Implementation of Customs Advance Ruling (AR) Facility as a Trade Facilitation Measure in Bangladesh: Prospect in Retrospect

Abstract

The WTO Trade Facilitation Agreement (TFA) and the WCO Revised Kyoto Convention (RKC)
have clearly prescribed their Members to implement Advance Ruling (AR) facilities for avoiding
disputes between the Customs authorities and trade communities. If the future disputes can be
treated before the arrival of imported or exportable goods at the borders, cross-border trade will
be facilitated reducing the cost and time of both the traders and customs. The developed
countries have been using the AR facilities for a long time to avoid future disputes, while the
developing countries are yet to initiate the journey in full swing. Because of the absence of AR,
the customs authorities of the developing countries are bogged down in dealing with the court
cases originated from the disputes at the borders. Again, the traders are facing unwanted hassles
at borders that increases time and cost of doing business. Bangladesh implemented Customs AR
on tariff classification in 2016. This article endeavors to examine the AR regime of Bangladesh.
In particular, it analyzed the context that prompted Bangladesh customs not to implementing AR
in its full scope i.e. for valuation, origin, duty drawback, etc. The limited interests of businesses
towards Customs AR are also explored in this study. The study finds that the traders are highly
benefited from AR. However, as the AR facilities are given only for classification, and there are
some other platforms for having remedy for classification, the facilities could not attract the
traders as it was expected.