Committee for transit fees on dozen areas
A special committee formed in January on using Bangladesh territory by its neighbours for transportation of their goods has strongly recommended implementation of the transit facilities for India, Nepal and Bhutan within the tenure of the present government, officials said."Political will is a must for implementation of a complicated issue like transit," said the committee in its report, adding that political perspective of the two countries — India and Bangladesh — was never in favour of the transit.
The committee, headed by Tariff Commission Chairman Mojibur Rahman,submitted its report to Finance Minister AMA Muhith Tuesday, suggesting the government to impose fees for at least a dozen of areas for transportation of goods through road, rail and waterways of Bangladesh.
The areas included administrative, environmental, maintenance, sound pollution, accidents and damage of roads and railway networks for heavy vehicles.The committee, however, did not suggest specific rates and recommended offering "partial transit" in the first three years instead of "full-fledged transit", which must require use of Mogla Port, the country's second seaport.
Allowing transit facilities to India always drew sensitivities as a political section has been against allowing India to use Bangladesh territory on excuse that it would jeopardy the country's internal security.
The committee also suggested forming a special inspection team to ensure safety and security of the containers.
It suggested for further scrutiny of the facilities and demanding fees from the transit receiving countries to fix the rates to be imposed for carrying their goods.
On routes, it said those should be fixed through discussion among the countries.
Besides, the committee suggested scanning-free entry and exit of container cargos and establishment of a dedicated railway bridge along the Bangabandhu Multipurpose Bridge over the river Jamuna.Dhaka has agreed to allow transit facility to India during Prime Minister Sheikh Hasina's visit to New Delhi in January last year.
Mojibur Rahman told reporters at his office in the afternoon that they have submitted the report. He pointed out that still corrections were needed in some areas, which would be made in next one month. He, however, said that they tried their best to uphold the interest of the country.
Sources said a high-powered taskforce would be formed by the government in line with the recommendations made by the committee to examine the suggestions further. They said the Indian commerce secretary would visit Bangladesh this month to discuss issues relating to transit.
The special committee and its five-sub-committees were formed early this year to make recommendations on transit route, charge, traffic volume, investment and benefit as Bangladesh agreed to allow its neighbours to provide with transit facilities.
India has long been demanding the transit and transhipment through Bangladesh to carry good through its landlocked north-eastern states known as "Seven Sister". It refused to pay any duty saying that it is contrary to the international trade rules. It, however, agreed to pay the fees.
Indian High Commissioner to Bangladesh Rajeet Mitter, earlier this month, said India would certainly agree to pay the transit fees to be fixed by Bangladesh. He told a trade body meeting at the south-eastern port city of Chittagong that the fees should be rational. "Expensive transit fees might not bring desired benefits," he added.
Former finance adviser to the caretaker government Dr Mirza Azizul Islam said the transit fees should be reasonable for India, because most of their domestic trade would take place through the Bangladesh territory.
Research director of Bangladesh Institute of Development Studies (BIDS) KAS Murshid said Bangladesh should charge a reasonable transit fee especially from the close neighbour, India. He said that some local experts suggested not to charging transit fees from India on excuse of WTO rules. He added that WTO rules exempt countries from transit fees in cases of export and import trades through the territories of other countries, but not in cases of domestic trade.
Senior distinguished fellow of CPD Debapriya Bhattacharya said the environment cost and depreciation of Bangladesh infrastructure should also be included in the transit fees.
The committee suggested that Bangladesh should invest US$ 7 billion in next 10 years on infrastructure to facilitate transit. It forecast that the investment cost would be realised by 20 years depending on an efficient transit management body.
* Transit implementation during the tenure of the government
* A dozen of areas for fees identified
* Big cargo on rail and waterways profitable
* Scanning-free entry, exit of containers and must use
of Mongla Port
* Special body for inspection and safeguard of goods
* Dedicated railway bridge over the Jamuna
* Transport company having majority shares of Bangladesh
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