by Mohammad Farhad Research Fellow, Bangladesh Foreign Trade Institute ACJ Cl

Transcription

1 Presentation at UNNExT National Workshop on Agriculture Trade Facilitation and Business Process Analysis for Bangladesh Jointly organised by BFTI and UNESCAP 27 October 2015, Dhaka, Bangladesh by Mohammad Farhad Research Fellow, Bangladesh Foreign Trade Institute ACJ Cl

2 Objective of the Presentation 2 Briefly discuss what is BPA To provide an overview of the key findings from BPA studies in Bangladesh To discuss Major recommendations of the BPA studies in Bangladesh

3 Introduction 3 What is Business Process? A Business Process is a collection of related, structured activities or tasks that produce a specific service or product Example Concluding a sales contract Issuing a Certificate of Origin Customs clearance at the port of Burimari

4 Introduction 4 What is Business Process Analysis? An analysis and modelling of business processes for improvement and automation Example Documenting existing practice in an administration/ company Describing a Standard Procedure Providing a basis to measure time/costs at different steps Providing a specification for automation of the process

5 BPA Studies in Bangladesh 5 CPD-ARTNeT BPA Study, 2011 Facilitating Trade through Simplification of Trade Processes and Procedures in Bangladesh by Syed Saifuddin Hossain & Md. Tariqur Rahman UNESCAP-ADB BPA Study, 2014 Trade Process Analysis Report for Subregional Cooperation in South Asia by Prabir De, Professor, RIS, India

6 CPD-ARTNeT BPA Study in This study analyses the business procedures involved in a typical trade transaction for selected products namely export of ready made garments (RMG) and shrimp and import of cotton fabrics and sugar. The broad objective has been to capture the cost, documentation and time component of such trade transactions with a view to identify areas for further improvement.

7 BPA of Export of Woven Garments from Bangladesh to India 7 Time Procedure Chart: RMG Export from Bangladesh to India (by Sea) Source: CPD-ARTNeT Survey on BPA

8 BPA of Export of Woven Garments from Bangladesh to India 8 Overview of Processes Involved in Export of Woven Garments from Bangladesh to India (by Sea) Source: CPD-ARTNeT Survey on BPA

9 BPA of Export of Woven Garments from Bangladesh to India 9 Time Procedure Chart: RMG Export from Bangladesh to India (by land) Source: CPD-ARTNeT Survey on BPA

10 BPA of Export of Woven Garments from Bangladesh to India 10 Overview of Processes Involved in Export of Woven Garments from Bangladesh to India (by land) Source: CPD-ARTNeT Survey on BPA

11 Business Process of Exporting Shrimp to Japan from Bangladesh 11 Time Procedure Chart: Shrimp Export from Bangladesh by sea Source: CPD-ARTNeT Survey on BPA

12 Business Process of Exporting Shrimp to Japan from Bangladesh 12 Overview of Processes Involved in Export of Frozen Shrimp from Bangladesh to Japan by Sea Source: CPD-ARTNeT Survey on BPA

13 BPA of Import of Fabrics from India to Bangladesh 13 Time Procedure Chart: Cotton Fabrics Import from India Source: CPD-ARTNeT Survey on BPA

14 BPA of Import of Fabrics from India to Bangladesh 14 Overview of Processes Involved in Import of Fabrics from India to Bangladesh by Land Source: CPD-ARTNeT Survey on BPA

15 Summary of Findings from CPD-ARTNeT BPA study of Selected Products 15 Summary of Findings from BPA of Selected Products

16 Key observations from CPD-ARTNeT BPA study of Selected Products 16 Export/Import processes in Bangladesh are, in general, business friendly. Number of documents required to complete the process is acceptable. However, problems arise when different trading partners ask for different documents in the process of exporting or importing the same product. Use of ICT in the overall business process is very limited. Customs declaration (with the Chittagong Customs House) is currently the only stage in the BP where ICT is significantly used. However, submission of paper-based documents is still required to verify online declaration.

17 Key observations from CPD-ARTNeT BPA study of Selected Products 17 All forms (except Bill of Entry/Exit) are to be filled in manually (handwritten or typed). Exporters/importers need to apply on paper to obtain different certificates. Electronic versions of documents are not acceptable to banks. Getting products inspected before exporting sometimes take longer than usual time (particularly in case of Shrimp export). Coordination among various actors involved in the business process is not up to the mark. Inadequate infrastructure at the port areas often increases trading time resulting in higher cost of doing business.

18 Policy recommendations from CPD-ARTNeT BPA study of Selected Products 18 Immediate automation of all customs houses; Establishing a Single Window so that all the actors involved in the business process are linked together; Adopting policies and designing required modalities to facilitate use of documents in electronic/digital format; Development of infrastructure at port areas on urgent basis; Expediting the process of issuing inspection certificates; Strengthening collaboration between Government and business chambers to ensure better business environment; Formation of a National Trade Facilitation Task Force; Publication of trade related information, rules, procedures,etc.; & Conducting sector-wise needs based analyses to identify specific bottlenecks.

19 UNESCAP-ADB BPA Study Country, corridors and Product Coverage of the Study

20 UNESCAP-ADB BPA Study Business Processes, Time and Cost

21 UNESCAP-ADB BPA Study Parties Engaged in Export and Import Processes

22 UNESCAP-ADB BPA Study Documents and Copies Required

23 Major Recommendations of the UNESCAP- ADB BPA Study Full and inclusive representation of the private sector in trade facilitation initiatives is essential Implementation of basic trade facilitation measures should be consistently enforced and reinforced nationwide Paperless trade, including development of national and sub-regional single windows, needs to be prioritised for trade facilitation Remove the regulatory burden on exports and imports Physical inspections should be minimised whenever possible, in particular through adoption of risk management techniques by all organisations involved in the trade process

24 Major Recommendations of the UNESCAP- ADB BPA Study Healthy competition among transport, logistics and other trade-related service such as insurance providers should be encouraged Reviewing payment systems in place and their efficiency may reveal new opportunities for improving trade facilitation performance National and sub-regional trade facilitation performance monitoring mechanisms are required to identify the real and most important barriers to trade efficiency Industry specific trade facilitation programmes should be considered Corridor specific trade facilitation programmes should be developed

25 Major Recommendations of the UNESCAP- ADB BPA Study Harmonisation of documentary requirements across countries should be actively pursued Synchronisation of cross-border customs in SASEC should be the priority Bilateral and regional free trade agreements should systematically address trade facilitation issues All trade documents including customs should be submitted electronically Trade will be much faster with minimum process reengineering Acceptance to sub-regional transit and Ensure Faster travel time in transit

26 Thank you for your kind attention ACJ Cl