Challenges to Import Trade Practices in Bangladesh
The importance of foreign trade is enormous for the financial development of Bangladesh as imports comprise a huge part of the countrys trade balance. However, import trade operations are beset with a myriad of hurdles including bureaucratic red tape, complicated customs formalities, insufficient port facilities, financial tightness and problems of corrupt practices (Rahman, 2020; Ahmed and Hossain, 2021). The research focuses on the examination and analysis of the critical barriers of the import procedures from the perspective of importers, custom authority and logistics expert in the country of Bangladesh. Adopting a positivist research approach, the research utilized judgmental sampling for gathering data from 100 respondents who were involved in importing activities. The theory base of this study was constructed after a critical examination of the current literature, concentrating on five main factors: bureaucratic complexity, customs requirements, financial issues, and port inefficiencies have a statistically significant negative impact on import trade, while corruption impact exerts an indirect influence (Chowdhury, 2023). The study offers meaningful insights for policymakers, trade authorities, and stakeholders aiming to streamline import procedures and foster sustainable trade development in Bangladesh.
Over the next 20 years, the economic environment of Bangladesh has experienced considerable changes, especially in international trade. Bangladesh, like various developing countries without abundant natural resources, has to rely on imports to meet consumer product and components for the industrial process. Import trade is always necessary to ensure security if the products involve stakeholders investments like machinery, raw materials, petroleum and chemicals, as well as food products Rahman and Sultana, (2021). Even given improvements in trade and infrastructure, many obstacles still exist in the country that will not enable seamless operations of import trade throughout the country (Islam and Ahmed, 2020). SMEs face numerous additional barriers than those faced by large organizations to go global and are experiencing the same issues (Dordas, 2024; Mahmud et al., 2021).
Global trade dynamics have been greatly impacted by the rapid advance of technology, digitization, and a series of international regulations to enhance cross-border trade (World Bank, 2020). Bangladeshs import sector, however, is lagging behind most of its regional competitors in adopting modern practices within the sector. There are still some major challenges to the operations of Bangladeshs import sector: bureaucratic bottlenecks, cumbersome documentation, port congestion, bribery, and a lack of digitization (Kabir, and Chowdhury, 2022). For example, Chattogram Port, through which approximately 90% of all international trade flows in Bangladesh, is still subject to port congestion, which results in frequent delays of cargo loading and unloading (Hasan et al., 2021).
The Gob recognizes the difficulties in meeting these regulations, and has taken a number of policy measures to serve as trade facilitators. The N.B.R. introduced an automated customs system. In addition, the implementation of an electronic data interchange by the government initiative "Digital Bangladesh" has contributed to the automation and minimized the local process (Siddique & Rahman, 2019). Traders have not been handed enough of these reform paragraphs to be able to act with confidence, and safe enforcement is hard to come by in any market right now. Recent studies, as reported in Haque and Jahan, (2023) taking a multi-disciplinary approach, and in the context of trade and tariff compliance, indicate that traders continue to face considerable barriers in effectively processing goods for clearance due to lack of efficient infrastructure, lack of skills and technical knowledge and differences in compliance enforcement. A substantial level of manual intervention in the import trade limit market in Bangladesh has been observed. WCO and WTO, 2013).6 Importers have to produce a range of documents (viz: L/C, invoice, packing list, certificate of origin, insurance document) and custom regulators have to verify the consistency of these documents (Islam et al., 2022). These are time consuming processes and have been reported to be avenues for corrupt practices. As reported earlier (2022a) in the work of Chowdhury and Sultana, "import documentation in Bangladesh is inconvenient and can lead to underhand payments and delays. -.-." all of which take time and end up being more expensive than anticipated.
The insufficient port infrastructure significantly affects the importation process. Ports in Bangladesh, particularly Chattogram and Mongla, are not growing quickly enough to handle increasing volumes of cargo. Capacity for containers is limited; cargo handling equipment is outdated; and roads and rail connections to ports are limited which lengthens delays (Alam and Karim, 2020). These infrastructure challenges limit the flow of trade and undermine the countrys global competitiveness.
Financial constraints can also present important challenges for importers. Import transactions are facilitated by Bangladeshs banking sector, including L/Cs and other trade finance. However, fluctuating foreign exchange rates, high interest rates, and rigid foreign exchange regulations can present barriers to importers, especially SMEs (Mahmud et al., 2021). There are added challenges in complying with international trade standards in addition to complying with international regulations about anti-money laundering (AML) and countering financing of terrorism (CFT) regulations (Rahman and Akter, 2023). The level of complexity of the regulations requires importers to follow more stringent documentation and verification processes.
The importance of " technology adoption" and facilitation engaged in import traders is vital to the contribution of digital platforms and automation of work processes in the import industry in Bangladesh with regards to imports and international trade as a whole because it would lead to less paperwork, better transparency, and quicker customs clearance (World Bank, 2020). While the process of technological and digital adaptation has begun, and imported trades adaptation has begun as initiated in this study, it has been slower than anticipated and many of the participants havent fully adopted technology or adapted to digital solutions regarding problems importing due to their technological and digital skills and with some stakeholders resisting change (Kabir and Chowdhury, 2022; Hasanova and Nurieva, 2024).
Regional trade agreements and global trade codes of conducts also have substantial impact on import practices for countries linked to the WTO. Membership with organizations like the WTO and agreements like the Trade Facilitation Agreement (TFA) requires reforms towards enhanced trade facilitation and removal of impediments (WTO, 2021). In addition, to align domestic laws to international levels would require significant development of policy alignment and institution building, and Bangladesh continues to deal with developing situations (Haque and Jahan, 2023).
Another serious consideration is the role of geopolitical and global economic dynamics in Bangladeshs import sector. Global supply chain interruptions, changes in trading policies, and economic sanctions could greatly affect Bangladeshs import challenges. For example, the COVID-19 pandemic revealed the weaknesses of global supply chains and resulted in delays and increases in prices unprecedented in their effects on import-driven industries in Bangladesh (Islam et al., 2022.). In conclusion, Bangladesh faces unique challenges to import trade practices that are complex and interrelated bureaucratic inefficiencies and processes, poor infrastructure, insufficient financial means, and slow technology adoption in most trade processes. These challenges to Bangladeshs import trade practices require the involvement from governments, investment firms, port authorities, and private sector participants. The research for this article and its key constraints to efficient trade practices is based on primary evidence of stakeholder perceptions and priorities about trade practices in Bangladesh. The research findings have wide practice implications for policy makers and an overall effort to enhance Bangladeshs trade facilitation framework and improve Bangladeshs economic competitiveness.
Import trade is fundamentally important in the economy of Bangladesh and it provides products and raw materials when they are not available locally. Import trade is vital for the economy of Bangladesh but the flow of import trading practices has faced numerous issues. Literature identifies a range of challenges that firms face in the importing of goods to Bangladesh such as inconsistency in bureaucracy, lack of proper infrastructure, unpredictable regulation, foreign exchange issues, and absent electronic systems associated with trade. Bureau-cratic inefficiency negatively affects Bangladeshs imports trade. Importing goods to Bangladesh is complicated since there are many documents and procedures involved. For example, importers have to submit as many as 30 documents alone with respect to import permits, customs declarations, and bank papers (Ahmed, 2018). This not only causes delays, but increased costs. In fact, the World Banks "Doing Business" report (2020) listed Bangladesh as having the longest time taken to fulfill import processes of any region. To clear goods through customs, traders are estimated to incur a cost of 168 hours, well above the regional average.
Another significant challenge is poor infrastructure, especially at the countrys flagship port Chattogram. This port handles about 92% of Bangladeshs import-export traffic but has many issues. Haque et al. (2019) report that congestion and outdated equipment hamper operations, which results in delays in unloading. Goods spend an average of over 11 days at the port waiting to get cleared, signi-ficantly longer than the global benchmark. Poor transport connections between the port and the industrial areas also makes it much more difficult to move the goods and lead to higher costs for firms and consumers. There is an unstable and unpredictable trade policy that importers confront. Rahman and Sultana, (2020) wrote that businesses are often confused by frequent changes to both import duties and tariffs. Importers do not always receive notice in advance and this can lead to losses for businesses. One more overriding issue is corruption. Some importers report being forced to pay bribes in order to expedite the imports process or customs clearance of their goods. Transparency International Bangladesh, (2022) also stated that corruption is still a prominent issue in trades transactions.
Furthermore, currency exchange issues have complicated importing. Uddin and Hossain, (2022) states that accessing foreign currency has been challenging or impossible to open Letters of Credit (LCs) - a crucial component of the importing procedure. Restrictions on currency exchange often get more severe in times of economic pressure, such as in 2022-2023, when the Bangladeshi Taka depreciated significantly relative to the US Dollar, increasing the cost of foreign goods and creating shortages of necessary goods. Yet another aspect hindering Bangladeshi import trade is the lack of digitalization. The government has made an effort to modernize the import process using the National Single Window (NSW) system, which is still not fully functional. Alam and Karim, (2021) argued that slow progress was due to inadequate infrastructure and lack of skilled workforce. The process relies solely on manual processes without the aid of digital tools to help expedite the process and mitigate inefficiencies.
Finally, there is weak coordination among the various agencies involved in importation. The Ministry of Commerce, Bangladesh Bank, National Board of Revenue (NBR), and custom are often not able to communicate often enough between them. This results in unnecessary duplication of work and increase the time. Siddique and Rahman, (2020) observed improved communication and an improved process can solve many of these problems.
Global disruptions such as the COVID-19 pandemic and Russia-Ukraine war has compounded the post-Colonial five- and six-decade import problems for Bangladeshi importers. The pandemic disrupted international supply chains causing substantial delays in shipments and the costs causing hardships on importers (Kabir & Jahan, 2021). Likewise, the ongoing war in Europe has led to escalating prices and availability of some major imports, such as wheat and fertilizer which have disrupted the price stability and availability along with the recent holiday restrictions on the imports that have also aggravated the importing system in Bangladesh.
In summary, there are challenges affecting the import trade sub-sector of Bangladeshs economy. Although many issues are hindering import trade in Bangladesh, such as administrative delay, infrastruc-ture adequacy, inconsistent policies that discriminate against imports, corruption, foreign exchange shortages, and the lack of digital modernization. While some reforms have been introduced, for example, as with the digital trade platform, the progress to enact the reforms has been slow. There challenges must be addressed with strong govern-ment-led incentives, better infrastructure, improved regulatory systems, and more digital leadership.
Hypothesis
Regulatory Barriers (RB)
Regulatory barriers are one of the most significant barriers to Bangladesh import trade regime as it can affect the effectiveness and trustworthiness of cross-border trade. Bureaucratic hurdles include long waits for regulatory processing, lack of harmonization of rules between countries, and random shifts in customs law. Inexperienced and inconsistent trade policies regarding tariff and license and customs duties, and the time consumed by importers, and delays due to approval processes or take-time clearance by the customs, due to over paperwork, multiple checks and bureaucratic approval system, that emerges as the issues that effects on time delays and increased cost as discovered by Rahman and Hasan, (2021). Karim et al. (2020) emphasize that the time to obtain permits and clear customs is much longer that what is necessary, because of the red-tape bottlenecks reported. With regard to customs clearance procedures, a sudden change in policy, reflecting for instance higher or new tariffs on imports, or an unanticipated blockage of an import flow disrupts trade and leads to a state of uncertainty for business (World Bank, 2020). Furthermore, the variation in the implementation of rules leads to non-uniform reactions or responses on analogous trade concerns. The inconsistency in policy and the poor application of regulation in execution have adverse consequences on several facets in respect to ease of doing business. As a result, the regulatory barrier continues to be an on-going obstacle for many importers to their competitive position and overall operational efficiency.
H1: Regulatory barriers have a negative impact on the efficiency of import trade practices in Bangladesh
This hypothesis holds that ineffective, inconsistent or bureaucratic regulatory frameworks are considerable impediments to the efficiency of the overall import process in Bangladesh.
Logistical Inefficiencies (LI)
Logistical inefficiencies in Bangladesh, including, but not exclusive to, port management, transport infrastructure and coordination of individuals and organizations engaged in importing/import activities, significantly restrict importers. Most of Bangladeshs imports are facilitated through Chattogram Port, which is notoriously congested, leading to lengthy cargo clearance times and increased demurrage costs (Ahmed et al., 2019). Coupled with cargo handling and infrastructure inefficiencies, delays at customs translate into delays in the overall efficiency of importing merchandise. Again, the authors note that, following the inadequacies of road and rail infrastructure in the country, the transportation associated with poor road conditions and sub-standard railways creates further delays in moving goods to their final destination after a delay at the port.
In addition, slow and uncoordinated systems (regulation, process and reporting) between departments (customs) or services (private logistics companies) or public services (ports) further restrict the flow of information, and consumption of both time and costs incurred for imports. Delays in local logistics add time to the import process and increase costs incurred by importers in meeting operational costs or absorbing expenses on supply chains.
H2: Logistical inefficiencies have a negative impact on the timely execution of import trade in Bangladesh
This supposition assumes that logistics deficiencies - port congestions, inadequacies in transportation, and poor cooperation across stakeholders - slows the timeliness and efficiency of the import process in Bangladesh.
Financial Barriers (FB)
Financial constraints notably shape the workings of import businesses in Bangladesh. Importers have several barriers to financing caused by banking institutions. One barrier is accessing foreign exchange which is likely limited by declining foreign exchange reserves in Bangladesh. Hossain, (2020) documented research suggesting that banks place criteria on Letters of Credit (LCs) limiting financing opportunities, especially for small and medium importers. In addition, reliance on short-term loans or financing, using high interest rates, plays a role in limiting liquidity for importers in Bangladesh (Asaduzzaman & Sultana, 2021). This becomes important when trade expenses can become unpredictable due to globalization and exchange rate adjustments. In addition, financial institutions frequently lack tailored products that suit the needs of importers, such as low-cost trade financing solutions, which leaves many businesses to rely on high-interest loans, increasing the financial burden (Hossain & Sultana, 2021). These financial constraints reduce the volume of imports, as many businesses find it difficult to maintain working capital or finance their transactions in a timely and cost-effective manner.
H3: Financial constraints have a negative effect on the quantity of import trade in Bangladesh
This theory posits that the financial constraints such as multiple exchange rate problems, high interest rates and the lack of trade finance options drive the importers financial constraints that impede the expansion of import trade.
Corruption and Bureaucracy (CB)
The issues of corruption and bureaucracy have long affected the efficiency and transparency of the import trading system in Bangladesh. According to Transparency International Bangladesh, (2023) corruption in customs and port authorities leads to informal payments and delays in the clearance of goods. Those delays are often due to bureaucracy in the form of technicalities like excessive paperwork and derogatory approval processes. Chowdhury and Mahmud, (2020) noted that importers commonly face bribery and hidden fees, which raises production costs for importers and, therefore, creates an unfair playing field for businesses. Corruption risk factors were greatly exacerbated by the lack of account-ability of bureaucratically protected government officials, and also by the weak safeguarding oversight of external regulators that would normally supervise the issue of baksheesh for clearing goods. Apart from areas of corruption and bureaucratic issues, there is also a nexus to inefficiency that is created again from business operators. The challenge for importers is that they have to abide by a very complex, opaque set of rules which often changes depending upon the port selected or by whatever government department the goods arrive in to (Karim et al., 2020). All of these inefficiencies place an increased financial and operational burden on businesses, thus subsequently discouraging them to pursue international trade altogether.
H4: Corruption and bureaucracy negatively affect trust and transparency in import trade practices in Bangladesh
This hypothesis suggests that corruption, combined with excessive bureaucracy in the import trade system, significantly diminishes trust in the process, increases operational costs, and undermines transparency.
Technology Adoption (TA)
Technological innovations can work wonders in streamlining the processes of import trade, particularly via improved customs clearance, processing of documents, and decreased transaction time. However, technology has been adopted slowly by trade practices in Bangladesh. Alam and Khatun, (2022) reported that many importers still use analogue manual processes for task completion, including physical paperwork and fax communications. Such resources incur delays and the risks of human error. Further, the digital readiness of trade process stakeholders does not reflect the speed of technological changes. Insufficient customs and loose enforcement of customs platforms, such as Electronic Data Interchange (EDI) systems, can have an impact on the efficiency of cross-border flows of trade. Hossain, and Ferdous, (2021) pointed out that the Bangladeshi government has started some digital change as a necessary prerequisite of the trade demands but the systems and even technological architecture did not win impetus for adoption. As a result, the industries were left dealing with the constraints and delays in supply chains, which fail to deliver the full extent of a digital answer in order to support the transparency, pace and affordability that technology can offer import trade procedure.
H5: Technology acceptance has a positive influence on enhancement of import trade in Bangladesh
This assumption states that the use of automated/the use of automated or technical solution for all works who operated import and export business house such as e-customs can bring out the higher efficiency, transparency and overall functioning to the import trade system of Bangladesh.
Research Design
This study employs a convergent mixedmethods design consisting of a quantitative and qualitative researcher approach. The justification for this approach is related to the complex and multidimensional aspects of import trade in Bangladesh, and this study seeks to offer empirical patterns along with contexts related to the current challenges faced by various stakeholders regarding the importation process through this converged approach. Quantitative data will be used to collect numerical data so that specific difficulties and how often or severe these difficulties are will be documented, while qualitative research will reveal what lies underneath the systemic barriers and political issues. The purpose of a convergent mixed-methods design is the opportunity to create triangulation that results in a fuller understanding, more valuable findings and richness in the context.
Population, Sampling Frame, and Sample Size
The target population for this study includes all actors actively engaged in the import trade sector in Bangladesh. This includes:
A non-probability judgmental sampling technique was used to deliberately select respondents based on their expertise, relevance to the topic, and practical experience in the import process. This method is deemed appropriate due to the exploratory nature of the study and the requirement for informed, experience-based responses.
Data collection
Data for this study has been gathered from both primary and secondary sources.
Primary Data Collection
a) Survey Questionnaire
A structured questionnaire was comprised following a comprehensive review of literature and expert suggestions. The survey includes:
Demographic Profile Questions (5 items): Age, gender, job type, years of experience, and business category
Challenge-Specific Questions (25 questions): Categorized into 6 sections (as outlined in Section 3.6)
(Addressed the following on a 5-point Likert scale
1= Strongly disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
The questionnaire was disseminated physically in trading places, as well as by Google Forms to meet importers active in digital format.
b) Key Informant Interviews (KII)
A total of 17 in-depth interviews were conducted with stakeholders such as
c) Focus Group Discussions (FGD)
One FGD was conducted at the Chattogram Chamber of Commerce, involving six participants with over 10 years of experience in the field of international trade. Discussions focused on systemic issues, customs delays, and suggestions for policy reform.
Secondary Data Collection
Secondary sources provided contextual and comparative data. These include:
Tools for Data Analysis
Quantitative Data Analysis
Survey responses were analyzed using SPSS 26. The following techniques were used:
Qualitative Data Analysis
Reliability and Validity
Reliability
Research Instruments and Key Variables
Table 1: List of Instruments and Variables.
Note: Outlines key research variables and instruments used to assess challenges in import trade, including regulatory, procedural, and logistical factors impacting trade operations.
Table 2: Respondent Demographics.
Note: Presents demographic details of 100 respondents, covering gender, region, years of experience, and business size, offering a broad perspective on participants in Bangladeshs import trade sector.
Table 3: Descriptive Statistics by Thematic Challenge Areas.
Note: Shows high severity across various import challenges, with corruption, customs delays, and policy instability ranking very high, indicating major obstacles in Bangladeshs current import trade environment.
Table 4: Item-Wise Analysis of Each Challenge Area.
Note: Analyzes challenges in trade regulation and policy, showing that frequent policy changes, unclear import bans, expensive license renewals, and poor communication of rules significantly impact importers operations in Bangladesh.
Table 5: Customs Procedures & Port Delays (CP).
Note: Highlights customs procedures and port delays, revealing that clearance delays, frequent inspections, poor coordination, and manual paperwork significantly hinder the efficiency of import trade in Bangladesh.
Table 6: Banking/LC Restrictions (BLC).
Note: Emphasizes banking and LC restrictions, highlighting unpredictable margin requirements, delays in LC opening, US Dollar shortages, and inconsistent LC processes across banks as key challenges.
Table 7: Transport, Logistics & Infrastructure (LTD).
Note: Highlights challenges in transport and logistics, including goods damage, port congestion, inadequate warehousing, and costly, unreliable inland transport, all contributing to operational inefficiencies.
Table 8: Corruption & Informal Practices (CIP).
Note: Underscores the prevalence of corruption and informal practices, including expected informal fees, discretionary power by customs officers, bribes, and brokers controlling service access, all hindering trade efficiency.
Table 9: Exchange Rate & Economic Instability (ERV).
Note: Highlights the economic challenges, including exchange rate instability, delayed LC approvals, inflation, and higher costs, all contributing to reduced import volume and squeezed profit margins.
Table 10: Factor Analysis (Principal Component Method).
Note: Identifies six major challenge dimensions through factor analysis, explaining 92.5% of total variance, with corruption, policy instability, and infrastructure issues emerging as the most significant.
Table 11: Correlation Matrix.
Note: Correlation is significant at the 0.01 level (p < 0.01). Interpretation: Strong relationships exist among all variables; for instance, customs delays (CP) are highly correlated with corruption (CIP) and banking inefficiencies (BLC).
Table 12: Qualitative Themes from Interview & FGD.
Note: This study captures the realities of the challenges importers are facing and highlights many systemic issues including policy uncertainty, informal payments, and digital weakness disrupting trading processes and financial viability in Bangladesh.
Summary of Key Findings
This chapter will analyses and explain the empirical material about, and try to interrelate and set these findings into the general frame of knowledge, both from an historical perspective as well as its relation to the broader context of the import trade realities in Bangladesh. These hardships have described the exporters problems in Bangladesh as being associated with the environment, regulations, and economics nature. Informal practices and corruption were, on average, the most serious threat to importers, according to the survey; other factors were also reported as threats. Second, the survey data overwhelmingly reader demonstrated the fact that importers made unofficial payments to facilitate import processes in ports and custom houses location. Therefore, the findings of the current study are consistent with prior research conducted by World Bank, (2018) and Transparency International, (2017) which were conducted at around the same time and identified corruption as a significant reason for trade value in Bangladesh. Corruption itself adds to the overall cost of doing business, and erodes the overall levels of transparency and accountability across trade it does not support the objectives of formal trade governance.
While corruption was cited overwhelmingly as an area of concern, regulatory unpredictability and inconsistent trade policies also emerged as important issues. Many of the importers mentioned they often hear about new policies informally, or even after they have gone into effect. This level of unpredictability leaves businesses to operate in a constant state of ambiguity which creates risks and issues with long-term planning, as the study findings show, correlate with research by Rahman et al. (2020) which recognized unpredictable trade regulations as an important barrier to smooth imports into Bangladesh. The issues this creates for the small and medium importers are particularly concerning as they do not have the capital flexibility to deal with rapid policy changes. In fact, as noted by focus group participants, they might only hear about new policies once they suffer delays or incur penalties - this demonstrates a gap in government to trader communication.
Financial constraints - specifically with regard to Letters of Credit (LCs) - were also noted as a key barrier. Importers noted that banks were inconsistent with Letters of Credit, usually citing dollar shortages or new caps from Bangladesh Bank as a reason for denying LCs. This inconsistency was particularly heightened during 2022-2023, when the country was experiencing a foreign exchange crisis. The results of this study confirm that delays associated with LCs, as well as high margin requirements, are causing serious disruptions to the flow of trade...many companies have been forced to either delay their imports altogether or reduce the number of products carried in order to minimize exposure to risks. This situation is not only a burden for companies but has a wider economic effect through supply shortages and rising prices.
In addition, a great deal of respondents also said that part of the inefficiencies in logistics and port management existed, in spite of the National Board of Revenue (NBR) and Ministry of Commerce digitization efforts has stated, importers were still finding it necessary to rely on some manual action to clear goods on time. The findings were consistent with previous Asian Development Bank reports on Chittagong Port struggles which indicate that Bangladesh has the highest port dwell time in Asia, and importers simply cannot function without intermediaries who use their own non-automated or manual connections to dont have to follow the "steps" that a mainly automated process has created. Several of the comments from focus group discussions indicated that while aspects of the infrastructure were gradually increasing and improving, it was the mismanagement and reliance on manual Labour that is originating in their administrative infrastructures that continues to be a bottleneck.
Another important concern that affected the participants was currency exchange rate volatility. The continued movement of the Bangladeshi Taka versus the US Dollar also proved extremely testing for importers making it difficult to price products, plan bulk shipments or enter contracts with suppliers for future imports. And this was compounded by the restrictions on foreign currency by the central bank, which has caused many to look for other ways, such as through informal – or dual exchange rate – markets. Thus, this result is consistent with the prediction of one of the premises of Keynesian trade theory; that exchange rate uncertainty imposes constraint on trade expansion of developing countries. Respondents also said they are now bringing in lower volumes of product but on a more frequent basis, which raises the costs to bring the product in by the unit and makes the process less efficient.
Maybe the most important takeaway from this study is the interconnectedness of these issues. Corruption facilitates delays at customs, which are compounded by inefficiencies in infrastructure. Changes to government policy create additional uncertainty, and when that uncertainty is coupled with changes in exchange rates, this becomes a spiraling cycle of risk and informality. The interrelations of the problems suggest that there is little that can be accomplished in isolation, is single policy initiatives are only going to be effective as a part of a complete and coordinated reform approach. One results of the study also showed that many of the issues, and chronic issues, had little to do with infrastructure or funding, were about poor governance and lack of enforcement.
To sum up, the challenges of importing trade practices in Bangladesh are both systemic and deeply embedded in the economic and institutional context of the country. The results of the surveys, interviews and focus group meetings, overall, illustrate an urgency for reforms in importing. Corruption, inconsistent banking regulation, policy unpredictability, and erratic infrastructure management are not isolated problems, they exist within a cycle that constrains the cultivation of formal trade practices and inhibits prospects to enter the importing space. In order for Bangladesh to be a more competitive option for the regional and global traders, broader issues must be tackled collectively while simultaneously emphasizing governance, financial transparency and strengthening institutional capacity.
This study highlights the persistent structural, bureaucratic, and financial barriers that hinder the smooth functioning of Bangladeshs import trade sector. Through a mixedmethod approach - survey data, interviews, and focus group discussions - it becomes evident that importers face chronic issues including corruption at ports and customs, delays and unpredictability in LC issuance, inadequate infrastructure, and frequent policy changes. These problems are further intensified by a volatile exchange rate environment and U.S. dollar shortages, particularly affecting small and medium-sized enterprises. The findings reveal that these challenges are deeply interconnected: inefficient port operations are not only due to outdated infrastructure but also linked to governance failures; similarly, delays in LC processing are rooted in both financial instability and policy inconsistency. Corruption emerges as a pervasive issue that complicates every layer of the import process, driving up informal payments and eroding business confidence.
The lack of coordination among banks, regulators, and trade authorities adds to the uncertainty, discouraging long-term planning and formal participation. This study underscores that isolated reforms will not suffice. A comprehensive, multi-stakeholder framework involving government agencies, financial institutions, trade bodies, and international partners is essential for lasting improvements. To ensure competitiveness in regional trade and protect foreign reserves, Bangladesh must prioritize transparency, reduce bureaucratic red tape, and modernize trade governance. Only through such coordinated action can the country unlock the full potential of its import trade and support sustainable economic growth.
The author gratefully acknowledges the valuable support and cooperation extended by all respondents who participated in the survey, interviews, and focus group discussions, including importers, customs officials, banking professionals, and logistics experts across Bangladesh. Special thanks are due to the colleagues at Sonali Bank PLC for their encouragement and logistical support during the data collection phase. The author also appreciates the constructive suggestions from peers and mentors, who helped improve the quality and depth of this research study.
The author declares that there are no known financial or personal conflicts of interest that could have influenced the outcomes or interpretations presented in this research.
UniversePG does not own the copyrights to Supplemental Material that may be linked to, or accessed through, an article. The authors have granted UniversePG a non-exclusive, worldwide license to publish the Supplemental Material files. Please contact the corresponding author directly for reuse.
Academic Editor
Dr. Liiza Gie, Head of the Department, Human Resources Management, Cape Peninsula University of Technology, Cape Town, South Africa
Principal Officer, Sadarghat Corporate Branch, Sonali Bank PLC, Dhaka, Bangladesh
Sarker MA. (2025). Challenges to import trade practices in Bangladesh. Can. J. Bus. Inf. Stud., 7(3), 402-416. https://doi.org/10.34104/cjbis.025.04020416