The Metropolitan Chamber of Commerce and Industry (MCCI) yesterday said businesses require longer than 11 days found by the National Board of Revenue (NBR) in a recent study to release goods from the Chattogram port.
"Actually, it takes long to get goods from the port as the NBR still physically examines the related documents against shipments, which is a time-consuming practice that has been dropped in most countries," said MCCI President Md Saiful Islam.
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Islam, who was speaking at a luncheon for business journalists at the MCCI office in Dhaka, then said the time needed to release goods would greatly reduce if shipping documents were submitted and assessed online.
Islam pointed to a study by the World Bank that said Bangladesh's trade would increase by about 14.3 per cent if port facilities, such as customs clearance, were made efficient.
"It does not require money for trade facilitation. What is needed is positive mindset," he said.
The MCCI president also suggested the government make trade licences valid for five years so that businesses do not need to spend money and time on renewing them annually.
Bangladesh’s trade would increase by about 14.3 per cent if port facilities, such as customs clearance, were made efficient, according to a study by World Bank. Photo: Star/file
Besides, renewing trade licenses in union parishad areas is tougher compared to the process under city corporation areas, Islam said.
"So, issuing long-term trade licences will ultimately improve the ease of doing business, which is very much needed in this time of economic downturn," he added.
Islam went on to say that if companies are given environmental certification for a five-year period, then authorities could inspect their activities periodically and cancel the licence if any irregularities are found.
Bangladesh has been gradually losing its competitiveness in international trade due to poor logistics infrastructure. However, different studies suggest that if the country improves its logistics infrastructure by 17 per cent, then it will see a 7 per cent jump in trade, which will prove essential after the country loses its preferential trade benefits as an LDC.
Bangladesh is set to graduate from the group of least developed countries (LDCs) in 2026.
Islam welcomed Bangladesh Bank's initiative to allow currency swap with the Chinese yuan and Indian rupee as such steps will reduce the ongoing pressure on the country's US dollar reserves.
"It is possible to save at least $4 billion if one-fourth of the trade with India can be conducted with taka and Indian rupees," he said, adding that Bangladesh imported goods worth $16.4 billion from India last fiscal year.
Islam also said if the current import restrictions continue for long, it may create challenges for business and employment in the future.
For example, a member of the MCCI has already faced a lot of trouble in importing capital machinery due to restrictions in place.
In addition, the difference in exchange rates between importers and exporters is around 10 per cent per US dollar, which is discriminatory, he added citing how importers have to pay banks Tk 110 per dollar while exporters receive Tk 98-33 per dollar.
According to the MCCI president, employment generation could be hampered as well as the domestic economy's stellar performance in recent times could be undone by the ongoing crises.
Every era, some 2.5 million new job seekers enter the local job markets and the same will happen this year too, he said.
However, the robustness of the economy mainly depends on three important factors: a peaceful domestic political environment, geo-political situation as the Russia Ukraine war is continuing, and climate change, Islam added.
Habibullah N Karim, vice-president of the MCCI, and Adeeb Hossain Khan, director, also spoke.