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| [PHOTO: Special Arrangements] |
Manila: The Asian Development Bank (ADB) is providing $48 million to
help goods move more smoothly in and out of Bangladesh, Bhutan, and Nepal, by
overhauling time-consuming, costly, and often opaque customs procedures that
are inhibiting intraregional trade.
“Removing the many
non-tariff barriers which currently impede trade will have a major multiplier
effect on trade volumes across South Asia,” said Emil Bolongaita, Public
Management Specialist in ADB’s South Asia Department. “Automated,
user-friendly, transparent customs systems will cut business costs, reduce
informal activity, and give a real lift to importers and exporters, including
women entrepreneurs.”
The project will help
the three countries, all members of the South Asia Subregional Economic Cooperation
(SASEC) program, adopt an international customs administration protocol,
upgrade existing automated customs management systems, and establish web-based
electronic trade portals. These measures will give importers and exporters
timely, accurate information. India, which is also a SASEC member, is not
included in the program as it is funding its own trade facilitation reforms and
is significantly ahead of its neighbors.
Despite healthy
growth, South Asia’s low levels of intraregional trade make it one of the least
integrated regions in the world. Processing and export delivery times are more
than 30% slower than in East Asia and the Pacific, while administrative fees
and storage and handling costs are more than 40% more expensive. Weak logistics
systems, poor infrastructure and a lack of cross border transit agreements are
other impediments to trade which is nearly all land based.
Informal trading has
sprung up to avoid excessive documentation and goods inspections, resulting in
sizeable government revenue losses. The introduction of international customs
practices, streamlined management systems―including the planned establishment
of “single window” systems to simplify transactions―and web-based information
for traders, will make cross border trade more efficient, cost-effective,
transparent, and secure.
The program, which
targets a 7.5% rise in intraregional trade volumes by 2018, will complement
SASEC cross-border transport projects to improve connectivity, and planned
investments in projects across the transport, trade facilitation and energy
sectors. ADB, which acts as Secretariat for SASEC, has already provided $3.4
billion and has more commitments in the pipeline.
SASEC was set up in
2001 as an initiative of Bangladesh, Bhutan, India, and Nepal. It aims to
promote domestic and regional prosperity through stronger transport links and
increased trade and cooperation across sectors ranging from energy, tourism,
the private sector and the environment.