presentation at unnext national workshop on agriculture ... 2.4 presentation on bpa in... · key...

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Presentation at

UNNExT National Workshop on Agriculture Trade Facilitation and

Business Process Analysis for Bangladesh Jointly organised by BFTI and UNESCAP

27 October 2015, Dhaka, Bangladesh

by

Mohammad Farhad Research Fellow, Bangladesh Foreign Trade Institute

2

Key findings from Business Process Analysis studies in Bangladesh

Objective of the Presentation

Briefly discuss what is BPA

To provide an overview of the key findings from BPA studies in Bangladesh

To discuss Major recommendations of the BPA studies in Bangladesh

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Introduction

What is Business Process?

A Business Process is a collection of related, structured

activities or tasks that produce a specific service or

product

Example

Concluding a sales contract

Issuing a Certificate of Origin

Customs clearance at the port of Burimari

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Introduction

What is Business Process Analysis?

An analysis and modelling of business processes for

improvement and automation

Example

Documenting existing practice in an administration/

company

Describing a “Standard Procedure”

Providing a basis to measure time/costs at different

steps

Providing a specification for automation of the

process

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BPA Studies in Bangladesh

CPD-ARTNeT BPA Study, 2011

Facilitating Trade through Simplification of Trade

Processes and Procedures in Bangladesh

by Syed Saifuddin Hossain & Md. Tariqur Rahman

UNESCAP-ADB BPA Study, 2014

Trade Process Analysis Report for Subregional Cooperation in

South Asia

by Prabir De, Professor, RIS, India

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CPD-ARTNeT BPA Study in 2011

This study analyses the business procedures involved in a

typical trade transaction for selected products namely

export of ready made garments (RMG) and shrimp and

import of cotton fabrics and sugar.

The broad objective has been to capture the cost,

documentation and time component of such trade

transactions with a view to identify areas for further

improvement.

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BPA of Export of Woven Garments from

Bangladesh to India

Source: CPD-ARTNeT Survey on BPA

Time Procedure Chart: RMG Export from Bangladesh to India (by Sea)

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Bangladesh to India

Overview of Processes Involved in Export of Woven Garments from Bangladesh to India (by Sea)


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Bangladesh to India


Time Procedure Chart: RMG Export from Bangladesh to India (by land)

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Bangladesh to India

Overview of Processes Involved in Export of Woven Garments from Bangladesh to India (by land)


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Business Process of Exporting Shrimp to

Japan from Bangladesh


Time Procedure Chart: Shrimp Export from Bangladesh by sea

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Business Process of Exporting Shrimp to

Japan from Bangladesh


Overview of Processes Involved in Export of Frozen Shrimp from Bangladesh to Japan by Sea

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BPA of Import of Fabrics from India to

Bangladesh


Time Procedure Chart: Cotton Fabrics Import from India

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BPA of Import of Fabrics from India to

Bangladesh


Overview of Processes Involved in Import of Fabrics from

India to Bangladesh by Land

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Summary of Findings from CPD-ARTNeT BPA study

of Selected Products

Summary of Findings from BPA of Selected Products

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Key observations from CPD-ARTNeT BPA study of

Selected Products

Export/Import processes in Bangladesh are, in general, business friendly.

Number of documents required to complete the process is acceptable. However, problems arise when different trading partners ask for different documents in the process of exporting or importing the same product.

Use of ICT in the overall business process is very limited.

Customs declaration (with the Chittagong Customs House) is currently the only stage in the BP where ICT is significantly used. However, submission of paper-based documents is still required to verify online declaration.

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Key observations from CPD-ARTNeT BPA study of

Selected Products

All forms (except Bill of Entry/Exit) are to be filled in manually (handwritten or typed).

Exporters/importers need to apply on paper to obtain different certificates.

Electronic versions of documents are not acceptable to banks.

Getting products inspected before exporting sometimes take longer than usual time (particularly in case of Shrimp export).

Coordination among various actors involved in the business process is not up to the mark.

Inadequate infrastructure at the port areas often increases trading time resulting in higher cost of doing business.

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Policy recommendations from CPD-ARTNeT BPA

study of Selected Products

Immediate automation of all customs houses;

Establishing a Single Window so that all the actors involved in the

business process are linked together;

Adopting policies and designing required modalities to facilitate

use of documents in electronic/digital format;

Development of infrastructure at port areas on urgent basis;

Expediting the process of issuing inspection certificates;

Strengthening collaboration between Government and business

chambers to ensure better business environment;

Formation of a National Trade Facilitation Task Force;

Publication of trade related information, rules, procedures,etc.; &

Conducting sector-wise needs based analyses to identify specific

bottlenecks.

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UNESCAP-ADB BPA Study 2014

Country, corridors and Product Coverage of the Study

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Business Processes, Time and Cost

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Parties Engaged in Export and Import Processes

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Documents and Copies Required

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Major Recommendations of the UNESCAP-

ADB BPA Study 2014

Full and inclusive representation of the private sector in trade facilitation initiatives is essential

Implementation of basic trade facilitation measures should be consistently enforced and reinforced nation-wide

Paperless trade, including development of national and sub-regional single windows, needs to be prioritised for trade facilitation

Remove the regulatory burden on exports and imports

Physical inspections should be minimised whenever possible, in particular through adoption of risk management techniques by all organisations involved in the trade process

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ADB BPA Study 2014

Healthy competition among transport, logistics and other trade-related service such as insurance providers should be encouraged

Reviewing payment systems in place and their efficiency may reveal new opportunities for improving trade facilitation performance

National and sub-regional trade facilitation performance monitoring mechanisms are required to identify the real and most important barriers to trade efficiency

Industry specific trade facilitation programmes should be considered

Corridor specific trade facilitation programmes should be developed

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ADB BPA Study 2014

Harmonisation of documentary requirements across countries should be actively pursued

Synchronisation of cross-border customs in SASEC should be the priority

Bilateral and regional free trade agreements should systematically address trade facilitation issues

All trade documents including customs should be submitted electronically

Trade will be much faster with minimum process reengineering

Acceptance to sub-regional transit and Ensure Faster travel time in transit

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Thank you for your kind attention