The new Customs Act-2023 recognises daily exchange rates of foreign currencies, or floating rates, ensuring transparency in customs assessments and transactions.
This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.
A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.
Currently, customs is conducting assessment on an average rate of foreign exchange of the previous corresponding month which has been amended to daily exchange rates, said Md Masud Sadiq, member of customs policy of the National Board of Revenue (NBR).
The new law that Bangladesh got after 53 years imposed a 10-percent penal tax in case of delays in releasing goods from the ports that often create congestion in the ports, affecting businesses.
Responding to a question, Mr Sadiq said that an interest rate of 10 per cent on payable duties and taxes would be imposed on importers in case of delaying more than 10 days to release goods from the ports.
"Some businesses use the customs ports facilities as godowns, creating problems in the product delivery system and hindrances to other businesses," he added.
The new law (in Bangla) was passed in parliament on Tuesday, scrapping the previous Customs Act-1969.
Despite placing it thrice before the parliament since 2014, the draft of the new law had been pending due to having a provision for empowering the customs authority with Magistracy power that would have infused a tug-of-war with the public administration cadres.
However, the new law has no such provision.
A senior customs official said a penal rate of interest would be imposed with the payable duties and taxes in case of not releasing the goods from ports after customs declaration or submission of the Bill of Entry.
The new provision aimed at curbing the widespread practice of businessmen not releasing goods from customs ports, resulting in congestions, he added.
A Time Release Study (TRS) of the NBR has found that the customs is not alone responsible for the slow pace of goods delivery from the ports as importers' reluctance is another major cause.
As per the new law, the customs authority would determine the rates of penalty on customs-related offences based on gravities and frequencies.
The penalty for customs-related irregularities ranges up to 800 per cent on businesses that vary depending on the offences.
The law, however, has made stakeholders consultation mandatory before bringing any changes, amendments or framing any rules on the new act.
International best practices and trade facilitation steps as per international agreements and conventions of World Customs Organisation (WCO) have been incorporated in the new act.
Authorized Economic Operators (AEOs), Mutual Recognition Agreement (MRA), Electronic Declaration, Risk Management, Post Clearance Audit, and Non-intrusive Inspection have been incorporated in the new act.
The customs official said though the best practices are in practice and implemented through rules under the previous act, the new law has included those under the new act to avoid any legitimate complexities.
It has also incorporated the most essential aspects of the Trade Facilitation Agreement of the World Trade Organization (WTO) such as Advance Ruling, Stakeholders consultation, national enquiry point, website, Advance Passenger Information (API), Passenger Name Record (PNR), etc.
It has also incorporated the provisions to check money-laundering, terrorist financing, import and export of dangerous arms.
A separate provision has been incorporated under AEO with green channels for honest businessmen.
The new law has provisions for electronic record keeping and payment.
Instead of cash payment of duty taxes, in any special case, the customs authority would allow collateral and bank guarantees.
It has defined the duties of importers and exporters, cut discretionary power of customs.
Customs authorities expect the new law to help attract investment, expedite export-import, reduce cost of doing business, check fake declaration and tax evasion, escalate revenue collection, protect environment, health and ensure national security.
Mr Sadiq said the new law has incorporated international best practices, customs modernisation and automation to facilitate businesses.
It has been prepared in Bangla to make it understandable for the traders, he added.
Trade and Tariff Policy adviser to the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Manzur Ahmed said they are yet to examine the new law, but apparently it does not seem regressive like the income tax law.
According to a salient feature of the new law, it has 269 sections, up by 46 ones from the previous law.
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