India To Pay No Tax, But Charges For Cargo Traffic.

India is not willing to pay taxes to Bangladesh for goods' movement from one part of India to another or to a third country through Bangladesh linking the Chittagong and Mongla seaports.

However, New Delhi will pay charges for transportation, services and transit to transport goods through 15 routes, all linked to Chittagong and Mongla, and offered talks to Bangladesh to finalise the transit issues.

India gave the proposal through an official draft document styled "Protocol between India and Bangladesh for arrangements for the use of Chittagong and Mongla ports by India”. The Indian High Commission in Dhaka sent the draft protocol dated December 7, 2010 that was received by the foreign ministry on March 29, 2011, suggesting signing of a deal for seven years with the provision of renewal for a further seven years on mutual consent.

Talking to The Daily Star, a senior official of the foreign ministry said though the title of the draft protocol talks about arrangements for the use of the Chittagong and Mongla ports, the document is not limited to issues on the use of ports, but also includes topics related to transit through Bangladesh.

The official said India in its detailed proposal mentioned customs and other procedures for import/export of goods from or to third countries by India and movement of goods from one part of the country to another through Bangladesh, identifying 15 rail and road routes for transit through Bangladesh.

The protocol has 10 articles where it contains the provisions for exemptions from customs duties except charges for transportation, services and transit.

It said the words "Bangladesh customs duties" wherever it appears in the protocol would mean such duties, as are levies on import of goods into Bangladesh.

Regarding imports from a third country by India passing through the Chittagong and Mongla ports, the protocol said Indian imports will be allowed against import licences issued by the Indian government or letters of credit (LCs) of a commercial bank in India.

The protocol said, on arrival of Indian containerised cargoes, customs officials at the seaports would check the 'one-time-locks' on the containers. The customs officials will allow transportation of the containerised cargoes without examination if it is found intact. But in need of examination, the officials should communicate in writing, the protocol added.

If the 'one-time-lock' on the container is found broken or defective, customs authorities can verify the goods. In case of non-containerised cargoes, the customs house may examine a certain percentage of the goods to check whether it matches the customs declaration. On suspicion of pilferages, the goods may be subject to checks by Bangladesh customs, according to the proposal.

As per the draft protocol, India will submit necessary papers and full details of the LCs to Bangladesh customs to import goods from a third country. The importers and exporters will specifically mention to Bangladesh which route of the country is to be used.

According to Article 3 of the proposed protocol, authorities of the Chittagong and Mongla ports will provide warehouses, sheds and open space for storage of Indian cargoes. Berthing arrangements at the two seaports will have to be made for Indian consignments on a priority basis, it added.

The 15 rails and road routes for transit through Bangladesh, linking Chittagong and Mongla ports, are mentioned in Article 4 of the protocol.

The routes are -- Akhaura-Agartala (both rail and road), Sabroom-Ramgarh, Demagiri-Thegamukh, Bibir Bazar-Srimantpur, Belonia-Belonia, Betuli-Old Raghna Bazar, Chatlapur-Manu, Tamabil-Dawki, Borosora-Borosora, Haluaghat-Ghasuapara, Sunamganj-Shellbazar, Darshana-Gede (rail), Rohanpur-Singhabad (rail), Birol-Radhikapur (rail), and Benapole-Petrapole.

The proposed routes may be discontinued or new ones can be added upon mutual agreements, and the cargoes shall be allowed to move through alternate roads with prior permission if the specified roads are unusable.

Article 8 suggested formation of a joint committee to solve any problems that arise. Article 9 recommended formation of an inter-governmental committee which shall meet at least once in six months alternatively in Dhaka and New Delhi .

Source : thedailystar.net