Salman F Rahman, the private industry and investment adviser to the prime minister, highlighted coordination issues among the Export Processing Bureau (EPB), the National Board of Revenue (NBR), and the Bangladesh Bank as the cause of discrepancies in the country’s export data. He made this statement at a roundtable discussion titled “Digitalising International Trade in Bangladesh,” organized by the International Chamber of Commerce (ICC) at Hotel Sheraton.
Rahman explained that Bangladesh exports products in two ways. One method involves using back-to-back letters of credit (LCs) to import fabric and yarn, which are then processed and exported as finished goods, with the entire value being recorded as exports. The other method sees buyers supplying the fabric and yarn for free, with payments made solely for the cost and making (CMT) charges. Here, the EPB reports the full export value, which Rahman noted is accurate but causes discrepancies with the Bangladesh Bank.
“The EPB’s reporting of the full value while only CMT payments are received creates inconsistencies that need reconciliation with the Bangladesh Bank,” Rahman emphasized. He pointed out that the EPB had previously double-counted exports from Export Processing Zones (EPZs), once when exported from EPZs and again when shipped from factories. This issue has now been rectified to prevent future discrepancies.
AK Azad, vice president of the ICC and managing director of Ha-meem Group, underscored the need for accurate calculations by the EPB, which can be achieved through better coordination with Customs and the Bangladesh Bank.
This issue came to the forefront after it was revealed that export data contained a $10 billion overstatement, which the NBR corrected on July 2, addressing a longstanding problem. Exporters had been raising concerns over the unrealistic monthly export figures released by the EPB.
The roundtable was presided over by Mahbubur Rahman, president of ICC Bangladesh, and featured a keynote presentation by Pamela Mar, managing director of the Digital Standard Initiative (DSI) at ICC. Other notable attendees included Muhammad A (Rumee) Ali, chairman of ICC Bangladesh Banking Commission; Iftekhar Alam, regional head for South and South East Asia at the International Islamic Trade Finance Corporation (ITFC); Rupa Chanda, director of Trade, Investment, and Innovation Division at UNESCAP; and Edimon Ginting, country director for Bangladesh Resident Mission at the Asian Development Bank.
