FE Today Logo

Import delivery orders

CCCI urges govt to help prevent shipping agents from illogical charges

FE REPORT | February 23, 2024 00:00:00


Amid allegations of collecting unreasonable fees and charges by some shipping agents, Chittagong Chamber of Commerce and Industry (CCCI) has urged the government intervention to stop such unfair practices for ensuring a fair business environment.

The trade body put forward the demand in a recent letter to the commerce ministry for taking immediate measures to address the allegations that the shipping agents denied.

People in the shipping agents claimed none of them were imposing illogical charges. "It's utterly a false claim by the chamber," said a person involved in shipping business.

According to the sector insiders, some shipping agents have long been charging various fees or charges unreasonably from the importers under various names such as delivery order (DO) fee, washing charge, fire permission, DG charge, CMC charge, admin charge, etc.

They also claimed that non-payment of such 'irrational charges' creates various objections and impediments in the payment of the DO fee. In some cases, the importer has to pay huge demurrage charges to the port authority and shipping agents.

At one point, the DOs are collected from shipping agents by paying unfair charges to avoid the possibility of the export orders being cancelled due to production disruption due to delays in clearing imported inputs.

Taking advantage of this delicate situation, the shipping agents are collecting billions from the importers and exporters.

To solve emerging problems, the customs house, port authority and the CCCI exchange views to solve this problem, and the Chittagong customs issues various decisions from time to time to address the problems.

However, some shipping agents have been demanding high arbitrary charges and creating various undesirable situations while issuing DOs in favour of the C&F agents appointed by the importers.

Due to this problem, there is a disruption in the delivery of goods from the port, the CCCI mentioned in the letter.

At the same time, it said, the cost of doing business for importers is rising, which ultimately goes on the consumers.

Industrial producers are suffering financially due to the increased cost of imported raw materials, which is affecting industrial production, domestic market and exports, it added.

"Our image is being undermined by foreign buyers. If this situation continues, we fear that the overall business environment may be seriously affected due to disorder and mismanagement."

The collection of damages and various unreasonable charges determined by their appointed representatives and biased surveyors cannot be accepted, the trade body said, urging the government to take strict action against the shipping agents who are indulging in such harassment, hostages and exorbitant payments.

They also urged the government to take effective steps, including issuing official instructions regarding the issue.

[email protected]


Share if you like