India seeks transit facility through 15 routes: report

Anisur Rahman
Dhaka, Apr 18 (PTI) India has sought transit
facilities to third countries as well as its northeastern
states through 15 road and railway routes and ports in
Bangladesh, a report media said here on Monday.
The Financial Express newspaper said India submitted a
proposal to Dhaka seeking to use the road, railway and
facilities of Bangladesh's Chittagong and Mongla ports to
carryout its exports and imports with third countries and
transport goods to and from its southeastern region.
"Seeking access to the territory of Bangladesh and its
sea ports for the North-Eastern regions of India, New Delhi
has invited Bangladesh government to sign a protocol for a
period of seven years for the purpose of transit, corridor and
use of two ports," the paper said quoting senior Foreign
ministry officials.
A foreign ministry spokesman here confirmed the report
acknowledging the receipt of the proposal through the Indian
High Commission in Dhaka, saying it outlined broad
characteristics on transit and use of ports.
The paper said the road and rail routes, sought by
India in the proposed protocol were -- Akhaura-Agartala,
Sabroom-Ramgarh, Demagiri-Thegamukh, Bibir Bazar-Srimantpur,
Belonia-Belonia, Betuli-Old Raghna Bazar, Chatlapur-Manu,
Tamabil-Dawki, Borosora-Borosora, Haluaghat-Ghasuapara,
Sonamganj-Shellbazar, Darshanak-Gede, Rohanpur-Singhabad,
Birol-Radhikapur and Benapole-Petrapole.
The proposed protocol, it said, also expressed Indian
willingness to import and export goods from and to third
countries through southeastern Chittagong and southwestern
Mongla ports, use warehouse facilities under exempted customs
duties.
"Movement of cargo under the protocol shall be
exempted from customs duties and other charges except
reasonable charges for transportation and such other charges
as are commensurate with the cost of services rendered in
respect of such movement," the paper quoted the proposed
protocol as saying.
"Transit fees, if any, to be levied will be decided by
mutual consent of both governments."
According to the proposal, Bangladesh customs could
not examine any Indian containerised cargo if it is sealed
(one-time-lock) but in respect of non-containerised ones, the
customs house may make a selective percentage examination of
the goods to check if the goods were in accordance with
customs declaration.
The report came days after Bangladesh's Tariff
Commission submitted for government consideration a set of
recommendations on transit facilities for India outlining the
proposed modalities and fees.

Bangladesh Commerce Minister Faruque Khan Sunday told
PTI that Bangladesh would soon decide its final stance on fees
for transit facilities to India as the issue continued to
dominate the center stage of Dhaka-New Delhi relations and the
country's domestic politics.
"I can tell you this much now that we are yet to take
a final stand on the fees for transit but soon I will be
able to announce our decision in this regard (and) it will be
made protecting the best interests of the country," he said.
But newspaper reports said the commission suggested
transit routes, charges, traffic volumes, investments and
benefits and proposed equal transit fees for all countries
which would range between USD 4 and 50 per tonne of goods as
transit fees depending on routes chosen by the user.
"We have submitted the report online and recommended
the imposition of charge in line with World Trade Organisation
rules," Tariff Commission Chairman Mujibur Rahman told a
newspaper Sunday.
The Daily Star, quoting officials familiar with the
commission recommendations, said the report acknowledged that
under the General Agreements on Tariffs and Trade (GATT) and
Bangladesh’s 1969 Customs Act the country cannot impose
customs duties or tax on transit traffic.
"But there are no restrictions on imposing transit
charge on the movement of transit traffic in order to recover
various types of costs related to administrative expenses such
as costs of customs formalities, customs inspection and charge
for use of services," it said.
Indian High Commissioner in Dhaka Rajeet Mitter
earlier this month expressed his hope that Bangladesh would
set a reasonable transit fee to achieve the desired outcome of
the transit system.
"It depends on the proposal of Bangladesh government,
who has formed a committee to settle the transit fee. India
would certainly agree to pay the transit fee fixed by
Bangladesh," Mitter told a business chamber function at the
southeastern port city of Chittagong.
He, however, added, "expensive transit fees might not
bring the desired benefits".
The debate on providing transit to India sparked a
afresh two months ago when opposition Bangladesh Nationalist
Party appeared to have revived an old an anti-transit campaign
as Prime Minister Sheikh Hasina’s government is set to allow
Indian transports to carry goods to its isolated northeastern
states through the country.
"No foreign vehicle would be allowed to go through the
country at the cost of the country's interests," she told a
party rally after finance minister AMA Muhith said Dhaka would
charge India transit fees instead of duties in exchange of
offering the transit facilities.