Transforming Customs Clearance: A Path to Transparency and Efficiency by Istiaque Doza

Transforming Customs Clearance: A Path to Transparency and Efficiency

Legal Disclaimer

This article reflects my personal views, which might diverge from mainstream opinions. My goal is not to provoke but to foster discussion and seek creative ways to enhance the customs clearance sector in Bangladesh.

Introduction

Recent developments in Bangladesh have sparked conversations about entering a new era—Bangladesh 2.0. This is a vision of a nation free from corruption, nepotism, and inefficiency, one that embraces transparency, accountability, and modernization.

Bangladesh 2.0 requires a fresh perspective. Over the years, I’ve developed numerous ideas to enhance the Bengali experience, but self-imposed limitations and laws like the Digital Security Act have held me back. In various sectors, entrenched interests often stifle progress and discourage challenging the status quo.

Despite these challenges, I refuse to let fear dictate my actions any longer. I want to share some ideas, hoping they will reach someone capable of distinguishing the good from the bad and implementing meaningful change.

Many of you know I work in Bangladesh’s customs clearance sector, notorious for corruption. No import or export file is processed without some form of under-the-table payment, and with larger issues come more enormous bribes.

But what if I told you we could eliminate this corruption in just one month while maximizing revenue for all stakeholders?

Step One

Revolutionizing Customs Clearance by Enhancing Security and Efficiency with Remote Officials

We need to increase the number of customs officials at each customs house. I propose introducing fractional customs officials who can work remotely to process files. For example, if we currently have 1,000 customs officials across our six or seven ports, let’s appoint an additional 9,000. After a customs clearance agent submits a bill of entry on behalf of a client who may be an importer or exporter, a computer program will randomly assign a customs official to review the data and scanned documents. This random assignment and remote work would create uncertainty for those attempting to smuggle goods, as they wouldn’t know whether they could bribe the assigned officer. Suppose the customs officer needs to speak with the customs clearance agent or the importer/exporter. In that case, the conversation will be conducted via recorded audio video, allowing for later review to ensure proper conduct. Emphasis should always be placed on achieving a swift resolution, ensuring that the importer or exporter’s goods can be processed efficiently, whether for release from the port into the country or loading onto an outbound vessel.

This approach eliminates opportunities for customs officials to demand bribes, as they have no control over their assigned files. Additionally, the recorded conversations act as a deterrent and provide evidence in case of any misconduct.

Step Two

Revolutionizing Customs Clearance via Transparency and Efficiency in Bangladesh

Let’s examine the role of customs clearance agents. Currently, there are around 6,500 such agents across Bangladesh. While I believe this number is insufficient, it’s important to note that many licensed agents are not actively working in this field. This is mainly due to their frustration with a system where bribery has become a norm to get things done – even when the paperwork and the cargo are entirely in line with existing import and export policy.

So, how do we incentivize these agents to actively participate in the customs clearance process and ensure they are not engaging in corrupt practices? I have two proposals, and they are as such:

Proposal One:

The customs clearance agent serves as a representative for both the importer or exporter and the government of Bangladesh. Their role is crucial in ensuring that documents are processed efficiently, that customers pay only the taxes they owe, and that the government receives its rightful revenue. When customs clearance agents perform their duties effectively, the benefits extend beyond just the importer and the government; they positively impact the people of Bangladesh. Increased revenue for importers and exporters can lead to expansion projects, creating more jobs, while the government gains additional funds to support nation-building initiatives.

The question arises: what is the appropriate compensation for customs clearance agents? I propose a commission structure where agents receive 1% of the accessible value of consignments, with a minimum commission ranging from 10,000 to 20,000 takas per consignment.

Given that most customs clearance agents will be working remotely with customs officials who are also working remotely, it’s essential to have a centralized platform for communication and document exchange. This platform should be secure, with strict access controls and audit logs to ensure no unauthorized changes are made. A blockchain-based system could be explored to provide an immutable record of all transactions and decisions made during the customs clearance process.

Proposal Two:

If the previous options are unacceptable to the importer, exporter, or government, I propose a second and final solution.

Under this proposal, when it comes time for the importer or exporter to pay duties, they will deposit these payments into an account belonging to the customs clearance agent. This account should be established at any national or commercial bank, specifically for this purpose, and can only be opened by individuals holding a valid customs clearance license. The only entity authorized to withdraw funds from this account will be the National Bureau of Revenue.

Furthermore, the account will accrue interest. The objective is straightforward: any revenue collected on behalf of the government will remain in the account for a minimum of one month and a maximum of three months. The government will withdraw the collected funds at the end of each month or quarter. The bank will automatically retain the interest accumulated in the account and transfer it to the agent’s company account.

If all is well, the agent will find themselves with a sizeable commission at the end of the year, encouraging them to continue their honest and efficient work in customs clearance.

These proposals may seem far-fetched, but I believe they have the potential to revolutionize the customs clearance industry in Bangladesh. By eliminating opportunities for corruption and incentivizing agents to act ethically, we can improve revenue collection for the government and create a more transparent, efficient system for importers and exporters. Let’s try it and see just how much of a positive impact it can have on our country.

Conclusion

In conclusion, corruption is a systemic problem that requires creative solutions to address it effectively. These proposals may not be perfect, but they are steps in the right direction towards creating a more transparent customs clearance process. It’s time for us to work together and make a change for the betterment of our nation. Together, we can create a brighter future for Bangladesh. So, let’s implement these proposals and see how much of a positive impact they have on our country.

Thank you for taking the time to read this document, and I hope it has sparked some ideas on how to combat corruption in the customs clearance process. Let’s keep working towards building a better future for all.

Happy importing and exporting!

About the Author

Thank you for taking the time to read my article.

As the Proprietor of B Doza & Company, I’ve had the privilege of navigating Bangladesh’s complex customs clearance landscape. With over a decade and a half of experience under my belt, I’ve faced firsthand the challenges that impede efficient customs operations due to high levels of corruption.

In my article, I explore the intricacies of the customs clearance process, highlighting how bribery undermines the full participation of licensed customs clearance agents. I know we can enhance transparency and trust in the sector through innovative thinking.

My dedication to combatting corruption and improving the customs clearance process in Bangladesh is unwavering. I believe in a brighter future for our country, achievable through collaboration and innovative solutions. At B Doza & Company, we are committed to setting the standard for excellence and integrity in customs brokerage, guided by a vision for a better Bangladesh.

Please complete our Contact Form if you’d like to connect with my team and me regarding your customs clearance needs.

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