Importers, exporters to be listed as trusted traders

Business Desk :
Stakeholders in import-export channels will receive coverage of Authorized Economic Operators (AEO) status as trusted traders to facilitate seamless foreign trade transactions.
Sources said that the National Board of Revenue (NBR) was 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 AEO status.
Only importers having manufacturing units under certain categories are currently entitled to the AEO privilege.
Insiders said although the government’s revenue authority awarded AEO status to three pharmaceutical companies earlier, they were not getting the facility as trusted traders.
There is no green channel yet in the customs houses through which the trusted traders can move with their products.
At first, 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 the account system, as reports say much of the value-added tax is never received.
Recently, USAID Feed the Future Bangladesh Improving Trade and Business Enabling Environment Activity imparted training to 25 customs officials on the AEO program 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 Chittagong port required over 11 days for customs clearance and receipt.
The training was 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.
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 drawbacks.
The AEOs will enjoy privileges on completion of customs- valuation procedures 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 into any customs stations.
In the “Authorized Economic Operator (Authorization) 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.