The National Board of Revenue (NBR) is considering a major reform to ease customs clearance for trusted businesses, aiming to simplify import procedures and accelerate trade through a proposed 'green channel' system at ports of entry.
This streamlined process would allow compliant importers — not just those with Authorised Economic Operator (AEO) status — to bypass lengthy physical inspections and get their goods released directly, significantly reducing time and cost for businesses.
“This system would work similarly to the AEO program,” a senior NBR official told UNB on condition of anonymity. “It aims to facilitate business by allowing trusted importers faster access to their goods.”
The AEO program is a strategic partnership between Bangladesh Customs and highly compliant traders, offering expedited customs clearance and improved trade facilitation while maintaining supply chain security. Under the program, AEO-certified companies can transport cargo directly from ports to their warehouses or factories using a green channel system.
Now, the NBR wants to expand that benefit to a wider pool of compliant importers — those with a consistent history of tax and duty compliance — as part of its fiscal measures for the upcoming budget.
By reducing port congestion and avoiding the delays typically caused by standard clearance processes, the initiative is expected to improve the business climate and logistics efficiency across the country.
To prevent abuse of the system, importers granted access to the green channel will be required to formally commit to not misusing the privilege. The NBR is also tightening oversight of bonded warehouse facilities, a mechanism often abused to evade taxes. Proposed reforms to the bond law include harsher penalties, including higher fines and longer prison terms for violations.
An NBR team has already been tasked with reviewing and updating the bond regulations to curb misuse and protect revenue.
NBR Chairman Md Abdur Rahman Khan confirmed in a recent pre-budget meeting that compliant taxpayers would likely be granted green channel access but warned of strict consequences for abuse of the system.
Importers and exporters have long voiced concerns about inefficiencies and alleged harassment in customs clearance. The proposed green channel and broader reforms are seen as a response to those frustrations, with the potential to boost confidence in the trade environment.
