Govt moves to eliminate gap between customs act, GATT
Sunday, 20 May 2012
Syful Islam
The government has moved forward to eliminate the existing differences between the customs act and the General Agreement on Tariffs and Trade (GATT) as part of an effort for expediting regional connectivity and providing 'transit' to neighbours, sources said.
In this connection, steps have been taken to bring the inter-country transportation and transit duties within a legal framework, they added.
Sources said that steps have also been taken to review the laws and regulations applicable to Bangladeshi and Indian ships which will carry regional goods.
The Prime Minister's Office (PMO) will convene an inter-ministerial meeting next week which will review the steps regarding Akhaura-Agartala rail link, development of the Ashuganj river port and the Ashuganj-Akhaura road.
The Prime Minister's Economic Affairs Adviser Dr Mashiur Rahman will preside over the meeting which will be attended by the Secretaries of ten ministries and departments.
Sources said differences are there among the government ministries and departments regarding realisation of duties and fees for transportation of transit goods. The ministries and departments are yet to reach consensus in this regard. The PMO will convene the inter-ministerial meeting to settle the issue.
They said a government core-committee on transit and transshipment had earlier suggested providing transhipment facilities to India, Nepal and Bhutan by using Bangladeshi transportation.
In contrast, it also suggested forming a joint venture transport company with the three countries, of which 51 per cent ownership will go to Bangladesh. Goods will be carried by the vehicles of the transport company in the respective countries, it suggested.
The report also said that if a full-fledged transit is offered to the India, Nepal and Bhutan, some 7.3 million tonnes of cargoes would be transported through Bangladesh territory. On the other hand, only 1.8 million tonnes of cargoes would be carried if only transhipment facility is offered.
Officials said as part of the move to settle the transit and connectivity issues with India, the Ministry of Shipping (MoS) early this month formed a working group upon being instructed by the PMO.
A Joint Secretary of the MoS will head the 12-member body comprising representatives from ministries of commerce, foreign affairs, communication, and railway, national board of revenue, Chittagong seaport, Mongla seaport, BIWTA, the land port authority, and the department of shipping.
Talking to the FE Friday, shipping secretary Abdul Mannan Howlader said connectivity is very much necessary for the development of countries in this region.
He said transportation of goods through waterways is much cheaper and easier compared to other modes. Some goods are also carried through land routes in view of necessity, he said.
"Our waterways are ready to carry regional transit goods. Steps are there to set up a container port at Ashuganj for which India has expressed interest to invest. They are now studying its feasibility and its effectiveness," Mr Howlader said.
"We will try to save the interest of our ship owners. More than 99 per cent transit goods will be carried by Bangladeshi ships," he said replying to a question.
The government core-committee on transit and transshipment has submitted a final report to the PMO in January this year, keeping both the options -- transit and transhipment -- open for the countries, which will get the facilities.
The committee has identified nine road routes, nine rail routes, and five waterways for providing transit facilities to India and other neighbouring countries.
However, the committee suggested for not awarding the facilities at this stage without necessary infrastructural development.
"The condition of the identified routes is not good enough to handle transit cargo. The current infrastructure of the land ports is grossly inadequate. An amount of around US$ 6.33 billion in investment is required to make the routes operational, which may take three to four years," the report added.
Neighbouring India wants to get the transit and transshipment facilities from Bangladesh mainly for carrying cargoes to its 'seven sister states' of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
Nepal and Bhutan are also interested to enjoy the similar facilities for their external trade activities.
The government has moved forward to eliminate the existing differences between the customs act and the General Agreement on Tariffs and Trade (GATT) as part of an effort for expediting regional connectivity and providing 'transit' to neighbours, sources said.
In this connection, steps have been taken to bring the inter-country transportation and transit duties within a legal framework, they added.
Sources said that steps have also been taken to review the laws and regulations applicable to Bangladeshi and Indian ships which will carry regional goods.
The Prime Minister's Office (PMO) will convene an inter-ministerial meeting next week which will review the steps regarding Akhaura-Agartala rail link, development of the Ashuganj river port and the Ashuganj-Akhaura road.
The Prime Minister's Economic Affairs Adviser Dr Mashiur Rahman will preside over the meeting which will be attended by the Secretaries of ten ministries and departments.
Sources said differences are there among the government ministries and departments regarding realisation of duties and fees for transportation of transit goods. The ministries and departments are yet to reach consensus in this regard. The PMO will convene the inter-ministerial meeting to settle the issue.
They said a government core-committee on transit and transshipment had earlier suggested providing transhipment facilities to India, Nepal and Bhutan by using Bangladeshi transportation.
In contrast, it also suggested forming a joint venture transport company with the three countries, of which 51 per cent ownership will go to Bangladesh. Goods will be carried by the vehicles of the transport company in the respective countries, it suggested.
The report also said that if a full-fledged transit is offered to the India, Nepal and Bhutan, some 7.3 million tonnes of cargoes would be transported through Bangladesh territory. On the other hand, only 1.8 million tonnes of cargoes would be carried if only transhipment facility is offered.
Officials said as part of the move to settle the transit and connectivity issues with India, the Ministry of Shipping (MoS) early this month formed a working group upon being instructed by the PMO.
A Joint Secretary of the MoS will head the 12-member body comprising representatives from ministries of commerce, foreign affairs, communication, and railway, national board of revenue, Chittagong seaport, Mongla seaport, BIWTA, the land port authority, and the department of shipping.
Talking to the FE Friday, shipping secretary Abdul Mannan Howlader said connectivity is very much necessary for the development of countries in this region.
He said transportation of goods through waterways is much cheaper and easier compared to other modes. Some goods are also carried through land routes in view of necessity, he said.
"Our waterways are ready to carry regional transit goods. Steps are there to set up a container port at Ashuganj for which India has expressed interest to invest. They are now studying its feasibility and its effectiveness," Mr Howlader said.
"We will try to save the interest of our ship owners. More than 99 per cent transit goods will be carried by Bangladeshi ships," he said replying to a question.
The government core-committee on transit and transshipment has submitted a final report to the PMO in January this year, keeping both the options -- transit and transhipment -- open for the countries, which will get the facilities.
The committee has identified nine road routes, nine rail routes, and five waterways for providing transit facilities to India and other neighbouring countries.
However, the committee suggested for not awarding the facilities at this stage without necessary infrastructural development.
"The condition of the identified routes is not good enough to handle transit cargo. The current infrastructure of the land ports is grossly inadequate. An amount of around US$ 6.33 billion in investment is required to make the routes operational, which may take three to four years," the report added.
Neighbouring India wants to get the transit and transshipment facilities from Bangladesh mainly for carrying cargoes to its 'seven sister states' of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
Nepal and Bhutan are also interested to enjoy the similar facilities for their external trade activities.