Stakeholders in the import-export channels in Bangladesh are coming under blanket coverage of Authorized Economic Operators (AEO) status as 'trusted trader' for facilitating smooth foreign trade transactions.
Sources say the National Board of Revenue (NBR) is set to revise the existing rules to enlarge the scope of 'trusted trader' status.
Under the amended rules, shipping agents, freight forwarders, clearing and forwarding agents, transport operators may also enjoy the trusted trader or Authorized Economic Operators (AEO) status.
Only importers having manufacturing units under certain categories are currently entitled to the AEO privilege.
Industry-insiders say though the government's revenue authority awarded AEO status to three pharmaceutical companies earlier, they are not yet getting the facility as trusted trader.
A senior NBR official acknowledged the allegation and said the facilities had been offered to those companies on a pilot basis.
"The companies will need to install NBR-prescribed VAT software for account maintenance to enjoy the facility," he adds.
Industry people, however, said customs officials and their infrastructure are not ready yet for offering the AEO benefit to the traders.
There is no green channel yet in the customs houses through where the trusted traders can move with their products.
At the first go, Incepta, Square and Beximco pharmaceutical companies secured the AEO status from NBR.
Customs officials have said another 61 applications for the AEO status are under scrutiny by the customs authority.
Sources say the VAT software will ensure transparency on financial transactions of the companies and ensure proper VAT payment.
They observe that some of the customs officials and businesses may want to avoid transparency through automating account system, as reports say much of the value-added tax run out through leaks.
A senior customs official says the customs authority will conduct post-clearance audit on the AEO, if needed, but as trusted traders they would enjoy uninterrupted customs-clearance facilities at the ports.
Recently, USAID Feed the Future Bangladesh Im-proving Trade and Business Enabling Environment Activity imparted training to 25 customs officials on the AEO programme to support reduction in time and cost of clearing goods.
A recent Time Release Study conducted by the Customs wing of the NBR showed that consignments at the Port of Chattogram required over 11 days for customs clearance and receipt.
The training has been provided aiming to build the capacity of customs officers to validate AEO applications and to manage the post-AEO accreditation procedures.
The NBR intends to adorn more firms with the AEO status from textile, pharmaceutical, and leather sectors.
However, customs officials say the NBR is contemplating introducing tie-based AEO facility to offer fully green-channel benefit to a trader in phases. For this, the NBR will have to amend its AEO rules framed in 2018.
According to a new rule issued on June 28, 2018, the customs authorities started accepting applications from the businesses for selecting AEOs.
As per rules, goods of AEOs will be released from ports directly. They will also get quick reimbursement of duty drawback.
The AEOs will enjoy privileges on completion of customs- valuation procedure like submission of bill of entry and bill of export before arrival of ships at port. Other facilities include completion of valuation procedure with submission of important documents, prompt service from special customs team and easy and special entry in to any customs stations.
In the 'Authorised Economic Operator (Authorisation) Rules 2018', the Customs wing gave a detail on criteria for gaining AEO status, benefits for selected AEOs, audit, penalty for non-compliance and other issues.
