BD far behind in paperless trading

Although cost of intra-regional trade in Bangladesh has fallen sharply since 2009, it is still considered costlier for trading partners to trade with the country.
A slow progress in implementation of paperless trade as well as trade facilitation made trade with Bangladesh costlier for Asia-Pacific economies than with East Asia-3 (China, Japan and the Republic of Korea) and with EU-3 (France, Germany and the United Kingdom).
These observations were made in the Asia-Pacific Trade Briefs, prepared by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
ESCAP came to such conclusion on the basis of a latest survey by the United Nations Regional Commissions (UNRCs)  on global trade facilitation.
Trade facilitation is known as simplification and harmonisation of international trade procedures, including import and export procedures, by adopting paperless or electronic method.
According to UNRCs survey, Bangladesh's trade facilitation and paperless trade implementation score is 36 per cent compared to 46.5 per cent for the Asia-Pacific. It is also lower than the level of implementation in South and South-West Asia (42 per cent).
The survey identified five core groups of trade-facilitation measures.
Among these, the most implemented in Bangladesh, according to UNRCs, are 'institutional arrangement and cooperation' measures (55.6 per cent).
On the other hand, the least implemented are 'cross-border paperless trade' measures (11.1 per cent).
This is also very much similar to the findings contained in the World Bank's Doing Business Report 2016.
One of the core nine indicators in the WB report is 'Trading Across Borders' where Bangladesh ranked 172nd among 179 countries.
It also shows that 'cost of export on border compliance' in Bangladesh is $408 which is lower than in India ($413) and ($426). But time for export-documentary compliance in the country is 147 hours which is 41 hours in India and 62 hours in Pakistan.
Again, cost of import on border compliance is $1294 which is only $574 in India, $957 in Pakistan and $300 in Sri Lanka.
According to UNRCs survey, 'transit' measures are not implemented as there is little or no transit cargo through the country.
Implementation of 'transparency' measures and 'formalities' is below both the regional and sub-regional averages, finds the survey.
In 'paperless trade', Bangladesh's implementation is low due to least implementation of E-Single window, E-Trade licences, E-Air Cargo Manifests, E-Preferential Certificate of Origin and E-Application for Customs refunds.
Commenting on these findings, Manzur Ahmed, adviser of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the whole work of implementing the trade- facilitation measures slowed down in recent times.
"Bangladesh has silently advanced in many areas of paperless trade and a lot of work has already been done," he told FE. "But vested quarters are now trying to delay the whole process as their rent seeking will be stopped."
The FBCCI adviser also said trade bodies are actively pursuing for paperless functions to reduce trade cost.
The UN body has suggested that Bangladesh might focus its trade- facilitation efforts in particular on full implementation of 'paperless trade' measures, as also on moving towards 'cross-border paperless trade'.
Another study of ESCAP last year showed the country could save at least $131 million per year by fully implementing the paperless trading mechanism.
Meanwhile, Bangladesh has yet to ratify the Trade Facilitation Agreement (TFA) of the World Trade Organisation (WTO).
So far, only 51 member-states of the organisation have ratified the agreement which was endorsed in the last ministerial meeting in Indonesia in 2013.
A senior official of the ministry of commerce said Bangladesh took a `go-slow' policy in this regard.
"As the TFA agreement will enter into force once two-thirds of the WTO-member countries formally accepted the agreement, we think it is better to wait until that time," he told FE.
Mr Manzur Ahmed criticised such position, saying that as a co-ordinator of the LDCs (Least Developed Countries) group, Bangladesh should immediately ratify the TFA.
WTO estimation reveals that full implementation of TFA would increase the number of new products exported by the LDCs up to 35 per cent.
Meanwhile, to make a progress on trade facilitation, the launch of `Bangladesh Trade Portal' is deferred for a brief period. Earlier, the launch was planned for end of October.
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