Tk.1,330/ton Transit Fee Proposed for Indian Goods

[Bang Galore]

There are plenty of people in BD who have big heart like him which India lacks. I commend his grandioseness.

Guess that make you one of us since you don't have one.

 

[TopCat]

Guess that make you one of us since you don't have one.

I take it as complement....

 

[TopCat]

Free transit to India?
Freedom of transit through the territory of one country to another country is a standard trade facility under the World Trade Organisation (WTO) rules. Article V of the General Agreement on Tariffs and Trade (GATT) updated in 1994 stipulates the scope and application of these rules.

One of the provisions of the Article V states that "traffic in transit shall be exempt from customs duties and from all transit duties or other charges imposed in respect of transit, except charges for transportation or those commensurate with administrative expense entailed by transit or with the cost of services rendered." Thus, Bangladesh cannot impose any customs duties or transit duties for goods entering its territory from one part of India for destination to other parts (such as the Eastern part).

So far, so good. I think what is not being pursued in earnest by the Bangladesh government is collecting administrative fees and other charges for services provided to India in its transportation of goods through Bangladesh, whether using Bangladesh's roads, railways or rivers. There is no bar to collecting such fees and charges under the WTO rules.

A recent article in a newspaper in Bangladesh quoted Dr. Mashiur Rahman, adviser to Prime Minister Sheikh Hasina on economic affairs, as saying that Bangladesh will be called "uncivilised" if it charges any fees for providing transit facilities to India. I consider that the view expressed by Dr. Rahman does not make sense as the WTO rules provide for such legitimate fees and charges except customs duties or transit duties for transport of goods through another country.

Is Egypt an "uncivilised" country because it charges "transit tolls" for foreign ships passing through the Suez Canal? Like Bangladesh, Egypt is a WTO member. Egypt collects transit tolls for ships and vessels passing through the Suez Canal. The Suez Canal Authority of Egypt collects these tolls based on net tonnage of goods transported in transit. The transit toll also depends on the type of vessels passing through the canal -- for example tankers of crude oil or petroleum products, LPG or LNG carriers, container ships and general cargo ships.
I think it is against the national interest of Bangladesh to give India a free ride on traffic in transit. While Bangladesh cannot charge transit duties, it should charge administrative fees and other expenses associated with the use of its infrastructure, including the use of roads, railways and rivers based on the actual costs involved. The charging of any fees should not be treated as a customs revenue raising exercise, rather it could be based on the user-pays principle.

This will be in line with the view of Finance Minister A.M.A. Muhith, who announced last year that Bangladesh will take "something" from India for using infrastructure facilities for transport of goods. To be consistent with his announcement, it is now incumbent on him to show real political will and leadership and take credible action to get that "something" from India.

Insincere political statements and subservient foreign policy will not bring any benefit to the country. Creation of confusion by those in power on issues of great national significance creates further problems, with potential adverse impact on public trust in the government and its machineries of administration.

If the Hasina government continues to be surrounded by the so-called "civilised" advisers, it will not receive right, objective and robust advice on the governance of the country. Sycophants and self-seeking advisers or ministers love clinging to power and authority without doing any real service to the prime minister in terms of good governance that benefits the nation and the party in power as well.

Sycophants do harm to the nation through their public behaviour and actions. They understand what is right or wrong but pursue the wrong with the intent of either appeasing their political masters or securing personal benefit. These people are quite clever. Sometimes they pretend to be loyal to an ideology but are actually self-serving in the ultimate analysis.
To conclude, Bangladesh will not be an "uncivilised" nation if it charges "something" from India for the traffic in transit.
Free transit to India?

 

[Gonjo]

So at the rate of 19 USD per tonne, Bangladesh wants 76 Million USD from India/year for transit. Thats 10% of your Bangladesh's Road and Highway division's annual budget allocation Good one.

Is this a notable amount? only 76 Million USD? Is this the little amount India unwilling to pay, or unable to pay?

Jei India te guest der Ordhek ta sondesher poorotai khete request kora hoe, jei desher mishtir dokane KG er baatkhara paoa jaena - oi desh amader ki ditey parbe. Such a 2 poor neighbor (India & Myanmar) we have.

 

[Gonjo]

Guess that make you one of us since you don't have one.

Only for human, but not for Indians.

 

[sab]

Is this a notable amount? only 76 Million USD? Is this the little amount India unwilling to pay, or unable to pay?

Jei India te guest der Ordhek ta sondesher poorotai khete request kora hoe, jei desher mishtir dokane KG er baatkhara paoa jaena - oi desh amader ki ditey parbe. Such a 2 poor neighbor (India & Myanmar) we have.

Keno!!!!!!!!! je ordhek sondesh gulo Guest ra fele jai. Kichu habhater tatei chole jabe...

 

[LaBong]

Is this a notable amount? only 76 Million USD? Is this the little amount India unwilling to pay, or unable to pay?

Jei India te guest der Ordhek ta sondesher poorotai khete request kora hoe, jei desher mishtir dokane KG er baatkhara paoa jaena - oi desh amader ki ditey parbe. Such a 2 poor neighbor (India & Myanmar) we have.

wow a Bangladeshi speaking Bengali, and I thought you all became allamas of urdu!

 

[integra]

wow a Bangladeshi speaking Bengali, and I thought you all became allamas of urdu!

বেডা কয়ে কি, নগদে বলদ হইয়া গেল নাকি? হেডা না হিন্দি ভাষায়ে কথা কয়...?মাক্ষন তামাশা লাগাইল দেহী।

 

[eastwatch]

Road and Highway department of Bangladesh, annual budget is about 750 MILLION USD. I doubt they are going to construct infrastructure worth 7 Billion dollars just for transits sake. As I have said earlier in this thread, this transit arrangement is only a temp arrangement. So they won't need to spend the 7 Billions dollars.

You must be the dumbest person on earth to comment like that. Do not spread false information and lies. Of course, Indians are pathological liers and they are born with this trait.

 

[Roybot]

You must be the dumbest person on earth to comment like that. Do not spread false information and lies. Of course, Indians are pathological liers and they are born with this trait.

Why don't you tell me which part of my post is false info? and then we ll see who is dumb and who is not?

 

[eastwatch]

Why don't you tell me which part of my post is false info? and then we ll see who is dumb and who is not?

Better read the post below by Iajdani to get the answer:

Don't quote something without complete knowledge to it. No new road and extension of roads, widening of roads, new land acquirement are included in this annual R&H budget. This budget only includes paying stuff salaries and routine maintenance of roads. YOu think 3.5 billion dollar padma bridge included in the R&H budget?
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There are two more sources of funds and budgets for the development of roads. One is LGED ministry, and the other is the grassroot govts in the Pouroshova (City Councils and Union Porishods). These two budgets are used to build or develop the rural road infrastructure. It is also no more true that these two sources build only KACCHA roads.

So, the total budget is far above the figure you have stated as the road budget. It is certainly a mis-statement. Even the budget for R&H budget itself is about $900 million this fiscal. But that excludes other major expenditures as noted by Iajdani.

The statement that BD needs a $7 billion budget to facilitate Indian transshipment is incorrect. No budget has been allocated. So, it is useless to keep on talking about this. But, I have posted before on a hypothetical two-lane highway with a length of 500 km. I think, it is very near to the reality. I suggest you read post #208 and also a few posts written by 'twoplustwoisfour,' to which I answered my post.

Sorry, my previous post was quite dumb. I will be careful next time. Actually, I was going to answer some other post. Whatever it might have been I apologize for making an unnecessary bad comment.

 

[Roybot]

Better read the post below by Iajdani to get the answer:

Dont quote something without complete knowledge to it. No new road and extension of roads, widening of roads, new land acquirement are included in this annual R&H budget. This budget only includes paying stuff salaries and routine maintenance of roads. YOu think 3.5 billion dollar padma bridge included in the R&H budget?

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And you didn't read my reply two posts below Iajdani's? Here I ll help you out(link to my post), http://www.defence.pk/forums/bangladesh-defence/102698-tk-1-330-ton-transit-fee-proposed-indian-goods-13.html#post1662911

There are two more sources of funds and budgets for the development of roads. One is LGED ministry, and the other is the grassroot govts in the Pouroshova (City Councils) and Union Porishods). These two budgets are used to build or develop the rural road infrastructure. So, the totoal budget is far above the figure you have stated.

As far as my understanding goes, your LGED is funded by

LGED is implementing a series of programmes with foreign and local funding for infrastructure development of urban and rural areas.

Chapter 11: Transport and Communication

Development Partners working with LGED:

Asian Development Bank (ADB)
Islamic Development Bank (IDB)
Rural Development Project
Organization of the Petroleum Exporting Countries (OPEC)
Government of Nedarlands (GON)
International Development Association/World Bank (IDA)
Norwegian Agency for Development Cooperation (NORAD)
European Commission (EC)
Swedish International Development Cooperative Agency (SIDA)
Canadian International Development Agency (CIDA)
Japan International Cooperation Agency (JICA)
United Nations International Children’s Emergency Fund (UNICEF)
Australian Government''s overseas Aid Program (Aus Aid)
Japan Bank for International Cooperation (JBIC)
International Fund for Agricultural Development (IFAD)
Kreditanstalt fuer Wiederaufbau (KFW)
German Aid Agency (GTZ)
Government of Japan (Japan)
UK Department for International Development (DFID)
Danish International Development Agency (DANIDA)
Japan Debt Cancellation Fund (JDCF)
World Food Program (WFP)
United Nations Development Programme (UNDP)

Development Partners LGED

So no your annual budget is not any more than what I quoted.

The statement that BD needs a $7 billion budget to facilitate Indian transshipment is incorrect. No budget has been allocated. But, I have posted before on a hypothetical two-lane highway with a length of 500 km. I think, it is very near to the reality.

Now your example of Padma Bridge,

Project cost is estimated to be US$2.92 billion. Funding for the project is provided by the Asian Development Bank (ADB) (US$539 m[2]), the World Bank ($1.2 billion[3]), Japan International Cooperation Agency ($300 m), Islamic Development Bank[4] ($120 m) and Abu Dhabi Development Group ($30 m)

As you can see almost 100% funding is coming from foreign organizations, in the form of loans and donations, nothing from Bangladesh Government, not that there is anything wrong with it. Similarly in the case of constructing the 7 Billion USD " 500km 2 Lane Highway" which according to some people here will only facilitate India, the funding will also come from International organizations, who mind you will only fund the projects which they think is economically feasible. So if organisations like World Bank and Asian Development Bank think that this proposed "highway" won't be economically viable, project won't go through, end of the story?

 

[LaBong]

^Now you're pathological common-sense instiller as well Roy!

 

[twoplustwoisfour]

I would really like to know how this figure of 7 Billion dollars was arrived at. 7 Billion Dollars for a 500 KM, two lane highway is Indian Rupees 70 Crores per KM, which, considering the terrain, anyone from the highways sector can tell you is outrageously high.

@eastwatch: Kindly the reply in post #210.

 

[toxic_pus]

Is Egypt an "uncivilised" country because it charges "transit tolls" for foreign ships passing through the Suez Canal? Like Bangladesh, Egypt is a WTO member. Egypt collects transit tolls for ships and vessels passing through the Suez Canal. The Suez Canal Authority of Egypt collects these tolls based on net tonnage of goods transported in transit. The transit toll also depends on the type of vessels passing through the canal -- for example tankers of crude oil or petroleum products, LPG or LNG carriers, container ships and general cargo ships.

I don't know what the exact structure of Suez transit toll is, but it includes Port disbursement fee, Port clearance fee, insurance, tug boat fee etc. All these are legitimate fees for service provided at a port. Additionally Suez Canal has a huge operating cost, which must also be recovered from the ships passing through. Roads on the other hand do not have these costs.

Comparing a port facility to road facility is just downright dumb.