Transit Agreement Between Bangladesh And India

Implementation of a motor vehicle agreement between Bangladesh, Bhutan, India and Nepal will further improve trade and connectivity, with Bangladesh leading the way. Movement on flat mechanized ship projects: the two sides agreed to establish trade between Chilmari (Bangladesh) and Dhubri (India) through the use of mechanized flat vessels, provided they are registered in accordance with Bangladesh`s Inland Navigation Regulations or Bangladesh`s Waterways Act of 1917 in India, in accordance with Article 1.3 of the Protocol and meet safety requirements. This initiative will allow the export of stone chips and other cargoes from Bhutan and North East to Bangladesh, as well as easy access for traders in the Bangladesh hinterland and strengthen the local economy in Bangladesh and the Lower Assam region of India. Under the SoP, in the ports of Chattogram and Mongla, « freight transport is exempt from customs duties or other taxes as administrative taxes and other taxes imposed by the government transit committee. » The Bangladesh-India-Nepal Motor Vehicles Agreement (MVA) (BBIN) was already signed in 2015 by the four participating nations. The agreement allows signatory states to use each other`s road networks for the transport of goods and passengers. Loads can be delivered without an envelope: reduce time and costs. An attempt involving an Indian truck in 2015, carrying goods from Calcutta to Agartala via Dhaka, revealed that the distance was saved by more than half. [7] However, the payment of capital through the LoCs has been slow. Of a total of $7.8 billion in credit, only 9 per cent or $686.08 million was paid to Bangladesh until GJ 2019-2020. [10] The Fund`s low utilization rate has led to a slowdown in the construction infrastructure required for transit: only two of the 15 projects planned in the second LOC have been completed and no projects have yet been completed in the third LOC. BANQUE EXIM, which is responsible for the distribution of credits, needs a long bureaucratic process to approve any project proposed by Bangladesh. On the Bangladeshi side, sending invoices is also a long process: invoices are processed by the project management office at the project implementation agency, then at the department/ministry, next to the department of princely relations, then at the Indian High Commission and finally at THE EXIM BANK.

[11] The Standing Committee on Protocol and Discussions at the Minister of Navigation`s level are the institutional agreements between the two friendly neighbours to discuss the protocol and make it more effective. During the discussions between India and Bangladesh at these meetings in New Delhi in October 2018 and dhaka in December 2019, important decisions were taken regarding the extension of the protocol`s routes, the opening of new routes and the declaration of new ports of call facilitating trade between the two countries. These decisions were made with the signing of the Second Amendment to the Protocol today effectively BBIN-MVA can facilitate more transit by Indian vehicles from central India to the northeastern states. At the same time, it opens up Bangladesh`s freight movements to the three participating nations. Implementation of the agreement has stalled due to opposition to the Bhutan agreement. However, Bhutan authorized the other three nations to finalize protocols under the agreement. The other three nations agreed to finalize protocols for passenger and cargo protocols earlier this year. [8] The aforementioned changes to the protocol should further facilitate trade between two countries whose reliability and cost-effectiveness are improved. Another reason bangladesh is not benefiting greatly from transit is the slow implementation of the necessary infrastructure. India has provided Bangladesh with four lines of credit worth $7.8 billion since 2010. [9] Bangladesh uses the first three LoCs to develop the infrastructure needed to facilitate transit movements.

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