Fees for 46 import-export trade services hiked

Resorting to a contradiction, the government has raised various fees for import-export trade, forcing businesses to bear additional expenses.  

As the Ministry of Commerce decided to impose ‘new fees’ on some 46 import-export trade, stakeholders said the decision was made unilaterally.

They said the decision has been taken at a time when the government is slashing public expenditure at the cost of increasing the cost of doing business.

At the same time, the existing fees have been increased for 18 types of services. In this case, the industrial entrepreneurs have to pay the increased fee up to a maximum of Tk 50,000. Recently, a notification in this regard was issued by the Chief Controller of Imports and Exports that said fresh fees would come into effect from Thursday.

An official involved in the process of levying the fees said the government has decided to increase its revenue by collecting fees from business organisations.

However, because of the current dollar crisis, increase in fuel oil prices in the global market and local power outages, the cost of doing trades and businesses have already shot up. And, import-export trade service fees will hike such costs further, insiders said.

The Finance Division recently sent a letter to the office of the Chief Controller of Import-Export asking it to impose the maiden fees on the services at various stages of import-export trade.

To take cognizance of this, the officials claimed that they had held a meeting with the stakeholders. After a meeting with the Ministry of Commerce, the matter of hiking fees was finalised.

The Chief Controller of Import-Export, Sheikh Rafiqul Islam, told Business Insider Bangladesh that the decision was made after discussing it with the stakeholders.

In the case of import-export trade, out of 52 types of services, fees were levied earlier on 6 types of trade. The rest did not have to pay any fees. Now the remaining 46 types of services are subject to payment of unpaid fees, he said.

He thinks that this decision will increase the revenue of the government.

However, the Executive President of Bangladesh Knitwear Manufacturers and Exporters Association, Mohammad Hatem told Business Insider Bangladesh that the Ministry of Commerce did not hold any discussion with the garment industry organisations such as Bangladesh Garment Manufacturers and Exporters Association and BKMEA before making such a vital decision.

“Although we consider this ministry as our mentor, the decision should have been made through discussion and consensus,” Hatem said.

He said that due to multiple factors, the cost of trading has substantially increased. On the other hand, foreign buyers are bargaining for lower prices.

“A big crisis is looming. In such a situation, I urge the government to cut various expenses. Even if they need some fees, it could be levied after local and global situations improve, not in September.”

According to the sources, the registration fee for companies importing products of Tk 500,000 will be increased from Tk 18,000 to Tk 24,000, and for imports up to Tk 1 crore, the fee will be Tk 30,000 to Tk 40,000. The registration fee of a company importing goods worth Tk 5 crore will be increased from Tk 45,000 to Tk 50,000, respectively.

Similarly, the fee for organisations with an import limit of up to Tk 20 crore, has been hiked from Tk 45,000 to Tk 60,000 and companies importing products worth Tk 50 crore will have to pay Tk 80,000 from the earlier Tk 45,000

Meanwhile, in the case of local industries, the existing licence fee for formalin production has been increased from Tk 2.5 lakh to Tk 3 lakh. Besides, in the case of import of formalin, the licence fee has been increased from Tk 2 lakh to Tk 2.5 lakh and the licence fee for storage and sale has been increased from Tk 1 lakh to Tk 10 lakh.

In the case of export trade, the registration fee will increase to Tk 10,000 from the current Tk 7000. For the indenting services, fees will also increase to Tk 50,000 from Tk 40,000. In the cases of multinational companies, Export Registration Certificate (ERC) fee will shoot up to Tk 10,000 from the existing Tk 7,000, respectively.