Export-import to be easier as certificates’ tenure extended

The government has extended the tenures of the import registration certificate (IRC) and the export registration certificate (ERC) to five years from one year, easing doing business procedures.

Businesses welcomed the move since they had been seeking the extension for years.

"The new initiative will definitely benefit businesses as they will not have to spend more time and face hassles in receiving signatures from government offices at the end of every year," said Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry (DCCI).

In a statement, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said the extension of the tenure of the IRC and the ERC would definitely reduce the cost of doing business and shorten the time needed.

"This will bring benefit to businesses and bring speed to businesses."

Businesses also demanded the same trade facilitation in all other licencing systems in order to reduce the cost of doing business and save valuable time.

Before scrapping the World Bank's Ease of Doing Business Index in 2021, Bangladesh was stuck in the lowest rung in the index because of the delay businesses face when it comes to collecting signatures from various government offices.

The time-consuming and lengthy processes linked to the licencing systems increase the cost of doing business and create the scope for corruption, alleged a number of business people.

Dhaka Chamber's Rahman said the tenure of other licences such as the trade licence and the bond licence should be extended.

Senior Commerce Secretary Tapan Kanti Ghosh said his ministry is in talks with other ministries and government agencies to extend the tenure of the trade licences.

"I think it is going to be done and the government is working on it," he told The Daily Star.

Sometimes export-bound and imported goods remain stuck at warehouses and ports for several days for the delay in collecting signatures and in the release of goods. This forces exporters to cancel orders and even offer discounts to international trade partners.

Bangladesh signed the Trade Facilitation Agreement (TFA) of the World Trade Organisation (WTO) in February 2021 to promote paperless trade both at home and abroad and for goods in transit.

Earlier, the WTO, during its ninth ministerial meeting in Bali of Indonesia, adopted the TFA to speed up trade and business and curb bureaucratic tangles and corruption.

Estimates show that the full implementation of the TFA could reduce trade costs by an average of 14.3 per cent and boost global trade by up to $1 trillion per year, with the biggest gains expected to be made by the poorest countries.

The fee on the IRC and ERC would be realised according to the tenure of the certificates, said the commerce ministry in a circular on Wednesday.