National Tariff Modernization and Trade Systems Integration
Project Overview
TRACE Consulting, in collaboration with AARC Ltd., is supporting the National Board of Revenue (NBR), Bangladesh, in implementing a major tariff modernization initiative under the Customs Modernization and Infrastructure Development Project of ACCESS Bangladesh Phase 1. The assignment provides specialized technical and policy advisory services to strengthen Bangladesh’s tariff framework and support the modernization of customs and trade policy.
The project supports the implementation of the National Tariff Policy 2023 by enhancing tariff predictability, rationalizing the duty and tax structure, addressing tariff anomalies and inverted duty structures, and aligning Bangladesh’s tariff regime with international customs and trade standards. It also contributes to broader national priorities, including export diversification, investment facilitation, industrial competitiveness, WTO compliance, and post-LDC graduation preparedness.
TRACE is providing technical expertise in tariff policy analysis, HS nomenclature modernization, customs valuation reform, revenue impact modelling, phased implementation planning, and the design of digital solutions to support advanced tariff analysis. The assignment also includes scoping interoperable technology solutions integrated with ASYCUDA, the National Single Window (NSW), and Automated Risk Management Systems (ARMS) to strengthen evidence-based tariff policy and customs decision-making.
Scope of Ongoing Services:
- Tariff Policy Analysis and Reform Planning: Providing technical advisory support for reviewing Bangladesh’s existing tariff regime, assessing policy gaps, and contributing to the formulation of a realistic and sequenced implementation plan for the National Tariff Policy 2023.
- Revenue Simulation and Scenario Analysis: Supporting the preparation of tariff reform scenario papers using analytical tools such as the World Bank’s Trade Reform Impact Simulation Tool (TRIST), WITS, and other relevant trade data platforms to assess impacts on revenue, trade flows, import prices, and competitiveness.
- HS Description Review and Tariff Classification Improvement: Reviewing HS descriptions in the Bangladesh Customs Tariff (BCT) to improve accuracy, specificity, and consistency with WCO HS nomenclature standards, while reducing generic descriptions and minimizing classification disputes.
- BCT and ASYCUDA World Alignment: Supporting the comparative review of Bangladesh Customs Tariff descriptions against ASYCUDA World tariff descriptions and providing technical inputs on corrective measures, mismatch resolution, and system-compatible harmonization.
- Duty-Tax Structure and Inverted Duty Analysis: Reviewing customs duties, supplementary duties, regulatory duties, VAT, and other para-tariff measures to identify anomalies, distortions, and inverted duty structures affecting domestic manufacturing, value addition, and export competitiveness.
- Customs Valuation Reform Support: Providing tariff policy perspectives on the review and implementation of the Customs Valuation Rules 2000, with a focus on transaction-value-based valuation consistent with Article VII of GATT and WTO Customs Valuation principles.
- Institutional Capacity Building: Supporting the development of training materials, capacity-building modules, and knowledge inputs for NBR and relevant stakeholders on tariff policy analysis, HS classification, tariff reform sequencing, TRIST, WITS, and customs valuation.
- Software Scoping and Digital Reform Support: Providing policy-alignment inputs for the scoping assessment and Software Requirements Specification (SRS) for ASYCUDA/NSW/ARMS-backed tariff analysis software, supporting future digital tariff management and evidence-based policy decision-making.
The targeted key outcomes are outlined below:
Key Outcomes
- Phased National Tariff Policy Implementation Roadmap: A practical, fiscally responsible, and administratively feasible multi-year roadmap to support the phased implementation of the National Tariff Policy and gradual rationalization of Bangladesh’s tariff protection structure.
- Modernized and More Precise HS Descriptions: Improved tariff descriptions aligned with WCO HS standards and ASYCUDA World requirements, contributing to greater classification certainty, reduced disputes, and improved customs administration.
- Evidence-Based Tariff Reform Scenarios: Scenario papers and analytical outputs to support informed decision-making on tariff rationalization, revenue implications, trade competitiveness, and industrial adjustment.
- Strengthened Customs Valuation Framework: Technical inputs to support more effective implementation of transaction-value-based customs valuation and reduce reliance on arbitrary or fictitious customs values.
- Enhanced Institutional Capacity within NBR: Strengthened internal capacity through SOPs, training materials, and advisory support, enabling NBR officials to regularly analyze, monitor, and update tariff policy implementation.
- Actionable BCT-ASYCUDA Mismatch Report: Identification of discrepancies between Bangladesh Customs Tariff descriptions and ASYCUDA World descriptions, supported by corrective measures and an implementation roadmap for harmonization.
- Digital Transformation Roadmap for Tariff Analysis: Policy-aligned scoping and SRS inputs for advanced tariff analysis software, supporting data-driven reform, system integration, and modern customs decision-making.
