Domestic exporters are all set to reap the benefits of the fully automated bonded-warehouse facility from 01 January 2025, thereby enabling them to access paperless services.
The National Board of Revenue (NBR) has completed all required modules for this system under a seven-year project due for completion on December 31.
The paperless bonded-warehouse system will simultaneously prevent the misuse of the facility and provide exporters with streamlined licensing and other services without the need to visit customs bond offices.
"The completion of this initiative will simplify the process of issuing bond licences while reducing the potential abuse of the bonded-warehouse facility," said NBR chairman Md Abdur Rahman Khan.
The revenue board plans to set a timeline for all exporters, as most of them have a manual bond licence.
"We'll strictly adhere to the December 30 deadline, as updating information and onboarding the system requires just 30 minutes," added Mr Khan.
Officials said no applications for utilisation permission, utilisation declaration or other purposes would be allowed under manual system after the deadline.
Most of the grossly 7,000 bond licence-holders in Bangladesh are using the manual system to conduct import-export activities free of duty.
Complaints about the misuse of the facility will drop since the automated system will make data on duty-free raw material import, wastage and other relevant information readily available, according to Mr Khan.
Auditing export-import activities of bond licensees will also become hassle-free, thereby eliminating the need for physical visits to customs bond offices.
The Bond Management Automation Project, launched on 01 July 2017, was initially scheduled to end on 30 June 2021. The project faced multiple extensions due to disruptions caused by the Covid-19 pandemic.
The project cost, originally estimated at Tk 930 million, was reduced to Tk 450 million by eliminating plans for a separate data centre.
Project director Md Fyzur Rahman, also the VAT commissioner for Dhaka south zone, said the data centre was deemed unnecessary since the bond management system could utilise the Asycuda platform.
"We saved public funds by avoiding duplication," he added. Allegations are rife that duty-free imported goods are being sold illegally after obtaining utilisation permission, leading to significant revenue losses.
This automated system aims to address such issues, according to Mr Rahman.
All 24 modules of the system will be operational in phases.
Mr Rahman highlighted challenges such as technology transfer from software companies and emphasised the need to equip the NBR's ICT team to manage the system effectively.
The software was developed by REVE Systems and Synesis IT, with the delivery of after-sales services for three years following the completion of the project this December 31.
Opening master letters of credit and other relevant services related to bond management will become more accessible for businesses under this automated system.
It will also streamline the issuance of utility permission for garment accessories exporters and utility declaration for garment exporters.
Mohammed Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, welcomed the automation initiative stressing the importance of proper implementation.
"The mindset of customs officials is crucial for the success of the automated system," he said.
If they have ill motives, according to the BKMEA leader, they might find ways to bypass the digital system.
Mr Hatem also shared his experience in obtaining a bond licence in 1993, saying many older licensees like him would need integration into the new system.
The NBR launched an automated bond licence issuance system in 2022. The exporters who obtained licences through this system already have the automated ones.
"Exporters often had to pay speed money to expedite the auditing of import and export data to make the process smoother," cited Mr Hatem.
The auditors complete the work as quickly as they are pleased, depending on the amount of money involved, according to him.
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