Cross-Border Digital Commerce Policy Awaits Final Approval

The much-anticipated Cross-Border Digital Commerce Policy 2024, aimed at simplifying the import and export of goods between Bangladesh and other countries through digital platforms, is currently at a standstill. Although the policy promises to align Bangladesh’s digital commerce framework with global standards, its progress remains stalled as it awaits the approval of the Commerce Advisor. Once approved by the advisor, the draft will be sent to the Cabinet Division for final endorsement.

A review of the draft reveals several progressive initiatives, including provisions to integrate internationally accepted payment systems with the country’s existing financial infrastructure to facilitate cross-border payments. A cross-border escrow service will be introduced in coordination with the Bangladesh Bank to ensure secure transactions. The policy also proposes mechanisms to facilitate the repatriation of export earnings and the payment of import expenses for registered digital commerce enterprises. Additionally, incentives are planned for bringing foreign earnings into the country.

In terms of operational transparency, import invoices will require the inclusion of relevant marketplace or digital platform names alongside the buyer’s information. The Bangladesh Bank will issue necessary guidelines in line with the Foreign Exchange Regulation Act of 1947. By streamlining import and export processes, the policy is expected to enable businesses to engage in trade based on specific needs and orders, minimizing waste and ensuring the efficient use of foreign currency. Moreover, the framework will reduce reliance on bulk imports and exports, offering greater flexibility for enterprises to capitalize on foreign market opportunities.

The policy also emphasizes the establishment of a well-designed tax system, fostering business growth while increasing government revenue. This will maintain transparency throughout the process, ensuring that the government has accurate data on public demand for foreign products. Such insights will support strategic efforts to bolster local manufacturers to meet domestic market needs.

To address complexities in cross-border payments and trade through digital commerce, the draft policy recommends forming a central coordination committee. The committee will comprise representatives from the Ministry of Commerce, the National Board of Revenue (NBR), the Department of Posts and Telecommunications, the Information and Communication Technology (ICT) Division, the Bangladesh Bank, the Bangladesh Telecommunication Regulatory Commission (BTRC), the Bangladesh Financial Intelligence Unit (BFIU), the e-Commerce Association of Bangladesh (e-CAB), and the Bangladesh Association of Software and Information Services (BASIS). The policy explicitly prohibits transactions involving banned goods, online gambling, and betting. It also offers various support measures for small and medium enterprises (SMEs), including simplified export policies, guidelines for small parcel exports, financial incentives for digital commerce exports, policy support for establishing processing centers and warehouses domestically and internationally, assistance for drop-shipping services, creation of digital commerce export zones near ports, and training programs for small entrepreneurs.

Industry experts have expressed optimism about the policy’s potential to unlock new opportunities in cross-border digital commerce. A.H.M. Hasinul Quddus, Chief Corporate Affairs Officer of Daraz Bangladesh, highlighted that the policy would be a significant first step toward simplifying cross-border digital commerce and making it entrepreneur-friendly. “This policy won’t solve everything immediately, but it will pave the way for other regulatory bodies, such as the Bangladesh Bank for payment regulations and the NBR for tax matters, to develop supportive rules,” said Quddus. He further emphasized that Daraz could previously deliver products directly from Chinese suppliers to Bangladeshi customers through its cross-border service. However, this service is currently suspended due to payment challenges with Chinese suppliers. Quddus added that the policy would similarly empower Bangladeshi SMEs to export products and receive payments more efficiently.

According to Md. Sayed Ali, Deputy Secretary of the Central Digital Commerce Cell under the Ministry of Commerce, the draft policy was initially scheduled for finalization in January but faced delays. It was forwarded to the Commerce Advisor’s office in mid-January. “Once we receive approval from the advisor, the draft will be submitted to the Cabinet Division for final endorsement. We are optimistic that the policy will be finalized within this February,” said Sayed Ali. He also noted that since stakeholders have already provided input during the draft preparation phase, no significant complications are expected.

Industry representatives continue to urge the government to expedite the approval process, emphasizing the policy’s potential to revolutionize cross-border digital commerce in Bangladesh. Given its wide-ranging implications for economic efficiency, business growth, and data-driven policymaking, experts see it as a timely government initiative that requires swift approval and implementation for maximum positive impact.