The Government of Bangladesh has created the Cross-Border Digital Commerce Policy 2024 as a calculated step to improve the country’s integration into the international digital economy. This framework represents a major shift in the nation’s e-commerce environment by aiming to create globally recognised payment methods that will be connected to the current payment systems.
For all digital commerce businesses, including the crucial Ready-Made Garments (RMG) industry, which is a major contributor to Bangladesh’s GDP, the regulation is intended to simplify cross-border transactions. It has been suggested that a cross-border escrow service be introduced in collaboration with Bangladesh Bank to guarantee transaction security and dependability.
Special incentives will be offered for payments made overseas and returned to the nation as part of the export-boosting initiatives. This might have a big impact for the RMG industry by allowing clothing exporters to get paid on time and attracting foreign investment.
In order to streamline and clarify payment procedures, the policy also requires that the name of the related marketplace or digital platform be listed on invoices alongside the buyer’s name when importing goods or services. To facilitate these transactions, the Bangladesh Bank will publish guidelines in accordance with the Foreign Exchange Regulation Act of 1947.
A central coordination group made up of officials from different Government and business organisations, such as the Ministry of Commerce and the e-Commerce Association of Bangladesh, would be formed to address the challenges related to cross-border payments. It is anticipated that this cooperative strategy will help exporters in the RMG industry operate more smoothly.
Importantly, the policy forbids the sale of fake or inferior products, including those that don’t adhere to current import/export laws. The RMG industry, which has previously struggled with compliance standards, depends on this legal clarity to maintain quality.
To maintain legitimacy and trust in the marketplace, digital commerce organisations will need to get a Digital Business Identity (DBID) before they can engage in cross-border operations. To help cottage, micro, small, and medium-sized businesses export small parcels, policies will also be made simpler. This could help local RMG producers.
The Government intends to build processing facilities and warehouses both domestically and abroad, as well as create export zones specifically for digital commerce close to important ports, in order to increase export efficiency. The RMG industry will be further encouraged by these zones, which will function under the same advantages as current export zones.
The distribution paradigm for RMG items could be completely changed by the facilities for drop-shipping, or the direct delivery of goods from manufacturers to consumers. This could lower overhead costs and speed up delivery.
All things considered, Bangladesh’s Cross-Border Digital Commerce Policy 2024 is expected to strengthen the framework for digital trade and offer the RMG industry great chances to prosper in a cutthroat global marketplace while maintaining export quality and compliance.
