Traders resent freight forwarders' charge hike
Thursday, 21 January 2010
Doulot Akter Mala
A fresh hike in freight forwarders' service charges since January has been affecting traders as cost of doing business has increased causing a surge in prices of imported goods and exportable items, industry insiders said.
The business people have claimed that increase in service charges to Tk 2,500 per container from Tk 1,500 caused a surge of product prices. They have been facing problems importing essential commodities at a reasonable price and fixing a competitive export value, traders said.
Recently Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Chittagong Chamber of Commerce and Industries (CCCI) lodged complaints with the National Board of Revenue (NBR) demanding an urgent step to block the increased charge.
BGMEA has made complaints that nine of its member-companies have been forced to pay additional NOC charge to the freight forwarders. It has mentioned names of around 20 freight forwarders along with money receipts -- who have charged the additional fees.
"Freight forwarders have been collecting additional charges against NOCs ignoring instructions of the National Board of Revenue," BGMEA said in a letter.
The NBR at a meeting on January 3 instructed the freight forwarders not to collect additional charges for NOCs. Chittagong Customs House (Import) has issued a letter with the instruction on January 6.
CCI has also sent a letter last week requesting NBR to look into the issue immediately. Such an increase in freight forwarding charges will cause an unusual price hike of essential items, it observed.
The camber president M.A. Latif has come up with a warning that it will file criminal cases against all persons related to the service-charge hike, and stage demonstration if NBR fails to take immediate steps.
Talking to the FE, president of International Freight Forwarders Association of Bangladesh (IFFAB) Syed Badrul Hoque said: "We have informed all of the stakeholders that freight forwarders are going to increase the charge from January next."
"It is not possible for us to survive without increasing the charges. There is no rule to obtain permission from the licensing authorities prior to increasing the service charges," he said.
It is a constitutional right for us to fix a reasonable service charge for survival, he added.
Chitagong Customs House's (CCH) licensing authorities dealing with freight forwarding agents recently served show-cause notices on the freight forwarders in line with the request from the business.
"We have served nearly 12 show-cause notices asking freight forwarders to stop charging additional charges," said a senior official of CCH.
It is the government's responsibility to take immediate measures if it confronts any unwarranted situation affecting the business people, he said.
When contacted, a senior official at the customs department said: "We will submit complaints to the ministry of shipping and ask it to take further action."
"The revenue board will take necessary steps to prevent the practice in line with the recommendations of the shipping ministry, he said.
A fresh hike in freight forwarders' service charges since January has been affecting traders as cost of doing business has increased causing a surge in prices of imported goods and exportable items, industry insiders said.
The business people have claimed that increase in service charges to Tk 2,500 per container from Tk 1,500 caused a surge of product prices. They have been facing problems importing essential commodities at a reasonable price and fixing a competitive export value, traders said.
Recently Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Chittagong Chamber of Commerce and Industries (CCCI) lodged complaints with the National Board of Revenue (NBR) demanding an urgent step to block the increased charge.
BGMEA has made complaints that nine of its member-companies have been forced to pay additional NOC charge to the freight forwarders. It has mentioned names of around 20 freight forwarders along with money receipts -- who have charged the additional fees.
"Freight forwarders have been collecting additional charges against NOCs ignoring instructions of the National Board of Revenue," BGMEA said in a letter.
The NBR at a meeting on January 3 instructed the freight forwarders not to collect additional charges for NOCs. Chittagong Customs House (Import) has issued a letter with the instruction on January 6.
CCI has also sent a letter last week requesting NBR to look into the issue immediately. Such an increase in freight forwarding charges will cause an unusual price hike of essential items, it observed.
The camber president M.A. Latif has come up with a warning that it will file criminal cases against all persons related to the service-charge hike, and stage demonstration if NBR fails to take immediate steps.
Talking to the FE, president of International Freight Forwarders Association of Bangladesh (IFFAB) Syed Badrul Hoque said: "We have informed all of the stakeholders that freight forwarders are going to increase the charge from January next."
"It is not possible for us to survive without increasing the charges. There is no rule to obtain permission from the licensing authorities prior to increasing the service charges," he said.
It is a constitutional right for us to fix a reasonable service charge for survival, he added.
Chitagong Customs House's (CCH) licensing authorities dealing with freight forwarding agents recently served show-cause notices on the freight forwarders in line with the request from the business.
"We have served nearly 12 show-cause notices asking freight forwarders to stop charging additional charges," said a senior official of CCH.
It is the government's responsibility to take immediate measures if it confronts any unwarranted situation affecting the business people, he said.
When contacted, a senior official at the customs department said: "We will submit complaints to the ministry of shipping and ask it to take further action."
"The revenue board will take necessary steps to prevent the practice in line with the recommendations of the shipping ministry, he said.