Garment exporters have suggested formulating a code of conduct for the shipping agents and freight forwarders to prevent them from realising 'arbitrary and unjustified' shipping charges from exporters and importers.

Such high shipping charges are making export-import costlier and if the charges are not reduced the readymade garments might lose competitiveness in the international market in the quota-free regime from next year, they said.

Bangladesh Garment Manufacturers & Exporters Association (BGMEA) President Annisul Huq said the exporters have to pay huge amount of money as 'unjustified' shipping charges imposed by agents and freight forwarders.

"Against each bill of lading, only NOC (no objection certificate) charges can be realised at Tk 1 ,250 Any other arbitrary charges in the name of status charge, China charge and co-loader charge cannot be realised," he said.

The BGMEA chief said this while presenting the keynote paper at a seminar on 'Shipping issues to face post-MFA challenges' organised by the BGMEA in Dhaka yesterday.

He also suggested uniformity of

all shipping charges under a 'multimodal licensing system' to help the readymade garment exporters face the stiff competition in the post-MFA (multi-fibre arrangement) regime.

Citing examples of high charges against imports, he said the shipping agents and freight forwarders are charging Tk 6,000 to Tk 15,000 on each consignment in the name of 1st forwarder NOC charge, 2nd forwarder BL endorsement charge, 3rd forwarder charge, documentation charge, shipping lines LCL, import service document charge, cleaning charge, China charge, agency fees and EBS charge.

"There must be a freight forwarders' code of conduct with penal clauses," he said.

The BGMEA president recommended simplification of port and customs clearance steps and proper enforcement and monitoring of all related government regulations and charges. "Many customs regulations need to be amended."

"We need help from the shipping industry as well as from the government. Otherwise, we cannot survive in the quota-free regime," he said.

Echoing the BGMEA chief, Amir Humayun Mahmud Chowdhury, president of Chittagong Chamber of Commerce and Industry, said it is high time to formulate a regulatory framework for all stakeholders.

He underscored enactment of a licensing regulation for the freight forwarders as presently they do not have to take any licence from the government or the central bank.

International Chamber of Commerce, Bangladesh President Mahbubur Rahman said freight forwarders and shipping agents must comply with all the rules and regulations related to shipping and ports.

Shipping Minister Akbar Hossain said as all the shipping issues are not under the jurisdiction of his ministry, he cannot address all of them including the high charge imposed by the freight forwarders and shipping agents.

"But, you can sit with me to discuss the port issues like terminal handling charge and I assure you I can reduce it to 20 percent less than that in other regional ports."

International Freight Forwarders Association of Bangladesh President Amirul Islam Chowdhury said they are also demanding a licensing regulation and multimodal transport act for a long time. "But, these are yet to be enacted."

Shipping Secretary Ismail Zabiullah also spoke at the function.