© Birgit Korber
Most of the containers landed at Bangladeshi ports can soon be delivered directly to the importers’ warehouses or factory premises, as the government is set to open an AEO [authorised economic operator] system for eligible businesses.
Customs procedures and physical checks of AEO containers will be conducted at factory premises or warehouses, rather than congested port yards and depots.
An AEO certificate holder will enjoy similar facilities in ports of other countries with which Bangladesh has an AEO mutual recognition agreement.
The move is aimed at the faster delivery of inbound containers, which has been a long-held demand by businesses with a good track record of paying duties and taxes properly.
The AEO system was first introduced inBangladeshback in 2018 and since then has been used by three top pharmaceutical companies. The Customs department has seen no signs of abuse of the AEO facility so far.
However, as Covid-19 hit the world, the expansion of the plan to offer AEO status was halted.
On 18 April, the Customs department invited applications, until 2 June, from all interested businesses to be listed as AEOs.
Companies applying for an AEO facility must have been in businesses for at least five years before they can make application; be a regular payer of duties, value added tax, and income tax; have not been fined more than 1% of the total goods or service price of the company on revenue-related cases; and should have paid all due revenues.
Businesses welcomed the decision to expand the AEO system, noting that faster delivery of imported raw materials from the ports will also facilitate faster exports in manufacturing and finished goods.
Businesses also claimed that the AEO facility will help lower congestion at port yards, and that vessels would not need to wait several days to get berths.
Abdus Salam Murshedy, president, Exporters Association of Bangladesh, said AEOs will reward good enterprises which pay duties and taxes properly, and do not violate laws.
“This system will facilitate hassle-free trade,” he said, adding that it will be an incentive for some businesses to follow the rules properly.
The AEO scheme is a core part of a World Customs Organisation (WCO) framework of standards to secure and facilitate global trade.
