The New Nation - Internet Edition

Syful Islam

The United States Trade Representative (USTR) has expressed concern over government move to frame a new policy restricting operation of fully foreign owned shipping agencies companies.

Director of the South Asia Office of the USTR, Victoria Kader in several communiqué with the Bangladesh Embassy in US expressed the apprehension that the move will hurt US companies doing business in the shipping sector and may disqualify them from doing business in Bangladesh. "The USTR consider that the move is unfair and US Embassy in Dhaka will register their concern to the government," Commercial Councillor of Bangladesh Embassy in Washington Kazi Md Shamsul Alam said in a recent letter to the chairman of National Board of Revenue.

Shamsul Alam said the USTR will vigorously defend the US companies doing business in Bangladesh.

"Any attempt to curtail that opportunity by restricting foreign shipping agency companies will meet serious protest from the US government," he cautioned, Bangladesh's hundreds of millions of dollars worth of export to US will be affected.

He recommended letting the foreign shipping companies do business in Bangladesh as before. "No new policy should be adopted without consulting both local and foreign shipping agencies," the diplomat recommended.

NBR sources said the government has initiated the move to frame a new policy restricting operation of fully foreign owned shipping agents following a recent dispute over issuance of licence to foreign shipping agents considering large scope for flight of capital.

They said the policy will clearly indicate whether 100 per cent foreign owned shipping agencies will be allowed in this sector or not.

Earlier two shipping companies took licences to operate joint venture business in Bangladesh, but later have changed the ownership without taking prior approval of authorities concerned.

The National Board of Revenue (NBR) recently requested the Ministry of Finance for framing a specific policy with clear direction about what will be the ownership portion in joint venture business.

The NBR has taken the initiative in line with the recommendations of an inter-ministerial meeting held last week where high officials of Bangladesh Bank (BB), Board of Investment (BoI), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Bangladesh Shipping Agents Association (BSAA) attended.

The government has been issuing licence to the shipping agents under Customs Agents (licensing) Rules, 1986.

The Chittagong Customs House gives licence to joint venture companies at around 51 per cent for local and 49 per cent for foreign ownership.