Draft licensing rules for freight forwarders soon

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Jasim Uddin Haroon
The draft licencing guidelines for the country's freight forwarders are likely to be issued shortly following acceptance by the stakeholders.
The draft was prepared by the National Board of Revenue (NBR) in consultations with the freight forwarders.
The freight forwarders, who represent consignees for export- and import-related cargoes, have been doing their businesses without licences.
Attempts to bring the freight forwarding business under a regulatory framework could not be materialised mainly due to the differences over licence fee and guarantee provision between the NBR and the freight forwarders.
The government in 2000 issued a statutory regulatory order (SRO) on the guidelines. But it failed to implement it despite amendments made to the guidelines in 2001.
Another set of guidelines for the freight forwarders was also issued by the NBR in June, 2006. This had sparked strong protest from the stakeholders, who filed at least two dozens of cases in the High Court challenging the SRO.
It is alleged that the freight forwarders used to charge between Tk Tk20,000 and Tk 30,000 for issuing no-objection certificate taking advantage of the absence of licensing system.
However, the NBR has sent detailed guidelines to the respective freight forwarding organisations Sunday last for issuing licences and doing the business in the country.
The NBR sent the draft copy to the freight forwarders as promised by the NBR in August this year.
The freight forwarders told the FE that the final draft for the freight forwarding business prepared by the NBR would be acceptable to them.
Acting president of International Freight Forwarders Association of Bangladesh (IFFAB) Badrul Huq Chowdhury told the FE Tuesday: "The guidelines are acceptable to us and we will instruct our solicitors to withdraw the cases filed against the SRO issued in 2006."
"We will approve the guidelines at our meeting to be held Thursday," Badrul added.
President of the Association of Cargo Agents of Bangladesh (ACB) Captain Saifur Rahman told the FE Tuesday that his organisation was reviewing the guidelines and inform the authorities concerned officially shortly about their position on the matter.
According to the final draft, local freight forwarders will require to submit Tk 300,000 as security money for receiving a licence.
In case of joint venture, paid-up capital worth Tk 5.0 million will be required for obtaining a licence and in such cases foreign companies should not own more than 49 per cent stake.
In case of 100 per cent foreign investment, Tk 10 million paid-up capital will be needed to get a licence.
Some Tk 5000 will be required during submission of application for freight forwarding licence and on approval Tk 50,000 will have to be paid as registration fee.
The renewal fee of licence in every two years will be Tk 10,000.
An arbitration clause also has been incorporated in the final draft.
A two-member arbitration board will be formed with representation from ports and freight forwarders.
The arbitration board will hear any complaint, especially on cargo losses, and give its decision within three working days, according to the final draft.