Home ›› 18 Mar 2023 ›› Front
The apparel industry is being bogged down by complications in clearing imported goods at different customs stations across the country, says the Garment Manufacturers and Exporters Association (BGMEA).
Many readymade garment (RMG) exporters do not receive their consignments in time due to issues in the customs clearances process, which in many cases leave them unable to complete export orders within the lead time.
In a recent letter to the National Board of Revenue (NBR) chairman, BGMEA President Faruque Hassan urged the NBR to simplify the Authorised Economic Operators (AEO) certification provisions, at least for those who have already applied, to facilitate smooth exports of RMG.
Faruque added that the complex customs clearing process has caused, in some cases, increases in airfare several times during exports, and sometimes, the exporters face severe financial losses due to cancellation of export orders.
The country is losing valuable foreign currency because of the issue, he stated in the letter.
Faruque had also requested the NBR to speed up the issuance of certificates, especially in the cases of new industries which will apply in the future.
The BGMEA president said, “We have been informed that many export-oriented industries have already applied for availing the AEO facility. But they are yet to qualify for the benefits due to the imposition of various complex conditions in availing an AEO certificate.
“The association believes that if the application process and conditions are simplified, many companies will be able to take advantage of this facility to clear product shipments quickly, and contribute to the growth by completing exports within the lead time specified by buyers.”
He continued, “Besides, various existing complications between customs authorities and exporters must be resolved. This will allow investments in the country to increase and new employment opportunities to be created in the coming days.”
Authorised Economic Operator (AEO) – the globally practiced trade facilitation system – was introduced by the NBR to provide an edge to certified compliant firms, who enjoy faster customs clearance at ports.
An industry with the AEO recognition enjoys the privilege of carrying its goods from ports to its warehouses directly without any physical customs inspection. This process helps the firms to save time and adhere to external trade schedules.
The NBR had offered the certificates only to three firms in 2019.
Later, on the International Customs Day 2023 on January 26, the NBR granted nine compliant industries with AEO certificates, so that they can conduct export-import trade without interruptions at the customs.
On that day, the NBR chairman said the revenue board also wants to increase the number of AEOs to make doing business simpler in the country.
