Govt framing policy to restrict overseas shipping agents from doing business alone

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Doulot Akter Mala
The government has initiated a move to frame a new policy that might restrict operation of fully foreign owned shipping agents, officials said.
The move came following a recent dispute over issuance of licence to foreign shipping agents considering large scope for flight of capital, they said.
The policy will have clear indication on whether 100 per cent foreign involvement will be allowed in this sector or not, they said.
It was found that two shipping agents have taken licences to operate joint venture business, but later they have changed the ownership without taking prior approval of authorities concerned, a senior customs official told the FE.
"The government might impose restriction on such business operated by foreign shipping agents in the new policy," he said.
The National Board of Revenue (NBR) recently requested the finance ministry for framing a specific policy with clear direction about what will be the ownership portion in joint venture business.
The board has taken the initiative in line with the recommendations of an inter-ministerial meeting held last week in the NBR.
High officials of Bangladesh Bank (BB), Board of Investment (BoI), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Shipping Agents Association (BSAA) attended the meeting.
Both government and private sector stakeholders have agreed on restricting full foreign ownership in this sector, where the local entrepreneurs should have exclusive right to operate as there is scope for making higher profit with small investment, said BSAA member A.T.K.M Kamal.
There is a scope for flight of money, earned as commission in this service, as the business turnover is around Tk 20.0 billion a year, he added.
He underscored the need for removing existing loopholes of local laws for protecting national interest.
The government has been issuing licence to the shipping agents under customs agents (licencing) Rules, 1986.
The Chittagong customs house is following ownership proportion in joint venture companies at around 51 per cent for local and 49 per cent for foreign although there are no specific guidelines for these rules.
There is also no provision for 100 per cent ownership of a shipping agent business, the official said.
In 2003, the finance ministry has prepared a draft policy to check foreign investment in some sectors, where huge scope for making profit with small investment, but the policy remained in a form of draft over the last five years.