Living together of Bodi Alam and ASYCUDA

http://www.observerbd.com/details.php?id=36216

M S Siddiqui
Publish Date : 2014-08-17, Publish Time : 00:00, View Count: 11 -570819 seconds ago
Automated System for Customs Data (ASYCUDA)-World is a software
programme to facilitate customs administrations and traders to handle most
of their transactions- from customs declarations to cargo manifests and
transit documents- via internet. The latest version -ASYCUDA World is
single window for all stakeholders for all services. The window allows
parties involved in trade and transportation to lodge standardized
information and documents with single entry points to fulfil all import,
export, and transit related regulatory requirements from the office of
stakeholders without being physically present at the customs house.
Today, ASYCUDA is the core component of comprehensive integrated
customs information systems in most of the countries around the world. The
main objective of the programme is to support countries to achieve a global aim - facilitation of trade
by strengthening the customs administrations' operational capacity to carry out their fiscal and
control missions through the implementation of modern and reliable systems.

The system has nice publication and easy access to information through online concerning trade
regulations which would greatly help traders both import and export. This could include the
establishment of single window enquiry points with information on trade regulations and timely
notification of new trade regulations.

In the processing of imports and exports, customs first takes account of the goods entering or leaving
the country. The transporter generally reports these goods. Then, through a detailed customs
declaration, importers, exporters, or their agents request the customs authority of their choice eg,
imports for consumption on the domestic market, temporary placement under conditional relief
arrangements, export, or re-export. Goods are released by customs when applicable duties have been
paid and import or export requirements have been satisfied. It would ensure not only revenue
collection but also hassle-free services for stakeholders including passage of goods which is also very
important. It makes a strong move towards paperless e-governance system in international trade.

The system is used to lower the transaction cost and time, increase efficiency, transparency and
ensure better data management in international trade. The capabilities of the ASYCUDA World
System specifically in areas of declaration entry and workflows, concession management, manifest
entry and workflow, warehousing, post clearance audit, valuation, risk management external clients,
reporting, application structure, database structure and the hardware and software requirements to
adequately run and maintain the system.

ASYCUDA was created in the early 80's. Its operation was started in 1994 at Dhaka Customs House
with ASYCUDA Version 2. Chittagong Customs House started using it in 1995. Now the System is
being used by all the Custom Houses in Bangladesh. ASYCUDA World is another step forward to
comply with the conditions of World Trade Organisation (WTO) and World Customs Organisation
(WCO) to fully automate the country's customs system.
A wide area network needs to be established with the system for bringing all stakeholders under one
computerised system, including customs, port authority, customs agents, shippers, traders and banks
for working without physically meeting each others. One of the important port users is the C&F
agents and they are unable to submit all the documents online and submitting manually to the
customs offices for signature of officials. The unlocking of Bill of entry require unlocking manually.
Importers cannot pay customs duty online. Customs cannot monitor the movement of bonded goods.
There is mandatory physical presence of agents for certifying of containers.

Customs Valuation is one of the important steps in the overall customs clearance process. A customs
valuation system that is arbitrary and opaque can be harmful in many ways. Firstly, it can have
adverse effect on government revenues. Secondly, lack of transparency and discretionary powers to
arbitrarily fixation of customs value can increase potential for corrupt practices. Further, it can delay
the clearances of goods, disrupt the supply chains and thereby impede the flow of international trade,
ultimately hurting the economic growth. The assessment of valuation for tax purpose is a debatable
issue in Bangladesh. It is almost at the discretion of customs officials. They do not accept transaction
value and manipulation is random in assessing the tax.

An OECD (2005) study found that many countries still charge high ad valorem fees without ceilings
for various purposes and services. A stricter definition of how these fees should be calculated and
what constitutes a valid "customs service" would further reduce trade transaction costs. According to
GATT Article VIII, customs fees and charges on imports should be limited in amount to the
approximate cost to the services rendered.

In customs houses, any import clearance requires to get approval following eleven steps of customs
departments instead of one stop service facility. In case of physical verification there are seventeen
steps to follow. In all the steps has rule of seal and signature of customs officials. All these steps
mean meeting the officials and make the payment for the "services" both official fees and more.
The Transparency International Bangladesh (TIB) report titled "Chittagong Port and Custom House
Import-Export Automation Process: Challenges for Good Governance and Finding out Ways"
showed around 60 to 70 people are employed by customs officers and they are known as 'Bodi Alam'
or 'Faltu'. They act as brokers to transact the money that illegally changes hands throughout the
import-export process. These Bodi Alams are so important to the customs officials that they also
know and use the passwords of the customs officials' computers that pose great threat to the security
of the automated system.

The study found that despite the introduction of automated systems, custom officers were still using
manual signatures and seals in a bid to avail illegal money from businessmen and organizations,
while the related wings were still not online. The customs houses are not at all paperless and all steps
of activities require approval with manual signatures of relevant authorities. All stakes holders are
not yet bring under automatic network for submission of relevant documents. The port users have no
choice to let the matter settled by Bodi Alam against bribe fixed by Bodi Alams and their bosses.
There is a global concerned of excessive charge of various services rendered in customs and port and
also corruptions. The port users in Bangladesh have to pay unofficial charges along with all official
charges including the payments for the Bodi Alams, the bribe collection agents of customs officials,
for legitimate services. The stakeholders are bound to meet the customs officials or their Bodi Alams
defying important reform of working without meeting the customs department officials.

Customs department is not willing to use the automated system and like to keep their private
employees to facilitate the corruption agenda. Automation is a powerful tool to facilitate trade but it
is not an objective in itself. Automation only makes sense if it serves as a tool to support
implementation of modern customs management practices. Bangladesh cannot achieve trade
facilitation and fair computation of tax to achieve optimum collection of customs duty and create
level playing field for the economic activities with co-existence of Bodi Alam and modified and
ineffective ASYCUDA. Both Bodi Alam and ASYCUDA cannot exist together.

The writer is a legal economist. He can be reached at shah@banglachemical.com
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