The National Board of Revenue (NBR) is set to review the existing country-specific minimum import value to make it state-neutral and include the minimal provision for faster customs clearance in the upcoming budget, officials said.
The introduction of both provisions is expected to help businesses clear goods faster while undergoing simplified customs process.
Officials said the revenue board may also amend the existing Statutory Regulatory Order (SRO) that defines minimum value to help minimise disparity in determining the customs assessment value between the Asian and other countries.
Once the minimal value is introduced, a dedicated desk at the custom houses will be needed to ensure faster clearance of consignment that meets the condition of such value.
The documentary requirement for this type of consignment will be as minimal as possible.
If a product meets any of the two criteria, either it is eligible for paying a prescribed minimum taxes or falls under the category of that minimum customs assessment value, will enjoy the facility, known as de minimis.
For example, if an import product has customs assessment value below Tk 2,000 or it requires paying import duty below Tk 2,000, it will fall under this category.
Both the issues came into focus following suggestions made by the European Union representatives in a recent extraordinary meeting of the EU-Bangladesh Business Climate Dialogue joint working group on import duties, customs and trade facilitation.
The meeting was co-chaired by Md Firoz Shah Alam, member (customs policy and ICT) on the government side and Jeroen Steeghs, deputy head of mission of the Netherlands embassy and Nicola`s Va`zquez Sua`rez, commercial councilor of Embassy of Spain, on the EU side.
The EU representatives claimed that the existing minimum value is creating disparity for the goods originated in the EU.
"There is a considerable difference for goods of Asia origin and that of other origins (in which the EU falls)," said the meeting note.
Responding to the issue, the NBR said these differences will be addressed in the next financial year's budget exercise by amending the respective SROs, according to the note.
NBR officials said the fixation of minimum value method will remain in place for some items for some times to prevent under valuation and expected to be phased out overtime.
In the meeting the EU representatives said de minimis should not be limited to samples only, rather any shipment below the threshold of Tk 2,000 should be processed by the customs as such shipment.
Officials said the NBR has prepared a draft notification to implement such a provision of the customs act, 1969 as per decision of the working group meeting held in October 2018.
A senior NBR official said the de minimis issue is present in the customs law, 1969 but it is not yet enforced.
The EU business climate group also sought simplification of sample import procedure and alleged the inconvenience in clearing spare parts of machinery from customs points.
Officials said the simplification of sample import procedure is under active consideration of the NBR. Necessary technical preparation in the Asycuda world system will be initiated for it, they said.
The ministry of commerce has already incorporated a definition of samples into the draft import policy order 2018-2021 along with the conditions of their importation.
The policy is being reviewed by the cabinet.
