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Presented at the National Stakeholder Consultation Meeting Jointly Organized by
UN-ESCAP, and SATNET,
Dhaka, 14 March, 2013
Business Process Analysis of Export of Jute Hessian Bags in Bangladesh
ByMr. Mohammad Yunus
BPA of Export of Jute Hessian Bags in Bangladesh …
Statistics on Export of Jute Hessian Bags to IndiaBangladesh exported US$ 20-30 million worth of jute hessian bags to India during second half of the last decade.
However, the export earnings doubled to around US$ 60 million during each of the last three fiscal years.
While Jute hessian bags accounted for around 12 percent of total export of Bangladesh to India in recent years.
More than 1/3 of total export of jute hessian bags from Bangladesh is destined to India in recent years.
BPA of Export of Jute Hessian Bags in Bangladesh …
Profile of the firm interviewed on Export of Jute Hessian Bags to India
Data were collected from Akij Jute Mills Ltd under the conglomerate of the Akij Group with the Head Office in Dilkusha and factory at Noapara Jessore.
The mill is a 100% export oriented jute yarn firm catering to the need to carpet manufacturers and other end users of jute yarn all over the world.
In respect of production the mill is one of the largest in Bangladesh producing about 60,000 metric tons of jute yarn annually.
Business Process AnalysisPlace Order (Existing Process)
Yellow shaded activities are involved in order placing
Business Process AnalysisSAPTA Certificate(Existing Process)
Accept Refuse
Exporter Export Promotion Bureau
SAPTA Certificate
Prepare application for obtaining SAPTA certificate
Deposit specific fee
Verify the documents
Collect Certificate
Filled Up Application From
Trade License
Tin Certificate
VAT Certificate
Export License
Membership of concern Association
Issue Certificate
SAPTA Certificate
Business Process AnalysisCertificate of Origin(Existing Process)
C e r t i f i c a t e o f O r i g i n
D h a k a C h a m b e r o f C o m m e r c eE x p o r t e r
P r e p a r e a p p l i c a t i o n f o r o b t a i n i n g c e r t i f i c a te o f o r i g i n
D e p o s i t s p e c i f i c f e e
V e r i f y t h e d o c u m e n ts
F i l l e d U p A p p l i c a t i o n F r o m
T r a d e L i c e n s e
T i n C e r t i f i c a t e
V A T C e r t i f i c a t e
E x p o r t L i c e n s e
M e m b e r s h i p o f c o n c e r n A s s o c i a t i o n
P r o f o r m a I n v o i c e
P a c k i n g L i s t
A c c e p tR e f u s e
C o l l e c t C e r t i f i c a t e
I s s u e C e r t i f i c a t e
C e r t i f i c a te o f O r i g i n
D h a k a C h a m b e r o f C o m m e r c e a n d I n d u s t r i e s
Business Process AnalysisCustoms Declaration(Existing Process)
Pink shaded activities are involved in this step
Business Process AnalysisCustoms Clearance(Existing Process)
Yellow shaded activities are involved in this step
Business Process AnalysisClearance at Border Checkpoints(Existing Process)
Green shaded activities are involved in this step
Business Process AnalysisConfirmation by C&F Agent (Existing Process)
Shaded activities are involved in this step
Process AnalysisRedundancy of Documents
Problems:- Manual and time consuming submission and processing-
Duplication of documents for COO and SAPTA certificates
BPA of Export of Jute Hessian Bags in Bangladesh …
A Few Key ObservationsMost of the processes involved are private sector initiatives while customs procedures and formalities at the port are conducted by the public sector.
Even though 15 individual documents are required to complete the export process of jute hessian bags from Bangladesh to India, the traders need to make multiple copies of them.
The ultimate result is that 60 copies are currently required to complete the whole process.
On an average 21 days are required to complete the process of one consignment.
BPA of Export of Jute Hessian Bags in Bangladesh …
A Few Key ObservationsOf these 21 days, around 90 percent of this time is required to prepare the documents and procure jute hessian bags.
Acceptance of scanned version could minimize this time requirement
The exporters have to file the applications manually with the DCCI and the EPB to receive COO and SAPTA certificates
Facilities for electronically filling these applications and consequent prompt actions by these two authorities may cut down time to only one day
BPA of Export of Jute Hessian Bags in Bangladesh …
A Few Key ObservationsSimilar set of documents are required for customs declaration, customs inspection and clearance, and for crossing border checkpoints.
Should these three agencies coordinate among themselves, only one set would suffice and would drastically reduce the process costs
Further, instead of manually submitting these documents, one can submit them electronically.
While formal costs amount to US$ 228 per consignment, the informal is about US$ 58 (Table 8).
BPA of Export of Jute Hessian Bags in Bangladesh …
A Few Key ObservationsSimilar set of documents are required for customs declaration, customs inspection and clearance, and for crossing border checkpoints.
Should these three agencies coordinate among themselves, only one set would suffice and would drastically reduce the process costs
Further, instead of manually submitting these documents, one can submit them electronically.
While formal costs amount to US$ 228 per consignment, the informal is about US$ 58 (Table 8).