The New Nation - Internet Edition

BSS, Chittagong

Authorities have started taking punitive action against defiant private Inland Container Depots (ICDs) for streamlining the sector.

The Chittagong Customs House (CCH) recently cancelled licenses of three Chittagong based ICDs on charges of not fulfilling the preconditions as per set rules and regulations while the Chittagong Development Authority (CDA) issued show cause notices to a number of firms for not taking permission to establish off-dock facilities, official sources said.

The disciplinary measures against the defiant ICDs are part of on-going reform programmes at CCH, being implemented jointly by the CCH and Army-led joint forces.

The government has allowed the private ICD sector to grow to lessen the container handling pressure at Chittagong Port and to provide improved services for the business community by speeding up the export-import container handling and delivery process.

But it was alleged that a number of ICDs were being used for tax dodging and smuggling, and some ICDs have been providing poor services for their clients, as they do not have adequate equipment, skilled manpower and sufficient accommodation and security arrangements.

Commercial operations of ICDs through gross violation of rules are not only impeding achieving the core objective of allowing private sector ICDs but also causing a negative impact on export-import trade due to their involvement in various irregularities.

Besides, consignees are filing compensation suits before the courts against the ICD owners for damaging or pilfering their export-import goods due to poor infrastructure and security facilities.

Following the allegations, the CCH and joint forces recently began a thorough inspection to ascertain whether the ICDs complied with all the preconditions and also to find out the loopholes of irregularities like tax dodging and smuggling.

During the investigation, officials said, they found that all the 13 ICDs did not work as per agreement.

The government issued licenses to interested entrepreneurs for establishing ICD from 1998 and the sector experienced a steady growth in 2004-2005. Two new ones got permission recently raising the number of ICDs to 15.

Trade body leaders and a number of officials in port and shipping sector said the CCH authorities could not avoid their responsibilities for current messy situation in the sector as they issued licenses to some parties without proper verification and before fulfilment of all the prerequisites.