The National Board of Revenue (NBR) is set to fully operationalise its Bond Automation system this month to enhance efficiency, transparency, and accountability in Bangladesh’s trade operations. The rollout, initially planned for last month, was delayed due to businesses’ lack of readiness, according to NBR Chairman Md Abdur Rahman Khan, reports UNB.
The bonded warehouse system allows export-oriented industries to import duty-free raw materials under the condition that they will be used for export production. This facility helps keep Bangladesh’s exports competitive by reducing production costs and shortening lead times. However, some traders exploit the system by diverting duty-free imports into the local market, leading to significant revenue losses.
The Bond Automation system aims to curb such misuse by digitally tracking materials imported under bond facilities. It will streamline processes such as issuing Utility Permission (UP) for garment accessories exporters and Utility Declaration (UD) for garment exporters, improving accountability and efficiency. The automation project was launched in 2017, but delays pushed its completion target to 2024.
Industry leaders have long demanded stricter enforcement to prevent abuse of the bond system. By digitizing the process, the government hopes to reduce foreign exchange losses, enhance trade facilitation, and strengthen oversight. The NBR is confident that once fully implemented, the system will eliminate inefficiencies, improve compliance, and support Bangladesh’s broader strategy to modernize trade and expand exports. Stakeholders remain optimistic that this long-awaited reform will bring transparency and efficiency to the country’s bonded warehouse operations.
Bd-pratidin English/ Jisan
