Govt introduces new customs codes to streamline export reporting

FE Team | Published: September 19, 2024 22:57:21

In a move aimed at addressing discrepancies in export data, the government is introducing three new Customs Procedure Codes (CPCs) to enhance the accuracy of export reporting and eliminate multiple entries of the same items, reports UNB.
The new codes will help segregate different types of exports for better tracking. One will cover sample exports, while another will account for "Cut, Make, and Trim" (CMT) exports-where foreign buyers provide raw materials and local manufacturers are paid only for labor. The third will focus on local exports, including trade between Export Processing Zones (EPZs) within the country.
This will allow for calculating sample exports, CMT exports, and local exports separately. This change is crucial for reducing errors in export tracking and will assist Bangladesh Bank and lien banks in monitoring foreign remittances linked to exports.
Additionally, export numbers will now be mandatory in the bill of export. Without this data, exports will not be registered in the Asycuda system, the automated customs platform used in Bangladesh. This measure aims to prevent misreporting and ensure that only goods that are officially shipped are included in export data.
The need for reform became urgent following the discovery of a significant gap between the export data reported by different government agencies. In July, a $10.81 billion discrepancy was detected in export earnings between the Bangladesh Bank and the Export Promotion Bureau (EPB) for the period between July 2023 and May 2024.
Bangladesh Bank reported $40.73 billion in export earnings during this period, while the EPB listed $51.54 billion. This inconsistency has raised concerns, although there is no impact on the government's financial account, which remains balanced. However, the discrepancy is affecting the current account balance.
In response, the Ministry of Finance has established an inter-ministerial committee tasked with publishing accurate export data within three months. Bangladesh Bank, EPB, and the National Board of Revenue (NBR) have also been given the same timeline to resolve the discrepancies.
The re-export of goods after shipment cancellations and errors like multiple entries of the same export have been initially identified as key factors behind these inconsistencies, a finance ministry source explained.
The Ministry of Finance has also decided to set up a special monitoring cell to verify monthly export data for the next year.
This is intended to reduce future errors and discrepancies. Dr. Salehuddin Ahmed, finance and commerce adviser, emphasized the importance of creating a reliable mechanism for export reporting during a recent meeting with EPB officials.
Bangladesh's export targets for the current fiscal year stand at $50 billion for goods and $7 billion for services. However, given the current inconsistencies, achieving these targets will require more accurate data reporting and improved monitoring systems.