business process analysis of export of jute hessian bags ... · statistics on export of jute...

Presented at the National Stakeholder Consultation Meeting Jointly Organized by

UN-ESCAP, and SATNET,

Dhaka, 14 March, 2013

Business Process Analysis of Export of Jute Hessian Bags in Bangladesh

ByMr. Mohammad Yunus

BPA of Export of Jute Hessian Bags in Bangladesh …

Statistics on Export of Jute Hessian Bags to IndiaBangladesh exported US$ 20-30 million worth of jute hessian bags to India during second half of the last decade.

However, the export earnings doubled to around US$ 60 million during each of the last three fiscal years.

While Jute hessian bags accounted for around 12 percent of total export of Bangladesh to India in recent years.

More than 1/3 of total export of jute hessian bags from Bangladesh is destined to India in recent years.


Profile of the firm interviewed on Export of Jute Hessian Bags to India

Data were collected from Akij Jute Mills Ltd under the conglomerate of the Akij Group with the Head Office in Dilkusha and factory at Noapara Jessore.

The mill is a 100% export oriented jute yarn firm catering to the need to carpet manufacturers and other end users of jute yarn all over the world.

In respect of production the mill is one of the largest in Bangladesh producing about 60,000 metric tons of jute yarn annually.

Use Case Diagram of Export of Jute Hessian Bag in Bangladesh

Business Process AnalysisPlace Order (Existing Process)

Yellow shaded activities are involved in order placing

Business Process AnalysisSAPTA Certificate(Existing Process)

Accept Refuse

Exporter Export Promotion Bureau

SAPTA Certificate

Prepare application for obtaining SAPTA certificate

Deposit specific fee

Verify the documents

Collect Certificate

Filled Up Application From

Trade License

Tin Certificate

VAT Certificate

Export License

Membership of concern Association

Issue Certificate

SAPTA Certificate

Business Process AnalysisCertificate of Origin(Existing Process)

C e r t i f i c a t e o f O r i g i n

D h a k a C h a m b e r o f C o m m e r c eE x p o r t e r

P r e p a r e a p p l i c a t i o n f o r o b t a i n i n g c e r t i f i c a te o f o r i g i n

D e p o s i t s p e c i f i c f e e

V e r i f y t h e d o c u m e n ts

F i l l e d U p A p p l i c a t i o n F r o m

T r a d e L i c e n s e

T i n C e r t i f i c a t e

V A T C e r t i f i c a t e

E x p o r t L i c e n s e

M e m b e r s h i p o f c o n c e r n A s s o c i a t i o n

P r o f o r m a I n v o i c e

P a c k i n g L i s t

A c c e p tR e f u s e

C o l l e c t C e r t i f i c a t e

I s s u e C e r t i f i c a t e

C e r t i f i c a te o f O r i g i n

D h a k a C h a m b e r o f C o m m e r c e a n d I n d u s t r i e s

Business Process AnalysisCustoms Declaration(Existing Process)

Pink shaded activities are involved in this step

Business Process AnalysisCustoms Clearance(Existing Process)

Yellow shaded activities are involved in this step

Business Process AnalysisClearance at Border Checkpoints(Existing Process)

Green shaded activities are involved in this step

Business Process AnalysisConfirmation by C&F Agent (Existing Process)

Shaded activities are involved in this step

Process AnalysisRedundancy of Documents

Problems:- Manual and time consuming submission and processing-

Duplication of documents for COO and SAPTA certificates

13

Tables and chart


A Few Key ObservationsMost of the processes involved are private sector initiatives while customs procedures and formalities at the port are conducted by the public sector.

Even though 15 individual documents are required to complete the export process of jute hessian bags from Bangladesh to India, the traders need to make multiple copies of them.

The ultimate result is that 60 copies are currently required to complete the whole process.

On an average 21 days are required to complete the process of one consignment.


A Few Key ObservationsOf these 21 days, around 90 percent of this time is required to prepare the documents and procure jute hessian bags.

Acceptance of scanned version could minimize this time requirement

The exporters have to file the applications manually with the DCCI and the EPB to receive COO and SAPTA certificates

Facilities for electronically filling these applications and consequent prompt actions by these two authorities may cut down time to only one day


A Few Key ObservationsSimilar set of documents are required for customs declaration, customs inspection and clearance, and for crossing border checkpoints.

Should these three agencies coordinate among themselves, only one set would suffice and would drastically reduce the process costs

Further, instead of manually submitting these documents, one can submit them electronically.

While formal costs amount to US$ 228 per consignment, the informal is about US$ 58 (Table 8).

Thank You for Your Patience!

BPA of Export of Jute Hessian Bags in Bangladesh…