[ALOCHONA] Collection of transshipment fees from Indian cargoes suspended

Collection of transshipment fees from Indian cargoes suspended


The government has decided to suspend the levying of transit and transshipment fees on Indian transports using its territory following relentless diplomatic persuasion by India, an adviser said.

The country's revenue authority will be asked to postpone levying this kind of charges on Indian cargoes, pending a final decision, economic affairs adviser to the Prime Minister Dr Mashiur Rahman said."World practice and principles should be followed in imposing transshipment fees and the practice prior to joint communiqué declared in India will be applicable now as the government is scrutinising the issue," he said.

So far this year, the government imposed transit and transshipment fees at a rate of Tk 10,000 per container and Tk 1,000 per tonne for the bulk cargo in line with the Finance Act 2010.

In August, the National Board of Revenue collected about Tk 0.6 million as transshipment fees.

Finance minister AMA Muhith and foreign minister Dr Dipu Moni had earlier favoured such fees, saying New Delhi should pay the transshipment fees for using Bangladesh land or waterways.

Meanwhile, the authorities are holding two Indian vessels at Shekbaria in Bangladesh for the last three weeks as they did not pay the transshipment fees.

When asked, NBR chairman Dr Nasir Uddin Ahmed declined to make any comment.An NBR official said the board has sent a letter to the finance minister, seeking his directive and a decision on the thorny issue is expected by next week."If a reverse decision is taken on the transshipment fees, the previously collected Tk 0.6 million will have to be reimbursed," he feared.

A foreign ministry official has earlier said the government is expected to get maximum Tk 2.0 billion as transshipment fees when it is fully operational in 2015 but the Indian authorities are bargaining with the issue.

The central government of India spends billions of rupees as transportation subsidy for ferrying cargoes from the mainland to Northeastern part through the chicken neck, he said.

In 1972, Dhaka signed Protocol on Internal Water Transit and Trade (IWTT) with New Delhi under which Indian goods can be shipped to its northeastern territory through Bangladesh and the government never collected any fee.The protocol neither has any provision on transshipment fees nor it bars any party from imposing the same.

Earlier, India has sought tax waiver for transportation of over-dimensional consignments (ODC) using transit facilities of Bangladesh through Asuganj.

Indian High Commission in Bangladesh recently sent a letter to the Ministry of Foreign Affairs for taking necessary measure and conveying its content to other ministries for helping transportation of ODCs for Palatana project in Tripura.

http://www.thefinancialexpress-bd.com/more.php?news_id=115454&date=2010-10-23

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