NBR moves to draft ICD policy

Businesses involved in the clearance of export-import goods are divided over the existing two policies for setting up and operations of off-docks.

Shipping agents prefer the policy framed by the Ministry of Shipping in 2016, while private off-dock operators find the one framed by the National Board of Revenue (NBR) in 2021, favourable.

However, apparel exporters say the customs-related procedures should be determined by the NBR, while the shipping ministry should issue guidelines related to port operations.

Following the disagreements between stakeholders, the NBR recently moved to frame a new policy for setting up and operation of private off-docks.

The customs wing has formed a body, comprising customs and Chattogram Port Authority (CPA) representatives, to frame a draft of fresh ICD policy.

The MoS ICD Policy-2016 stipulated a provision under which the policy would be scrapped in case of issuance of a new ICD policy. However, When the NBR issued ICD policy in 2021 it stipulated a provision to keep the MoS policy valid too.

The newly formed committee will scrutinise the two policies and prepare a draft of new ICD policy.

The five-member committee, formed on August 31, 2022, will have to submit a report by next one month on the basis of specific directives of the NBR.

The committee will determine the process of setting up and operation of off-docks in the customs ports, in a bid to expedite release of export goods and ease container congestions in the ports.

The NBR framed a policy first in 1998 for private ICDs, later Chittagong Port Authority (CPA) framed another one in 2016. Again, the NBR framed another updated ICD policy in 2021.

After issuance of the ICD policy in 2021, shipping agents and some other stakeholders found it arbitrary as the policy had been framed without adequate discussions with the stakeholders.

Syed Arif, Chairman of Bangladesh Shipping Agents Association (BSAA), said the ICD policy 2016 had addressed the stakeholders' opinions, which were bypassed by the 2021 policy framed by NBR.

As per the 2016 policy, fees and charges of the ICDs have to be revised through discussions with the stakeholders in line with the recommendations of a tariff committee, but the 2021 policy did not mention this, he said.

"When ICDs revised their charges and fees in line with the diesel price hike in the first phase, they cited the 2021 policy that had slapped no obligatory provisions for revision charges on the basis of tariff committee's recommendations," he said.

However, the private ICD operators lodged a writ petition in the High Court challenging the provision of the tariff committee.

Mr Arif said there are some more issues that ICD policy should cover such as the recent concern on preservation of explosives in the port.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem said the shipping ministry or CPA should determine the policy on how the port of ICD would be operated as off-docks are an extension of the port.

"There should not be any contradiction over this. The customs wing would fix the customs related policies in the port," he added.

In case of any inconsistencies on determining the respective working areas, the service seekers, mainly exporters, will be affected as ICDs handle entire export goods, he added.

Bangladesh Inland Container Depot Association (BICDA) President Nurul Quyyum said the NBR is the licence-issuing authority for off-docks and it issued the 2021 policy in quite a rational way.

He said the government should frame policy independently without being influenced by any group.

The shipping ministry policy has kept the provision of tariff committee recommendations for private ICD operators, while such obligation is not imposed on any other private operators involved in the export-import process, he said.

In the office order on the new committee, the NBR said the move has been taken to frame new policy following allegations on space shortage, logistics and other issues in the private off-docks.

On allegations, Mr Quyyum said there might be limitations in ICDs but his association sought time to rectify these.

The ICDs are contributing to the smooth flow of export, even in crisis periods during Covid lockdown, as it has capacity to handle huge export-import goods, he added.

A senior official of the CPA said the ICD policy 2016 was issued without any gazette notification.

The CPA policy can be considered as Standard Operating Procedure, while NBR's one is a full policy, he said.

As per directives of the Customs (Export and Bond wing), the committee members will have to consider five key points on formulation of the draft policy.

These are: investors of ICDs have to obtain prior approval of NBR to set up the ICDs, space of ICDs has to be at least 15 acres, there must be examination yard, shed, space for auction, offices for customs officials, computers, lists of goods handling equipments, fire-safety system and separate management for preservation of chemicals.

Currently, all of the export goods and some 38 import goods are handled by the private off-docks.