Freight forwarders seek bonded warehouse facility
They argue that such facility will ensure transparency and accountability in the handling of import and export goods
The country's freight forwarders have sought a bonded warehouse facility to ensure transparency and accountability in the handling of import and export goods.
Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, placed the proposal during a pre-budget meeting at the National Board of Revenue's (NBR) headquarters in the capital's Agargaon yesterday.
The NBR organised the meeting in preparation for the national budget for fiscal year 2024-25.
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"The work processes of freight forwarders are globally recognised. However, in Bangladesh, we handle only a maximum of 10% of this work. The established system involves forwarders managing consignments that come or go under their responsibility. However, in our country, we handle it only on paper," Kabir Ahmed said.
Many seek duty-free facilities. While such scope may allow raw materials to enter the country with benefits, there is a risk of misuse. We cannot let that happen.
He pointed out, "Consignments, whether imported or exported, remain at the port. If there is any damage to the product or reported irregularities, the forwarders become liable, even though they may not witness the incidents."
A bonded warehouse facility would enable freight forwarders to handle all imported containers under their responsibility, Kabir Ahmed said. "From there, freight forwarders could take over all responsibilities after completing customs clearance in accordance with proper rules," he added.
The Bangladesh Freight Forwarders Association president requested the NBR to establish a criteria, stating, "If necessary, set a criteria for those eligible to obtain a bonded warehouse licence."
Certain sectors, including garment exporters, are already enjoying bonded warehouse facilities. This allows the duty-free import of raw materials and accessories under the condition of subsequent export, with the items stored in specified warehouses.
Complaints of misuse of bonded warehouse facilities have persisted in the country for a long time. During the meeting, the Bangladesh Freight Forwarders Association made several suggestions, including simplifying the freight forwarder licensing policy.
The Bangladesh Shipping Agents Association raised concerns about the prolonged delay of new licences in the sector.
Syed Mohammad Arif, the association's president, emphasised that despite the lack of new licences in the last three years, 90% of the country's import and export is conducted through their association members.
He emphasised on issuance of new licences to increase the number of companies, arguing that such a step will subsequently boost government's revenue.
Additionally, he demanded online submission of documents to customs authorities after the arrival of consignments in the port rather than a manual system.
He proposed reducing the existing 8% advance income tax to 5% and sought exemption for the association members from arrears of the past 10 years as demanded by the NBR.
The Bangladesh Indenting Agents Association also called for the withdrawal of the existing 5% value-added tax on its members' income.
At the end of the meeting, NBR Chairman Abu Hena Md Rahmatul Muneem said the revenue board has to consider many factors while considering duty-free facilities to businesses.
"Many seek duty-free facilities. While such scope may allow raw materials to enter the country with benefits, there is a risk of misuse. We cannot let that happen," he said.
