Bangladesh is stepping up efforts to modernise its export policy, combining digital traceability initiatives with trade policy reforms as global buyers demand higher levels of transparency, compliance, and verified impact data across supply chains.
On Jan. 11, Aware™ Traceability Technology held a strategic dialogue with BUILD (Business Initiative Leading Development) under a national initiative to develop a traceability and Digital Product Passport (DPP) platform. The initiative is supported by GIZ, the Export Promotion Bureau (EPB), and the Ministry of Commerce, reflecting growing government interest in aligning Bangladesh’s export systems with emerging global standards.
The discussion examined how industry-tested traceability solutions can inform Bangladesh’s national DPP strategy. Key themes included data governance, interoperability between digital platforms, regulatory preparedness, and sector-specific priorities.
Participants also highlighted the need for effective coordination among public agencies, manufacturers, and brands to enable large-scale adoption across complex supply chains, particularly in the garments and textiles sector, which generates more than four-fifths of the country’s export earnings.
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Aware™ shared lessons from its work with manufacturers and global brands in Bangladesh and other sourcing markets, illustrating how verified, real-time supply chain data can help exporters meet evolving regulatory requirements in Europe and other major markets. With initiatives such as the European Union’s Digital Product Passport gaining momentum, exporters are increasingly expected to provide credible data on product origin, environmental footprint, and social impact.
Speakers at the meeting stressed that public–private collaboration will be essential to ensure Bangladesh remains competitive. Rather than viewing traceability as a compliance burden, participants framed it as a strategic investment that can protect market access, strengthen buyer confidence, and support higher-value exports built on trust and transparency.
The traceability dialogue followed a separate high-level discussion hosted by BUILD on Jan. 8, which focused on implementation challenges surrounding the newly issued Statutory Regulatory Order (SRO) 384/2025. The regulation aims to allow non-bonded and small-scale exporters to import raw materials duty-free, a move widely seen as critical for supporting small and medium enterprises and reducing over-reliance on a single export sector.
While industry representatives welcomed the intent of the SRO, they raised concerns that several provisions could limit its effectiveness. One key issue is the narrow sectoral scope, with the facility currently limited to eight sectors. Participants urged policymakers to expand coverage to encourage export diversification and support emerging industries.
Financing requirements also drew criticism. The rule mandates a 100% bank guarantee for duty-free imports, a condition that many small exporters say places significant pressure on working capital. Policy experts recommended introducing alternative financial instruments, such as sponsor guarantees or duty-suspension models similar to those used in Vietnam and other competing export economies.
Operational efficiency was another major focus. Participants called for full digital integration between the ASYCUDA customs system and the iVAS VAT platform to reduce paperwork, speed up clearance processes, and cut compliance costs. Without automation, exporters warned, the benefits of policy reform could be undermined by administrative delays.
Time constraints under the SRO were also flagged as unrealistic. The current nine-month deadline for completing exports after importing raw materials often fails to account for order delays and global market uncertainty. Experts suggested extending the timeframe to cover at least two tax periods, offering exporters greater flexibility to meet contractual obligations.
The dialogue brought together officials from the National Board of Revenue (NBR), the SME Foundation, and industry leaders from the furniture, agro-processing, leather and stainless steel sectors, highlighting the broad impact of the policy.
Mohammad Naziur Rahman Miah, First Secretary at the NBR, described SRO 384 as a “living document” that will be refined based on industry feedback. BUILD said it is preparing a detailed report for submission to the NBR to support evidence-based revisions.
“BUILD has taken full notes of today’s discussion. We are preparing a comprehensive report for the NBR to ensure these reforms empower our SMEs and reduce our dependency on a single export product,” said Ferdaus Ara Begum, chief executive officer of BUILD.
Together, the parallel push on digital traceability and trade facilitation signals a strategic shift in Bangladesh’s export approach. As international markets place greater emphasis on transparency and resilience, policymakers and industry stakeholders appear increasingly aligned on the need for smarter regulations and robust digital systems to sustain long-term export growth.
