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Sunday, October 24, 2010

Re: [ALOCHONA] Transit, transshipment fees



But economic adviser to the Prime Minister Dr Mashiur Rahman favours the withdrawal of fees and wrote a letter to the shipping minister to stop collecting the fees until "further decision."

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If we give this facility to our big neighbor India, fee should be a big motivator for Bangladesh. Without fee [ And assurance about our security concerns] why should Bangladesh allow India a "Transit"? Right now our roads are congested and can hardly handle our own cargoes. These roads and bridges needs to be "Upgraded" and India have to pay for these improvements.

Remember China does not use our bridges but recently gave us a very generous GRANT [ Never have to repay them] for our Padma bridge mega project. All of us know we badly need to upgrade our infrastructure immediately and India can help. It will be a truly win win proposition.



-----Original Message-----
From: Isha Khan <bdmailer@gmail.com>
Sent: Wed, Oct 13, 2010 7:59 am
Subject: [ALOCHONA] Transit, transshipment fees

 
Transit, transshipment fees -Foreign Office rejects India's waiver push


The Foreign Ministry continues to oppose India's insistence on waiver of transit and transshipment fees, saying Indian private sector already receives massive subsidies for transporting goods to the northeastern hinterlands.The ministry Monday drove home its message to the Indian High Commission officials and advised India's diplomats to lobby Bangladesh's National Board of Revenue (NBR) instead to seek the waiver.

The NBR has imposed transit and transshipment fee of Tk 10,000 per container and Tk 1,000 per tonne for bulk cargo.
"India should be prepared to pay a certain amount for using Bangladesh's land as corridor," a foreign ministry official said.

"The Indian central government subsidises its private sector for transporting goods to the northeastern part through the 'chicken neck' corridor," the official said, adding New Delhi can channel a part of that amount to ship goods through Bangladesh.

Bangladesh can earn an estimated Tk 1.0 to Tk 2.0 billion as transshipment fees and it is insignificant for Indians if they consider the broader economic benefits, he explained.Foreign minister Dr Dipu Moni and finance minister AMA Muhith supported the fees and both had earlier ruled out the waiver of transshipment fees, insisting those will be the country's income.

But economic adviser to the Prime Minister Dr Mashiur Rahman favours the withdrawal of fees and wrote a letter to the shipping minister to stop collecting the fees until "further decision."

Adding to the standoff, the customs authority has blocked the entry of two Indian ships carrying fly ash at the Bangladeshi border at Shekbaria as they didn't pay the transshipment fee. The ships destined for Assam were still not allowed to enter the Bangladesh territory.

Referring to the Protocol of Inland Water Trade and Transit (IWTT), the Foreign Ministry official defended the action, saying domestic laws will be applicable as cargoes entered the Bangladesh territory."In the agreement, it is not mentioned anywhere that transshipment and transit fees cannot be imposed," the official said.

The government signed the transshipment agreement in May to allow Indian goods to transship to Tripura through Ashuganj.According to the agreement, Ashuganj will be the second transshipment point and fifth port of call in Bangladesh, while India has declared Shilghat to be the port of call on the Indian side.

Sherpur in Sylhet was the first transshipment point under the 1972 protocol, but India never used the facility.Tripura border is only 49 kilometres from Ashuganj and the river port is navigable throughout the year.

The Indian authorities since '80s have demanded that Ashuganj become the second point and Bangladesh has agreed to the demand during the visit of Prime Minister Sheikh Hasina to India in January.The IWTT agreement stipulates that Narayanganj, Mongla, Khulna and Sirajganj are the port of calls in Bangladesh and Kolkata, Haldia, Pandu and Karimganj in India.
 
 


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