The government has proposed incorporation of a new provision into the customs act to give legal backing to the money to be realised as 'cost' for transiting goods and vehicles through Bangladesh.
The National Board of Revenue (NBR) has included the provision titled 'cost of transit' in the Finance Bill 2016.
The proposed provision,"129A' reads: fees as cost of services for goods and vehicles in transit across Bangladesh to a foreign territory may be levied at such rates as the board may, by notification in the official gazette, prescribe".
Talking to the FE, a senior customs official said the provision will be applicable for offering different types of services on transit facilities under inland water protocol, Bangladesh-Bhutan-India-Nepal (BBIN) motor vehicle agreement or other types of agreement with India, Myanmar or other countries.
"The rates of the service charges will be determined through issuance of Statutory Regulatory Order (SRO) on a case-to-case basis," he said.
For use of transit, the users will have to submit guarantee or security for goods in transit, according to the Finance Bill. And such transit "shall be subject to the submission of a guarantee or security for goods in transit as a surety for customs duties and other taxes chargeable thereon," it says.
The customs official said no bank guarantee would be required by the Indian for transiting under the inland water protocol but it may be required for other countries.
The official said the cost of transit is not a transit fee as it would be collected against providing different services during use of transit facilities.
India has long requested regular transshipment and transit facility so that it can carry goods to its remote landlocked Northeastern states crossing over Bangladesh territory.
At the last Indo-Bangla shipping secretary-level meeting, held in New Delhi in November, the transit fee per tonne was decided at Tk 192.22. Of the amount, the NBR will collect Tk 130 per tonne as customs-related charges, the Road Transport and Highways Division will collect Tk 52.22 per tonne, and the Bangladesh Inland Water Transport Authority (BIWTA) will take Tk 10 a tonne as supervision charge.
The NBR will levy Tk 100 as security fee ((seal, lock), Tk 10 as document-processing charge and Tk 20 transshipment fees.
