Staff Correspondent

The persistent lack of automation in Bangladesh Customs has fostered a breeding ground for corruption and inefficiency, severely impacting trade and business operations, according to stakeholders concerned.

Despite repeated calls for modernisation, customs houses across the country continue to rely on outdated manual processes, allowing corrupt officials to exploit loopholes for personal gain.

On 20 May 2024, a container of cigarettes was illicitly released from the Chattogram Custom House using a forged bill of entry and an ASYCUDA ID during an official’s absence, according to the National Board of Revenue (NBR).

The incident has prompted investigations by two separate NBR committees to uncover the culprits and their accomplices.

The NBR has enlisted the support of the Cyber Crime Unit of Bangladesh Police to take legal action against those involved in such thefts. In an effort to tighten security, the NBR has banned the use of social media on computers running the ASYCUDA World system.

The Bangladesh Computer Council (BCC) is conducting a Vulnerability Assessment and Penetration Testing (VAPT) of the system, with recommendations pending implementation.

While the NBR has expressed its commitment to enhancing cybersecurity and ensuring the safe use of automated systems across its offices, incidents of malpractice are not isolated to the Chattogram Custom House.

Similar events have been reported across multiple customs offices, highlighting systemic vulnerabilities.

Speaking on condition of anonymity, NBR officials revealed that an unscrupulous network, often involving corrupt customs officials, orchestrates such malpractices.

They emphasised that full digitalisation of major customs houses is essential to combat corruption and inefficiency.

Despite some progress in automating customs operations, it remains insufficient. Officials noted that the automation of VAT and income tax systems has outpaced that of customs. Full automation is seen as crucial to addressing the challenges posed by Bangladesh’s transition from least developed country (LDC) status.

“When full automation is implemented at all major customs houses, it will eliminate corruption and malpractice associated with the release of goods at ports,” a senior NBR official told The Daily Sun.

“Product valuation, a significant issue, will also become more accurate and transparent, benefiting both customs officials and businesses.”

Currently, valuation processes rely heavily on outdated records, leading to inconsistencies. Automation could provide real-time assessments based on the current value of imports. Businesses often face additional delays and costs due to manual testing and suspicion of misdeclaration.

In such cases, samples are sent to agencies like BSTI or BCSIR, further prolonging the clearance process.

Businesses have consistently borne the brunt of these inefficiencies, facing harassment, financial losses, and delays, all of which contribute to Bangladesh’s poor performance in global ease-of-doing-business rankings.

Md Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), underscored that corruption and malpractice continue to delay the release of goods despite some progress.

“While automation and modernisation of customs operations align with international best practices, tangible progress on the ground remains limited. Full automation is essential to eliminating corruption and anomalies in product clearance processes,” he said.

The lack of robust automation in Bangladesh Customs not only hinders operational efficiency but also damages the country’s business climate.

Without swift and comprehensive digitalisation, the customs system will continue to struggle with corruption and inefficiency, obstructing Bangladesh’s economic progress.