Bangladesh: South Asia Subregional Economic Cooperation Trade … · 2014. 12. 19. · Progress Report on Tranche Release ... TRS – time release study TTF – trade and transport

Progress Report on Tranche Release

This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project’s design.]

Project Number: 45260-001 Loan Number: 2954 – BAN (SF) November 2014

Bangladesh: South Asia Subregional Economic Cooperation Trade Facilitation Program (Second Tranche) Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB’s Public Communications Policy 2011.

CURRENCY EQUIVALENTS (as of 30 October 2014)

Currency Unit – taka (Tk)

Tk1.00 = $0.013 $1.00 = Tk77.38

ABBREVIATIONS

ADB – Asian Development Bank AEO – authorized economic operator ASYCUDA – Automated System for Customs Data CHC – Customs House Chittagong GDP – gross domestic product IFC – International Finance Corporation LPI – Logistics Performance Index NBR – National Board of Revenue NSW – national single window NTP – national trade portal OLM – Online Licensing Module RIA – regulatory impact assessment RKC – Revised Kyoto Convention SASEC – South Asia Subregional Economic Cooperation SCS – SASEC Customs Subgroup SOP – standard operating procedures STFP – SASEC Trade Facilitation Program STFSF – SASEC Trade Facilitation Strategic Framework TA – technical assistance TFA – Trade Facilitation Agreement TRS – time release study TTF – trade and transport facilitation WCO – World Customs Organization WTO

– World Trade Organization

NOTE

In this report, "$" refers to US dollars.

Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Director S. Bonu, Regional Cooperation and Operations Coordination Division,

SARD Team leader R. Butiong, Principal Regional Cooperation Specialist, SARD Team members F. Ahmed, Senior Public Management Officer, SARD

C. Damandl, Senior Counsel, Office of the General Counsel R. McKenzie, Regional Cooperation Specialist, SARD A. Pangilinan, Programs Officer, SARD L. Reyes, Senior Operations Assistant, SARD

S. Sunayama, Economist, SARD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

I. INTRODUCTION 1

II. RECENT DEVELOPMENTS ON TRADE FACILITATION IN SOUTH ASIA 2

A. Global and Regional Developments 2

B. Trade and Trade Facilitation Performance 3

III. STATUS OF PROGRAM IMPLEMENTATION 5

IV. TECHNICAL ASSISTANCE GRANTS 9

V. PROGRAM ASSURANCES AND MONITORING FRAMEWORK 9

VI. ASSESSMENT 9

VII. RECOMMENDATION 10

APPENDIXES

1. Policy Matrix (Bangladesh) 11

2. Status of Second Tranche Policy Actions (Bangladesh) 13

3 Progress under the Design and Monitoring Framework (Bangladesh) 16

4. Status of Program Assurances (Bangladesh) 18

5. Bangladesh: Key Economic Indicators 20

I. INTRODUCTION

1. On 29 November 2012, the Asian Development Bank (ADB) approved the equivalent of $47,700,000 in policy-based loans and grants for the South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Program (STFP) to Bangladesh, Bhutan, and Nepal. 1 The STFP was made effective in Bangladesh on 19 April 2013 (SDR13,579,000), in Bhutan on 26 March 2013 (SDR5,412,000 as a loan, and $3,330,000 as a grant), and in Nepal on 10 April 2013 ($15,000,000 as a grant). The program was designed to be released in two tranches. The first tranche was released on 3 May 2013 for Bangladesh (loan of SDR7,113,000); on 26 March 2013 for Bhutan (loan of SDR2,057,000 and grant of $3,330,000); and on 10 May 2013 for Nepal (grant of $8,000,000), reflecting full compliance with the policy conditions stipulated for each of the three countries.2 The second tranche is scheduled to be released on 31 December 2014, subject to full compliance by the Government of Bangladesh (loan of SDR6,466,000), the Government of Bhutan (loan of SDR3,355,000), and the Government of Nepal (grant of $7,000,000), with their respective policy conditions. A total of four loan and grant review missions (since the first tranche release in May 2013) were conducted during July 2013–October 2014 to support and review the implementation of the STFP (Appendix 1). 2. The STFP was designed as a regional initiative to assist the governments of the three SASEC countries in developing more efficient, transparent, secure, and service-oriented import and export trade processes in the subregion. South Asia remains one of the least integrated regions in the world, with low intraregional trade and a challenging environment for foreign direct investment. The cost of subregional trade is high, exacerbated by long processing times for import and export transactions, as a result of poor trade-related infrastructure and procedures. Non-tariff related constraints in the subregion—including the lack of infrastructure to handle containerized cargo, a high need for transshipment at the border, a reliance on physical inspection of cargo in the absence of non-intrusive methods, and the lack of cross-border transit agreements—contribute to the high number of documents required for trading (especially customs clearance) and lengthy waiting times. Limited automation of customs procedures requires traders to provide multiple copies of documents and seek approvals from many different border agencies, further reducing the effectiveness of trade. Government agencies are in the early stages of developing transparent and accountable information mechanisms, and government coordination of border agencies remains weak.

3. Against this backdrop and in line with the goals of the SASEC countries, the STFP set the objectives of (i) developing modern and effective customs administrations and management systems to reduce time-intensive procedures and high levels of inspection; (ii) streamlining and rendering transparent trade processes and procedures, through increased automation, moving toward a national single window (NSW) system; and (iii) providing better information services for private sector traders and investors, including women entrepreneurs, through development of national trade facilitation committees and trade information portals. The impact will be increased trade, including intraregional trade, of SASEC countries by reducing or removing non-tariff barriers, specifically institutional, administrative, and technical barriers to trade. The outcome will be more efficient, transparent, secure, and service-oriented processing of cross-border trade of SASEC countries. The program is fully consistent with ADB’s South Asia Regional

1 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based Loans

and Grants: South Asia Subregional Economic Cooperation Trade Facilitation Program. Manila. 2 In the case of the policy-based loan to Bangladesh, three policy conditions were included for the first tranche and

seven for the second tranche. For the policy-based loan and the policy-based grant to Bhutan, three were included for the first tranche and four for the second tranche. For the policy-based grant to Nepal, three were included for the first tranche and five for the second tranche.

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Cooperation Strategy, 2011–2015,3 which cites the need to boost cross-border trade as its second sector-specific objective. The strategy acknowledges the crucial need to improve logistics performance in support of emerging global supply chains, encompassing the performance of customs authorities, trade-related infrastructure, inland transit, and logistics services.

II. RECENT DEVELOPMENTS ON TRADE FACILITATION IN SOUTH ASIA

A. Global and Regional Developments 4. World Trade Organization Trade Facilitation Agreement. In December 2013, the members of the World Trade Organization (WTO) concluded negotiations on a Trade Facilitation Agreement (TFA) at the Bali Ministerial Conference, as part of a wider Bali Package. 4 The TFA contains provisions for faster and more efficient customs procedures through effective cooperation between customs and other authorities on trade facilitation and customs compliance issues. It also contains provisions for technical assistance and capacity building in this area.

5. South Asia Subregional Economic Cooperation Trade Facilitation Strategic Framework. Building on the gradual momentum of the SASEC countries in forging ahead with improvements in trade facilitation, the SASEC Trade Facilitation Strategic Framework (STFSF), 2014–2018 was formulated and eventually endorsed by the SASEC countries in March 2014. The STFSF supports the mission of the SASEC transport and trade facilitation strategy “to promote the prosperity of the subregion by facilitating the efficient movement of trade across the borders.” Its goal is to increase intraregional trade through increased trade facilitation efficiency and a reduction of the time and costs to trade. The overall strategy to achieve this goal is to elevate border clearance practices and processes to international standards, including through automation. The STFSF focuses on five priority areas: (i) customs modernization and harmonization, (ii) standards and conformity assessment strengthening, (iii) cross-border facilities improvement, (iv) through-transport facilitation, and (v) institution and capacity building. The strategic thrusts to be pursued for each of these areas are given in Table 1. 6. The STFSF embeds the components of the STFP policy-based loan and grant—the development of modern customs administrations, streamlined and transparent regulations and procedures, and improved services and information for traders and investors—and builds on them through complementary initiatives. Although the STFP is directed toward the needs of the smaller SASEC countries, the STFSF also addresses the challenges faced by India in its continuing efforts to upgrade and refine its trade facilitation systems. It harnesses India’s wealth of experience by tapping it as a resource for knowledge sharing with other SASEC countries through the modality of South–South cooperation.

Table 1: Strategic Thrusts for Priority Areas of the South Asia Subregional Economic Cooperation Trade Facilitation Strategic Framework

Priority Area 1: Customs modernization and harmonization

Strategic Thrust 1 Simplify and expedite border formalities to facilitate the movement for goods, vehicles, and people

3 ADB. 2011. South Asia: Regional Cooperation Strategy, 2011–2015. Manila.

4 The Bali Package consists of 10 separate decisions by the ninth WTO Ministerial Conference covering three areas:

(i) trade facilitation; (ii) agriculture, in particular, food security; and (iii) least-developed country issues.

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Strategic Thrust 2 Increase the application of information and communication technology processing

Strategic Thrust 3

Develop national single window system to link all border agencies with the trading community

Priority Area 2: Standards and conformity assessment strengthening

Strategic Thrust 4

Identify sanitary-and-phytosanitary-sensitive commodities and strengthen national conformity assessment boards

Priority Area 3: Cross-border facilities improvement

Strategic Thrust 5

Establish logistics facilities and services at major trade ports to facilitate trade

Priority Area 4: Through-transport facilitation

Strategic Thrust 6

Develop and pilot bilateral transport facilitation arrangements for through-transport

Priority Area 5: Institution and capacity building

Strategic Thrust 7

Enhance cooperation and coordination mechanisms among stakeholders in the trade facilitation environment

7. SASEC Customs Subgroup. To further promote subregional trade facilitation initiatives, the SASEC Customs Subgroup (SCS) was established in March 2013. The SCS aims to take concerted actions on customs reforms and modernization, strengthen interagency cooperation, and enhance partnerships with the private sector. It also serves as the regional forum for addressing issues of common interest relevant to customs cooperation. Following the organizational meeting of the SCS held in Bangkok, Thailand, in March 2013, a second meeting was held in Kathmandu, Nepal, in May 2014, where the SASEC countries broadly endorsed the Work Plan for 2014–2015 to translate the customs-related provisions of the STFSF into concrete and meaningful results through national and subregional initiatives.

B. Trade and Trade Facilitation Performance 8. Trade performance. Bangladesh’s exports grew by 10.7% in 2013, from 6.2% growth in the previous year, fueled by increased demand for low-end garments from both traditional and newly developed markets. Growth in imports dropped to 0.8% in 2013 from 2.4% in 2012, due to the decline in the imports of rice, sugar, edible oil, fertilizer, petroleum products, and capital goods (Table 2).

Table 2: Bangladesh Merchandise Trade Growth, 2010–2014 (%)

Year Exports Imports

2010 4.2 5.4 2011 39.2 52.1 2012 6.2 2.4 2013 10.7 0.8 2014a 9.0 10.0

a Estimate.

Source: ADB. 2014. Asian Development Outlook 2014. Manila.

9. Trade cost. The cost of trading remains high but showed relative improvements. Bangladesh trade facilitation initiatives, including for modernizing customs, reflected

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improvements in its ranking in the World Bank Doing Business indicators.5 Its ranking rose by six points from 136 in 2013 to 130 in 2014, and gained 0.23 percentage points in terms of distance to frontiers6 over the same period (Table 3). Compared with the South Asia region, the cost to trade in Bangladesh is lower, both for exports and imports. Port and terminal handling comprises more than 40% of trade costs for both exports and imports (Table 4).

Table 3: Bangladesh Trade Cost, 2012–2014

Indicators 2012 2013 2014 South Asia

2014

Rank (trading across borders) … 136 130 … Distance to Frontier (percentage points) 61.26 61.45 61.52 …

Documents to export (number) 6 6 6 8

Time to export (days) 25 25 25 33

Cost to export ($ per container) 965 1,025 1,075 1,787

Documents to import (number) 8 8 8 10

Time to import (days) 34 34 35 34

Cost to import ($ per container) 1,370 1,430 1,470 1,968 … = data not available. Source: Doing Business website. http://www.doingbusiness.org

Table 4: Bangladesh Export and Import Procedures, 2014

Item

Export Procedures Import Procedures

Duration (days)

Cost ($)

Duration (days)

Cost ($)

Documents preparation 14 225 22 370

Customs clearance and technical control

3 150 3 150

Ports and terminal handling 5 450 7 650

Inland transportation and handling

3 250 3 300

Total 25 1,075 35 1,470

Source: Doing Business website. http://www.doingbusiness.org

5 The World Bank Doing Business indicators measure the ease of doing business by ranking 189 economies, with

first place being the best. A high ranking (a low numerical rank) means that the regulatory environment is conducive to business operation. The index averages the country's percentile rankings on 10 topics, which include the cost of trading across borders. The ranking on each topic is the simple average of the percentile rankings on its component indicators.

6 The Distance to Frontier measure shows the distance of each economy to the “frontier.” The frontier represents the

highest performance observed for each of the indicators across all economies in Doing Business since the inclusion of the indicator. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. For example, a score of 75 in Doing Business 2013 means an economy was 25 percentage points away from the frontier—constructed from the best performances across all economies and across time. A score of 80 in Doing Business 2014 indicates that the economy is improving. In this way, the Distance to Frontier measure complements the annual ease of doing business ranking, which compares economies with one another at a point in time.

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10. Logistics performance. Bangladesh’s logistics performance has not improved. The World Bank Logistics Performance Index (LPI)7 2014 shows Bangladesh’s overall score of 2.56 deteriorating compared to its 2010 score of 2.74, although it remains within the category of “partial performance of logistics providers.” Only the “logistics competence” indicator registered a modest improvement in 2014. Compared to LPI scores for South Asia in 2014, Bangladesh scores rated less favorably, except for international shipments and timeliness (Table 5).

Table 5: Bangladesh Logistics Performance Index, 2010 and 2014

Item Overall Index

Customs Clearance

Infrastruc-ture

Quality

Interna-tional Ship-ments

Logistics Compe-tence

Tracking and

Tracing Time-liness

2014

Index 2.56 2.09 2.11 2.82 2.64 2.45 3.18

Ranking 108 138 138 80 93 122 75

2010a Index 2.74 2.33 2.49 2.99 2.44 2.64 3.46

Ranking 79 90 72 61 96 92 70 South Asia (2014) 2.61 2.47 2.34 2.70 2.66 2.58 2.87

a Data on Bangladesh for 2012 is not available.

Source: World Bank. Logistics Performance Index website. http://lpi.worldbank.org/

III. STATUS OF PROGRAM IMPLEMENTATION

11. The government has made considerable efforts to fulfill all the second tranche release actions. The tranche release requires compliance with seven policy actions under three broad policy reform areas: (i) modern and effective customs administration and management; (ii) streamlined and transparent trade processes and procedures; and (iii) improved services and information for private sector traders and investors, including women entrepreneurs. The policy matrix and the achievement status of second tranche actions are in Appendixes 1 and 2. The detailed compliance status for each of the second tranche policy actions follows in paras. 12–19.8

7 The LPI overall score reflects perceptions of a country's logistics based on six core dimensions: (i) efficiency of

customs clearance process, (ii) quality of trade- and transport-related infrastructure, (iii) ease of arranging competitively priced shipments, (iv) quality of logistics services, (v) ability to track and trace consignments, and (vi) frequency with which shipments reach the consignee within the scheduled time. Data are from the LPI surveys conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate the six core dimensions on a scale from 1 (worst) to 5 (best). The scores for the six areas are averaged across all respondents and aggregated to a single score using principal components analysis. The distribution of LPI scores is broken down into four categories: (i) logistics unfriendly (if score < 2.35), (ii) partial performers (if 2.35 < score < 2.85), (iii) consistent performers (if 2.85 < score < 3.35), and (iv) logistics friendly (if score > 3.35). Scores corresponding to the four categories are reflected in Figure 1.1 on the distribution of 2012 LPI scores, in the LPI 2012 Report. See also data.worldbank.org/indicator/LP.LPI.OVRL.XQ

8 The actions listed in this section reflect the language of Attachment 3 of Schedule 3 in the Loan Agreement signed

on 20 January 2013 between the Government of Bangladesh and ADB.

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1. Modern and Effective Customs Administration and Management

12. The government will have submitted to its Parliament proposed amendments to the Customs Act, 1969 to make it fully compliant with the General Annex of the Revised Kyoto Convention: (Tranche 2, Action 1: Compliance still in progress). With the support of ADB technical assistance (TA)9 and the International Finance Corporation (IFC), the National Board of Revenue (NBR) has drafted amendments to the Customs Act, 1969, to make it fully compliant with the General Annex of the RKC and the WTO TFA, which was agreed by the WTO member countries in December 2013. As the amendments affect over half of the provisions of the Customs Act, 1969, the Ministry of Law directed that a new draft Customs Act be prepared and submitted to the Parliament. On 15 September 2014, the cabinet of the Government of Bangladesh approved, in principle, the new draft Customs Act, 2014. The draft act is being reviewed by a high-level cabinet committee, which is chaired by the principal secretary to the Prime Minister. Thereafter, the draft act will be forwarded to the Ministry of Law for vetting prior to formal submission to the cabinet. The government is highly committed to finalizing the new Customs Act, as it is envisaged to serve as the Magna Carta of trade facilitation reforms in Bangladesh. It not only incorporates the provisions of the General Annex of the RKC, but also lays the ground to implement the required provisions of the WTO TFA. With the finalization of the new Customs Act, Bangladesh would be one of the first countries to put into law the provisions of the TFA. 13. While the government has assured ADB of its commitment to finalize the new Customs Act and to expedite the formal submission of the draft act to the Parliament, it could not give a definite assurance that the processes required for submission of the act to the Parliament (i.e., completion of the review by the high-level committee and the vetting by the Ministry of Law) will be completed in time to allow the second tranche release before the end of 2014. In the meantime, the government has indicated the need for ADB to disburse the second and final tranche of the loan proceeds by the end of 2014 to help provide the budget required to prepare for the implementation of key customs reforms provided for in the new Customs Act. With ADB and IFC support, the NBR is formulating an action plan to implement the General Annex provisions of the RKC, as well as the standard operating procedures (SOPs) for specific, high-priority provisions of the RKC, such as risk management, post-clearance audit, and physical inspection. ADB is of the view that the government will be able to submit the draft act to the Parliament no later than the first half of 2015, and that the new Customs Act will be in place soon thereafter. Given the cabinet’s approval, in principle, of the draft Customs Act and the other actions that the government is taking to put into action the reforms articulated in the General Annex of the RKC, ADB believes that the policy condition compliance is still in progress. 14. The National Board of Revenue will have completed a regulatory impact assessment of proposed amendments to the Customs Act and related legislation to make them fully compliant with the General Annex: (Tranche 2, Action 2: Complied with). With ADB assistance, the NBR has conducted a regulatory impact assessment (RIA) of the proposed amendments to the Customs Act and related legislation to make them fully compliant with the General Annex. The document supporting the report was submitted to ADB on 30 June 2014. The RIA concluded that the proposed amendments to the Customs Act will bring significant net benefits to the economy of Bangladesh in contrast to the “do nothing” alternative.

9 ADB. 2006. Development Partnership Program for South Asia. Manila (TA 6337-REG); and ADB. 2013. Supporting

Participation in the South Asia Subregional Economic Cooperation Trade Facilitation Program (Bangladesh). Manila (TA 8436-BAN).

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The impacts are expected to be economic and financial, as well as in terms of governance and public administration arrangements, administrative culture, and social conditions. The amendments to the Customs Act are expected to boost economic activity, introduce new practices in customs transactions, strengthen governance arrangements, and facilitate trade.

2. Streamlined and Transparent Trade Processes and Procedures

15. Based on the findings and recommendations of the action plan, the National Board of Revenue will have issued a directive to establish an authorized economic operators program: (Tranche 2, Action 3: Complied with). The NBR submitted a certified copy of the directive to establish an authorized economic operators (AEO) program on 30 June 2014. The draft Customs Act, 2014 includes a provision on the establishment of an AEO program—including the criteria for granting AEO status in line with the General Annex and Transitional Standard 3.32 of the RKC, simplified customs processes and formalities that AEO companies can take advantage of, and provisions to grant AEO status to overseas companies under mutual recognition arrangement schemes. ADB and the World Customs Organization (WCO) conducted a regional workshop on AEO on 27–31 May 2013 in Singapore,10 in which relevant officials from Bangladesh participated. They also organized a national workshop on AEO on 17–19 September 2013, in Cox’s Bazar, Bangladesh, in which over 50 stakeholders participated. An action plan on AEO implementation was prepared and finalized at this workshop. Seven officials from NBR also joined a study tour on AEO implementation in Kuala Lumpur, Malaysia, on 17–19 June 2014,11 hosted by Royal Malaysian Customs. 16. Based on the findings and recommendations of the action plan, the National Board of Revenue will have issued updated standard operating procedures on risk management, post-clearance audit, assessment, physical inspection, and non-intrusive inspection that are compliant with the SAFE Framework: (Tranche 2, Action 4: Complied with). With the assistance of ADB and IFC, the NBR has prepared the SOPs, and submitted certified copies to ADB on 30 June 2014. The NBR is undergoing a radical modernization to bring the customs procedures for imports, exports, and transshipment cargo into the 21st Century, ensuring the new procedures are compliant with the WCO’s SAFE Framework. The SOPs on risk management, post-clearance audit, assessment, physical inspection, and non-intrusive inspection serve as the basis for the new procedures; and provide the first step to ensuring a modern and efficient system that protects the security, economic, and social health of Bangladesh, while at the same time facilitating the movement of international trade.

3. Improved Services and Information for Private Sector Traders and Investors, including Women Entrepreneurs

17. The National Board of Revenue will have completed a World Customs Organization time release study covering Chittagong Port and Benapole Land Port operations to serve as benchmarks for a performance monitoring system: (Tranche 2, Action 5: Complied with). With the assistance of the IFC, the NBR conducted time release studies (TRS) for Chittagong Port and Benapole Land Port, and submitted certified copies to ADB on 18 June 2014 and 6 July 2014. NBR officials who participated in a regional workshop organized by the WCO and supported by ADB in Kashiwa, Japan, on 4–8 March 2013, took part in conducting the TRS. In the conduct of the TRS, component parts of the clearance procedures

10

Financed by ADB TA 6337-REG: Support for South Asia Regional Economic Cooperation (Subproject 27). Manila. 11

Financed by ADB TA 7491-REG: Support for South Asia Regional Economic Cooperation: Major Change in TA. Manila.

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were identified and measured to identify where improvements could be carried out. The TRS aimed at assessing existing procedures and identifying constraints, and proposing measures to reduce the time required for the release of goods. The key findings show that the average time taken in Chittagong for release of cargo at import is 11 days, 9 hours, and 45 minutes; and for export is 4 days, 22 hours, and 38 minutes. In Benapole, the average time for release of all types of import cargo is 5 days, 18 hours, and 24 minutes. The average release time for export cargo is 4 days, 5 hours, and 26 minutes. These times were considered high, and need to be reduced to facilitate legitimate trade and improve the competitiveness of Bangladesh. 18. The National Board of Revenue will have launched its operations of the Automated System for Customs Data World with a pilot national single window program, which will include the National Board of Revenue and, at a minimum, the Ministry of Shipping: (Tranche 2, Action 6: Complied with). The NBR submitted to ADB on 18 June 2014 a certified copy of a memorandum on the implementation of the Automated System for Customs Data (ASYCUDA) World and establishment of a pilot NSW. The memorandum describes the successful installation and implementation of ASYCUDA World in Customs House Chittagong (CHC), which began in September 2013. All import–export consignments of CHC are now being processed by ASYCUDA World software, which is connected with the Container Terminal Management System (CTMS) of Chittagong Port under the Ministry of Shipping. The successful functioning of the link-up between ASYCUDA World and the CTMS has laid the foundation for the pilot NSW.

19. The Ministry of Commerce will have established a trade portal with online access for the processing and issuance of import and export registration certificates that is linked to the national single window program: (Tranche 2, Action 7: Substantially complied with). With the support of the IFC, the Ministry of Commerce has undertaken the activities for the implementation of the National Trade Portal (NTP) and the Online Licensing Module (OLM). The NTP is a website where traders can obtain all the information on regulatory requirements, relevant procedures, laws, and regulations, as well as other information needed to import or export goods. Information is aggregated and integrated from all ministries and agencies involved in trade regulation. 12 The Ministry of Commerce has formed one implementation committee and a steering committee for NTP and OLM implementation. The IFC has engaged a local firm to help the Ministry of Commerce on the effective use of the NTP, and its management and maintenance. The prototype for automating the import and export registration certificates, which will pilot the interface with the NSW, has been prepared, and was demonstrated in the office of the chief controller of import and export on 16 September 2014. To date, the NTP is not yet accessible to the general public. However, it is expected that by December 2014, the NTP, including the automation of import and export registration certificates

will be fully operational. The documentary evidence for this policy action—certified copies of

auto-generated import and export registration certificates—was submitted to ADB on 13 November 2014.

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The trade portal is designed to have all regulatory trade-related information for import, export, and transit, including (i) all laws, regulations, and other legal instruments; (ii) all license and permit requirements, prohibitions, restrictions, technical standards, and sanitary and phytosanitary measures (non-tariff measures); (iii) all commodity classifications and applicable tariffs and taxes; (iv) all procedures for license and permit application and clearance; and (v) copies of all forms. In addition to within-country information, the portal will also contain market access information. The database is designed to allow for a logical structuring of information, and all information will be indexed, cross-referenced, and dynamically presented.

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IV. TECHNICAL ASSISTANCE GRANTS

20. Three ongoing ADB TA grants have supported the implementation of various policy actions under the second tranche of the program.13 Subproject 28 of TA 6337-REG: Capacity Building for SASEC Trade Facilitation complements the STFP through improving trade capacity and regulations and procedures toward a more efficient trading environment in SASEC. Under TA 8436-BAN, a consultant assisted in the conduct of RIA of the proposed amendments to the Customs Act and related legislation, in compliance with the RKC General Annex. The same TA project financed the holding of a national workshop on trade facilitation, participated in by NBR officials and development partners (Dhaka, 8 October 2014) to exchange information on trade facilitation initiatives and chart future priorities for collaboration, such as AEO, ASYCUDA World, post-clearance audit, and the NSW. Meanwhile, TA 8435-REG will contribute to reinforcing gains from policy actions to realize Tranche 2 conditions by supporting enhanced cooperation and better interface between and among SASEC customs agencies and contributing to streamlined and transparent trade processes and procedures.

V. PROGRAM ASSURANCES AND MONITORING FRAMEWORK

21. Appendix 4 shows that 6 out of 7 program assurances provided by the Government of Bangladesh have been fully complied with. The remaining assurance that ADB be informed of policy discussions with other development partners that may have implications for the implementation of STFP has been complied with and is being implemented on an ongoing basis. The progress of the STFP monitoring framework is on track, as shown in Appendix 3. A key completed output is the accession of Bangladesh to the RKC in September 2012.

VI. ASSESSMENT

22. The Government of Bangladesh has fully complied with 5 of 7 policy actions, substantially complied with for one policy action, and compliance still in progress for one policy action under the second tranche of the STFP, more than one year before the loan completion date. This is a strong indication of the country’s commitment to pursuing key trade facilitation reforms for expanded trade and improved competitiveness.

23. The policy actions have laid the legal, institutional, and technical ground for comprehensive trade facilitation reforms in Bangladesh. The implementation of these reform measures depends critically on the continued commitment by the government, and strategic assistance from development partners, in building the related institutional and human capacities. Coordination among development partners involved in supporting trade facilitation in Bangladesh is also important to maximize the impact of their assistance and to avoid duplication. 24. The new Customs Act will help bring customs administration and management in Bangladesh in line with international good practices, which are prescribed in the RKC and the SAFE Framework. RKC standards are associated with faster release of goods, reduced trade costs, increased revenues, higher foreign direct investments, and economic competitiveness. The SAFE Framework will help boost the security of the international supply chain and protect legitimate trade. The accession of Bangladesh to the RKC and the cabinet approval of the draft

13

ADB. 2006. Development Partnership Program for South Asia. Manila (TA 6337-REG); ADB. 2013. Technical Assistance for Trade Facilitation in South Asia. Manila (TA 8435-REG); and ADB. 2013. Supporting Participation in the South Asia Subregional Economic Cooperation Trade Facilitation Program (Bangladesh). Manila (TA 8436-BAN).

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Customs Act, which will allow ratification of Bangladesh’s accession to the RKC, are key outputs of the STFP. The government envisages that by mid-2016, key measures in line with the General Annex of the RKC and the SAFE Framework will have been put in place. The SOPs in the five areas of customs procedures, which were formulated in compliance with Policy Action 4, and the establishment of the AEO, which was in compliance with Policy Action 3, will operationalize the RKC and the SAFE Framework.

25. Bangladesh has laid the foundations for streamlined and transparent trade processes and procedures with the pilot implementation of ASYCUDA World and the NSW. This is expected to result in lower costs and fewer delays due to efficient transactions, greater harmonization of forms, and electronic exchange between and among traders, customs, and other relevant government agencies. The government intends to expand the NSW to other customs houses and land customs stations through a planned rollout of ASYCUDA World with the assistance of ADB and other development partners. Other government agencies and related entities are expected to take part in the NSW. The government, however, needs to urgently develop the capacity to run ASYCUDA World and operationalize the NSW.

26. The anticipated launch of the NTP and its link to ASYCUDA World would be a major milestone in improving services and information to private sector traders and investors, including women entrepreneurs. The main goal of a trade portal is to facilitate trade by providing all stakeholders with comprehensive and transparent regulatory information so that they can discharge their obligations efficiently and speedily. The main benefit to businesses comes from greater transparency and reduced time to discover information. The trade portal should lead to less likelihood of rejection because of incorrect procedures, while also clarifying the interpretation of laws and regulations, yielding tangible cost savings for traders. From a government perspective, benefits come in the form of reduced time spent dealing with inquiries, and potentially greater compliance by better informed traders.

27. Recognizing the government’s strong commitment to trade facilitation reforms, a follow-up program is recommended to sustain and deepen the thrust of the reforms and to help operationalize the various measures that were laid down in the STFP. The proposed follow-up program will be formulated in line with the new Customs Act, the establishment of the NSW, and the other key elements of the SASEC Trade Facilitation Strategic Framework.

VII. RECOMMENDATION

28. In view of the significant progress made in the implementation of the South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Program as evidenced by the compliance with second tranche policy actions 2 through 6, substantially complied with second tranche Policy Action 7, and compliance still in progress of second tranche Policy Action 1, I recommend that the Board approve, on a no-objection basis, the waiver of compliance with second tranche Policy Action 1 for the reasons described in paragraphs 12 and 13 above. Subject to such approval, on the basis of the approval of the Board for the provision of a loan in various currencies equivalent to SDR13,579,000 to Bangladesh for the SASEC Trade Facilitation Program, I will authorize release of the second tranche in the amount of SDR6,466,000.

Takehiko Nakao President

20 November 2014

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POLICY MATRIX (BANGLADESH)

Objective: The program seeks to increase trade, including intraregional trade, of South Asia Subregional Economic Cooperation (SASEC) countries by making import and export processes more efficient, transparent, secure, and service-oriented.

Objectives

First Tranche Policy Actions (Quarter 1 2012)

Second Tranche Policy Actions (18 months after first tranche release)

1. Modern and effective customs administration and management

1. The government will have submitted to the World Customs Organization (WCO) Bangladesh’s instrument of accession to the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention). Document required: Official copy of Bangladesh’s instrument of accession submitted to the WCO

1. The government will have submitted to its Parliament proposed amendments to the Customs Act, 1969 to make it fully compliant with the General Annex of the Revised Kyoto Convention. Document required: Certified copy of the government’s submission to parliament of the proposed amendments to the Customs Act

2. The National Board of Revenue (NBR) will have completed a regulatory impact assessment (RIA) of proposed amendments to the Customs Act and related legislation to make them fully compliant with the General Annex. Document required: Certified copy of NBR’s RIA

2. Streamlined and transparent trade processes and procedures

2. The NBR will have finalized an action plan with respect to Bangladesh’s compliance with the Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) of the WCO, which will include (i) a gap analysis to identify the steps required to ensure compliance with the SAFE Framework; (ii) recommendations on the priority areas for reforms; and (iii) a time-bound implementation plan to effect the priority reforms. Document required: Certified copy of NBR’s action plan

3. Based on the findings and recommendations of the action plan, the NBR will have issued a directive to establish an authorized economic operators (AEO) program. Document required: Certified copy of NBR’s order establishing the AEO program

4. Based on the findings and recommendations of the action plan, the NBR will have issued updated standard operating procedures on risk management, post-clearance audit, assessment, physical inspection, and

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Objectives

First Tranche Policy Actions (Quarter 1 2012)

Second Tranche Policy Actions (18 months after first tranche release)

non-intrusive inspection that are compliant with the SAFE Framework. Document required: Certified copy of standard operating procedures

3. Improved

services and information for private sector traders and investors, including women entrepreneurs

3. The NBR will have finalized as-is and to-be analyses for the development of an electronic national single window as part of its customs management systems upgrade to the Automated System for Customs Data (ASYCUDA) World. Document required: NBR certified copy of as-is and to-be analyses for the national single window

5. The NBR will have completed a WCO time release study (TRS) covering Chittagong Port and Benapole Land Port operations to serve as benchmarks for a performance monitoring system. Documents required: Certified copy of TRS report

6. The NBR will have launched its operations of ASYCUDA World with a pilot national single window program that will include the NBR and, at a minimum, the Ministry of Shipping. Document required: Certified copy of the NBR’s administrative order for the establishment of ASYCUDA World and the pilot national single window program

7. The Ministry of Commerce will have established a trade portal with online access for the processing and issuance of import and export registration certificates that is linked to the national single window program. Documents required: Certified copies of auto-generated import and export registration certificates


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STATUS OF SECOND TRANCHE POLICY ACTIONS (BANGLADESH)

Objective: To increase trade, including intraregional trade, of South Asia Subregional Economic Cooperation (SASEC) countries by bringing about more efficient, transparent, secure and service-oriented processing of cross-border trade of SASEC countries.

Objectives and Policy Actions

2nd Tranche Policy Actions (18 months after Tranche 1)

Achievement Status

A. Customs Modernization Objective: To foster modern and effective customs administration/management

Customs Act 1. The government will have submitted to its Parliament proposed amendments to the Customs Act, 1969 to make it fully compliant with the General Annex of the Revised Kyoto Convention. Document required: Certified copy of government’s submission to Parliament

Compliance still in progress. The National Board of Revenue (NBR) has exerted considerable efforts to complete amendments to the Customs Act of 1969; however, a new customs act was drafted since the changes were substantial, and given the need for further review by the Ministry of Law and translation of the act, the deadline was moved from 30 June to 30 September 2014. On 15 September 2014, the new draft Customs Act, 2014 was approved by the cabinet in principle, but had to undergo further review by a cabinet committee and then further vetting by the Legislative Division of the Ministry of Law. While the government has assured the Asian Development Bank (ADB) of its commitment to finalizing the new Customs Act to expedite the formal submission of the draft act to the Parliament, it could not give a definite assurance that the processes required for submission of the act to the Parliament (i.e., completion of the review by the high-level committee and the vetting by the Ministry of Law) will be completed in time to allow the second tranche release before the end of 2014.

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Achievement Status

The Ministry of Finance submitted a letter requesting partial compliance with File No. 09.521.024.01.00.058.2013-188 on 16 October 2014.

Regulatory impact assessment 2. The NBR will have completed a regulatory impact assessment (RIA) of proposed amendments to the Customs Act and related legislation to make them fully compliant with the General Annex. Document required: Certified copy of the NBR’s RIA

Complied with. The NBR submitted the RIA report on the Current Customs Regulatory Framework on 30 June 2014 with File No. 1(2) Shulka: International Trade/ADB/2011 (Part-1)/211.

B. Trade Processes and Procedures Objective: To achieve more streamlined and transparent trade processes and procedures

Authorized economic operators (AEO) program

3. Based on the findings and recommendations of the action plan, the NBR will have issued a directive to establish an AEO program.

Document required: Certified copy of the NBR’s order establishing the AEO program

Complied with. The NBR submitted a copy of the memorandum introducing the Green Channel System (titled AEO for Trade Facilitation) on 30 June 2014 with File No. 1(2) Shulka: International Trade/ADB/2011 (Part-1)/211.

Standard operating procedures (SOPs)

4. Based on the findings and recommendations of the action plan, the NBR will have issued updated SOPs on risk management, post-clearance audit, assessment, physical inspection, and non-intrusive inspection that are compliant with the SAFE Framework.

Document required: Certified copy of SOPs

Complied with. The NBR submitted the SOP on 30 June 2014 with File No. 1(2) Shulka: International Trade/ ADB/2011 (Part-1)/211.


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Achievement Status

C. Services and Information to Traders and Investors Objective: To improve services and information for private sector traders and investors, including women entrepreneurs

Time release study (TRS) 5. The NBR will have completed a World Customs Organization TRS covering Chittagong Port and Benapole Land Port operations to serve as benchmarks for a performance monitoring system. Documents required: Certified copy of TRS report

Complied with. The NBR has submitted the TRS Report of Customs House Chittagong and Chittagong Port on 18 June 2014 with File No. 1(30) Customs, International Trade Agreements/Time Release Study/2013/199. The NBR submitted the TRS Report of Benapole Customs House on 6 July 2014 with File No. 1(30) Shulka: International Trade/Time Release Study/2013/221(1).

Automated System for Customs Data (ASYCUDA) World

6. The NBR will have launched its operations of ASYCUDA World with a pilot national single window program that will include the NBR and, at a minimum, the Ministry of Shipping. Document required: Certified copy of the NBR’s administrative order for the establishment of ASYCUDA World and the pilot national single window program

Complied with. The NBR submitted a copy of the memorandum on implementation of ASYCUDA World software and establishment of the pilot national single window on 30 June 2014 with File No. 1(2) Shulka: International Trade/ADB/2011 (Part-1)/211.

Trade portal (with online access for processing of import and export registration certificates)

7. The Ministry of Commerce will have established a trade portal with online access for the processing and issuance of import and export registration certificates that is linked to the national single window program. Documents required: Certified copies of auto-generated import and export registration certificates

Substantially complied with. Activities are ongoing for the implementation of the trade portal and online licensing module. The NBR submitted certified copies of auto-generated import and export registration certificates. Automation will be fully operational by December 2014.

16 Appendix 3

PROGRESS UNDER THE DESIGN AND MONITORING FRAMEWORK (BANGLADESH)

Design Summary Performance Targets and Indicators with

Baselines Progress as of September 2014

Impact

Increased trade, including intraregional trade, of SASEC countries

Intraregional trade increases to 7.5% by 2018 (2011 baseline: 6%)

Intraregional trade in SASEC increased by about 12.0% in 2013 (compared to the trade value in 2011).

Customs revenues in the subregion increase by at least 10% by 2018 (baseline: TBD)

TBD

Outcome

More efficient, transparent, secure and service-oriented processing of cross-border trade of SASEC countries

Border transits in Bangladesh for freight traffic improve by 15% by 2015 (baseline: results of 2013 time release study)

Transit time at Benapole Customs House TRS in April 2014: (i) From date and time of arrival

of truck at the border to date and time truck arrives at yard: 0 days, 0 hou0rs, and 29 minutes.

(ii) From truck exiting through exit gate to clearing and forwarding agent submitting file to checkpoint: 0 days, 0 hours, 37 minutes.

Minimum of 20% of shipments “green channeled” or not physically inspected by 2018 in Bangladesh (baseline: 100% inspection)

Based on the 2014 Logistics Performance Index of the World Bank, physical inspection of import shipments was 35%. Shipments subjected to multiple inspection—only about 7% were physically inspected

Outputs

1. Modern and effective Customs administration and/or management

Accession of Bangladesh to the Revised Kyoto Convention by 2015 (baseline: zero)

Accession to the RKC took place in September 2012, requiring Bangladesh to comply with the international standards as stated in the General Annex of the RKC. The following activities contribute toward full compliance with the General Annex: (i) ongoing review by a high-level

cabinet committee of the new draft Customs Act, 2014, which will incorporate the provisions of the General Annex of the RKC;

(ii) ongoing formulation of an action plan to implement the General Annex provisions of the RKC; and

(iii) completion of regulatory impact assessment of the proposed amendments to the Customs Act, which provided broad directions for implementing the General Annex provisions.

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Design Summary Performance Targets and Indicators with

Baselines Progress as of September 2014

Web-based customs management system launched in Bangladesh by 2015 (baseline: none)

ASYCUDA World was successfully installed in CHC, and all import and export consignments are now being processed, and connected to the Container Terminal Management System.

2. Streamlined and transparent trade processes and procedures

Combined 8 to 10 documents for exports and imports in Bangladesh by 2015 (2012 baseline: Total 14 documents for export and import)

Based on the results of the World Bank and IFC Doing Business 2014, the combined number of documents needed to export and import remained at 14, comprising 6 to export and 8 to import.

Pilot national single windows established in Bangladesh by 2015 (baseline: none)

Pilot NSW in CHC was successfully established with the installation and implementation of ASYCUDA World in CHC, in September 2013, which is connected to the Container Terminal Management System of Chittagong Port under the Ministry of Shipping.

3. Improved services and information for private sector traders and investors, including women entrepreneurs

Trade and market access information portals operational in Bangladesh, with links to sites of special interest to women entrepreneurs, by end 2015 (baseline: none)

The following activities were undertaken by the Ministry of Commerce for the implementation of the NTP and OLM: (i) formed one NTP

implementation committee and a steering committee for NTP and OLM implementation; and

(ii) prepared a prototype for automating import and export registration certificates, which will pilot the interface with the NSW; and demonstrated this in the office of chief controller of import and export.

Automation of import and export registration certificates will be fully operational by December 2014.

ASYCUDA = Automated System for Customs Data, CHC = Customs House Chittagong, IFC = International Finance Corporation, NSW = national single window, NTP = national trade portal, OLM = Online Licensing Module, RKC = Revised Kyoto Convention, SASEC = South Asia Subregional Economic Cooperation, TBD = to be determined, TRS = time release study.

.

18 Appendix 4

STATUS OF PROGRAM ASSURANCES (BANGLADESH)

SN Assurance Status of Compliance

1 The Recipient shall, within 60 days of the Effective Date, have established in the National Board of Revenue (NBR) the Program Management Unit (PMU) which shall be responsible for implementing the policy actions and other activities for the Program in coordination with Ministry of Commerce and Ministry of Shipping.

Fully complied with.

A PMU with a program coordinator and other necessary staff was established in the NBR on 27 February 2013. Subsequently, one more staff (first secretary, NBR) was attached to the PMU.

2 The Recipient shall, within 60 days of the Effective Date, have established the Program Steering Committee which shall be responsible for coordinating and monitoring the implementation of reforms under the Program.

Fully complied with and is being implemented on an ongoing basis.

A 10-member PSC was formed on 27 February 2013, with the chair of the NBR as chair, and representations from the ministries of commerce, shipping, industry, foreign affairs, and finance; and the ERD.

3 The Recipient shall ensure that the Program Steering Committee meets at least semiannually and, if needed, on an ad hoc basis to (i) monitor the progress of the Program; (ii) provide guidance and direction for Program implementation to NBR, MOC, MOS and other relevant ministries; and (iii) recommend adjustments or supplementary measures to facilitate and ensure timely implementation of the Program.


Since its formation, the PSC has so far met four times; and it has been (i) actively monitoring the progress of the program; (ii) providing necessary guidance and direction for the program implementation to all relevant ministries and agencies; and (iii) providing suggested adjustments or supplementary measures to ensure timely implementation of the program, including other trade facilitation activities in Bangladesh.

4 The Recipient shall ensure that (i) all policy actions adopted under the Program, as set out in the Policy Letter and Policy Matrix, continue to be in effect for the duration of the Program and subsequently; (ii) the reforms specified in the Policy Letter and Policy Matrix continue to be implemented in a phased and timely manner in accordance with the approved plans and orders issued pursuant to the Policy Matrix; and (iii) all of its obligations as stipulated in the Loan Agreement are carried out in a timely and efficient manner.


The Recipient had met all the first three tranche conditions within the scheduled time, and the tranche was released as scheduled. For the second tranche, out of 7 conditions, the Receipt has complied with 5 conditions, substantially complied with 1 condition, and compliance still in progress for 1 condition. It has also met with all other obligations in a timely and efficient manner.

5 The Recipient shall keep ADB informed of policy discussions with other multilateral and bilateral aid agencies that may have implications for the implementation of the Program and shall provide ADB with an opportunity to comment on any resulting policy proposals. The Recipient shall take into account ADB’s views before finalizing and implementing any such proposals.

Complied with and is being implemented on an ongoing basis.

Other development partners, including the IFC and USAID, participate in the PSC and coordination meetings. The last coordination meeting with other development partners took place on 8 October 2014 with the program coordinator and members, with the NBR as chair. In addition, the program officer regularly meets with other development partners during loan review missions.

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SN Assurance Status of Compliance

6 The Recipient shall ensure that the Counterpart Funds are used to finance the implementation of certain programs and activities consistent with the objectives of the Program, including (i) customs management systems upgrade to ASYCUDA World; (ii) development of the pilot national single window; and (iii) trade portal and related capacity building activities.


The government has invested about Tk300 million in counterpart funds for implementing ASYCUDA World, the national single window, and establishment of the trade portal. It has also been bearing all staff salary and office expenses of the PMU.

7 The Recipient shall (i) comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Program; and (ii) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.


The project is being implemented in a transparent manner and the Recipient extends all cooperation to ADB for satisfactory implementation of the Program.

ADB = Asian Development Bank, ASYCUDA = Automated System for Customs Data, ERD = Economic Relations Division, IFC = International Finance Corporation, MOC = Ministry of Commerce, MOS = Ministry of Shipping, NBR = National Board of Revenue, PMU = project management unit, PSC = program steering committee, USAID = United States Agency for International Development.

20 Appendix 5

BANGLADESH: KEY ECONOMIC INDICATORS

( ) = negative, GDP = gross domestic product, Tk = taka. Sources: Asian Development Bank. 2014. Asian Development Outlook 2014. Manila; Asian Development Bank. 2014. Asian Development Outlook Update 2014. Manila; Asian Development Bank. 2014. Key Indicators for Asia and the Pacific 2014. Manila.

Item 2010 2011 2012 2013 2014

A. Income and growth

1. GDP per capita (current $) 780 860 880 976 1,115

2. GDP growth (%, constant prices) 5.6 6.5 6.5 6.0 6.1

a. Agriculture 6.2 4.5 3.0 2.5 3.3

b. Industry 7.0 9.0 9.4 9.6 8.4

c. Services 5.5 6.2 6.6 5.5 5.8

B. Savings and investment (% of GDP, current prices)

1. Gross fixed capital formation 26.3 27.4 28.3 28.4 28.7

2. Gross domestic saving 20.8 20.6 21.2 22.0 23.4

C. Money and inflation (annual % change)

1. Consumer price index 6.8 10.9 8.7 6.8 7.4

2. Liquidity (M2) 22.4 21.3 17.4 16.7 17.0

3. Credit to private sector 24.2 25.8 19.7 10.9 12.3

D. Government finance (% of GDP)

1. Revenue and grants 9.9 10.4 11.2 11.3 12.0

2. Expenditure and lending 12.7 14.0 14.4 14.5 16.0

3. Overall fiscal surplus (deficit) (2.8) (3.6) (3.2) (3.3) (4.0)

E. Balance of payments

1. Merchandise trade balance (% of GDP) (4.5) (7.7) (7.0) (4.7) (3.9)

2. Current account balance (% of GDP) 3.2 (1.3) (0.3) 1.6 0.9

3. Merchandise export ($) growth (annual % change) 4.2 39.2 6.2 10.7 12.0

4. Merchandise import ($) growth (annual % change) 5.4 52.1 2.4 0.8 8.9

5. Overall balance of payments (% of GDP) 2.5 (0.5) 0.4 3.4 3.2

F. External payments indicators

1. Gross official reserves ($ million) 10,749.7 10,911.6 10,364.4 15,315.2 21,508.0

(in months of current year's imports of goods) 5.1 3.5 3.2 4.6 5.9 2. External debt service (% of exports of goods and services) 4.7 3.7 3.6 3.7 2.4

3. External debt (% of GDP) 17.6 17.2 16.6 14.9 13.6

G. Memorandum items

1. GDP (current prices, Tk billion) 7,975.4 9,158.3 10,552.0 11,989.2 13,509.2

2. Exchange rate (Tk/$, average) 69.2 71.2 79.1 79.9 77.7

3. Population (million) 147.8 149.7 151.6 153.7 155.8