NBR to Launch AEO System Next Week to Accelerate Trade

Finance Adviser Dr. Salehuddin Ahmed will inaugurate the operation at a ceremony at the National Board of Revenue (NBR) Multipurpose Hall. NBR Chairman Md Abdur Rahman Khan will preside over the event, with special guests including Lutfey Siddiqui, the Chief Adviser’s Special Envoy on International Affairs, Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA and BEZA, and FBCCI Administrator Md. Hafizur Rahman.

The AEO system will allow certified businesses to move cargo directly from ports to their factories or warehouses via a green channel, bypassing physical inspections. This will reduce clearance time, lower costs, and boost overall trade efficiency.

NBR sources confirmed that 14 businesses have already received AEO certification, with additional applications under review. Notable certified companies include Popular Pharmaceuticals, Jihan and Shoeniverse Footwear, Fair Electronics, and ACI Godrej Agrovet Private.

The NBR formulated the AEO system rules in June 2022, finalizing operational procedures by December and upgrading its digital infrastructure to support the system. According to the NBR Chairman, once the system is fully operational, compliant businesses will face minimal intervention from Customs authorities, and goods will be directly delivered to their premises under a self-assessment system.

The AEO system also offers international benefits if reciprocal agreements are in place with other countries, allowing certified businesses to enjoy similar privileges abroad. Adopted by countries like the US, EU, Japan, Singapore, India, and China, the system aims to enhance global supply chains and expedite trade. India alone has over 5,000 AEO-certified businesses.

While Bangladesh initially planned to implement the system in 2013, its introduction became mandatory following the ratification of the World Trade Organization’s Trade Facilitation Agreement by two-thirds of its members. A 2022 NBR study highlighted that 72-78% of clearance time is spent on document submission, emphasizing the need for automated trade facilitation.

Currently, nearly 60 companies are under review for AEO certification. To qualify, firms must meet specific criteria, such as having at least Tk 30 crore in authorised capital, Tk 10 crore in paid-up capital, and a minimum annual turnover or trade volume of Tk 10 crore for the last three years. Small and medium enterprises (SMEs) and logistics operators can also qualify under certain conditions, including a minimum of 20 annual shipments or four years of operations in Bangladesh.

The NBR expects the AEO system to significantly enhance trade efficiency, benefiting both large corporations and SMEs alike.