Indian transhipment duty waiver will amount to betrayal of people

[fallstuff]

Transit-transhipment Fee Row With India
Charges imposed from this fiscal
Says NBR; foreign ministry sees 1972 protocol no bar to it
Rezaul Karim and Jasim Uddin Khan


The National Board of Revenue yesterday cleared its position to The Daily Star regarding India's demand for a waiver of transit and transhipment fees for Indian cargoes and transports, saying the fees have nothing to do with the Protocol on Inland Water Transit and Trade signed by the two countries in 1972.

India has been claiming that the transit and transhipment fees imposed on its cargoes and transports does not conform to the IWTT protocol.

The Bangladesh NBR officials said the fees were imposed this fiscal year on all foreign cargoes and transports in transit, through issuance of a circular to generate revenue.

Foreign ministry officials also said the protocol does not prohibit Bangladesh from imposing any fee. Leaders of major business chambers of Bangladesh termed the Indian demand irrational.

The issue resurfaced last week when the Indian high commission intensified its efforts to persuade the Bangladesh government to concede to its demand, after two Indian cargo vessels had been denied transit and detained by the Bangladesh customs at Sheikhbaria in Khulna, until those paid the transhipment fees in Bank Guarantees.

"We want to make it clear that the imposed transit and transhipment fees do not conflict with the Protocol on Inland Water Transit and Trade. The protocol allows India to use Bangladesh territory for transporting goods. The protocol describes how and which route Indian vessels can use. The fee that India has been paying annually under the protocol so far, is paid to the shipping ministry for maintaining river navigability," Member (Customs) of NBR Hussain Ahmed said.
.

The Bangladesh government fixed Tk 10,000 fee for each cargo container in transit, and Tk 1,000 for each ton of bulk goods

The present government put emphasis on connectivity to enhance regional trade, and to generate 'incremental gain' from that, Hussain Ahmed said.

NBR is now preparing a summary note on the issue for the finance minister, who is scheduled to return home on October 19 from a trip to the US. The minister will inform the prime minister about the matter, as the Indian authorities have approached her as well with the demand for a waiver.

An official of the Bangladesh foreign ministry told The Daily Star, it is true that there is no mention of transit and transhipment fees in the IWTT protocol, but it also does not prohibit imposition of such fees.

The protocol does have a provision for a fee for maintenance of the transit routes. The Indian government paid Tk 2 crore annually till 1999 for the purpose. For the existing protocol period, from April 1, 2009 to March 2011, the maintenance fee was increased to Tk 4.25 crore.

The protocol was renewed in March 2009, and on May 31, 2010 an addendum to the protocol was signed to add Ashuganj in Bangladesh, and Silghat in India as new ports of call.

The foreign ministry official said the Indian argument for not paying the transit and transhipment fees is not logical, and the Bangladesh government rightly introduced the fees.

"Neither the 1972 protocol nor any other agreement between the two countries says that Bangladesh can't impose the fees. These types of fees are in existence all over the world, and Bangladesh can't allow any waiver because those will be a source of revenue."

He said the maintenance fee, and transit and transhipment fees are not the same, and Bangladesh is not required to consult India prior to introducing the fees. India should pay the maintenance fee as the transit routes are being maintained primarily for use by Indian transit traffic, he added.

"The government imposed the fees following the addendum to protocol which will allow India to carry huge over-dimensional cargoes from Kolkata to Agartala for setting up a power plant in Tripura," he said.

If the waiver is granted to India, then Nepal and Bhutan will also ask for the same, he noted.

Foreign Minister Dipu Moni at a media conference on August 8 also said it is not possible for Bangladesh to waive the fees as those are a source of revenue for the country.

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Charges imposed from this fiscal

 

[BanglaBhoot]

Sirji, it is not dare or arrogance, instead it is politics... Any trader will try to get the best deal and India is no exception...

The whole selling point of transit for Bangladesh was the transit fees. If that is taken away the transit facility holds no benefit or interest for Bangladesh whatsoever. If India thinks that it can offset the fees by charging more for the Bangladesh transit facility to Nepal and Bhutan it should think again. The distance is 10 times shorter so the fee for that facility should be proportionately less.

 

[third eye]

It is amazing how guys are whipping themselves into a lather over what appears to be a proposal.

Words like ' how dare" etc seem strange in a business deal. If it does not suit one party just say so. Either an alternative shall be worked out which would obviously be ok to all concerned or the deal called off.

 

[eastwatch]

India's proposal of getting waiver for their goods to be transported through BD land should be regarded as a business proposal. BD govt is strict about it and has refused to grant any waiver. All business deals are like that. Buyers and sellers always negotiate the price.

When India agrees to a negotiated price, but then denies to pay and BD govt does not take any action, only then it becomes an issue and should be contested. The Agreement should be nullified when a prolonged discussion does not give any tangible result.

I do not think it is necessary to become defensive like a weak nation. The GoB is not that weak so as not to receive payments, but there are some feeble-minded people, who are bent on projecting our country as a weak nation. Well, it serves their political interest only.

The Bangladesh government has fixed Tk 10,000 fee for each cargo container in transit, and Tk 1,000 for each ton of bulk goods and the FM Dipu Moni on August 8 said it is not possible for Bangladesh to waive the fees. So, why to make a fuss?

 

[BanglaBhoot]

India's proposal of getting waiver for their goods to be transported through BD land should be regarded as a business proposal. BD govt is strict about it and has refused to grant any waiver. All business deals are like that. Buyers and sellers always negotiate the price.

When India agrees to a negotiated price, but then denies to pay and BD govt does not take any action, only then it becomes an issue and should be contested. The Agreement should be nullified when a prolonged discussion does not give any tangible result.

I do not think it is necessary to become defensive like a weak nation. The GoB is not that weak so as not to receive payments, but there are some feeble-minded people, who are bent on projecting our country as a weak nation. Well, it serves their political interest only.

The Bangladesh government has fixed Tk 10,000 fee for each cargo container in transit, and Tk 1,000 for each ton of bulk goods and the FM Dipu Moni on August 8 said it is not possible for Bangladesh to waive the fees. So, why to make a fuss?

It is because we have behaved like a weak nation towards India in the past that they took this chance.

 

[Stealth_fighter]

hehehe,no wonder is that AW are the spoke men of....guess who?

 

[BATMAN]

Why not waiver of duties to India mean helping your friendly state!
In practical world if you do not waive the duty... many corrupt within will be willing to do help cross the border with petty cash.
Pakistan have no official imports from India but markets are full of Indian goods and are cheaper for for obvious reasons.
Even commercials of said products are being run on cable TV.
Having said that... i must say issues and geography of Bangladesh is different and perhaps you will succeed in imposing import duties.
All the best.

 

[eastwatch]

The New Nation - Internet Edition

Transit problems surface

THE media reported recently that some Indian cargoes meant for sending to one of north eastern states under the transit agreement with India, was stopped at our border by Bangladesh customs as their owners refused to pay the required transshipment fees. Indian businesses who pay these fees have been doing so very grudgingly.

In fact, Indian government asked their Bangladeshi counterpart to waive such fees ever since the transit agreement was signed last year. Things have now come to a head with the stoppage of Indian cargoes for refusal to pay the fees and greater Indian pressure for the waiver of such fees.

But the payment for transshipment will be the only consolation Bangladesh can get for allowing such a major concession to India in a hurry. Even the fees fixed are modest. From collecting the same under the present rate of shipment of goods, Bangladesh can expect no more than a paltry 1-2 billion Taka only whereas Indian businesses and government would save many billions of rupees by using the corridors.

Thus, Bangladesh should have fixed much higher transshipment fees in the first place. The fees should have been fixed before signing the agreement.

Doing neither, Bangladesh is now caught in an awkward situation of Indian pressure waiver of fees and receiving only paltry fees. But it could have avoided this situation if steps were taken well in time. In that case, the Indian authorities in their desperation to get the agreement in place for boosting their trade and economy, would very likely sign an accord largely consistent with the interests of Bangladesh.

This mode of negotiation was unfortunately not pursued properly. Even now, there should be scope for Bangladesh to seek renegotiation of the agreement to safeguard the minimum national interests.

 

[kingofkings]

Why not waiver of duties to India mean helping your friendly state!
In practical world if you do not waive the duty... many corrupt within will be willing to do help cross the border with petty cash.
Pakistan have no official imports from India but markets are full of Indian goods and are cheaper for for obvious reasons.
Even commercials of said products are being run on cable TV.
Having said that... i must say issues and geography of Bangladesh is different and perhaps you will succeed in imposing import duties.
All the best.

Get your facts right before you speak.

Indian cos make impressive foray in Pakistan

There was even a discussion regarding this

http://www.defence.pk/forums/members-club/72667-indian-products-you-can-find-pakistan-just-know.html

These are all patented products.

No government is that dumb, for allowing commercials for illegal products and that too on national television. And that too products from INDIA. Come on dude.

Regarding the topic It sounds fair enough for me that BD gov raise such issue. It should be of mutual interest.

 

[prototype]

You see where the anti-india sentiment comes from? I thought India would be thankful and this was one good opportunity to improve our relationship. But no, they have the audacity to ask for free service! They think Bangladesh is a little pawn in their grand chess board. It's time to wake up and realize Bangladesh can destroy the whole chess board.

indeed u r,have u any idea of ur geographic location,and how u r folded into India grip from the 3 sides

U aspire better trade relation with China and Myanmar,what if we start to charge huge transit fees for that,all u can do is move ur cargo to Myanmar through sea line and loose more money,so dont try to destroy the chess board

 

[fallstuff]

indeed u r,have u any idea of ur geographic location,and how u r folded into India grip from the 3 sides

U aspire better trade relation with China and Myanmar,what if we start to charge huge transit fees for that,all u can do is move ur cargo to Myanmar through sea line and loose more money,so dont try to destroy the chess board

Bangladesh-Myanmar border runs for about 200km. Enough to keep you off the chess board !!

The transit fee is 10000 taka probably for a 42 f container, and 1000 taka for a ton. Thats 1 taka for a pound of goods, 0.60 rupees in your money. Consider the cost of trucking goods from WB to Tripura, Mizoram or Monipur. On average a truck would drive about 2000-3500 km to reach destination.

 

[LaBong]

Bangladesh-Myanmar border runs for about 200km. Enough to keep you off the chess board !!

The transit fee is 10000 taka probably for a 42 f container, and 1000 taka for a ton. Thats 1 taka for a pound of goods, 0.60 rupees in your money. Consider the cost of trucking goods from WB to Tripura, Mizoram or Monipur. On average a truck would drive about 2000-3500 km to reach destination.

But that 200 km is mountainous area and inhibited by people who previously rebelled against the BD govt. Also the relation with Myanmar also kind of strained at the moment.

Anyway, it's business as usual, when two parties make such a deal, it's usual to negotiate the price. Making too much noises of it is sign of having complexes. You don't wanna waiver the price, say it or better negotiate it, move on.

 

[BanglaBhoot]

But that 200 km is mountainous area and inhibited by people who previously rebelled against the BD govt. Also the relation with Myanmar also kind of strained at the moment.

Anyway, it's business as usual, when two parties make such a deal, it's usual to negotiate the price. Making too much noises of it is sign of having complexes. You don't wanna waiver the price, say it or better negotiate it, move on.

Nothing to negotiate. No fee - No transit. Most Bangladeshis don't want transit anyway so you better take what is on offer and just shut up.

 

[LaBong]

Nothing to negotiate. No fee - No transit. Most Bangladeshis don't want transit anyway so you better take what is on offer and just shut up.

If you yet to learn how to maintain civility in open forum, feel free to ignore my posts. I wasn't talking to you anyway.

If you have stopped sticking your face to your wrong end while typing the message, you'd have understood that it's not you who make policies in BD, rather those who make policies seem to avoid you like plague, so try using the fleshy thing between your ears but the thing between your legs when replying, next time.

 

[TopCat]

But that 200 km is mountainous area and inhibited by people who previously rebelled against the BD govt. Also the relation with Myanmar also kind of strained at the moment.

Anyway, it's business as usual, when two parties make such a deal, it's usual to negotiate the price. Making too much noises of it is sign of having complexes. You don't wanna waiver the price, say it or better negotiate it, move on.

No it is not. You can have a beach drive all the way to Myanmar. And the BD rebells you talking about is a story in the long past. Bengalis are flocking in the hill districts as tourist everyday and the Chakmas are getting richer.