Bangladesh and India will negotiate transit and transshipment fees and charges on cargo movement admissible under international agreements, conventions and practices.
Both the parties reached the conclusion to negotiate at the Shipping Secretaries level meeting between the two countries held in New Delhi on April 20.
The minute of the meeting accessed by the Dhaka Tribune said both sides agreed to bring changes in the Protocol on Inland Water Transit and Trade (PIWTT), which governs transit and transshipment from one part of India to another.
“Bangladesh side proposed that provisions for service charges for the transit as admissible under the international agreements, conventions and practices will be included in the PIWTT,” the minute said.
Keeping the viability of inland water operations, a joint technical committee will be formed and give their recommendation within two months, the minute said.
When contacted, Cabinet Secretary Mosharraf Hossain Bhuiyan told the Dhaka Tribune that a provision to discuss service charges and fees for transit were incorporated in Bangladesh-India Trade Agreement and PIWTT.
The clause VIII of the trade agreement incorporates the fees and charges issue between the two countries and it had already been endorsed by the cabinet.
Similarly, PIWTT, which was created under the trade agreement, also incorporated similar provision and it was also endorsed by the cabinet.
It is expected that both the instruments would be renewed during the visit of Indian Prime Minister Narendra Modi.
Bangladesh in 2010-11 fiscal unilaterally imposed transit and transshipment fee to the tune of Tk10,000 per container and Tk1,000 per tonne for bulk cargo, but it was later withdrawn after strong persuasion from the Indian side.
A Shipping Ministry official said the joint technical committee is yet to be formed. “We expect to form the committee after the visit of the Indian prime minister.”
Representatives from Inland Water Transport Authorities, Foreign Ministry and Customs of both countries will be the members of the committee.
“It will be six-member committee with an option to expand it,” he added.
Bangladesh, Bhutan, India and Nepal (BBIN) are scheduled to sign BBIN Motor Vehicle Agreement on June 15 in Thimphu.
The purpose of the agreement is to allow movement of cargoes through motor vehicle in the four countries.
“The proposed BBIN Motor Vehicle Agreement also includes provision for transit fees,” said a senior government official.
The proposed agreement said: “All fees and charges for issuing a permit to the vehicle of one contracting party will be levied only at the entry point of another contracting party.
The rates of such fees and charges (including the fees for vehicle in transit) will be decided and notified from time to time by contracting parties.
Source: Dhaka Tribune