respect, the Buy–Ship–Pay model, as shown in Figure 2.1, provides a useful
framework for the monitoring exercises. In some cases the scope could be confined to selected process(es) of
Buy–Ship–Pay model according to the priority of the country.


Figure2.1: Buy–ship–pay Model


Supplier–Intermediary–Authorities–Customer


Prepare
for export Export Transport


Prepare
for import Import


Buy Ship Pay


commercial procedures Transport procedures regulatory procedures Financial procedures
• Establish contract
• Order goods
• Advise on delivery
• Request payment


• Establish transport contract
•  Collect, transport, and


deliver goods
•  Provide waybill, goods receipt,


and status reports


•  Obtain export/import
licenses, etc.


• Provide customs declaration
• Provide cargo declaration
•  Apply trade security


procedures
•  Clear goods for import/export


• Provide credit rating
• Provide insurance
• Provide credit
• Execute payment
• Issue statements


Note: The United Nations Centre for Trade Facilitation and Electronic Business recommendation 18 illustrates a simplified view of the international supply
chain in the Buy–Ship–Pay model. It identifies the key commercial, logistical, regulatory and payment procedures in the international supply chain, and
provides an overview of the information exchanged between the parties throughout its steps.
Source: United Nations Economic Commission for Europe (UNECE) (2001).


2.1.3 selection of products for Monitoring


In selecting the products for monitoring, at least one of the following factors should be taken into consideration
whenever possible:


• The products should be strategically important for the country or the areas,
• The products should be relevant and important for small and medium-sized enterprises and particularly for


the agriculture sector,
• The products should have great contribution to employment creation,
• The product should have high frequency of shipments,




12 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


• The product should have high economic value to the country,
• The trade process of the product should include common (or many) bottlenecks/high number of agencies/


inefficient procedures, and
• The product should be relevant in terms of well-being and social cohesion of citizens.


2.1.4 selection of Trade routes and corridors for Monitoring


Trade routes and corridors under assessment should be primarily decided by the products selected for
assessments or by their economic impacts. In the case of products that are transported along different corridors,
priority should be given to the corridors which are most frequently used or strategically important for the country
or the region. In this respect, consultation with the private sector may greatly help in identifying such corridors.


2.2 process of selecting the scope of Monitoring in Bangladesh
and Final selection


The scope of the baseline studies of TTFMM was decided through a series of regional and national training
workshops held in Bangkok, Thailand in November 2013; in Dhaka, Bangladesh in April 2014; Wuhan,
People’s  Republic of China in October 2015; and in Bangkok, Thailand in January 2016. A wide range of
stakeholders were consulted in this process, as shown in Appendix 1. After extensive exercise and discussion
with the relevant stakeholders, it was agreed that the TTFMM baseline study in Bangladesh would cover the
following processes, products, and trade routes and corridors:


(i) Export of plastic kitchenware and tableware from Bangladesh to Bhutan through Dhaka–Rangpur–Burimari–
Changrabandha–Jaigaon–Phuentsholing–Thimphu; and


(ii) Import of lentils from Nepal to Bangladesh through Kathmandu–Kakarvitta–Fulbari–Banglabandha–Dhaka.


More specifically, it was decided that the Business Process Analysis (BPA) would cover all the abovementioned
products and corridors, Time Release Study (TRS) would cover border crossings at Burimari and Banglabandha
LCS and Time/Cost–Distance (TCD)/Corridor Performance Measurement and Monitoring (CPMM) would
cover the corridors from Dhaka to Burimari and from Banglabandha to Dhaka.


Both corridors covered by the study are strategically important for the region. Burimari–Rangpur–Dhaka is part
of Thimphu–Phuentsholing–Jaigaon–Changrabandha–Burimari–Dhaka (SAARC Corridor 8) corridor linking
Bangladesh with Bhutan via India. Kathmandu–Kakarvitta–Fulbari–Banglabandha–Dhaka (SAARC Road
Corridor 4) corridor links Nepal with Bangladesh via India.




13


MeThodology For daTa collecTion
and analysis


chapTer 3


This chapter introduces the key methodology for data collection and analysis called Business Process Analysis Plus (BPA+) which underlies the TTFMM baseline study in Bangladesh. It also reports the detailed process
and efforts for data collection and validation.


3.1 Business process analysis plus
as the underlying Methodology


As illustrated in Figure 1.4, BPA+ was identified to be the key methodology for data collection and analysis
for the TTFMM baseline study in Bangladesh.15 The BPA+ approach is built upon the BPA and supplemented
by other methods such as time release studies (TRS) and time/cost–distance (TCD)/corridor performance
measurement and monitoring (CPMM) as shown in Figure 3.1.


According to UN/CEFACT (Figure 3.2), BPA is recommended as the first step before undertaking other trade
facilitation measures related to the simplification, harmonization, and automation of trade procedures and
documents.16


15 Source: Discussion of BPA+ is derived from an UNESCAP–ADB publication, Towards a National Integrated and Sustainable Trade and
Transport Facilitation Monitoring Mechanism: BPA+.


16 UNECE (2006).


Figure3.1: Business process analysis plus as the underlying Methodology


Trade-related
procedures


before cargo
movement


cargo
origin


Border
crossing


point


Border
crossing


point
cargo


destination


Trade-related
procedures
after cargo


arrival


Trs Trs


Tcd/cpMM


Bpa


BPA = business process analysis, CPMM = corridor performance measurement and monitoring, TCD = time/cost–distance, TRS = Time Release Study.
Source: UNESCAP–ADB (2014).




14 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Figure3.2:  a step-By-step approach to implementing Trade Facilitation Measures


Business process analysis










Process simplification and harmonization


Documents simplification and alignment


National data harmonization




E-single window and paperless trading


Cross-border data harmonization and exchange


Source: UNECE (2006).


One of the key features of the UNNExT Business Process Analysis Guide to Simplify Trade Procedures is the
introduction of the Unified Modelling Language (UML) as a standard way to graphically represent the various
procedures involved in the trade process (Figure 3.3). Use of this common standard is essential to providing a
systematic description and common language of a procedure that can be understood by all stakeholders involved
in international trade transactions, both domestic and foreign.


Developed and promoted by the World Customs Organization (WCO), TRS is used to measure the average
time taken between the arrival of the goods and their release. The outcome of TRS enables customs to identify
both the problem areas and potential corrective actions for increasing efficiency. Measuring the time taken
for the release of goods also meets the concerns of trade circles regarding long delays in customs clearance.
Application of TRS in the baseline study follows the guidelines prescribed by the WCO.17


Developed by UNESCAP, the TCD method assists decision makers in understanding the pattern and magnitude
of time and cost of transportation process and identifying, isolating, and addressing physical and nonphysical
obstacles.18


17 World Customs Organization. Time Release Study. http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/tools/
time-release-study.aspx (accessed 15 May 2017).


18 More information is available at UNESCAP (2012).




METHODOLOGY FOR DATA COLLECTION AND ANALYSIS 15


TCD was further refined by ADB and evolved to be the so-called CPMM method, as shown in Figure 3.4.19
As CPMM has been widely used in Central Asia, it is adopted by the current TTFMM baseline study.
In the meantime, the graphic representation of time–distance chart recommended by TCD is also adopted in
this report.


19 Detailed discussion is available at ADB (2014).


Figure3.4: evolution of corridor performance Measurement and Monitoring


CPMM 1.0


• A modified UNESCAP TCD template for data entry was used.
• Reasons for delays were not standardized.
• Results were analyzed but not published.


CPMM 2.0


CPMM 3.0


• A standardized data collection template was used.
• Standardized reasons for delays were included.
• Results were published quarterly and annually.


• A more powerful template that consolidates samples and has a dashboard display has been introduced.
• The system distinguishes between road delays and rail transport delays.
• CPMM reports follow a more professional format.


CPMM = corridor performance measurement and monitoring, TCD = time/cost–distance, UNESCAP = United Nations Economic and Social Commission
for Asia and the Pacific.
Source: ADB (2014).


Figure3.3:  examples of use case and activity diagrams


UML Use Case Diagram


(2.3) Prepare export permit


UML Activity Diagram


Exporter
or Representative


Exporter (or Representative)


Department
of Fisheries


Department of Fisheries


Correct
Commercial Invoice


Prepare information
needed for export
permit application


Application Form for Export
Animals/Animal


Remains Through Thailand
(R. 1/1)


Packing List


Export Permit
(R. 9)Collect R. 9


Incorrect


Issue Export Permit


Verify submitted
information


UML = unified modelling language.
Source: UNNExT, UNESCAP, and UNECE (2012).


UML use case and activity diagrams are used
to visualize the captured knowledge of the
business processes. The use case diagram illustrates
high-level business processes and the actors
associated with each of them. It serves as a frame
of reference for further elaboration of business
process modelling work. The activity diagram,
on the other hand, describes activities, inputs, and
outputs associated with each business process
listed in the use case diagram.




16 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


BPA+ draws on the strengths of BPA, TRS, and TCD/CPMM. BPA was initially designed to document and
evaluate an import/export process at a given point time. Its relative simplicity, combined with the fact that it
specifically includes measuring the time and cost of the complete range of procedures as one of the main outputs
of the analysis, makes it suitable as the basis/core of a trade facilitation monitoring and improvement system.


TCD/CPMM and TRS focus on a subset of procedures covered by BPA and provide alternative data collection
methods, and therefore can be used to verify and supplement the data and outputs from the standard BPA.
BPA data are typically based on key informant interviews verified through stakeholder consultation(s), while
TCD/CPMM is often based on the accumulation of quantitative information provided by transport operators/
drivers moving a single shipment along a selected route, and TRS is based on data collection forms filled by
customs officers, customs brokers, or electronic time stamps when available for a sample of shipments/customs
declarations.


BPA provides not only indicators but also a “standard” way of analyzing trade procedures, identifying bottlenecks,
and diagnosing trade barriers. The latter is achieved mainly by adopting UML. CPMM and TRS mainly provide
indicators and leave detailed analysis to the project team. Another difference: analysis of BPA is product-specific,
while CPMM and TRS often cover various products.


3.2 data collection and validation process for the Trade and
Transport Facilitation Monitoring Mechanism Baseline study


The time frame for implementing TTFMM baseline study in Bangladesh was approximately 14 months and is
shown in Table 3.1. The key activities are highlighted below.


Table3.1:  Time Frame for implementing Trade and Transport Facilitation
Monitoring Mechanism Baseline study


2015 2016


10 11 12 1 2 3 4 5 6 7 8 9 10 11 12


Subregional meeting to plan the baseline study
in Wuhan, People’s Republic of China


                   


Workshop to finalize the plan of the baseline
study in Bangkok, Thailand


Data collection on BPA                    


Data collection on TRS                    


Data collection on TCD/CPMM                    


TTFMM database, analysis and draft report                    


National results validation meeting                    


Refine TTFMM data and analysis, and finalize
study report


                   


BPA = business process analysis, CPMM = corridor performance measurement and monitoring, TCD = time/cost–distance, TRS = Time Release Study,
TTFMM = trade and transport facilitation monitoring mechanism.
Note: Shaded area in a row indicates the month a particular task is undertaken.
Source: Prepared by the project team.




METHODOLOGY FOR DATA COLLECTION AND ANALYSIS 17


workshops to plan the Baseline study in wuhan, people’s republic of china
and Bangkok, Thailand


A subregional meeting in October 2015 in Wuhan, PRC to plan the baseline study and discuss the next steps was
attended by national consultants and government officials from Bangladesh, Bhutan, and Nepal, and experts
from ADB and UNESCAP.


Another study planning workshop—during which methodologies for BPA, TRS, and TCD/CPMM were
discussed in detail—was held in Bangkok on 13–15 January 2016. Present at the workshop were national
consultants of the project, government officers and logistics operators from Bangladesh, Bhutan, and Nepal.
A draft questionnaire used for TRS and CPMM was distributed and comprehensively discussed at the workshop,
which was instrumental for the actual study.


data collection on Business process analysis


ADB conducted data collection on selected BPA during October 2015–March 2016 and interviewed
key stakeholders located in Dhaka, Rangpur, Burimari, and Banglabandha. Following the UNNExT’s BPA
methodology, information on import and export processes was collected, through repeated interviews of
a number of key informants: exporters, importers, and intermediaries including public and private sector
institutional participants directly involved in the processes being analyzed. Whenever required, there were also
interviews and consultations with relevant government agencies. Websites of different organizations were also
studied to collect published information related to specific procedural requirements, including documents, time
and costs and related laws and regulations.


data collection on Time release study


The ADB national consultant for trade facilitation and customs visited Rangpur and Customs Excise and VAT
commissionerate, Banglabandha LCS and Burimari LCS from 23 to 27 December 2015 and sensitized the key
customs officials and clearing agents on the TRS through discussion of the study tools and the process flow
of the import and export transaction. The study procedures were also explained to the participants in detail,
including the questionnaires, and how to complete them during the actual survey. The TRS questionnaires were
prepared in English following the WCO’s Guide to Measure the Time Required for the Release of Goods, Version 2
and the methodology used by the WCO and the International Finance Corporation (member of the World Bank
group) in conducting Chittagong and Benapole TRS.


These TRS questionnaires were later translated in the local language Bangla in consultation with the key customs
officials, clearing and forwarding agents, and transport operators. Pilot testing of the TRS questionnaires were
done with support from those officials extensively briefed about the data collection. TRS data collection for the
Burimari LCS was conducted from 13 to 22 February 2016. Initially, TRS data collection at the Banglabandha
LCS was planned from 10 March to 15 March 2016. However, due to the very low volume of export and
import through the Banglabandha LCS during the study period, data collection at this border crossing point was
implemented from 10 March to 25 May 2016.




18 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


data collection on Time/cost–distance/corridor performance Measurement and Monitoring


A data collection form was designed based on the ADB CPMM approach and was also translated into the local
language for better understanding of the transport operators. Indeed, as the sample is much smaller than that in
Central Asia, the data collection is a simplification of the version used in Central Asia. Data collection from the
field was carried out during March–April 2016.


national results validation Meeting and Follow-up activities


A national validation workshop was organized by the Bangladesh National Board of Revenue (NBR), in
collaboration with ADB and UNESCAP from 31 July to 1 August 2016 in Dhaka, Bangladesh and attended by
representatives from relevant government departments and private sector agencies.


The project study team presented preliminary study findings and results to stakeholders. The project team
considered comments from the workshop in their decision to revise the report. Approximately one month after
the meeting, the study team shared the revised reports with the NBR and meeting participants and incorporated
further feedback for revision.




19


key Findings and policy
recoMMendaTions


chapTer 4


This chapter reports key findings on key indicators related to trade and transport facilitation for the products, for border-crossing points and along the corridors studied. It is a synthesis report based on studies on
export of plastic kitchenware and tableware from Bangladesh to Bhutan, import of lentils from Nepal to
Bangladesh, time release studies (TRS) at the Burimari and Banglabandha land border crossings, and corridor
performance measurement and monitoring (CPMM) studies along Burimari–Dhaka and Banglabandha–Dhaka
trade corridors. This chapter also reports the key bottlenecks for trade and transport facilitation and presents
recommendations for removing such bottlenecks.


4.1 Burimari–rangpur–dhaka corridor
This section is divided into two subsections: section 4.1.1 reports key indicators related to the corridor, while
section 4.1.2 provides analysis on diagnosis of bottlenecks along the corridors and recommendations to remove
the bottlenecks.


4.1.1 key indicators


The key indicators included for analysis comprise time for export, costs for export, number of procedures for export,
number of actors, number of documents for export, and average speed along the corridor.


4.1.1.1 Time for export


Results from the BPA analysis, as shown in
Figure  4.1, reveal that in a typical case, it
takes the existing trader 14  days to export
plastic kitchenware and tableware from
Bangladesh to Bhutan through Burimari.
New traders need an additional 18 days to
fulfill general documentary requirements.
It normally takes 1–2 days to complete a
procedure, and no particular procedure
takes much longer than other procedures.


Results from the CPMM analysis (Table 4.1) shows that it takes approximately 30 hours (including 19 hours
travel time and 11 hours stoppage time) to transport cargoes through this 455 km corridor.


Table4.1:  Transport Time through dhaka–Burimari corridor


indicators Mean Max Min


Total distance (kilometer) 455 465 445


Total travel hours with delay 29.97 36 16.25


Total stops 8 11 6


Total stoppage hours 11.15 17.50 2.05


Total travel hours without delay 18.82 23 13.60


Source: Prepared by the project team.




20 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Figure4.1:  Time–procedure chart for export of plastic kitchenware and Tableware to Bhutan
through Burimari land port



3 days


1 day
1 day


2 days


2 days


1 day


3 days
1 day


Days


35


30


25


20


15


10


5


0


2.7


2.13


18 days


General requirements for new traders


18 days


32 days


6Process 7 8 9 14 15 19 20 21


2.1
to
2.6


14 days


2.18


3.2


2.14 to 2.17


2.8 to 2.12


3.1


1.1


C&F = clearing and forwarding agent, min = minutes, SAFTA = South Asian Free Trade Area, TT = telegraphic transfer, VAT = value-added tax.
Note:  The time required for competing general requirements of obtaining license/membership and certificates for conducting export business in Bangladesh


is on average 18 days. After completion of general requirements, the time required for exporting plastic kitchenware and tableware from Bangladesh to
Bhutan is on average 14 days.


Source: Prepared by the project team.


Results from TRS (Table 4.2) show the average time taken for release of all types of export cargo amounts to
approximately 2 hours 14 minutes, which includes 1 hour 14 minutes for customs procedures, and 31 minutes
for port authority clearance procedures.


Table4.2: results from Time release studies for export at Burimari


indicators duration


Average time taken for release of all types of export cargo, which includes, among others: 2 hours 14 minutes


• Customs procedures 1 hours 14 minutes


• Port Authority clearance procedures 0 hours 31 minutes


Source: Prepared by the project team.


sl procedures Time required
2.1 Obtain Trade License 3


18


2.2 Obtain Tax Identification Number 0.03 (45 min)
2.3 Open Bank Account against the trade license 1
2.4 Obtain Membership of Chamber 10
2.5 Obtain Export Registration Certificate 2
2.6 Obtain VAT Registration Certificate 2
1.1 Conclude sales contract and trade terms 3
3.1 Receive advance payment by TT 1
2.7 Prepare export documents 1
2.8 Arrange transport 0.08 (120 min)


2
2.9 Arrange Certificate of Origin 1


2.10 Arrange SAFTA Certificate of Origin 1
2.11 Arrange VAT declaration 1
2.12 Appointment of C&F agent 0.5
2.13 Transport goods to Port of Departure 2
2.14 Provide Customs Declaration 0.02 (30 min)


1
2.15 Customs inspection and clear goods 0.10 (150 min)
2.16 Hand over export documents 0.02 (30 min)
2.17 Border Crossing of Export goods 0.02 (30 min)
2.18 Sending signed documents back to exporter 3
3.2 Obtain Proceed Realization Certificate (PRC) 1




KEY FINDINGS AND POLICY RECOMMENDATIONS 21


Figure4.2:  Time required for completing
different procedures


Other procedures, 90%


Transport, 9%


Border crossing, 1%


Source: Prepared by the project team.


A synthesis analysis of time required for completing
different procedures has important policy implications.
As shown in Figure 4.2, transport and border-crossing
processes account for 9% and 1% of the total trade
time, respectively. This shows the importance of
optimization and simplification of trade process from a
whole-supply-chain perspective. Certainly it is always
important to improve transport and border crossing
process, but these two factors only accounted for
approximately 10% of the total trade process.


Furthermore, it is important to note that discussion here is based on the assumption that the traders have
obtained all the necessary licenses and permits to carry out business. Otherwise, the total trade time would be
longer and the total percentage of transport and border crossing time would be further reduced. This finding
reveals that policy makers and other stakeholders need to pay great attention to other procedures as well in order
to reduce total trade time.


4.1.1.2 costs for export


Results from the BPA (Table 4.3) show that, in a typical case, costs for exporting plastic kitchenware and
tableware from Bangladesh to Bhutan through Burimari LCS are approximately Tk23,998 ($307.67), which does
not include the costs of approximately Tk41,650 ($533.97), for completing onetime procedures for a new trader.


Taking all procedures (including onetime procedures
for the new traders) into consideration, the most
costly procedures include: obtain membership in local
business association/chamber (approximately $370,
or 44% of the total costs); transport (approximately
$231, or 27% of the total costs); and obtain Export
Registration Certificate (ERC) (approximately $118,
or 14% of the total costs). These three procedures in
total account for 85% of the trade costs.


When the onetime procedures are excluded from
analysis, Figure 4.3 shows the most expensive trade
procedures include: transport goods to port of departure
(approximately $231, or 75% of the total trade cost);
followed by the appointment of C&F agent (C&F agent charge) (approximately $38 or 13% of the total costs);
prepare export documents (approximately $26, or 8%); and arrange SAFTA Certificate of Origin (approximately $12
or 4% of the total costs).


Results from the CPMM show that the average official costs incurred along the Burimari–Dhaka corridor
amounts to approximately $82. The costs mainly include tollway charges and other official charges along the
way but exclude fuel cost and driver’s salary.


Figure4.3:  costs of the Trade procedures
excluding onetime procedures


Transport goods to
port of departure, 75%


Prepare export
documents, 8%


Appointment of C&F agent
(C&F agent charge), 13%


Arrange SAFTA
Certificate of Origin, 4%


C&F = clearing and forwarding, SAFTA = South Asian Free Trade Area.
Source: Prepared by the project team.




22 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.3: costs involved in the export of plastic kitchenware and Tableware from Bangladesh to Bhutan


sn procedures cost (Tk) cost ($)


1 Buy
1.1 Conclude sales contract and trade terms 0 0.00
2 ship 0.00


2.1 Obtain Trade License 3,600 46.15
2.2 Obtain Tax Identification Number 0 0.00
2.3 Open bank account against the trade license 0 0.00
2.4 Obtain membership in local business association/chamber 28,850 369.87
2.5 Obtain Export Registration Certificate 9,200 117.95
2.6 Obtain VAT Registration Certificate 0 0.00
2.7 Prepare export documents 2,000 25.64
2.8 Arrange transport 0 0.00
2.9 Arrange Certificate of Origin (CO) 75 0.96


2.10 Arrange South Asian Free Trade Area (SAFTA) CO 923 11.83
2.11 Arrange VAT declaration 0 0.00
2.12 Appointment of C&F agent (C&F agent charge) 3,000 38.46
2.13 Transport goods to port of departure 18,000 230.77
2.14 Provide customs declaration 0 0.00
2.15 Customs inspection and clear goods (export is duty free, however, need to pay C&F VAT


and AIT and port charges—included in C&F agent charge)
0 0.00


2.16 Handover export documents to representative of Bhutanese importer 0 0.00
2.17 Border crossing of export goods 0 0.00
2.18 Sending signed documents back to exporter (borne by C&F agent) 0 0.00


3 pay 0.00
3.1 Receive advance payment by Telegraphic Transfer 0 0.00
3.2 Obtain Proceed Realization Certificate 0 0.00


Total 65,648
(23,998)


841.64
(307.67)


AIT = advance income tax, C&F = clearing and forwarding, SN = serial number, Tk = Taka, VAT = value-added tax.
Notes:
1. Exchange rate: $1 = Tk78.
2.  Procedures 2.1 to 2.6 are general requirements of any exporter doing export business in Bangladesh and need only be done once; some license/


membership and certificates need renewing every year with applicable renewal fees due.
3.  All other export costs are estimated as cost of exporting one truck of plastic kitchenware and tableware from Bangladesh to Bhutan.
4.  Excluding the cost of general requirement of license/membership and certificates for conducting export business in Bangladesh, the cost of exporting


one truck of plastic kitchenware and tableware from Bangladesh to Bhutan is estimated as $307.67 (see figure in parentheses).
Source: Prepared by the project team.


4.1.1.3 number of procedures for export


As shown in Figure 4.1, an existing exporter has to complete 15 distinct procedures for exporting plastic
kitchenware and tableware from Bangladesh to Bhutan through Burimari LCS. Furthermore, additional 6 onetime
procedures are required for a new trader. In other words, a new trader needs to go through 21 procedures to
complete export process.




KEY FINDINGS AND POLICY RECOMMENDATIONS 23


4.1.1.4 number of actors


As shown in Figure 4.4, there are, in total, 20 actors involved in exporting plastic kitchenware and tableware from
Bangladesh to Bhutan.


Figure4.4:  use case diagram of exporting plastic kitchenware and Tableware from Bangladesh to Bhutan


City corporation/
municipality


National Board
of Revenue


Scheduled bank


Business association/
chambers


CCI&E


Transporter
Local VAT circle


Metropolitan Chamber
of Commerce and


Industry


Clearing & forwarding
(C&F) agent


Export Promotion
Bureau


Bangladesh
Customs (Burimari)


Land Port Authority
(Burimari)


Border security
(Bangladesh)


Border security
(India)


1.1) Conclude
sales contract and


trade terms


3.1) Receive advance
payment in TT


3.2) Obtain Proceed
Realization Certificate


Importer’s
bank


Exporter’s
bank


1) Buy


3) Play


Representative of
Bhutanese importer


Scheduled bank


2) Ship


2.1) Obtain trade license


2.2) Obtain tax identification number


2.3) Open bank account against the trade license


2.4) Obtain membership in local business association


2.5) Obtain Export Registration Certificate


2.6) Obtain VAT Registration Certificate


2.7) Prepare export documents


2.8) Arrange transport


2.9) Arrange Certificate of Origin


2.10) Arrange SAFTA Certificate of Origin


2.11) Arrange VAT declaration


2.12) Appointment of C&F agent


2.13) Transport goods to port of departure


2.14) Provide customs declaration


2.15) Customs inspection and clear goods


2.16) Handover export docs to representative of importer


2.17) Border crossing


2.18) Sending signed documents back to exporter


Bangladeshi
exporter


Bhutanese
importer


CCI&E = Chief Controller of Imports & Exports, SAFTA = South Asian Free Trade Area, TT = telegraphic transfer, VAT = value-added tax.
Source: Prepared by the project team.


4.1.1.5 number of documents for export


An existing trader is required to fill out 11 documents to complete the export process. However, these
documents need to be submitted repeatedly—a total of 93 times. For a new trader who has to complete all
onetime procedures, 20 documents are required to complete the export process and these documents need
to be submitted 117 times. The details of the documents for export process are shown in Tables 4.4 and 4.5.




24 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.4:  documents required for export of plastic kitchenware and Tableware
from Bangladesh to Bhutan


sn procedures
documents


required detailed list of documents


1 Buy
1.1 Conclude sales contract and trade terms  2 Quotation, Purchase Order/Indent
2 ship


2.1 Obtain Trade License  2 Filled Application Form, National ID, Ownership/Lease Document
2.2 Obtain Tax Identification Number (TIN)  1 National ID
2.3 Open Bank Account against the trade license  4 Filled Application Form, National ID, Trade License, TIN Certificate,


Copy of Nominee’s National ID, Nominee’s photo
2.4 Obtain Membership in local business


Association/Chamber
 4 Filled Application Form, National ID, Trade License, TIN Certificate,


Business Name Card, Bank Certificate, Attached Photograph
2.5 Obtain Export Registration Certificate (ERC)  5 Filled Application Form, National ID, Trade License, TIN Certificate,


Bank Certificate, Attached Photograph, Local business Association/
Chamber Membership Certificate


2.6 Obtain value-added tax (VAT) Registration
Certificate


 6 Filled Application Form, National ID, Trade License, TIN Certificate,
Ownership/Lease Document, Bank Certificate, Attached Photograph,
Export Registration Certificate (ERC)


2.7 Prepare export documents  3 Pro forma Invoice, Commercial Invoice, Copy of TT/LC
2.8 Arrange Transport  1 Packing and Weight List
2.9 Arrange Certificate of Origin (CO)  4 Filled CO Form, Pro forma Invoice, Commercial Invoice, Packing


and Weight List, Track Receipt
2.10 Arrange South Asian Free Trade Area


(SAFTA) Certificate of Origin
 8 Filled SAFTA CO Form, Certificate of Origin (CO), Pro forma


Invoice, Commercial Invoice, Packing and Weight List, Track
Receipt, ExP Form, cost breakdown, Undertaking from the Exporter


2.11 Arrange value-added tax (VAT) declaration  5 Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Copy of ExP Form, Copy of TT


2.12 Appointment of C&F Agent  1 Pro forma Invoice
2.13 Transport goods to Port of Departure 11 Bill of Export, ERC, TT Copy, CO Certificate, SAFTA CO,


Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Track Receipt, Copy of ExP Form, VAT Certificate


2.14 Provide Customs Declaration 11 Bill of Export, ERC, TT Copy, CO Certificate, SAFTA CO,
Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Track Receipt, Copy of ExP Form, VAT Certificate


2.15 Customs Inspection and Clear Goods 11 Bill of Export, ERC, TT Copy, CO Certificate, SAFTA CO,
Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Track Receipt, Copy of ExP Form, VAT Certificate


2.16 Handover Export Documents to
Representative of Bhutanese Importer


12 Bill of Export, ERC, TT Copy, CO Certificate, SAFTA CO,
Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Track Receipt, Copy of ExP Form, VAT Certificate, Gate Pass


2.17 Border Crossing of Export goods 12 Bill of Export, ERC, TT Copy, CO Certificate, SAFTA CO,
Pro forma Invoice, Commercial Invoice, Packing and Weight List,
Track Receipt, Copy of ExP Form, VAT Certificate, Gate Pass


2.18 Sending Signed Documents back to Exporter  6 Bill of Export, Pro forma Invoice, Commercial Invoice, Packing and
Weight List, Track Receipt, Original ExP Form


3 pay
3.1 Receive Advance Payment by TT  2 Application for TT, Pro forma Invoice, Copy of ERC
3.2 Obtain Proceed Realization Certificate


(PRC)
 6 Bill of Export, Pro forma Invoice, Commercial Invoice, Packing and


Weight List, Track Receipt, Original ExP Form
C&F = clearing and forwarding, ExP = export, LC = letter of credit, SN = serial number, TT = telegraphic transfer.
Source: Prepared by the project team.




KEY FINDINGS AND POLICY RECOMMENDATIONS 25


Table4.5: submitting export documents: Manually or electronically


sn procedures
Manual


submission
submission by


electronic Means


1 Buy


1.1 Conclude sales contract and trade terms  


2 ship


2.1 Obtain Trade License 
2.2 Obtain Tax Identification Number  
2.3 Open Bank Account against the trade license 
2.4 Obtain Membership in local business Association/Chamber 
2.5 Obtain Export Registration Certificate 
2.6 Obtain value-added tax (VAT) Registration Certificate 
2.7 Prepare export documents 
2.8 Arrange Transport  
2.9 Arrange Certificate of Origin (CO) 


2.10 Arrange South Asian Free Trade Area (SAFTA) CO 
2.11 Arrange VAT declaration 
2.12 Appointment of C&F Agent  
2.13 Transport goods to Port of Departure


2.14 Provide Customs Declaration 
2.15 Customs Inspection and Clear Goods 
2.16 Handover Export Documents to Representative of Bhutanese Importer 
2.17 Border Crossing of Export Goods 
2.18 Sending Signed Documents Back to Exporter 


3 pay


3.1 Receive Advance Payment by Telegraphic Transfer 
3.2 Obtain Proceed Realization Certificate 


C&F = clearing and forwarding, SN = serial number.
Source: Prepared by the project team.


4.1.1.6  average speed along the
Burimari–dhaka corridor


Average speed with delays and without delays
along the Burimari–Dhaka corridor amounts
to 15 km/h and 24  km/h, respectively. The
former is calculated when the total journey
time is taken into consideration while in
the case of the latter, the stoppage time is
excluded from the total journey time.


Table4.6: speed and Time along Burimari–dhaka corridor


indicators Mean Max Min


Total distance (km) 455 465 445


Total travel hours with delay 29.97 36 16.25


Total stops 8 11 6


Total stoppage hours 11.15 17.50 2.05


Total travel hours without delay 18.82 23 13.60


Speed with delay (km/h) 15.18 26.38 12.64


Speed without delay (km/h) 24.18 33.46 19.78


h = hour, km = kilometer.
Source: Prepared by the project team.




26 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


4.1.2 diagnosis and recommendations


Analysis of key procedures and detailed recommendations according to BPA is shown in Table 4.7. Analysis
of the bottlenecks is mainly based on the classification of procedural requirements, data and documentary
requirements, transparency/predictability. Recommendations according to the analysis of bottlenecks are
provided accordingly.


Notwithstanding the difference of bottlenecks and recommendations associated with specific procedures,
some bottlenecks are prominent. For instance, documents need to be submitted manually and repeatedly, which
may cause delays, especially when there are errors for filling in the documents. Common solutions to remove
bottlenecks include automation, single windows, online applications, reduction of number of documents to be
submitted to each agency, data harmonization, and simplification of procedures.


Table4.7:  export of plastic kitchenware and Tableware from Bangladesh to Bhutan by Burimari:
diagnosis and recommendations according to Business process analysis


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


1 Buy


2 ship


2.1 Obtain Trade
License


For obtaining Trade License,
exporter has to apply using
prescribed ‘Application Form
(Form–K)’ to the concerned
local authority; with required
documents and applicable
fees (based on the nature
of business entity—for
export fee is Tk3000+15%
value-added tax (VAT)+
Tk150 for book). Concerned
local authority visits the spot
and verifies the applicant’s
information and existence
of the business entity. If
all provided information
found correct, concerned
local authority issues ‘Trade
License’ to the importer.
Note: Trade license needs
to be renewed every year
by depositing applicable
renewal fees.


Along with
filled prescribed
application form,
it requires 3 copies
of photo, a copy
each of national ID,
and ownership/
lease documents.
All documents need
to be certified by
authorized person.


Transparency and
predictability of
this activity varies
from one Local
Government
Authority
to another.
While some
central and big
city corporations
laid down the
application
requirements, fees
and application
forms are available
in their websites;
other smaller
municipalities
do not have such
facility and manage
the process
manually leaving
more opportunity
of corruption and
rent seeking by the
implementing/
granting officials.


Implement online application, approval,
issuance, and renewal of Trade License.
The electronic application and issuance
process followed in e-Tax Identification
Number (e-TIN) registration system
can be replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for Trade License should be
provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
These will reduce documentary
requirements, application time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


continued next page




KEY FINDINGS AND POLICY RECOMMENDATIONS 27


Table4.7:  continued


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


2.2 Obtain TIN In obtaining TIN certificate,
exporter has to apply online
with required information
and receives the e-TIN
certificate online at no cost.


Exporter has to have
National Identity Card
and a mobile phone
number.


This activity is fully
transparent and
predictable.


Existing online application, approval,
and issuance of certificate which
could be replicated in other license/
certificate/permit requirements.


2.4 Obtain
membership in
local business
association/
chamber


For obtaining membership in
local business association/
chamber, exporter has
to apply using prescribed
application form to
local business association/
chamber. The membership
application must be
proposed by a member and
seconded by another, of the
membership class to which
the applicant wants to be
admitted.
Note: Membership needs
to be renewed every year
by depositing applicable
renewal fees.


This activity require
submission of filled
Application Form
along with a copy
each of the applicant’s
photo, Trade License,
TIN Certificate,
Bank Certificate,
Business Name Card
of the Exporter, and
National Identity
Card duly certified by
authorized person.


The procedure is
quite transparent;
however, varies
across different
associations/
chambers.
Transparency and
predictability of
this activity could
be improved
by introducing
electronic
procedures.


Online application, approval, issuance,
and renewal of membership may be
considered.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
These will reduce documentary
requirements, application time, and
cost and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.
Application fee may be reduced.


2.5 Obtain Export
Registration
Certificate
(ERC)


For obtaining ERC,
exporter has to apply using
prescribed Application
Form to the Office of
the Chief Controller
of Imports & Exports
(CCI&E) with required
supporting documents
and initial Registration
fees (Tk8,000/+ 15%
VAT). Upon verification of
provided information CCI&E
issues the ERC.
Note: ERC needs to be
renewed every year by
depositing applicable
renewal fees.


This activity requires
submission of filled
Application Form
along with
Trade License,
TIN Certificate,
Bank Certificate,
National Identity Card,
and Membership
Certificate from
local chamber duly
certified by authorized
person.


This activity is fairly
transparent as the
procedural and
cost requirements
are published in
the website of the
CCI&E. However,
the transparency
and predictability
of this process can
be much improved
by introducing
electronic
application,
approval,
issuance, and
renewal of ERC.


Implement online application,
approval, issuance, and renewal of ERC.
The electronic application and issuance
process followed in e-TIN registration
system can be replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for ERC should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
These will reduce documentary
requirements, application time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


continued next page




28 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.7:  continued


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


2.6 Obtain VAT
registration
certificate


For obtaining VAT
registration certificate,
exporter has to apply using
prescribed application
form (Mushak-6) to the
concerned local VAT circle
with required supporting
documents. Upon
verification of provided
information, concerned local
VAT authority issues the
VAT registration certificate.
Concerned VAT authority
performs post verification
about applicant’s
information and existence of
the business entity.


This activity requires
submission of filled
application form
(Mushak–6) along
with two copies of
applicant’s photo,
a copy each of
national ID, TIN,
ownership/lease
documents, ERC,
and bank certificate
duly certified by
authorized person.


This activity seems
transparent as
the procedural
requirements
are well known.
However, the
transparency and
predictability of
this process can
be much improved
by introducing
electronic
application,
approval, and
issuance of VAT
registration
certificate.


Implement online application, approval,
and issuance of VAT registration
certificate. The electronic application
and issuance process followed in
e-TIN registration system can be easily
replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete
the application for VAT registration
certificate should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
These will reduce documentary
requirements, application time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


2.9 Arrange
Country
of Origin
Certificate


For obtaining Country of
Origin Certificate, exporter
has to apply to Metropolitan
Chamber of Commerce
& Industry by submitting
prescribed application
form along with supporting
documents.


This process of
generating the
Country of Origin
Certificate requires
exporter to submit
Certificate of
Origin application
form along with
copies of Pro forma
Invoice, Commercial
Invoice, Packing
and Weight List,
and Truck Receipt.


These procedural
requirements
and procedures
are published
and well known
to the exporters.
However,
introduction
of electronic
application,
approval, and
issuance of
Certificate of
Origin would
increase the
efficiency to a
great deal.


Implement electronic Country of
Origin Certification. Implement online
application, approval, and issuance of
Certificate of Origin.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for Certificate of Origin
should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
This will reduce documentary
requirements, application time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


continued next page




KEY FINDINGS AND POLICY RECOMMENDATIONS 29


Table4.7:  continued


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


2.10 Arrange
South Asian
Free Trade
Area (SAFTA)
Certificate of
Origin


Obtaining SAFTA
Certificate of Origin requires
exporter to apply to Export
Promotion Bureau (EPB)
by submitting prescribed
application form along with
supporting documents.


This process
generating the
SAFTA Certificate
of Origin requires
exporter to submit
SAFTA Country of
Origin application
form along with
copies of Country of
Origin, Pro forma
Invoice, Commercial
Invoice, Packing and
Weight List, Truck
Receipt, Export Form,
cost breakdown
of export product,
and undertaking in
company pad by
the EPB authorized
signatory from the
exporting company.


This activity is
fairly transparent
and the procedural
requirements
are published.
However,
introduction
of electronic
application,
approval, and
issuance of
SAFTA Certificate
of Origin would
increase the
efficiency to a
great deal.


Implement electronic SAFTA Country
of Origin Certification. Implement
online application, approval and
issuance of SAFTA Certificate of Origin.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for SAFTA Certificate of
Origin should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
This will reduce documentary
requirements, application time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


2.11 Arrange VAT
declaration


This activity requires
Exporter sends documents
declare VAT through
VAT–11 and VAT 20 forms,
which are inspected and
verified by local Circle
officials and duly endorsed
with seal and signature.


This process
generates VAT–11
and VAT 20 based
on the information
of Pro forma
Invoice, Commercial
Invoice, Packing
and Weight List,
ExP Form, and
TT Copy.


This activity seems
transparent as
the procedural
requirements
are published
and well known.
However, the
transparency and
predictability of
this process can
be much improved
by introducing
electronic
application and
approval of VAT
declaration.


Implement electronic VAT declaration
procedures for export.
Implement online VAT declaration and
approval. Post verification procedures
should be introduced for monitoring.
This will reduce documentary
requirements, declaration time and
cost, and reduce the possibility of
red tape and corruption, and thereby
facilitating ease of doing business.


2.14 Provide
Customs
Declaration


This activity requires C&F
agent to prepare and submit
Bill of Export to Bangladesh
customs (Burimari)
with all other supporting
documents and Customs
to verify Bill of Export
and all other supporting
documents according to the
declaration. If submitted,
Export Declaration meets
Customs requirements,
Bangladesh Customs enters
all the information in the
‘ASYCUDA World’ online
and issue a Bill of Export
number (‘C’ number).


Providing customs
declaration requires
submission of filled Bill
of Export Form, Export
Registration Certificate,
Telegraphic Transfer
(TT)/letter of credit
(LC) copy, Certificate
of Origin, SAFTA
Certificate of Origin,
Pro forma Invoice,
Commercial Invoice,
Packing and Weight
List, Track Receipt,
VAT certificate and
ExP Form–15 copies
of each of the export
documents.


Introducing
ASYCUDA
World increased
the transparency
and predictability;
however, which is
not fully effective
as parallel use of
the manual system
remains.


Install and operationalize a fully
paperless system/single window to
eliminate the use of hard copy of
documents. Such a system would
also eliminate the time involved with
physically moving documents.
Ensure uninterrupted connectivity
of ASYCUDA World with the central
server to ensure effective use of this
online system. It would also help
eliminate/minimize the use of manual
system presently used in parallel to
the online system. It will also eliminate
submission of 15 copies of each of all
export documents.


continued next page




30 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.7:  continued


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


2.15 Customs
Inspection and
Clear Goods


Customs Inspection
and Clear Goods involve
verification of submitted
documents and export goods
to make sure that the to-be
exported cargo is exactly the
same as the declared one.
Inspection of outward
containerized cargo is
subject to customs risk
assessment.


This step involves
reviewing the export
documents submitted
in the previous step.
Toward the end of
the process, customs
officer has to record
the actual quantity
exported into customs
information system.


There is great deal
of information on
the NBR website
(http://www
.nbr.gov.bd)
and Bangladesh
Customs website
(http://customs
.gov.bd); but
instructions
or guidelines
for traders for
completing
customs formalities
both for exports
and imports are
surprisingly absent.
The traders would
benefit if such
guidelines are
developed and
posted on the
NBR website.
Moreover, as
already mentioned,
much of the
clearance work is
done manually.
These affect the
transparency and
predictability of
this process.


Install and operationalize a fully
paperless system/single window to
eliminate the use of hard copy of
documents. Such a system would
eliminate the time involved with
physically moving documents from
one location to another, reducing total
customs release time and cost.
Ensure uninterrupted connectivity
of ASYCUDA World with the central
server to ensure effective use of this
online system. It would also help
minimize/eliminate the use of manual
system presently used in parallel to the
online system.
Implementation of a trusted
trader program as outlined in the
Revised Kyoto Convention may be
considered as a part of the overall
risk management continuum. This
would allow traders who meet certain
criteria to benefit from simplified
procedures such as direct release, prior
release, and simplified declaration.
It would allow securing full benefit
from the Authorized Economic
Operator program, which NBR is
developing currently.
Bangladesh Land Port Authority (BLPA)
should consider introducing electronic
data sharing with Bangladesh Customs
that will reduce the manual movement
of hard copies of documents/file.
BLPA may also consider improving
some infrastructural issues; including
improvement of the capacity of the
road sector of this land port, building
a separate export yard/shed, installing
necessary equipment for loading and
unloading of import and export cargo to
replace present manual operation.


2.16 Handover
export
documents to
representative
of Bhutanese
importer


This activity involves
the handing over of the
export documents of
the Bhutanese importer
representative after
customs clearance at
the Burimari LCS where
the documents are
checked by the receiver.
The representative
also checks the export
consignment.


Representative of
Bhutanese importer
receives Bill of Export
and two sets of all
export documents.


This activity is
fairly transparent;
however, it affects
the predictability
of total export
procedure as
the movement
of Bhutanese
importer
representative
might be restricted
at the transit
corridor.


The process of representative of
Bhutanese importer travelling to
Burimari to clear/receive the export
consignment may be removed.


continued next page




KEY FINDINGS AND POLICY RECOMMENDATIONS 31


Table4.7:  continued


sn


core
Business
process


(use case)


observations


recommendations
procedural


requirements


data and
documentary
requirements


Transparency/
predictability


2.17 Border
crossing of
export goods


This process involves
crossing of export cargo from
Burimari LCS to Indian part of
the corridor through ‘No-
Man’s-Land’. Border security
(Bangladesh) verifies export
documents and examines
export consignment where
necessary at the zero point
of Bangladesh part;
whereas, border security
(India) verifies documents
and consignment at the
entry point of India.


This step does not
require submission
or processing of any
documents; however,
Bill of Export and
two sets of all export
documents need to be
carried along with the
export consignment.


Implementation of a one-stop border
post may be considered among the
members of Bangladesh, Bhutan, India,
and Nepal as suggested by World Trade
Organization Trade Facilitation
Agreement for effective border agency
cooperation.


SN = serial number.
Source: Prepared by the project team.


According to the CPMM analysis, as shown in Figure 4.5, there is significant room for improving the travel speed
along the corridor. Under a scenario that vehicle travels at 30 km/h which is not a very high speed, the total
journey time, on average, can be reduced from 30 hours to 15 hours, or by 50%.


Major delays occurred for crossing the Jamuna Bridge. Most of the vehicles from Burimari used to carry 25–35
tons of goods. However, it is only permissible to carry 20 tons over the Jamuna Bridge. Hence, the excess goods
have to be transferred to a smaller cargo/truck for crossing the bridge. These loading and unloading procedures
cause around 3–5 hours delay at this point of the corridor. This also increases a significant portion of official cost
of the transport through the route.


Figure4.5: Time–distance along Burimari–dhaka corridor


Cu
m


ul
at


iv
e t


im
e (


ho
ur


s)


Cumulative distance (km)


30


35


25


20


15


10


5


0
0 50 100 150 200 250 300 350 400 450 500


Average Time Scenario (30 km/h)


h = hour, km = kilometer.
Source: Prepared by the project team.




32 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Another major source of delay is the entry barrier to Dhaka. Trucks are only permitted to enter Dhaka during
night from 8 p.m. to 8 a.m. in the morning. Therefore, most of the consignments have to wait outside Dhaka
for a long time to enter in Dhaka after 8 p.m. It is found that this waiting requirement extends the delay time
at other stoppages. It is also reported that the speed of consignment is significantly reduced after passing the
Jamuna Bridge mainly because of the narrow road and excessive traffic on the road.


Key recommendations for improving road transport include: upgrading the transport infrastructure from
Rangpur to Burimari. Ideally, a single-lane road should be upgraded to at least a double-lane highway. Separate
lanes for the slow moving transports need be added. It is important to note that improvement of Joydevpur–
Chandra–Tangail–Elenga Road to a four-lane highway has been undertaken under SASEC road connectivity
project; its completion would reduce the transport time.


Results from the TRS show that both the import and export processes were efficient at the Burimari border
crossing. This may be largely due to the low volume of traffic during the study time period. Nevertheless, one
issue for attention is that although ASYCUDA World is introduced in Burimari, lack of uninterrupted internet
connectivity undermines its effective operationalization. The issue needs to be addressed, especially if the
border-crossing traffic increases, which may put pressure on maintaining high efficiency of border crossings.


There may also be a need to review the internal workflows to further simplify the customs clearance processes
and reduce duplication of work by reassessing delegation of responsibilities and repetitive procedures such as
the referral of Bills of Export from the Assistant Revenue Officer to the Revenue Officer at each step of the
current release and clearance process. Revenue Officers and Assistant Commissioners should perform periodic
monitoring by checking a sample of the work for accountability and quality control purposes and focus on the
higher end of the risk continuum.


4.2 Banglabandha–rangpur–dhaka corridor
Similar to section 4.1, this section is divided into two subsections: the first section reports key indicators related
to the corridor, while the second section provides analysis on diagnosis of bottlenecks along the corridors and
recommendations to remove the bottlenecks.


4.2.1 key indicators


The key indicators included for analysis include time for export, costs for export, number of procedures for export,
number of actors, number of documents for export, and average speed along the corridor.


4.2.1.1 Time for export


Findings from the BPA analysis, as shown in Figure 4.6, reveal that in a typical case, time required for importing
lentils from Nepal to Bangladesh through Banglabandha is 15 days. In the case of a new trader, additional
18 days are required to fulfill the general documentary requirement. It takes normally 1 to 2 days to complete a
single procedure, and there is no particular procedure that takes much longer than other procedures.




KEY FINDINGS AND POLICY RECOMMENDATIONS 33


Figure4.6: Time–procedure chart for import of lentils from nepal to Bangladesh through Banglabandha land port




3 days


4 days
1 day


1 day
2 days


2 days


1 day


Days


35


30


25


20


15


10


5


0


2.7


2.11 to 2.14




18 days


General requirements for new traders


18 days


33 days


6Process 7 8 9 12 16 17 18 19


2.1
to
2.6


15 days


2.18
3.2


2.15


2.8 to 2.10


3.1


1.1


1 day


C&F = clearing and forwarding agent, LC = letter of credit, min. = minutes, SN = serial number.
Notes: The time required for competing general requirements of obtaining license/membership and certificates for conducting import business in


Bangladesh averages 18 days. After completion of general requirements, the time required for importing lentils from Nepal to Bangladesh through
Banglabandha Land Port averages 15 days (only included the time required in Bangladesh part).


Source: Prepared by the project team.


sn procedures Time required
2.1 Obtain Trade License 3


18


2.2 Obtain Tax Identification Number 0.03 (45 min)
2.3 Open Bank Account against the trade license 1
2.4 Obtain Membership of Chamber 10
2.5 Obtain Import Registration Certificate 2
2.6 Obtain VAT Registration Certificate 2
1.1 Conclude sales contract and trade terms 3
3.1 Establish Payment Guarantee by opening LC


(including receiving approval of exporter)
4


2.7 Obtain Import Permit 1
2.8 Prepare and endorse import documents 1


22.9 Arrange transport 0.08 (120 min)
2.10 Appointment of C&F agent 0.5
2.11 Border crossing of import goods


1
2.12 Obtain Quarantine Certificate
2.13 Provide Customs Declaration
2.14 Customs inspection and clear goods
2.15 Transport goods to importer’s warehouse 2
3.2 Make payment for import goods 1
3.3 Submission of customs-certified Bill of Entry 1


Table4.8:  Transport Time through
Banglabandha–dhaka corridor


indicators Mean Max Min


Total distance (kilometers) 478 500 449


Total travel hours with delay 28.50 33.50 17.75


Total stops 9 12 7


Total stoppage hours 10.55 15.83 4.09


Total travel hours without delay 17.95 21.75 13.66


Source: Prepared by the project team.


Results from the CPMM analysis for this corridor
(Table  4.8) show that it takes approximately 28 hours
(including 18 hours travel time and 10 hours stoppage
time) to transport cargoes through this 478 km corridor.


Results from TRS (Table  4.9) show that average time
taken for release of all types of import cargos amounts
to approximately 6 hours 34 minutes, which includes,
among others, 4 hours 23 minutes for port authority area
procedures, 2 hours 45 minutes for customs procedures,
14 minutes for banking procedures, and 18 minutes for
port authority clearance procedures (post customs).




34 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


A synthesis analysis of time required for completing
different procedures has important policy implications.
As shown in Figure 4.7, transport and border-crossing
processes account for 8% and 2% of the total trade time
for an existing importer. This shows the importance
of optimization and simplification of trade process
from a whole supply-chain perspective. Certainly it is
always important to improve transport and the border
crossing process, but these two factors accounted
for approximately 10% of the total trade process.
Furthermore, it is important to note that discussion
here is based on the assumption that the traders have obtained all necessary licenses and permits to carry out
business. Otherwise, the total trade time will be much longer and the total percentage of transport and border
crossing time would be further reduced. This finding reveals that policy makers and other stakeholders need to
pay great attention to other procedures as well in order to reduce total trade time.


4.2.1.2 costs for import


Results from the BPA (Table 4.10) show that, in a typical case, costs for importing lentils from Nepal to
Bangladesh through Banglabandha LCS are approximately Tk69,140 ($886.41), which does not include the
costs of approximately Tk43,950 ($563.46) for completing onetime procedures (obtaining all the necessary
license/certificate/permit) for a new trader.


Taking all procedures (including onetime procedures for the new traders) into consideration, the most costly
procedures include obtain membership in local business association/chamber (approximately $370, or 26% of
the total costs), transport (approximately $513, or 35% of the total costs), and Import Registration Certificate
(IRC) (approximately $147, or 10% of the total costs); these three procedures in total account for 71% of the
trade costs.


Table4.9: results from Time release studies for import at Banglabandha


indicators duration


Average time taken for release of all types of import cargo, which includes, among others, 6 hours 34 minutes


–  Port Authority Area—weighing and unloading (Some activities are carried out in parallel with the customs procedures) 4 hours 23 minutes


–  Customs Procedures 2 hours 45 minutes


–  Banking Procedures 0 hours 14 minutes


–  Port Authority Clearance Procedures (post customs) 0 hours 18 minutes


Source: Prepared by the project team.


Figure4.7:  Time required for completing
different Types of import procedures


Time for other
procedures, 90%


Transport, 8%


Border crossing, 2%


Source: Prepared by the project team.




KEY FINDINGS AND POLICY RECOMMENDATIONS 35


Table4.10:  costs involved in the import of lentils from nepal to Bangladesh
through Banglabandha land customs station


sn procedures cost (Tk) cost ($)
1 Buy


1.1 Conclude sales contract and trade terms 0 0
2 ship


2.1 Obtain Trade License 3,600 46.15
2.2 Obtain Tax Identification Number 0 0
2.3 Open bank account against the trade license 0 0
2.4 Obtain membership in local business association/chamber 28,850 369.87
2.5 Obtain Import Registration Certificate 11,500 147.44
2.6 Obtain VAT Registration Certificate 0 0
2.7 Obtain import permit 100 1.28
2.8 Prepare and endorse import documents 2,000 25.64
2.9 Arrange transport 0 0


2.10 C&F agent charges (Tk3,000 + C&F VAT Tk600 + C&F AIT Tk400 + labor charge Tk55/ton +
port charges Tk220 per truck)


6,320 81.03


2.11 Border crossing of import goods 0 0
2.12 Obtain Quarantine Certificate (first ton is Tk50 and additional Tk5 per ton) 145 1.86
2.13 Provide customs declaration 0 0
2.14 Customs inspection and clear goods (import of lentils is duty free, however, required to pay


C&F VAT and AIT, and port charges [Tk220 per truck]; usually borne by C&F agent)
0 0


2.15 Transport goods to importer’s warehouse (varies from Tk1,700 to Tk2,500 per ton) 40,000 512.82
3 pay


3.1 Establish payment guarantee by opening LC 20,575 263.78
3.2 Make payment for import goods 0 0
3.3 Submission of customs certified Bill of Entry 0 0


Total 113,090
(69,140)


1,449.87
(886.41)


AIT = advance income tax, C&F = clearing and forwarding, LC = letter of credit, LCA = Letter of Credit Authorization, SN = serial number, STAMP = Securities
Transfer Agents Medallion Program, SWIFT = Society for Worldwide Interbank Financial Telecommunication, Tk = Taka, VAT = value-added tax.
Notes:
1.  Procedures 2.1 to 2.6 are general requirements of doing import business in Bangladesh and importer has to do these once, some license/membership and


certificate need to be renewed every year paying applicable renewal fees.
2.  All other import costs are estimated as average cost of importing (except price of the product) one truck (20 tons) of lentils from Nepal to Bangladesh


through Banglabandha land port.
3.  LC opening charge/issuing charge 0.5% of invoice for deferred payment and 0.4% for sight LC; (for a 120 metric ton consignment SWIFT charge Tk1,950,


STAMP Tk300, LCA FORM Tk575, insurance cover note premium Tk64,470).
4.  Excluding the cost of general requirement of license, membership, and certificates for conducting export business in Bangladesh, the cost of exporting


one truck of lentils (20 tons) from Nepal to Bangladesh through Banglabandha land port is estimated as $886.41 which has been shown in parenthesis.
Source: Prepared by the project team.


When the onetime procedures are excluded from the analysis, Figure 4.8 shows that the most expensive trade
procedures include transport goods from border crossing to importer’s warehouse (approximately $513, or 58%
of the total trade cost), followed by the procedures LC opening cost (approximately $264 or 30% of the total
costs), C&F agent charges (approximately $81 or 9% of the total costs) and prepare and endorse import documents
(approximately $26, or 3%).




36 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Results from the CPMM shows that the average official costs incurred along the Banglabandha–Dhaka corridor
amounts to approximately $107. The costs mainly include tollway charges and other official charges along the
way but exclude fuel cost and driver’s salary.


4.2.1.3 number of procedures for import


As shown in Figure 4.6, an existing importer has to complete 13 distinct procedures for importing lentils from
Nepal to Bangladesh through Banglabandha LCS. Furthermore, additional 6 onetime procedures are required for
a new trader. In other words, a new trader needs to go through 19 procedures to complete the import process.


4.2.1.4 number of actors


As shown in Figure 4.9, there are in total 20 actors involved in importing lentil from Nepal to Bangladesh.


4.2.1.5 number of documents for import


For an existing trader, 18 documents are required to complete the import process. However, these documents
need to be submitted repeatedly—a total of 71 times. A new trader who has to complete all onetime procedures,
needs 27 documents to complete the import process and these documents need to be submitted 93 times.
The details of the documents for export process are shown in Tables 4.11 and 4.12.


4.2.1.6 average speed along the Banglabandha–dhaka corridor


Average speed with delays and without delays along the Banglabandha–Dhaka corridor amounts to 17 km/h and
27 km/h, respectively. The former is calculated when the total journey time is taken into consideration while in
the case of the latter, the stoppage time is excluded from the total journey time.


Figure4.8: costs for import Trade procedures excluding onetime procedures (%)


Transport goods to importer’s warehouse, 58%


Prepare and endorse import documents, 3%


Establish payment guarantee by opening LC, 30%


C&F agent charges, 9%


Obtain quarantine certificate, 0%


Obtain import permit, 0%


C&F = clearing and forwarding, LC = letter of credit.
Source: Prepared by the project team.




KEY FINDINGS AND POLICY RECOMMENDATIONS 37


Figure4.9: use case diagram of Business process of import of lentils from nepal to Bangladesh


City corporation/
municipality


CCI&E


Local VAT circle


Clearing & forwarding
(C&F) agent


Exporter’s
transport


Bangladesh
Customs


(Banglabandha)


Land Port Authority
(Banglabandha)


1.1) Conclude
sales contract and


trade terms


3.1) Establish payment
guarantee by opening LC


3.2) Make payment
for import goods


3.3) Submission of
Customs-certified


Bill of Entry


Exporter’s
bank


Importer’s
bank


1) Buy


3) Play


Customs/
Scheduled bank


2) Ship


2.1) Obtain trade license


2.2) Obtain tax identification number


2.3) Open bank account against the trade license


2.4) Obtain membership in local business association


2.5) Obtain Import Registration Certificate


2.6) Obtain VAT Registration Certificate


2.7) Prepare Import Permit


2.8) Prepare and endorse import documents


2.9) Arrange transport


2.10) Appointment of C&F agent


2.11) Border crossing of import goods


2.12) Obtain Quarantine Certificate


2.13) Provide customs declaration


2.14) Customs inspection and clear goods


2.15) Transport goods to importer’s warehouse


National Board
of Revenue


Scheduled/
Importer’s bank


Business association/
chambers


Plant Protection Wing,
DAE


Importer’s
transporter


Bangladeshi
exporter


Nepalese
exporter


Border security
(Bangladesh)


Border security
(Bangladesh)


Border security
(India)


C&F = clearing and forwarding, DAE = Department of Agricultural Extension, LC = letter of credit, VAT = value-added tax.
Source: Prepared by the project team.


4.2.2 diagnosis and recommendations


Analysis of key procedures and detailed recommendations according to BPA for import of lentils from Nepal
to Bangladesh through Banglabandha Land Port is shown in Table 4.14. Analysis of the bottlenecks is mainly
based on the classification of procedural requirements, data and documentary requirements, transparency/
predictability. Recommendations according to analysis of bottlenecks are provided accordingly.


Notwithstanding the difference of bottlenecks and recommendations associated with specific procedures, some
bottlenecks are prominent. For instance, documents need to be submitted manually and repeatedly, which
may cause delays, especially when there are errors in filling in the documents. Common solutions to remove
bottlenecks include automation, single window, online application, reduction of number of documents to be
submitted to each agency, data harmonization, and simplification of procedures.




38 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.11: documents required for import of lentils from nepal to Bangladesh


sn procedures
no. of


documents list of documents
1 Buy Quotation, purchase order


1.1 Conclude sales contract and trade terms 2 Quotation, purchase order/indent
2 ship


2.1 Obtain trade license  2 National ID, ownership/lease document
2.2 Obtain Tax Identification Number (TIN)  1 National ID
2.3 Open bank account against the


trade license
 4 National ID, trade license, TIN certificate, copy of nominee’s national ID,


nominee’s photo
2.4 Obtain membership in local business


association/chamber
 4 National ID, trade license, TIN certificate, business name card,


bank certificate, attached photograph
2.5 Obtain Import Registration Certificate


(IRC)
 5 National ID, trade license, TIN certificate, business name card, bank


certificate, attached photograph, local business association/chamber
membership certificate


2.6 Obtain value-added tax (VAT)
registration certificate


 6 National ID, trade license, TIN certificate, ownership/lease document,
bank certificate, attached photograph, IRC


2.7 Obtain import permit  4 Filled application form (Form-1), IRC, trade license, TIN certificate,
VAT certificate


2.8 Prepare and endorse import documents  9 Commercial invoice, country of origin, truck receipt, packing list
(these four received from exporter), IRC, TIN certificate, VAT certificate,
import permit, No Objection Certificate (NoC) from bank


2.9 Arrange transport  1 Packing and weight list
2.10 Appointment of C&F agent  1 Pro forma invoice
2.11 Border crossing of import goods  2 Car pass, customs transit declaration
2.12 Obtain quarantine certificate  3 Filled application form, import permit, phytosanitary certificate (Nepal) and


truck receipt
2.13 Provide customs declaration 18 Bill of entry, car pass, customs transit declaration, LC copy, LCA copy,


pro forma invoice, commercial invoice, Country of Origin certificate,
phytosanitary certificate, packing and weight list, track receipt, marine cover
note/insurance certificate, bank NoC
Quarantine certificate, copy of IRC, import permit, weighment slip,
Radio Activity Test certificate


2.14 Customs inspection and clear goods 18 Bill of entry, car pass, customs transit declaration, LC copy, LCA copy,
pro forma invoice, commercial invoice, Country of Origin certificate,
phytosanitary certificate, packing and weight list, track receipt, marine cover
note/insurance certificate, bank NoC
Quarantine certificate, copy of IRC, import permit, weighment slip,
Radio Activity Test certificate


2.15 Transport goods to importer’s warehouse  2 Gate pass and signed bill of entry
3 pay


3.1 Establish payment guarantee by
opening LC


 5 Application for LC, LCA, pro forma invoice, copy of IRC, import permit,
insurance cover note


3.2 Make payment for import goods  5 Commercial invoice, packing and weight list, country of origin certificate,
truck receipt, and phytosanitary certificate and any other document
required by LC


3.3 Submission of customs-certified
Bill of Entry


 1 Customs-certified Bill of Entry


C&F = clearing and forwarding, LC = letter of credit, LCA = Letter of Credit Authorization, SN = serial number.
Notes:
1.  Procedures 2.1 to 2.6 are general requirements of doing import business in Bangladesh and an importer has to do these once; some license/membership


and certificate need to be renewed every year paying applicable renewal fees.
2.  Application form, applicant’s photo has been mentioned in the detailed list; however, has not been considered as document requirement and not counted


in the ‘Number of documents required.’
Source: Prepared by the project team.




KEY FINDINGS AND POLICY RECOMMENDATIONS 39


Table4.12: submitting import documents: Manually or electronically


sn procedures Manual submission electronic submission


1 Buy


1.1 Conclude sales contract and trade terms  


2 ship


2.1 Obtain trade license 


2.2 Obtain Tax Identification Number  


2.3 Open bank account against the trade license 


2.4 Obtain membership in local business association/chamber 


2.5 Obtain Import Registration Certificate 


2.6 Obtain VAT Registration Certificate 


2.7 Obtain import permit 


2.8 Prepare and endorse import documents 


2.9 Arrange transport  


2.10 Appointment of C&F agent  


2.11 Border crossing of import goods 


2.12 Obtain quarantine certificate 


2.13 Provide customs declaration 


2.14 Customs inspection and clear goods 


2.15 Transport goods to importer’s warehouse


3 pay


3.1 Establish payment guarantee by opening LC 


3.2 Make payment for import goods  


3.3 Submission of customs-certified Bill of Entry 
C&F = clearing and forwarding agent, LC = letter of credit, SN = serial number, VAT = value-added tax.
Note: Procedures 2.1 to 2.6 are general requirements of doing import business in Bangladesh and an importer has to do these once; some license/membership


and certificate need to be renewed every year paying applicable renewal fees.
Source: Prepared by the project team.


Table4.13:  speed and Time along Banglabandha–dhaka corridor


indicators Mean Max Min
Total distance (km) 478 500 449
Total travel hours with delay 28.50 33.50 17.75
Total stops 9 12 7
Total stoppage hours 10.55 15.83 4.09
Total travel hours without delay 17.95 21.75 13.66
Speed with delay (km/h) 16.77 26.93 14.27
Speed without delay (km/h) 26.63 34.99 21.98
h = hour, km = kilometer.
Source: Prepared by the project team.




40 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.14:  import of lentils from nepal to Bangladesh through the Banglabandha land customs station:
diagnosis and recommendations according to Business process analysis


sn


core Business
process
(use case)


observations


recommendations
procedural
requirements


data and documentary
requirements


Transparency/
predictability


1 Buy


2 ship


21.1 Obtain trade
license


For obtaining trade license,
importer has to apply using
prescribed ‘Application
form (Form-K)’ to the
concerned local authority;
with required documents
and applicable fees.
Local authority concerned
visits the business entity
of the applicant and
verifies the applicant’s
information and existence
of the business entity.
If all provided information
are found correct, local
authority concerned
issues ‘trade license’ to the
importer.
Note: Trade license needs
to be renewed every year
by depositing applicable
renewal fees.


Along with filled prescribed
application form, 3 copies
of photo, a copy each of
national ID, and ownership/
lease documents are
required. All documents
need to be certified by
authorized person.


Transparency
and predictability
of this activity
varies from one
local government
authority to another.
While some
central and big city
corporations laid
down the application
requirements, fees
and application
form available
in their website;
other smaller
municipalities do not
have such facility and
manage the process
manually leaving
more opportunity
of corruption and
rent seeking by the
implementing/
granting officials.


Implement online application, approval,
issuance, and renewal of trade license.
The electronic application and issuance
process followed in e-TIN registration
system can be replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for trade license should be
provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submissions of
identical pieces of data/documents.
These will reduce documentary
requirements, application time and cost,
reduce the possibility of red tape and
corruption, and thereby, facilitate ease
of doing business.


21.4 Obtain
membership in
local business
association/
chamber


For obtaining
membership in local
business association/
chamber, importer has
to apply using prescribed
application form to local
business association/
chamber. The membership
application must be
proposed by a member
and seconded by another
of the membership class to
which the applicant wants
to be admitted. Cost of
applying membership
varies across different
associations/chambers
(i.e., Dhaka Chamber of
Commerce & Industry
[DCCI] membership fee is
Tk28,850).
Note: Membership needs
to be renewed every year
by depositing applicable
renewal fees.


This activity requires
submission of filled
application form along
with applicant’s copy of
photo, trade license, TIN
certificate, bank certificate,
business name card of the
importer, and national
identity card duly certified
by authorized person.


The procedure is
fairly transparent;
however, varies
across different
associations/
chambers.
Transparency and
predictability of
this activity could
be improved
by introducing
electronic
procedures.


Online application, approval, issuance,
and renewal of membership may be
considered.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submissions of
identical pieces of data/documents.
These will reduce documentary
requirements, application time and cost,
and reduce the possibility of red tape,
and corruption, and thereby facilitating
ease of doing business.
Application fee may be reduced.


continued next page




KEY FINDINGS AND POLICY RECOMMENDATIONS 41


Table4.14: continued


sn


core Business
process
(use case)


observations


recommendations
procedural
requirements


data and documentary
requirements


Transparency/
predictability


21.5 Obtain Import
Registration
Certificate
(IRC)


For obtaining IRC,
importer has to apply using
prescribed application
form to the Office of
the Chief Controller
of Imports & Exports
(CCI&E) with required
supporting documents
and initial registration
fees (Tk8,000/ + 15%
value-added tax [VAT]).
Upon verification of
provided information
CCI&E issues the IRC.
Note: IRC needs to be
renewed every year by
depositing applicable
renewal fees.


This activity requires
submission of filled
application form along with
a copy each of the trade
license, TIN certificate, bank
certificate, national identity
card, and membership
certificate from the
local chamber duly certified
by authorized person.


This activity is quite
transparent as the
procedural and
cost requirements
are published in
the website of the
CCI&E. However,
the transparency
and predictability
of this process can
be much improved
by introducing
electronic
application,
approval, issuance,
and renewal of
an IRC.


Implement online application,
approval, issuance, and renewal of IRC.
The electronic application and issuance
process followed in e-TIN registration
system can be replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for IRC should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical pieces of data/documents.
These will reduce documentary
requirements, application time and cost,
and reduce the possibility of red tape
and corruption, and thereby facilitating
ease of doing business.


21.6 Obtain VAT
Registration
Certificate


For obtaining VAT
registration certificate,
importer has to apply using
prescribed application
form (Mushak–6) to
the concerned local
VAT circle with required
supporting documents.
Upon verification of
provided information,
concerned local VAT
authority issues the
VAT registration
certificate. Concerned
VAT authority performs
post verification about
applicant’s information
and existence of the
business entity.


This activity requires
submission of filled
application form
(Mushak–6) along with
applicant’s 2 copies of
photo, a copy each of
national ID, TIN certificate,
ownership/lease
documents, IRC, and bank
certificate duly certified
by authorized person.


This activity is
quite transparent
as the procedural
requirements
are well-known.
However, the
transparency and
predictability of
this process can
be much improved
by introducing
electronic
application,
approval, and
issuance of
VAT registration
certificate.


Implement online application, approval
and issuance of VAT registration
certificate. The electronic application
and issuance process followed in
e-TIN registration system can be easily
replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete
the application for VAT registration
certificate should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submissions of
identical data/documents.
These will reduce documentary
requirements, application time and cost,
and reduce the possibility of red tape and
corruption, and thereby facilitating ease
of doing business.


continued next page




42 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.14: continued


sn


core Business
process
(use case)


observations


recommendations
procedural
requirements


data and documentary
requirements


Transparency/
predictability


21.7 Obtain Import
Permit


This process requires
importer to collect
import permit from the
Plant Protection Wing,
Department of Agricultural
Extension (DAE) by
applying using prescribed
application form, required
supporting documents and
applicable fees.


This activity requires
submission of filled
application form (Form-1)
along with a copy each
of IRC, trade license,
TIN, VAT certificate, and
required fees (First 10 ton
Tk1 and additional per ton
Tk1) to the Plant Protection
Wing, DAE.


This activity is
quite transparent
as the process
and requirements
are published in
the website of the
DAE. However,
transparency and
predictability of
this process can
be much improved
by introducing
electronic
application,
approval, and
issuance of
Import Permit.


Implement online application, approval,
and issuance of Import Permit. The
electronic application and issuance
process followed in e-TIN registration
system can be easily replicated here.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for Import Permit should be
provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
This will reduce documentary
requirements, application time and cost,
and reduce the possibility of red tape and
corruption, and thereby facilitating ease
of doing business.


21.11 Border crossing
of import goods


This process involves
crossing of import
cargo from the Indian
part of the corridor
through Banglabandha
LCS. Border security
(Bangladesh) and
Bangladesh customs
(Banglabandha) keep
record of the car pass of
the import consignment
at the zero point and
inspects the import cargo
where necessary.
C&F agent (appointed
by the importer) collects
car pass and other
documents and arranges
entry of loaded truck(s)
into the land port yard
(Banglabandha) where
the date and time of
entry of loaded truck(s)
is recorded.


This step does not require
submission or processing of
any documents; however,
car pass, customs transit
declaration, certificate
of origin, phytosanitary
certificate, pro forma
invoice, commercial invoice,
and packing and weight list
to be carried along with the
import consignment.


Implementation of one-stop border
post may be considered among the
members of Bangladesh, Bhutan,
India, and Nepal as suggested by
the World Trade Organization Trade
Facilitation Agreement for effective
border agency cooperation.


continued next page




KEY FINDINGS AND POLICY RECOMMENDATIONS 43


Table4.14: continued


sn


core Business
process
(use case)


observations


recommendations
procedural
requirements


data and documentary
requirements


Transparency/
predictability


21.12 Obtain
Quarantine
Certificate


This process requires
importer/C&F agent
to submit prescribed
application form
along with necessary
documents (Import
Permit, phytosanitary
certificate [Nepal] and
truck receipt) to the plant
quarantine officer of the
regional office of DAE, who
verifies the documents
and plant inspecton officer
conducts the inspection
and submits a report to the
plant quarantine officer.
Plant quarantine officer
issues the quarantine
certificate based on
the report.


This activity requires
submission of prescribed
application form, import
permit, phytosanitary
certificate (Nepal) and
truck receipt. This activity
generates Quarantine
Certificate.


Implement online application, approval
and issuance of Quarantine Certificate.
Equip the system with auto-correct
and auto-calculation features to
assist the applicants in completing the
online application forms. Additional
instructions on how to complete the
application for Quarantine Certificate
should be provided.
Allow online submission of necessary
documents and electronic transfer of
required fees.
Harmonize data/document
requirements across different license/
permit/certificate application forms in
order to remove multiple submission of
identical data/documents.
This will reduce documentary
requirements, application time and cost,
and reduce the possibility of red tape and
corruption, and thereby facilitating ease
of doing business.


21.13 Provide customs
declaration


This activity requires
C&F agent to prepare
and submit Bill of Entry
to Bangladesh Customs
(Banglabandha) with all
other import documents.
Customs to verify Bill
of Entry and all other
supporting documents
according to the
declaration. If submitted
import declaration meets
customs requirements,
customs keeps record of
the Bill of Entry (manually)
and issues a Bill of Entry
number.


Providing customs
declaration requires
submission of filled-in
Bill of Entry, car pass,
Customs Transit
Declaration (CTD),
a copy each of the LC,
LCA, pro forma invoice,
commercial invoice,
certificate of origin,
phytosanitary certificate,
packing and weight list,
track receipt, marine cover
note/insurance certificate,
bank NoC, quarantine
certificate, import permit,
IRC, radiation certificate,
and weight slip.


Here the entry of
customs declaration
is done manually—
reducing the
transparency and
predictability of the
activity.


Install and activate ASYCUDA World
at the Banglabandha LCS. Ensure
uninterrupted connectivity of ASYCUDA
World with the central server to ensure
effective use of this online system.
It would also help to minimize the use of
manual system presently used in parallel
to the online system. It will also eliminate
submission of several copies of each of
all import documents.
Install and operationalize a fully
paperless system/single window to
eliminate the use of hard copy of
documents. Such a system would
eliminate the time involved with
physically moving documents.
This will increase the transparency and
predictability of this activity.


21.14 Customs
inspection and
clear goods


Customs inspection
and clear goods involve
verification of submitted
import documents
and import goods and
ensuring that the import
consignment is exactly the
same as the declared one.


This step involves verifying
the import documents
submitted in the previous
step and import goods.
Customs also determines
the assessed value of
the import goods and
calculates duty (if any)
and VAT and AIT on C&F
service charges.


There is a great deal
of information on
the NBR website
(http://www.nbr
.gov.bd) and
Bangladesh customs
website (http://
customs.gov.bd);
but instructions or
guidelines for traders
for completing
customs formalities
both for exports
and imports are
surprisingly absent.


NBR and Bangladesh customs should
develop comprehensive guidelines for
customs clearance for export and import
and host it in its website.
Install and activate ASYCUDA World
at the Banglabandha LCS. Ensure
uninterrupted connectivity of ASYCUDA
World with the central server to ensure
effective use of this online system.
It would also help to minimize/eliminate
the use of manual system presently used
in parallel to the online system.
Install and operationalize a fully
paperless system/single window to
eliminate the use of hard copy of
documents.


continued next page




44 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Table4.14: continued


sn


core Business
process
(use case)


observations


recommendations
procedural
requirements


data and documentary
requirements


Transparency/
predictability


Customs assesses
the import goods and
C&F agent deposits
assessed duty (if any),
and VAT and AIT on
C&F services charges
through TR Challan to the
Sonali Bank and submit
the TR Challan to the
Customs. Upon receipt
of the TR Challan and
payment of Bangladesh
Land Port Authority
(BLPA) charges, customs
issues/signs release order
(Bill of Entry and car pass).


Customs officer has to
record the actual quantity
and assessed value of
import goods into customs
information system.


The traders
would benefit if
such guidelines
are developed
and posted on
the NBR and
customs website.
Moreover, as already
mentioned, much of
the clearance work
is done manually.
These affect the
transparency and
predictability of this
process.


Such a system would eliminate the
time involved with physically moving
documents from one location to
another, reducing total customs release
time and cost.
Review the internal workflows to further
simplify the customs clearance processes
and address duplication of work by
reassessing delegation of responsibilities
and repetitive procedures such as the
referral of Bills of Entry from the assistant
revenue officer to the revenue officer
at each step of the current release and
clearance process. Revenue officers
and assistant commissioners should
perform periodic monitoring by checking
a sample of the work for accountability
and quality control purposes and focus
on the higher end of the risk continuum.
Implementation of a trusted trader
program as outlined in the Revised
Kyoto Convention may be considered
as a part of the overall risk management
continuum. This would allow traders
who meet certain criteria to benefit from
simplified procedures such as direct
release, prior release, and simplified
declaration. It would allow securing full
benefit from the Authorized Economic
Operator prozgram, which NBR is
currently developing.
Full implementation of the selectivity
module of ASYCUDA World for risk
management of all cargo declarations
may be considered.
Build capacity of front line officials
to better manage the paperless
system/single window and overall risk
management system.
Strengthen the professional relationship
with other actors involved in the customs
clearing procedures.
BLPA should consider introducing
electronic data sharing with Bangladesh
customs, which will reduce the
manual movement of hard copy of
documents/files. BLPA may also
consider improving some infrastructural
issues; including installing necessary
equipment for loading and unloading
of import and export cargo to replace
present manual operation.


3 pay


ASYCUDA = Automated System for Customs Data; BBIN = Bangladesh, Bhutan, India, and Nepal; C&F = clearing and forwarding; LCS = Land Customs
Station; TFA = Trade Facilitation Agreement; WTO = World Trade Organization.
Source: Prepared by the project team.




KEY FINDINGS AND POLICY RECOMMENDATIONS 45


According to the CPMM analysis, as shown in Figure 4.10, major delays occurred for crossing the Jamuna Bridge
and entry barrier to Dhaka city, as detailed in Section 4.1.2. It is important to note that under the scenario that
the vehicle travels at a speed of 30 km/h, on average, the journey time can be reduced by 44% (from 28.5 hours
to 16 hours).


Results from TRS show that each border procedure is generally efficient. However, such high efficiency may be
largely due to the low volume of cargoes during the study period. For the bilateral trade between Bangladesh and
India, there was almost no export cargo and import was limited to stone boulder. The volume of goods for export
and import between Bangladesh and Nepal was low and the shipment was infrequent due to the India–Nepal
unofficial border crisis. The situation increases difficulty of observing key bottlenecks.


Nevertheless, analysis of procedures using both BPA and TRS methodologies shows that some procedures can
be further simplified. For instance, assistant revenue officer’s decisions are always referred to the revenue officer
and the revenue officer’s decisions are often referred to the assistant commissioner. Assistant commissioner’s
decisions can also be referred to higher levels of management. While this may be targeted to ensure checks
and balances and accountability, it also reflects duplication of work in the customs procedures, which may be
addressed for increased operational efficiency.


The study also shows that most documents are handled manually. Physical movement of documents increases
trade process time and lowers efficiency. Installing and operationalizing customs automation (ASYCUDA) will
provide useful solutions in this respect, and will ensure efficient border crossing when trade volume increases.


Figure4.10: Time–distance along Banglabandha–dhaka corridor
Cu


m
ul


at
iv


e t
im


e (
ho


ur
s)


Cumulative distance (km)


30


25


20


15


10


5


0
0 50 100 150 200 250 300 350 400 450 500


Average Time Scenario (30 km/h)


km = kilometer, km/h = kilometers per hour.
Source: Prepared by the project team.




46


way Forward To esTaBlish Trade and
TransporT FaciliTaTion MoniToring
MechanisM in Bangladesh


chapTer 5


The TTFMM baseline study serves as the first step—and an essential one—toward establishment of TTFMM in Bangladesh. The next question for policy makers and other stakeholders is how to establish long-term
sustainable TTFMM in the country. This chapter reviews the most important aspects on establishing TTFMM
in the country including institutional arrangement, national capacity building, resources, continuation and
expansion of monitoring, and alignment of TTFMM with global and regional initiatives.


5.1 institutional arrangement
In undertaking the TTFMM baseline study in Bangladesh, support from National Board of Revenue (NBR) and
other stakeholders especially the members of Bangladesh National Trade Facilitation Committee (NTFC)20 was
crucial to data collection and analysis.


Moving forward, leadership and ownership of TTFMM from within the country are crucial to maintain the
sustainability of TTFMM. Institutionalizing TTFMM is the key to success in this respect. In other words, in order
to make TTFMM sustainable, it is important that a national body should oversee the operation of TTFMM.
The national body needs to plan the various activities under TTFMM and secure resources for execution.


Certainly, decisions on institutional arrangement of TTFMM should be made by policy makers and stakeholders
in the country. Nevertheless, this study proposes that NTFC is the most suitable candidate to lead TTFMM
because NTFC includes representatives of all or key stakeholders of trade and transport facilitation.


Industry associations and the private sector will benefit from the sustainability of TTFMM because enhanced
trade and transport facilitation would increase the competitiveness of industry and the private sector in the
international market. Therefore, a clear message to the public is that the TTFMM is not the sole obligation of
government, but industry association and the private sector may also play a very active role in supporting various
activities under TTFMM.


20 Further information on the NTFC in Bangladesh is available at http://unctad.org/en/DTL/TLB/Pages/TF/Committees/
detail.aspx?country=BD




WAY FORWARD TO ESTABLISH TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH 47


5.2 national capacity Building
As part of ensuring the sustainability of TTFMM, national human capacity needs to be developed and maintained.
National experts and process owners, rather than international experts, should be involved in conducting the
assessment and performance studies. This arrangement ensures that all activities under the TTFMM will be
carried out in a cost-effective manner.


In the process of undertaking TTFMM baseline study, national capacity has been substantially built. For instance,
the study was mainly carried out by the national consultants who are clearly capable of undertaking similar
studies in the future. For another example, data collection was greatly supported by the industry association and
private sector who will be more capable of collecting similar data in the future. It is important to mention that
various regional and national workshops were organized as part of TTFMM baseline study and the participants
of the workshops deepened their understanding on TTFMM.


To build on the momentum and further enhance capacity building, a number of actions can be considered.
First, national capacity building can be organized to disseminate the TTFMM baseline study results and explain
to the stakeholders the methodologies for the study. Second, “learning by doing” is an effective way to build
capacity.


In this respect, a TTFMM update study should be carried out that will involve a number of selected staff and
personnel from NTFC, government agencies, national institutes, industry association and private sector who
are tasked with overseeing TTFMM. Third, the cost-effective means of capacity building should be promoted.
For  instance, UNESCAP provides an online training course on Business Process Analysis21—an important
component of TTFMM.


5.3 resources
In the long term, the operation of TTFMM is likely to be underpinned by national resources. While the government
may provide an adequate and separate budget for operation of TTFMM, given its broad social and economic
benefit, innovative solutions toward system sustainability may be examined. For instance, key government
agencies may provide part-time or full-time qualified staff to conduct the studies.


A Public–Private Partnership (PPP) modality could also be envisaged. Part of the resources of TTFMM may
come from private sector organizations such as Chambers of Commerce or Industry Associations considering
the benefits TTFMM can bring to the business community. The private sector contribution may come in the
form of an in-kind contribution (e.g., staff secondment or the allocation of staff time to collect and/or analyze
data). In that context, communicating with the general public on the benefits of TTFMM, presenting useful
results on a regular basis and showcasing the achievements will be important to win continuous and broad-based
support—including financial support—from a wide range of public and private stakeholders.


21 More detailed information is available at http://www.unescap.org/our-work/trade-investment-innovation/trade-facilitation/
bpa-course




48 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


Cooperation with development partners and donors may provide another solution to securing resources. Once
the usefulness of TTFMM is fully recognized by all relevant stakeholders, development partners/financing
institutions/international donors are also likely to support the operation of TTFMM.


5.4 continuation and expansion of Monitoring
The baseline data, as an outcome of TTFMM baseline study, will be used as the basis for the purpose of
benchmarking trade and transport facilitation performance over time. Accordingly, further studies on the same
products and the same corridors should be carried out regularly to check the progress and/or setbacks.


Given the constraints in financial and human resources, comprehensive studies may be conducted every two
or three years while small scale update of studies should be carried out annually. A few examples of such small-
scale studies include (i) organizing a national consultation workshop to review and update the data related to
trade and transport facilitation, (ii) collecting and updating data related to specific procedures or corridors, and
(iii) reporting the emerging or key issues on trade and transport facilitation.


When more financial resources are made available and an enlarged pool of experts are developed, the scope of
monitoring can be expanded to cover more products, corridors, and trade and transport procedures, taking the
factors listed in section 2.1 into consideration whenever possible.


5.5 alignment of Trade and Transport Facilitation Monitoring
Mechanism with global, regional, and national initiatives


Establishment of TTFMM should be regarded as an integral component to support policy making, rather than
“add-on” or isolated efforts. In this respect, it is important to align TTFMM with global, regional, and national
initiatives.


At the global level, a large number of countries, especially the members of World Trade Organization (WTO),
are committed to implementing the trade facilitation measures under the WTO’s Trade Facilitation Agreement
(TFA).22 At the regional level, the BBIN Motor Vehicles Agreement has been widely regarded as a game-changing
pact that set in motion steps to make it possible for both passenger vehicles and, perhaps more importantly,
freight vehicles, to cross swiftly and easily from one country to another. At the national level, a broad range of
trade facilitation measures (such as establishment of national single window) are being implemented.


Certainly, implementation of trade facilitation measures itself is important. To measure the effectiveness and
outcome of implementation is probably more important because, after all, implementation of trade facilitation
measures is a means to enhance trade facilitation, and not an end itself. A couple of basic questions policy makers
and other stakeholders may ask include: (i) are the time, costs, and number of documents for completing a


22 As of 31 October 2016, 96 WTO members have ratified the TFA. See WTO (2016b).




WAY FORWARD TO ESTABLISH TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH 49


specific trade procedure reduced because of the implementation of trade facilitation measures?, and (ii) is the
average travel speed along a corridor increased or border crossing time reduced due to implementation of a
specific agreement?


Establishment of TTFMM would provide essential answers to these questions. TTFMM provides not only
indicators but also diagnostic analysis, which enables the policy makers and relevant stakeholders to identify
bottlenecks and solutions, so that the continuous improvement is possible. For example, this report contributes
to the implementation of WTO’s TFA because it identifies trade facilitation measures that need to be
implemented in the short- and long-term, and therefore, supports a country to prioritize the implementation
if the country faces financial and human capacity constraints.




50


suMMary and conclusion
chapTer 6


This report—derived from five separate reports related to specific product import and export, corridor, and border crossing performance prepared by the same project team—is a key outcome of the baseline study of
Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bangladesh. Our target audience includes
policy makers, government officials, and the general public.


As the name suggests, a “baseline” study should not be treated as a one-off publication. Indeed, it is envisaged
that, in the process of establishing and operating TTFMM, the current report is the first of its kind and is
prepared in a way to not only report the key study findings, but also to lay foundation for future publications.
A large series of reports will be produced in the years to come.


The key indicators in Table 6.1 summarize the current status of trade and transport facilitation performance.


Table6.1:  key indicators on Trade and Transport Facilitation performance


indicators exporta importb


Time Total trade time excluding onetime procedures for a new trader 14 days 15 days
Total trade time including onetime procedures for a new trader 32 days 33 days
Total time for transport, including 30 hours 28 hours


– Travel time 19 hours 18 hours
– Stoppage time 11 hours 10 hours


Average time taken for release of cargoes, including, among others 2 hours 14 minutes 6 hours 34 minutes
– Port Authority area—weighing and unloadingc – 4 hours 23 minutes
– Customs procedures 1 hours 14 minutes 2 hours 45 minutes


Banking procedures – 0 hours 14 minutes
Port Authority clearance procedures 0 hours 31 minutes 0 hours 18 minutes


costs Total trade costs excluding onetime procedures for a new trader $308 $886


Total trade costs including onetime procedures for a new trader $842 $1,450
Official costs incurred along the corridor $82 $107


number of
procedures


Total number of procedures excluding onetime procedures for a new trader 15 13
Total number of procedures including onetime procedures for a new trader 31 19


number of
documents


Total number of documents excluding onetime procedures for a new trader 11 18
Total number of documents including onetime procedures for a new trader 20 27


number of
copies of
document


Total number of copies of documents excluding onetime procedures for a new trader 93 71
Total number of copies of documents including onetime procedures for a new trader 117 93


speed along
the corridor


Average speed with delays 15 km/h 17 km/h


Average speed without delays 24 km/h 27 km/h
km/h = kilometers per hour.
a Export of plastic kitchenware and tableware to Bhutan through Burimari land port.
b Import of lentils from Nepal to Bangladesh through Banglabandha land port.
c Activities carried out in parallel with the customs procedures.
Source: Prepared by the project team.




SUMMARY AND CONCLUSION 51


A synthesis analysis of time required for completing different procedures has important policy implications.
As shown in Table 6.1, transport and border-crossing processes account for approximately 10% and 4% of the
total trade time for an existing and a new trader, respectively. This shows the importance of optimization and
simplification of the trade process from a whole supply-chain perspective.


The indicators, together with detailed analysis of trade procedures and documents, reveal the bottlenecks and
areas for improvement in trade and transport facilitation. To list a few examples:


• A regular or existing trader needs 11 documents to complete the export process, but these documents
need to be submitted repeatedly—a total of 93 times. For a regular trader to complete the import process,
18 documents are required and need to be submitted repeatedly for a total of 71 times.


• It is costly to complete onetime procedures for a new trader. In typical cases, a new trader needs to
cover  approximately $840 to complete processes exporting plastic kitchenware and tableware from
Bangladesh to Bhutan through Burimari LCS. This includes Tk41,650 (or $533.97) for completing onetime
procedures; a new trader will need to cover the costs of $1,450 for completing the process of importing lentils
from Nepal to Bangladesh through Banglabandha LCS. This includes the costs of Tk43,950 (or $563.46) for
completing onetime procedures.


• The average speed with and without delays along corridors under study is 15–17 km/h and 24–27 km/h,
respectively—much lower than the average speed surveyed in Central Asia.


Key recommendations in this report are divided into short- and long-term interventions. Classification in this
respect does not follow hard-and-fast rules. Instead, the project team considered the key factors according
to the level of difficulty for implementation of trade facilitation measures as well as the financial and human
capacity requirements.


short-term interventions


• Implementation of online application, approval, issuance and renewal of license/certificate/permit in a
number of similar processes,


• Installation and operationalization of ASYCUDA World at Banglabandha LCS and arrangement of
uninterrupted connectivity of ASYCUDA World at Burimari LCS,


• Rearrangement of internal workflows of the Customs,
• Removal of repetitive or redundant processes,
• Reduction of costs burden,
• Harmonization of data and documentary requirements, and
• Strengthening professional relationships with all parties involved in the trade procedures.


long-term interventions


• Introduction of SWIFT (Single Window Interface for Facilitating Trade),
• Ensuring legal consistency for the introduction of single window/electronic procedures,
• Transparency in legal requirements,




52 TRADE AND TRANSPORT FACILITATION MONITORING MECHANISM IN BANGLADESH


• Establishment of authorized economic operator/trusted trader program,
• Upgrading skills of the front line officials, and
• Improving transport and border crossing infrastructure.


This report and its five supporting reports can be used for a range of purposes. First, the detailed information
on trade process and procedures can be utilized to publicize trade and transport information. This is especially
related to the WTO TFA Article 1, which is focused on publication and availability of information. Information
in this report—which includes description of trade procedures—can be used directly, in the event that a
trade portal is developed.23


Second, the quantitative indicators in these reports enable the policy makers and stakeholders to better take
stock of the status and assess challenges in trade and transport facilitation. For instance, it is generally known
that speed along the major transport corridors is restricted and, the concise analysis in this report provides the
scenario that if the intended vehicle can travel at 30 km/h, travel time can be reduced by 44%–50%.


Third, this report highlights the key bottlenecks to efficient trade and transport facilitation and proposes
recommendations to remove those bottlenecks and enhance the process that supports evidence-based policy
making and reform. One example is that proposed procedures in this report are covered by the WTO’s TFA,
indicating the importance of implementing TFA for advancing trade and transport facilitation in a country. On
the other hand, the report substantially adds value to implementing TFA because it identifies trade facilitation
measures that need to be implemented in the short- and long-term, and therefore, supports a country to
prioritize the implementation if the country faces financial and human capacity constraints. Another example
is that this report reveals the benefits and importance for countries to join the emerging regional agreements
especially the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific. Trade
and transport procedures between Bangladesh and its two trading partners Bhutan and Nepal involve transit
country India. State-of-the-art cross-border exchange of data and information among these countries is crucial
for ensuring efficiency of trade processes. However, relevant work in this area remains largely at the nascent
stage of development. These countries should consider joining the regional agreement to take full advantage
of the opportunities for accessing new technology and innovative practice, receiving technical assistance and
building capacity.


Finally, it is important to reiterate that the report provides baseline data for benchmarking in the future. In other
words, when similar indicators are collected in the future, the progress or setbacks in trade and transport
facilitation can be analyzed, and policy and actions can be adjusted if necessary. Furthermore, the studies and
relevant discussions in these reports are fully in line with the United Nations Centre for Trade Facilitation and
Electronic Business (UN/CEFACT) Recommendation Number 42 on TTFMM published on 27 April 2017
and may serve as useful reference for any similar work in the future.


23 An example of trade portal is the one developed in the Lao PDR; detailed information is available at
http://www.laotradeportal.gov.la/




53


reFerences


Asian Development Bank (ADB). 2013. South Asia Subregional Economic Cooperation. http://www.sasec.asia/
uploads/publications/SASEC%20Expanded%20Brochure_2014_2.pdf


———. 2014. Central Asia Regional Economic Cooperation Corridor Performance Measurement and Monitoring:
A Forward-Looking Retrospective. https://www.adb.org/sites/default/files/publication/148731/
carec-cpmm-forward-looking-retrospective.pdf


ADB and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). 2013.
Designing and Implementing Trade Facilitation in Asia and the Pacific. Manila: Asian Development Bank.


Dewan, R. and Shafiquzzaman, A. 2017. Implementation Status of Bangladesh Towards Paperless
Trade Facilitation. Presented at the Workshop on Cross-border Paperless Trade Facilitation and
Single Window Systems in Southern and Central Asia. Bangkok, Thailand. 14–16 Feburary.
http://www.unescap.org/sites/default/files/Bangladesh-Presentation.pdf


Lao People’s Democratic Republic (Lao PDR) Trade Portal (LTP). http://www.laotradeportal.gov.la/index
.php?r=site/index


United Nations. Sustainable Development Knowledge Platform. https://sustainabledevelopment.un.org/
post2015/transformingourworld


———. United Nations Treaties Collection. Chapter x: International Trade and Development. https://treaties
.un.org/pages/ViewDetails.aspx?src=TREATY&mtdsg_no=x-20&chapter=10&clang=_en


United Nations Conference on Trade and Development (UNCTAD). Trade Facilitation Body: The case of
Bangladesh. http://unctad.org/en/DTL/TLB/Pages/TF/Committees/detail.aspx?country=BD


United Nations Economic Commission for Europe (UNECE). 2001. Facilitation Measures Related to
International Trade Procedures. Recommendation No. 18. http://www.unece.org/fileadmin/DAM/
cefact/recommendations/rec18/Rec18_pub_2002_ecetr271.pdf


———. 2006. Background Paper for UN/CEFACT Symposium on Single Window Common Standards and
Interoperability. Geneva.


United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). E-Learning Series on
Business Process Analysis for Trade Facilitation. http://www.unescap.org/our-work/trade-investment-
innovation/trade-facilitation/bpa-course




REFERENCES54


———. 2011. Asia Pacific Trade and Investment Report 2011: Post Crisis Trade and Investment Opportunities.
http://www.unescap.org/resources/asia-pacific-trade-and-investment-report-2011-post-crisis
-trade-and-investment


———. 2012. Time/Cost–Distance Methodology. http://www.unescap.org/resources/timecost-distance
-methodology


———. 2014. Trade Process Analysis Report for Subregional Cooperation in South Asia. http://www.unescap
.org/resources/trade-process-analysis-report-subregional-cooperation-south-asia


———. 2016a. Trade Facilitation and Paperless Trade Implementation in Asia and the Pacific 2015.
http://www.unescap.org/resources/trade-facilitation-and-paperless-trade-implementation-asia-and
-pacific-2015


———. 2016b. Trade Facilitation and Paperless Trade Implementation—Country Notes—Bangladesh.
http://www.unescap.org/resources/trade-facilitation-and-paperless-trade-implementation-country
-notes-Bangladesh


UNESCAP–ADB. 2014. Towards a National Integrated and Sustainable Trade and Transport Facilitation
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andsustainable-trade-and-transport-facilitation-monitoring


UNESCAP–World Bank Trade Cost Database (June 2015 update). http://data.worldbank.org/data-catalog/
trade-costs-dataset (accessed 15 January 2017).


United Nations Network of Experts for Paperless Trade in Asia and the Pacific, UNESCAP, and UNECE. 2012.
Business Process Analysis Guide to Simplify Trade Procedures. http://www.unescap.org/resources/
business-process-analysis-guide-simplify-trade-procedures


World Customs Organization. 2011. Guide to Measure the Time Required for the Release of Goods, v. 2.
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World Trade Organization (WTO). 2015a. Full and Swift Implementation of the WTO Trade Facilitation
Agreement Can Deliver Large Trade Dividends to Developing and Least-developed Countries.
Press Release. 26 October. https://www.wto.org/english/news_e/pres15_e/pr755_e.htm


———. 2015b. World Trade Report 2015. https://www.wto.org/english/res_e/booksp_e/world_trade
_report15_e.pdf


———. 2016a. Bangladesh Ratifies Trade Facilitation Agreement. News Item. 27 September.
https://www.wto.org/english/news_e/news16_e/fac_27sep16_e.htm


———. 2016b. Iceland Ratifies Trade Facilitation Agreement. News Item. 31 October. https://www.wto.org/
english/news_e/news16_e/fac_31oct16_e.htm




55


List of Participants of Workshops for the
Trade and Transport Facilitation Monitoring
Mechanism Baseline Study in Bangladesh


appendix


a1  inception workshop on Trade and Transport Facilitation
performance Monitoring
26–27 November 2013, Bangkok, Thailand


governMenT oF Bangladesh
sultan Md iqbal
Member (Customs Intelligence & Audit)
National Board of Revenue, Dhaka


nasir arif Mahmud
Joint Secretary
Ministry of Shipping


akM akhter hossain
President
Chittagong Customs Clearing & Forwarding Agents
Association, Agrabad, C/A


M. nurul amin
Deputy Director (CM)
Bangladesh Standard Testing Institute (BSTI)


ahM ahsan
Trade Consultant (Deputy Secretary)
Ministry of Commerce


afsarul arifeen
Additional Secretary
The Federation of Bangladesh Chambers of
Commerce and Industry (FBCCI)


governMenT oF BhuTan
choiten wangchuk
Director General, Department of Public Accounts
Ministry of Finance


sonam wangchuk
Director, Department of Trade
Ministry of Economic Affairs


choyzang Tashi
Director, Department of Revenue and Customs
Ministry of Finance


karma dorji
Executive Director, Bhutan Agriculture and Food
Regulatory Authority (BAFRA)
Ministry of Agriculture and Forests


palden dorjee
General Manager
Forwarders and Clearing Agent


sonam dorji
Business Promotion Officer
Bhutan Chamber of Commerce and Industry


governMenT oF india
devendra kumar singh
Additional Director General of Foreign Trade
Directorate General of Foreign Trade
Ministry of Commerce and Industry


sunil kumar das
Commissioner of Customs
Office of the Commissioner of Customs




APPENDIxES56


n. venkatesh
Additional Director General
Systems Directorate


prabir de
Senior Fellow
Research and Information System for
Developing Countries (RIS), and
ASEAN–India Centre


governMenT oF nepal
navaraj dhakal
Under Secretary
Ministry of Commerce and Supplies


damber Bahadur karki
Under Secretary
Ministry of Physical Planning and Transport


rajan sharma
President
Nepal Freight Forwarders Association (NEFFA)


sarad Bickram rana
Executive Director
Nepal Intermodal Transport Development Board


world cusToMs organiZaTion
asia-paciFic regional oFFice
For capaciTy Building (rocB a/p)
yoshihiro kosaka
Head
WCO (ROCB A/P)


sekhar Bonu
Director
SARC, South Asia Department
sbonu@adb.org


lawanya kumar dhakal
Director
Department of Customs


parashu ram adhikari
Senior Plant Protection Officer
Ministry of Agriculture and Development


resource persons
Takashi Matsumoto
External Relations Coordinator
Office of the Secretary General
World Customs Organization


pavaran Tanmesin
Director
Krabi Customs House


sanghyup lee
Director
Clearance Facilitation Section
Seoul Main Customs
Republic of Korea


asian developMenT Bank
ronald antonio Butiong
Principal Regional Cooperation Specialist
SARC, South Asia Department


cuong Minh nguyen
Senior Economist (Regional Cooperation)
SARC, South Asia Department


rosalind Mckenzie
Regional Cooperation Specialist
SARC, South Asia Department


aileen pangilinan
Associate Programs Officer
SARC, South Asia Department


Jesusito Tranquilino
Regional Cooperation and Integration Expert
SARC, South Asia Department




LIST OF PARTICIPANTS OF WORKSHOPS FOR THE TTFMM BASELINE STUDY IN BANGLADESH 57


linel ann reyes-Tayag
Operations Assistant
SARC, South Asia Department


Mohammad ehteshmaul hoque
National Trade Facilitation Expert–Bangladesh
SARC, South Asia Department


achyut Bhandari
National Trade Facilitation Expert–Bhutan
SARC, South Asia Department


shyam dahal
National Trade Facilitation Expert–Nepal
SARC, South Asia Department


uniTed naTions econoMic
and social coMMission
For asia and The paciFic
yann duval
Chief, Trade Facilitation Unit
Trade and Investment Division


Tengfei wang
Economic Affairs Officer
Trade Facilitation Unit
Trade and Investment Division


Fedor kormilitsyn
Economic Affairs Officer
Transport Division


a2  national workshop on Trade and Transport Facilitation Monitoring Mechanism
28–29 April 2014, Dhaka, Bangladesh


Md. Jamal uddin ahmed
Joint Secretary, Roads Division
Ministry of Communication


abdus sattar sheikh
Deputy Secretary
Ministry of Commerce


Mohammad khairul alam
Assistant Controller
Chief Controller, Import & Export


Md. abdul alim
Assistant Commissioner
National Board of Revenue


chapal chakmay
Assistant Commissioner
National Board of Revenue


Muhammad imtiaz hassan
Assistant Commissioner
National Board of Revenue


Md. shahinur kabir pavel
Assistant Commissioner
National Board of Revenue


Mohammad Mahbub hasan
Assistant Commissioner
National Board of Revenue


Mohammad Mostofa Jamal haider
Deputy Commissioner Tax
National Board of Revenue


Mohammed shaha alam
Assistant Commissioner Tax
National Board of Revenue


Md Jahangir alam
Assistant Commissioner Tax
National Board of Revenue


Md. shaifur rahaman
Assistant Commissioner Tax
National Board of Revenue




APPENDIxES58


roksana Tarannum
Senior Assistant Secretary
Ministry of Environment and Forest


anisur rahman
Senior Assistant Secretary
Ministry of Industries


shah Zahirul islam
Additional DG (Operation)
Ministry of Railway


sirat Mahmuda
Assistant Chief
Ministry of Shipping


Tapan kumar chakravorty
Additional Secretary
Bangladesh Land Port Authority


Md. Maniruzzaman
Chief Planning
Chittagong Port Authority


Begum rahima akter
Information Officer
Export Promotion Bureau


rama dewan
Deputy Chief
Bangladesh Tariff Commission


nora alam siddique
Deputy Secretary
Economic Relations Division


ifrat ara Bagom
Deputy Secretary
Federation of Bangladesh Chambers of
Commerce and Industry


Md. sheikh Mohammad Farid
President
Dhaka Customs Agent Association


Mostafa abid khan
Director (Programme, Research and Policy Advocacy)


Mohammad abu yusuf
Senior Fellow


Mohammad Farhad
Research Fellow


Md. shoaib akhtar
Research Associate


seikh ruksana Burhan
Research Associate


ismat Jarin dina
Research Associate


resource persons
somnuk keretho
Director
Institute for Information Technology Innovation
Faculty of Engineering
Kasetsart University, Thailand


shigeaki katsu
Trainer
Customs Institute of Japan
Ministry of Finance


uniTed naTions econoMic
and social coMMission
For asia and The paciFic
yann duval
Chief
Trade Facilitation
Trade and Investment Division


Tengfei wang
Economic Affairs Officer
Trade Facilitation
Trade and Investment Division




LIST OF PARTICIPANTS OF WORKSHOPS FOR THE TTFMM BASELINE STUDY IN BANGLADESH 59


Fedor kormilitsyn
Economic Affairs Officer
Transport Facilitation and Logistics Section
Transport Division


asian developMenT Bank
cuong Minh nguyen
Senior Economist (Regional Cooperation)
SARC, South Asia Department


Mashuk hossain
Consultant
South Asia Department


Jacqueline lam
Consultant (Trade Economist)
South Asia Department


a3  Trade and Transport Facilitation Monitoring Mechanism Meeting
21 October 2015, Wuhan, People’s Republic of China


Bangladesh
Md. abdul hakim
First Secretary (Customs Modernization)
National Board of Revenue
Dhaka, Bangladesh


BhuTan
sonam phuntsho wangdi
Joint Secretary
Ministry of Economic Affairs
Thimphu, Bhutan


dhendup
Deputy Collector
Regional Revenue and Customs Office
Department of Revenue and Customs
Phuentsholling, Bhutan


kesang yeshey
Assistant Collector
Regional Revenue and Customs Office
Department of Revenue and Customs
Phuentsholling, Bhutan


india
Zubair riaz kamili
Additional Commissioner
Customs Commissionerate
New Delhi


prabir de
Professor
India Habitat Centre, Zone 4B, Lodhi Road
New Delhi, India


nepal
Toya narayan gyawali
Joint Secretary
Ministry of Commerce and Supplies
Kathmandu


Bishnu prasad paudel
Director
Customs Department
Kathmandu, Nepal


ananta prasad Timsina
Customs Reform and Modernization Section
Department of Customs
Kathmandu, Nepal




APPENDIxES60


sharma rajan
President
Nepal Freight Forwarders Association and
Member of Nepal Trade & Transport
Facilitation Committee, Kathmandu, Nepal


inTernaTional Trade cenTre
Mohammad saeed
Senior Advisor on Trade Facilitation


asian developMenT Bank
rosalind Mckenzie
Regional Cooperation Specialist
Regional Cooperation and Operations
Coordination Division (SARC)
South Asia Department


achyut Bhandari
National Trade Facilitation Expert
Independent of ADB for Bhutan
Thimphu, Bhutan


Mohammad Farhad
ADB Consultant/Customs Expert
Asian Development Bank (ADB)
Dhaka, Bangladesh


sarad Bickram rana
National Customs Procures Expert
Asian Development Bank (ADB)
Kathmandu, Nepal


posh pandey
Chairman
South Asia Watch on Trade Economics and
Environment (SAWTEE)
Kathmandu, Nepal


uniTed naTions econoMic
and social coMMission
For asia and The paciFic
Tengfei wang
Economic Affairs Officer


a4  workshop for the implementation of Trade and Transport Facilitation
Monitoring Mechanism Baseline studies
13–15 January 2016, Bangkok, Thailand


Bangladesh
Md. Firoz shah alam
Member (Customs: Audit, Modernisation &
Intl. Trade)
National Board of Revenue


Md. abdur rob
Deputy Secretary
Ministry of Commerce


hasan Mohammad Tarek rikabder
Joint Commissioner
Customs Excise & VAT commissionerate


Md. enamul hoque
Assistant Commissioner
Customs Excise & Vat commissionerate


Md. sayeduzzaman sayed
Sayed Enterprise (Clearing & Forwarding Agent,
Import and Export, and Transport) President,
Burimari C&F Agents Association


Md. rezaul karim
C&F Agent, Freight Forwarder & Importer–Exporter
President, Banglabandha C&F Agents Association
Director, Panchagrah Chamber of Commerce &
Industry




LIST OF PARTICIPANTS OF WORKSHOPS FOR THE TTFMM BASELINE STUDY IN BANGLADESH 61


BhuTan
karma drukpa
Regional Director
Regional Trade and Industry Office


pema wangchen
Joint Commissioner
Liaison and Transit Office
Royal Bhutan Customs Office


Tandin wangchhen
Joint Collector
Customs and Excise Division
Department of Revenue and Customs


deki gyamtsho
Deputy Collector
Regional Revenue and Customs Office
Department of Revenue and Customs


Tshering choden
Executive Director
Bhutan Clearing and Forwarding Agent


india
kundan kumar
Superintendent
Department of Revenue (CBEC)
Ministry of Finance


nepal
Jib raj koirala
Joint Secretary
International Trade Relations
Ministry of Commerce & Supplies


Mimangsa adhikari
Director
Customs Reforms & Modernization Section
Department of Customs


nirmal kumar Mainali
Customs Officer
Birgunj Customs


kumar Bhattarai
Customs Officer
Mechi Customs Office


rajan sharma
President
Nepal Freight Forwarders Association


uniTed naTions econoMic
and social coMMission
For asia and The paciFic
yann duval
Chief, Trade Facilitation Unit
Trade and Investment Division


Tengfei wang
Economic Affairs Officer


asian developMenT Bank
aileen pangilinan
Programs Officer
South Asia Department


acyut Bhandari
ADB Consultant


phuntsho wangdi
ADB Consultant


posh pandey
ADB Consultant




APPENDIxES62


sarad Bickam rana
ADB Consultant


prabir de
ADB Consultant


Mohammad Farhad
ADB Consultant


leticia de leon
ADB Consultant


alona Mae agustin
ADB Consultant


a5  national validation workshop on Baseline study of Trade
and Transport Facilitation Monitoring Mechanism
31 July–1 August 2016, Dhaka, Bangladesh


Md. Firoz shah alam
Member
National Board of Revenue


Mohammad Zakir hossain
Joint Secretary
Ministry of Agriculture


nasreen afroz
Director
Prime Minister’s Office


sultana yasmin
Deputy Secretary
Road Transport and Highways Division


Md. Jasim uddin Badol
Deputy Secretary
Ministry of Industries


Muhammad anisur rahman
Bangladesh Bank


Md. nurul haque
Sonali Bank Ltd


Md. abdul hakim
First Secretary
National Board of Revenue


hasan Mohammad Tarek rikabder
Joint Commissioner
Customs, Excise and VAT, Commissionerate
Rangpur


sirat Mahmuda
Senior Assistant Chief
Ministry of Shipping


Muhammad Minhaz uddin pahloan
Second Secretary
National Board of Revenue


anis ahmed ndc
Director (Traffic)
Bangladesh Land Port Authority


rabeya akter
Senior Assistant Secretary
Economic Relations Division (ERD)


Md. Ziaur rahman
Assistant Controller
Ministry of Commerce


Manzur ahmed
Advisor
FBCCI




LIST OF PARTICIPANTS OF WORKSHOPS FOR THE TTFMM BASELINE STUDY IN BANGLADESH 63


syed Md. Bakhtiar
Director
Ports & Customs
Bangladesh Freight Forwarders Association


razvee ahmed
Assistant Commissioner
Banglabandha LC Station


iftekhar Jahan
Assistant Commissioner
Sonamasjid LC Station


Md. Motiar rahman
Assistant Commissioner
Burimari LC Station


sheikh Md. Farid
President
Dhaka Customs Agents Association


Mahbub alam
Commercial Manager
Pran RFL Group


Biplop kumar saha
Proprietor
M/S Pinky Enterprise
(Exporter of plastic tableware)


Md. salauddin sikder
Assistant General Manager
M/S Durable Plastic Ltd
(Exporter of plastic tableware)


Farhad sorif
Commercial Manager
National Fittings and Accessories Ltd


Md. Zahid hossain
Importer of lentils


a.k.M. Murad
Proprietor
M/S Shoshi Traders


alauddin Babu
Proprietor
M/S Nayan International


ajoy dhor
Proprietor
MIS Trade Syndicate


Tengfei wang
Economic Affairs Officer
UNESCAP


prabir de
Researcher
Research and Information System
for Developing Countries (RIS), India


Mohammad Farhad
ADB National Consultant


Mashuk al hossain
ADB National Consultant










ASIAN DEVELOPMENT BANK
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org




Trade and Transport Facilitation Monitoring Mechanism in Bangladesh
Baseline Study


The establishment of a Trade and Transport Facilitation Monitoring Mechanism (TTFMM) is important for a
country to take stock, identify bottlenecks, and prioritize recommendations for the implementation of trade
facilitation measures. A baseline study is the fi rst step to establish TTFMM. This report reviews trade and
transport procedures in Bangladesh, highlights the importance of monitoring trade and transport facilitation,
and lays a foundation for future studies and establishment of long-term, sustainable TTFMM. In light of the
Bangladesh, Bhutan, India, and Nepal Motor Vehicle Agreement, the report presents both the challenges and
enormous opportunities for enhancing effi ciency along Bangladesh, Bhutan, India, and Nepal corridors.


About the Asian Development Bank


ADB’s vision is an Asia and Pacifi c region free of poverty. Its mission is to help its developing member countries
reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains
home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic
growth, environmentally sustainable growth, and regional integration.


Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping
its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and
technical assistance.


About the United Nations Economic and Social Commission for Asia and the Pacifi c


ESCAP is the regional development arm of the United Nations and serves as the main economic and social
development center for the United Nations in Asia and the Pacifi c. Its mandate is to foster cooperation
between its 53 members and 9 associate members. ESCAP provides the strategic link between global and
country-level programs and issues. It supports governments of countries in the region in consolidating
regional positions and advocates regional approaches to meeting the region’s unique socioeconomic
challenges in a globalizing world. The ESCAP offi ce is located in Bangkok, Thailand. Please visit the ESCAP
website at www.unescap.org for further information.





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