Local shipping agents suspect foul play
Wednesday, 5 November 2008
FE Report
Local shipping agents are found to be very much concerned over the recent developments relating to the awarding of licence to a 100 per cent foreign-owned shipping line to operate as a shipping agent by the Chittagong Customs House (CCH).
They said the CCH awarded the licence to M/S CMA-CGM, a fully-owned foreign company, to operate as a shipping agent, violating the standard practice of 51 per cent local and 49 per cent foreign ownership. The Customs Agents (licensing) Rules, 1986 provides for such ownership pattern.
However, following media reports, the National Board of Revenue (NBR) censured the CCH (import) and asked it to keep the operation of the licence in abeyance.
But the local shipping agents said they had expected an outright cancellation, not temporary suspension, of the licence issued to the 100 per cent foreign-owned shipping agent.
The local shipping agents suspect some foul play in the near future to open the door to foreign shipping agents, which, they feel, would be disastrous for this useful local services sector. Such an uncalled for decision would also hurt the country's economic interests, they claimed.
Citing from the statutory regulatory order (SRO) No. 224-L/86/999/Cus issued by the National Board of Revenue (NBR) on June 27, 1986, a local operator said, "The law allows only Bangladeshis to apply and obtain customs agents/shipping licences."
Traditionally, operating licences are also issued to companies having 51 per cent equity of local entrepreneurs and 49 per cent of their foreign counterparts, the sector operators said.
According to them, the shipping agencies in Bangladesh have emerged as a service-oriented industry from the grassroots level to serve the various shipping lines carrying export-import cargoes to and from various ports across the globe.
The local shipping agents claimed in the event of granting licences to foreign shipping lines, hundreds of local shipping agents representing foreign shipping lines would go out of business, scores of skilled workers and employees become jobless. Besides, a substantial amount of commission earned by the local agents would be repatriated to the home countries of the foreign shipping lines.
Local shipping agents are found to be very much concerned over the recent developments relating to the awarding of licence to a 100 per cent foreign-owned shipping line to operate as a shipping agent by the Chittagong Customs House (CCH).
They said the CCH awarded the licence to M/S CMA-CGM, a fully-owned foreign company, to operate as a shipping agent, violating the standard practice of 51 per cent local and 49 per cent foreign ownership. The Customs Agents (licensing) Rules, 1986 provides for such ownership pattern.
However, following media reports, the National Board of Revenue (NBR) censured the CCH (import) and asked it to keep the operation of the licence in abeyance.
But the local shipping agents said they had expected an outright cancellation, not temporary suspension, of the licence issued to the 100 per cent foreign-owned shipping agent.
The local shipping agents suspect some foul play in the near future to open the door to foreign shipping agents, which, they feel, would be disastrous for this useful local services sector. Such an uncalled for decision would also hurt the country's economic interests, they claimed.
Citing from the statutory regulatory order (SRO) No. 224-L/86/999/Cus issued by the National Board of Revenue (NBR) on June 27, 1986, a local operator said, "The law allows only Bangladeshis to apply and obtain customs agents/shipping licences."
Traditionally, operating licences are also issued to companies having 51 per cent equity of local entrepreneurs and 49 per cent of their foreign counterparts, the sector operators said.
According to them, the shipping agencies in Bangladesh have emerged as a service-oriented industry from the grassroots level to serve the various shipping lines carrying export-import cargoes to and from various ports across the globe.
The local shipping agents claimed in the event of granting licences to foreign shipping lines, hundreds of local shipping agents representing foreign shipping lines would go out of business, scores of skilled workers and employees become jobless. Besides, a substantial amount of commission earned by the local agents would be repatriated to the home countries of the foreign shipping lines.