Bangladesh comes top among 20 countries in Asia and Oceania for taking highest days in customs clearance for Japanese companies, according to a survey.
The Japan External Trade Organisation (JETRO) survey done in 2019 shows the average days of such clearance here are double the second-highest time-taker Pakistan.
The average import customs clearance was assessed at 12.8 days in Bangladesh.
The highest 14.3 days were needed to get clearance of imported items through sea route and 8.1 days through air, revealed the JETRO data.
It demonstrates that 77.4-per cent imports of Japanese firms were made by ocean and 22.6 by air in 2019.
JETRO Dhaka country representative Yuji Ando recognised the need to improve the situation as most Japanese firms rely on imports and earn revenue through exports.
Two-thirds products like readymade garment (RMG) of the Japanese-affiliated firms go to Japan, he told the FE.
According to JETRO Dhaka, 164 firms are in Bangladesh, with 104 of them being members of Japanese Commerce and Industry Association called 'Dhaka Shoo-Koo-Kai.'
Sixty-four companies both in manufacturing and non-manufacturing sectors responded in the 2019 survey conducted during the August-September period.
The survey finds that customs clearance in Pakistan took place in 7.0 days by ocean and 6.6 days by air.
Pakistan was at the top of taking average time in customs clearance in 2018 with 16.6 days following by Bangladesh with 15.8 days through sea.
Bangladesh's position was on the top in taking 7.9 days in air-based clearance in 2018 in which Pakistan was second highest with 5.3 days.
Though the JETRO survey showed a little bit improvement in ocean-based imports than 2018, time was deteriorated in the case of air-based import clearance mostly for raw materials.
It finds 54.8-per cent companies stated no change in the improvement of clearance procedures in the past few years while 14.3 per cent with no comment on improvement or deterioration.
But the 2017 survey showed average days for customs clearance by sea was 20.4 days and by air 8.7 days.
Since 1987, the JETRO has been conducting the survey to assess business confidence of Japanese affiliated companies in all countries and regions.
The '2019 JETRO Survey on Business Condition of Japanese Companies in Asia and Oceania' finds business confidence turns negative in all countries/regions in Northeast Asia (China, South Korea, Taiwan, and Hong Kong/Macau) for the first time in 10 years.
On the other hand, many companies (excluding companies in South Korea and Hong Kong/Macau) expect that their business confidence will improve in 2020.
Bangladesh remains atop the list for business expansion by Japanese companies in 2019 like in 2018 due to profitability for highest gap between wage and production cost among 20 countries.
The 2018 survey also found 73.2 per cent firms surveyed want 'expansion' in Bangladesh.
The survey revealed that 48.8-per cent companies refer to simplify customs documents following international standard while 43.9 per cent for speeding up and simplify procedures for obtaining an import licences.
Some 56.1 per cent companies called for improvement of logistics at ports and borders.
The survey also finds many Japanese companies in these regions prefer Vietnam, Thailand and the Philippines, Indonesia and Malaysia as a shift from China.
In the case of productivity, Bangladesh ranked second lowest by the Japanese group.
