MoS finds NBR-proposed transit fee \\\'high\\\'

A government committee has requested the National Board of Revenue (NBR) to submit a revised proposal regarding transit fee which it found 'high' by considering all aspects of the trans-border trade routing, officials said.
In another move to water down terms guiding the transit trade, they added, the NBR has been asked to reconsider its proposal on furnishing mandatory bank guarantee against each consignment of goods.
The revised proposal has been sought as the joint technical committee (JTC) of Bangladesh and India under PIWTT (protocol on inland water transit and trade) is set to sit to fix transit fee and decide on mandatory bank guarantee.
The NBR suggested Tk 508 to be charged against each tonne of transit goods.
As calculated, the charge breaks down as Tk 300 for scanning, Tk 100 as security charge, Tk 10 for document processing, Tk 20 transhipment charge, Tk 40 merchant overtime, Tk 50 escort charge, Tk 10 as ICT charge and Tk 50 as miscellaneous administrative charge for a tonne of goods.
"To avoid inland diversion of goods in transit, the carrier will be required to provide security in the form of 'continuous and unconditional bank guarantee' at the point of entry which needs to be acceptable to the relevant customs authority. After the completion of transit operation, the bank guarantee may be released and discharged in full," the NBR has proposed.
Officials said the NBR prepared the proposal in 2011 and submitted to the core committee on transit and transhipment for inclusion in its final report.  In June 2012
the revenue board sent the proposal on transit fee to the MoS for a meeting on PIWTT held in the same month.
Officials said an Indo-Bangladesh shipping secretary-level meeting was held in April this year in New Delhi which had decided that a JTC of the two countries would be formed soon to fix transit charges and have the decision on bank guarantee. Recently the JTC was formed and it would sit for its maiden meeting in mid-September.
The MoS recently held two inter-ministerial meetings as part of preparation for JTC meet. The participants in the meetings found the transit fee proposed by the NBR as comparatively high considering the rates being charged at the local ports.
A representative of the NBR told the first meeting that the fee was first proposed to the core committee on transit and transhipment with approval from Finance Minister AMA Muhith.
Regarding the mandatory bank guarantee he said under the provisions of the World Trade Organisation (WTO), the World Customs Organisation (WCO) and the United Nations Conference on Trade and Development (UNCTAD) the country which is offering transit facility can ensure security of its own (by realising various kinds of guarantees including bank guarantee).
However, in the meeting he said the NBR's proposal was not final one and could be revised if a formal proposal is given.
The meeting had decided that apart from the NBR the roads and highway division, bridges division, ministries of railway, environment and forest, Bangladesh Inland Water Transport Authority, and the Department of Shipping will send their proposals on transit fee to the MoS soon.
A senior official said the NBR-proposed Tk 300 as scanning charge per tonne is not rational. Presently the Chittagong port charges Tk 15 per tonne as scanning charge. Besides, he said, the other fees proposed by the NBR also need revising.
When contacted, shipping secretary Shafique Alam Mehdi told the FE Friday the transit fee and dues will be fixed based on international laws concerned.
"We are still discussing among us for finalising the transit fee. We will definitely protect our own interests," he said.
Regarding bank guarantee Mr Mehdi said bank guarantee is not mandatory in transit arrangements among various countries, including India, Pakistan and Afghanistan.
 "We do not need bank guarantee if the Indian authority provides necessary assurance," said the shipping secretary.
NBR chairman Nojibur Rahman could not be contacted for a comment despite several attempts.
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