Bangladesh’s Path to Digital Trade: A Bold Push Toward Cross-Border Paperless Transformation by 2030

Bangladesh’s progress toward a fully digital trade system is detailed in a recent ESCAP and ADB report. Highlighting advancements and ongoing challenges, the report outlines a roadmap to achieve seamless, cross-border paperless trade by 2030, with plans for technical, legal, and capacity-building improvements.

Bangladesh Advances Toward Paperless Trade in a Digital-First Push

The “Update of the Readiness Assessment for Cross-Border Paperless Trade: Bangladesh,” a report co-published by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Asian Development Bank (ADB), highlights Bangladesh’s ambitious move to digitize its cross-border trade processes. In a bid to streamline trade, boost economic efficiency, and support regional development goals, the government is committed to a phased implementation of paperless trade by 2030. With an eye on fostering smoother, technology-driven trade, this report updates an initial 2019 assessment, mapping significant advancements and identifying critical areas where improvements are still needed.

Setting the Stage for Digital Trade

In 2020, Bangladesh took a critical step by ratifying the Framework Agreement on Facilitation of Cross-Border Paperless Trade (CPTA). The goal? To cut down on cumbersome paper documentation, aligning with the 2030 Agenda for Sustainable Development by increasing efficiency and transparency in trade. The report details how, since this commitment, the country has made strides toward digitizing trade operations, though the journey remains complex and layered with technical and legal challenges.

Technical Readiness: Progress and Gaps

One of the main advancements highlighted in the report is the establishment of the Bangladesh Single Window (BSW), designed to centralize trade processes and foster easier compliance for traders. The BSW, bolstered by the Automated System for Customs Data (ASYCUDA), represents a major leap forward in trade automation. Additionally, significant upgrades in ICT infrastructure, including fiber-optic connectivity across districts and secure data exchange networks, have been essential for a more connected Bangladesh.

However, automation varies significantly across different governmental agencies. While some entities are fully digitized, others still rely on manual processing, which limits the overall effectiveness of a paperless system. Recognizing these gaps, the government has set 2030 as the target to bring all relevant agencies into the digital fold, allowing for seamless trade across borders.

Legal Readiness: Building a Supportive Framework

Bangladesh has also made essential legal updates, including amendments to the Customs Act and Evidence Act, which now support digital transactions and recognize electronic evidence. Yet, the legal framework still lacks some critical elements needed to fully support cross-border paperless trade. For example, the country is in the process of drafting a data protection act, which is expected to provide much-needed guidelines on privacy and data security, aligning with global standards.

To facilitate secure and standardized digital transactions, the report suggests further alignment with international conventions, such as those from the United Nations Commission on International Trade Law (UNCITRAL). This alignment would ensure that Bangladesh’s legal provisions on electronic signatures, data protection, and digital liability mirror those of its trading partners, smoothing the path for cross-border cooperation.

Addressing Challenges and Paving the Way Forward

The report identifies key areas for improvement, with recommendations centered on technical enhancements, legal reforms, and capacity-building efforts.

Technical Enhancements: To achieve full automation across all trade-related government agencies, it is essential to implement advanced public key infrastructure (PKI) and digital security measures. Additionally, ensuring interoperability between systems will be vital for secure and reliable cross-border data exchanges.

Legal Reforms: Aligning national laws with international standards is critical for Bangladesh to establish a solid digital trade environment. The report advises the government to prioritize liability rules and set up service-level agreements (SLAs) and memoranda of understanding (MOUs) that protect data integrity and promote mutual trust among trade partners.

Capacity-Building Initiatives: As digital processes gain traction, it’s vital to educate stakeholders—especially within the private sector—about the benefits and requirements of paperless trade. Awareness programs and training sessions are recommended to help businesses adapt and thrive in the digital-first trade environment.

Action Plan: Goals and Timelines

To maintain momentum, the report outlines a detailed action plan with defined timelines and responsibilities. Key players, including the Ministry of Commerce and the National Board of Revenue, are set to lead Bangladesh’s digital trade transition, with the BSW project earmarked for completion by 2027. Legislative reforms are also prioritized for the next two years, paving the way for a comprehensive, paperless trade system by the 2030 target date.

The journey to paperless trade for Bangladesh is filled with opportunities and challenges. While there is significant progress to celebrate, this report emphasizes that sustained efforts and strategic partnerships will be essential to achieving a fully digital trade ecosystem that is secure, efficient, and ready to meet the demands of global trade.

The “Update of the Readiness Assessment for Cross-Border Paperless Trade: Bangladesh,” published by ESCAP and ADB, provides a robust roadmap, underscoring the transformative potential of a paperless trade system and the strategic role Bangladesh can play within the broader Asia-Pacific region as it progresses toward a fully digitalized future.