Freight forwarders balk at enlistment rules

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FE Report
The Civil Aviation Authority (CAA) Monday issued a circular relating to air transport of goods amid sharp criticism from freight forwarders.
The country's freight forwarders said that the procedure for enlistment as air-freight forwarders with the CAA would not be possible for them to follow.
Syed Badrul Hoque, vice president of Bangladesh Freight Forwarders Association (BAFFA) said: "This is totally frustrating to us. The CAA circular will discourage business in the country."
He also said no freight forwarders would be able to comply with the procedure, saying: "This will create a fresh crisis in the air shipment, which handles nearly 10 per cent of the country's external trade."
According to the new procedure, the freight forwarders will have to submit evidence of nationality certificate and a no objection certificate (NOC) from local police station confirming that the applicants have no criminal records.
The circular also said: "The charges for enlistment for the first time shall be Tk 10,000 or as revised by the authorities (CAA) from time to time."
The circular reads: "Enlisted freight forwarders shall maintain a security deposit in the form of pay order favouring CAA. For fully foreign owned firms, the amount is Tk 200,000 and for partially foreign-owned firms it is Tk 100,000 and for Bangladeshi owned firms the amount is Tk 50,000."
The circular said: "Application in writing for the renewal of enlistment shall be submitted to the authorities (CAA) together with a statement of performance relating to period of enlistment."
The CAA circular also said: "Documentary evidence that any consignor or consignee or freight forwarder and/or government or semi-government organisation or autonomous body having adequate business in the opinion of the Authority is prepared to employ the applicant as freight forwarder for their cargo/container handling through the civil aviation."