Dhaka, June 6 -- Customs valuation for the purpose of trade taxation remains a perennial problem, causes clearance delays, and is the "biggest" source of disputes and malfeasance at the ports. The current arbitrary customs valuation practice in Bangladesh must be terminated as soon as possible and move to World Trade Organization (WTO)-compliant customs valuation (WTO, GATT 1994), where" transaction value" is the primary basis for import taxation. This can only have improved revenue consequences, as the current practice gives scope for enormous leakage and has not proven to be an effective business-friendly mechanism. Resolving the valuation problem must be given highest priority.

The Policy Approach: Bangladesh, a signatory to WTO Custo...