Establishing off-docks would now require following a slew of guidelines under a new policy made to discipline trade cargo handling at Bangladesh seaports by private container-depot operators.
Officials say under a strict guideline set forth in the policy no inland container depot (ICD) can be set up within 20 kilometres of a port perimeter.
Bangladesh Customs under the government's revenue authority has drafted the first-ever off-dock policy, titled 'Private inland container depots (ICD) and container freight station (CFS) policy-2021', with clear guidelines on the setting up of private container depots in ports and resolving problems facing the existing investors.
Sources say the new policy is directed at addressing trade facilitation in line with global trade patterns, as the private container-handling facilities have sprung up spontaneously so far.
The move came following the emergence of different complexities and inconsistencies between the rules of customs and of shipping ministry on establishing private ICD.
Operators of the ICDs allege several hassles following the inconsistencies between customs rules on establishment and operation of off-docks issued in 1998 and the policy on private ICD issued in 2016.
Talking to the FE, president of Bangladesh Inland Container Depots Association (BICDA) Nurul Qayyum Khan said the ministry of shipping asked the ICD operators twice to shift the ICDs beyond at least 20 kilometres of ports as per their policy.
However, customs rules allowed the investors to set up ICDs within 20 kms of a port, he added.
"It is not possible to shift billions of taka worth of investment from ports now due to policy inconsistencies of the government," he said.
Customs has allowed the private off-docks within 20 kms, he pointed out to show the dichotomy.
The restriction should not be imposed on the existing ICDs, he said.
"We have made our statement clear to the government and got positive signal in this regard," he added.
In a recent meeting, the customs authority agreed to impose the restrictions on construction of private ICD only for new ones, customs officials said.
The National Board of Revenue (NBR) held a meeting last Sunday with the ministries of commerce and shipping and other stakeholders to finalise the new rules.
Currently, there are some 19 ICDs around the Chattogram seaport handling all of the export goods and 38 types of import cargoes.
The BICDA president said the government pointed out ICDs as cause of traffic congestion in the port areas, which is "wrong".
"Daily at least 10,000 trucks enter the port. Narrow road and poor infrastructure are the main reason for congestion," he added.
According to the draft new policy, the off-docks have to be established in at least 15 acres of land now instead of earlier acreage of 15 bighas.
A senior customs official said the new policy has been aligned with the shipping ministry's off-dock policy to resolve inconsistencies.
The size of the CFS would have to be at least one-fifth of the ICD.
Off-docks would not be allowed to employ workers below the age of 18. They will also be required to follow the country's labour law 2006 in its amended form.
Only FCL import containers would be allowed to use off-docks and customs would not allow imported products through LCL containers to use the depots.
The customs official said the customs used to approve investment proposals for setting up off-dock under an order issued in 1998 with 25 conditions.
"There was no customs policy to encourage new investment, bring discipline in application process of investment, obtaining bond licence," he added.
The private ICDs are running activities under dual administration of customs and Chattogram Port Authority (CPA), he said.
The new policy has been drafted keeping a timeline up to 30 days for customs officials to dispose of application of investment.
He said the country needs more ICDs in keeping with a sharp increase in the number of import-export containers.
The draft policy incorporates evaluation process and provision of annual audit to ensure transparency in operations of off-docks, he added.
Approval for product handling would depend on performance of the ICDs after audit.
"The customs would impose mandatory provision of scanner installation if it allows any ICD to handle increased number of products," he said.
Secretary of the CPA Omar Faruk said the pressure on port could be eased with the setting up of new off-docks.
"We need more ICDs as all of the import-export products should gradually be handled by the off-docks as per international best practices," he added.
Earlier, the CPA had proposed that the NBR allow ICDs to handle 100 more import products, in addition to existing 38.
However, Secretary of the BICDA Ruhul Amin Sikder said the existing off-docks have the capacity to handle import-export cargoes up to next two years.
He said initially, no new investment in off-dock in Chattagram port is required on urgent basis.
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