Electronic Trade Facilitation Act (ETFA) Urgency in Bangladesh

Bangladesh Needs a Digital Trade Law Now

In the last decade, Bangladesh's commerce has doubled. The trade has grown a lot. But despite the growth in trade, formalities at the border remain manual, redundant and out-dated. This means paper, repetitive work, and an old-fashioned style. Bangladesh is at risk of falling behind other economies that are rapidly digitizing their systems.

The Electronic Trade Facilitation Act can help change this by requiring all border agencies to adopt digital processes. Enabling agencies to work with AI, it makes procedures transparent (providing a clear view), eliminates corruption, and aligns them with international standards.

The Current Maze of Trade Formalities

Regulatory agencies, customs, ports authorities, quarantine officers, and others -- oversee border trade. Each ministry has its own paperwork, fees and data formats. Consignments (goods), which are bouncing between checkpoints can be affected. It not only slows down clearance (release) but also harms exporters who are racing to meet global deadlines.

This complexity is a mess of scattered Acts and rules. Many of them are outdated (old), inconsistent and disjointed. The Import Policy Order and the Customs Act 2023 cover only a small part of the trade. However, issues like electronic payments, risk-based clearing, and data sharing remain unaddressed.

The Urgency of Reform

Reform is not optional. Bangladesh will be able to leave its Least Developed Country status (LDC), in 2026. Gleichzeitig, Bangladesh must also meet its WTO Trade Facilitation Agreement Category C commitments by 2030. The ETFA could be accelerated during this grace period to show Bangladesh is ready for international standards and also strengthen its competitiveness after graduation.

Why ETFA Is a Game-Changer

ETFA will be more than a trade rule. It would transform Bangladesh's trade by creating a digital framework.

One Digital Platform: No more queues, stamps or paper forms. All of these have been replaced by a single online system known as the Bangladesh Single Window.

Risk-Based Clearances: Tools for risk management would speed up processing, particularly with perishables. A USDA-sponsored study claims that release times could be reduced by 40-81% with pre-arrival audits and post-clearance data.

Transparency and Accountability: All permits, certifications, payments, inspections, etc., online. It reduces corruption and delays. Businesses can quickly solve problems with a public portal that includes tariffs, rules, and timelines.

Legal Empowerment: The Ministry of Commerce and the National Trade Facilitation Committee only suggest. The ETFA provides them with real power. The BSW must be digitised and linked with the agencies.

Annual Trade Review: The MoC is required to publish a Trade Facilitation Review every year, showing the progress made and accountability.

Learning from Global Leaders

Bangladesh can learn from global leaders. Bangladesh doesn't have to reinvent itself. The US Trade Facilitation and Trade Enforcement Act of 2015 made automated and risk-based checks a must. South Korea's ETFA (2005, etfa) introduced a digital single window. Mauritius followed suit, as did Nigeria and Zambia.

All of them follow the same principles: umbrella laws, mandatory digitisation and sharing data. These reforms reduce trade costs, shorten clearance times and increase competitiveness.

Conclusion

With the Electronic trade facilitation act, Bangladesh will be able to restart its trade by implementing a "electronic-by-design" rule. The Electronic Trade Facilitation Act will bring together scattered rules, eliminate paperwork, and integrate systems.

Trusted traders can use "Green Lanes" to avoid costly delays and demurrage. Businesses can now track releases in real-time and be more predictable.

Bangladesh is in a critical situation. ETFA, with the LDC graduation fast approaching and the competitiveness of Bangladesh at stake is not an option but a necessity. Bangladesh can achieve transparency, growth, and speed by enacting this umbrella law quickly. This will create a digital world where businesses and economies can trade freely.