Local freight forwarders have demanded that the government evolve a system that can ensure Bangladesh receives legally the money remitted by foreign freight forwarders to their agents here.

They said the money supposed to be given by the agents of foreign importers would stand at no less than Tk 100 crore a year, which they are being denied due to a complicated process.

The government measures for licensing the freight forwarders, local and foreign, have not been able to remove such complicacies, they have complained.

Freight forwarders assist exporters in shipments and price quotations by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs and their handling fees.

They also recommend the packing methods that will protect the merchandise in transit. If any exporter desires, freight forwarders can reserve the necessary space on a vessel, aircraft, train, or truck.

In Bangladesh, the sector had earlier been plagued by financial indiscipline, which the government aimed to remove through the new licensing last year.

According to the National Board of Revenue (NBR), the government sought to ensure that the money earned by freight forwarders abroad is returned to Bangladesh.

"If the government does not allow the money in, how the foreign freight forwarders give us our portion?” said Badrul Haque, president of International Freight Forwarders Association of Bangladesh (IFFAB).

A new' statutory regulatory order (SRO) suggested the freight forwarders (FFs) bring their charges into the country through the legal channel. But

they exchange their service charges in unauthorised ways, an NBR high official said.

Asked about the local FFs' complaints, NBR Chairman Muhammad Abdul Mazid said the objective of the government move on licensing was to discipline the sector.

The NBR chief hoped that the issue, now being examined, would be settled soon so that Bangladeshi freight forwarders can get their service charges in legal ways.

Around 400 freight forwarders have already received licences from the NBR, but the foreign freight forwarders operating here are yet to get licences due to a row over getting clearance from Bangladesh Bank.

As per the new licensing system, the foreign freight forwarders are required to invest about Tk 1 crore to run their business in Bangladesh. Without the clearance from Bangladesh Bank, the NBR was reluctant to issue licences to foreign companies until

recently.

However, on receipt of the US embassy request on relaxation of the terms and conditions in licensing, the NBR has started issuing provisional licences to the companies.

Meanwhile, the International Freight Forwarders Association of Bangladesh (IFFAB) and Association of Cargo Agents Bangladesh (ACAB) have decided to merge into a single umbrella, Bangladesh Freight Forwarders Association (BFFA), and now await the green light from the Ministry of Commerce.

Due to lack of licensing, businessmen previously complained of unnecessary complications and costs in recovering goods from ports.

It was also believed that the non-licensing of the freight forwarders deprived the country of licence fees and value added tax (VAT) on freight charges.

jasim@thedailystar.net