Cross Border e-commerce policy for business expansion

Private sector felt the need for an effective cross border e-commerce policy and for this Bangladesh Bank may issue a circular for promoting cross border E-Commerce trade by mentioning some specific criterion (requirement of L/C, duration of retention & repatriation of Foreign Exchange etc.) in consultation with the respective association and bodies. E-Commerce gained special momentum in Bangladesh during Covid-19 situation starting from 2020, however, cross-border e-Commerce could not flourished because of required policies.

E-Commerce business in the country is about $5.31 billion in 2021 which is increasing. Cross border e-commerce can give a boost to this sector and can contribute further to export while export diversification is one of the areas always cherished goals by the government and also the private sector.

The e-commerce has been showing momentum throughout the world with the more and more digital-first culture as well as rising demand of the consumers for handiness. Statistical reports said that global e-commerce sales will reach US $6.3 trillion in 2023. It can grow $ 8.1 trillion in 2026 which was valued at US $5.7 trillion in 2022; it is expected to grow significantly in the coming years with no signs of slowing down. Bangladesh cannot remain aloof from this benefit while enthusiastic women entrepreneurs have already been stepping ahead with their ambitious targets to be e-entrepreneurs. There are a number of formal and informal platforms are emerging, new payment gateways are also coming up. Fintech companies are also collaborating with financial institutions.

Not only that, considering formalization of e-commerce businesses of small and micro entrepreneurs as a substitute of their trade license, which is one of the primary requirements for having a bank account and other related issues for starting a business, they can now be registered having a Digital Business Identification(DBID) number from Registrar of Joint Stock Companies(RJSC) and can start business, so far it has been informed that a number women entrepreneurs have come under the DBID scheme of

Ministry of Commerce.

Bangladesh so far has not been able to grab so much of global share; however, there are immense opportunities if there is a good cross-border e-commerce policy. In a recent meeting with President, BGMEA he informed that they are conducting studies for a 10-15-year detailed roadmap for RMG sector, fiber diversification, and virtual marketing. These studies will be completed shortly; can give a boost to the sector along with their better access to the world through virtual marketing.

There is no doubt that this thrust creates a huge market for businesses that want to sell their products or services online. Detailed hard and soft infrastructural support is required with the clear understanding on the trends of the business. An excellent example of global e-commerce is furniture or electronics companies in China, selling their products to the consumers in the United States via Alibaba. There are similar other examples are available in the world.

In regard to cross border e-Commerce trade presently a very limited scale of cross border e-Commerce business is going on through different gateways, however it needs to increase its scale of operation. It could be a bit difficult to convince regulatory bodies to advocate for these issues at the moment, however relevant organizations as like as e-Cab, BUILD can be partnered with a number of concerned local organization for advocating these issues.

Through our joint efforts, we can try to include a provision in Digital Security Act 2018 for security of e-commerce business of women entrepreneurs (WE), at the moment women entrepreneurs in Bangladesh may not be fully aware of the security issues as most of the e-commerce entrepreneurs are very small, there are of course some established and medium scale entrepreneurs, they may be contacted to know from them on how to ensure their security and what could be the potential benefits if we advocate for a provision in the Digital Security Act.

A digital e-commerce act 2023 is in process, it has nine specific chapters in which there is a chapter on cross-border e-commerce, it is mentioned that Bangladesh Bank will issue relevant policies and circulars for this business. It is also mentioned that cross border digital business will be allowed following rules issued by the concerned organization and in case of import from other countries; Ministry of Commerce will issue necessary policy and directives through import policy order.

For bringing money of export of goods and services, Bangladesh Bank will issue directives while in case of paying VAT and Tax, National Board of Revenues will issue directives as per their policies.

Domestic buyer, if import goods or services through any digital commerce organisation in the form of a market place, operating with the country, whatever is the process of paying the money, the market place will be able to pay the money to the sellers in foreign exchange on a weekly or monthly basis. On the other hand, any digital seller wants to sell goods or services through the domestic digital market place those would need to be imported through domestic warehouse and buyer will get the information through digital tracking system.

It seems that cross border digital commerce will need involvement of several organisations. Of them, Bangladesh Bank will play a vital role while Ministry of Commerce has also a fundamental role of play through concerned import policies.

As some of the Bangladeshi products have demand abroad, e-Commerce can help increasing export, however, infrastructural support and logistics support services would need to develop to a new height, otherwise timely delivery of goods and services would be difficult.

A number of different ways to attract e-commerce buyers are in practice in the country and in the world, such as; video shopping, mobile shopping etc. In the country, a number good talent is also available for preparing attractive video clips and has shown their knack, it could help create new employment and entrepreneurship. There are different tools available for payment now while bkash is doing a good job.

A new cross-border e-commerce policy can now be planned through which business expansion can be possible where brands can join e-commerce market places to attract buyers of international markets and at the same time prepare to sell their products.

The writer is CEO of BUILD a Public Private Dialogue Platform. She can be contacted at ceo@buildbd.org