Thaindian News

Dhaka, April 6 (IANS) Bangladesh has followed international norms in not charging India transit and transshipment fees while facilitating movement of equipment to India’s northeastern Tripura state, experts here have said.

There is no loss to Bangladesh since it cannot charge any fee for giving the right of transit and transshipment to other countries. But it can collect other service charges and administrative costs in line with the World Trade Organisation (WTO) rules, experts told The Daily Star newspaper.

Their views contradict recent reports that portray Bangladesh as losing money.

The controversy pertains to the recent transshipment of large equipment meant for setting up a power plant at Palatona in Tripura that is located on Bangladesh’s eastern flank.

Bangladesh and India had agreed upon it and Delhi would sell a part of the power generated at the plant to Dhaka.

“No country can collect fees only for giving the right of transit and transshipment; it is the violation of international norms. But all other appropriate charges are applicable,” said Ahsan H. Mansur, executive director of the Policy Research Institute (PRI).

“According to the international norms, one country should not exploit the disadvantages of other people. This is why the question of transit and transshipment comes.”

He said the north-eastern region of India is landlocked and in a disadvantageous position.

Bangladesh can collect administrative and other expenses from Indian vehicles and vessels for using its territory, he added.

“The country can be benefited indirectly.”

According to international practices, Bangladesh will receive service charges for across-the-country transports along with different regular service charges such as administrative costs, port use costs, health and environment costs, noise pollution costs, infrastructure development costs and others.

International practices make it mandatory for a country to provide transit and transshipment facilities to another country if it is disadvantaged and landlocked.

Manzur Ahmed, an adviser to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said collecting fees in exchange of services is a global practice in case of providing the transit and transshipment facilities.

Ahmed said that according to international rules, it is mandatory if a landlocked country demands transit and transshipment facilities through the territory of another country.

Syed Saifuddin Hossain, a senior research fellow of Centre for Policy Dialogue (CPD), said no country can collect fees only for giving the transit right.

For example, he said, the Switzerland government collects infrastructure charges, administrative costs and other charges for transit and transshipment.