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Coastal Shipping Agreement Between India And Bangladesh

Please read cuts International`s work notice: cuts-citee.org/pdf/working-note-india-bangladesh-coastal-shipping-agreement.pdf India is trying to remove the limitation on the size of ships between India and Bangladesh as part of the coasting agreement between the two neighbours in June 2015, as the pact is expected to be renewed next year. The Indian government has approved the agreement on coasting between India and Bangladesh for the implementation of coastal freight transport between the two countries. India and Bangladesh signed an agreement on coasting on 6 June 2015. The standard operating process (SOP) between the two countries was also signed on 15 November 2015 to implement the cabotage agreement. The agreement aims to promote trade between India and Bangladesh through their respective ports. Indian Prime Minister Narendra Modi revived trade agreements signed in 1974 by former Prime Minister Indira Gandhi, and late last year the two countries signed a standard procedure for bilateral trade. Various provisions have been added, including the fact that ships of both countries are treated as domestic vessels at entry. Crews are also excluded from international certification. “In addition to improving connectivity, service will play a crucial role in compensating border points and reducing transit costs and delays, which will provide the best competitive freight rates for the industry,” said Chinta Sasidhar, Managing Director of the Krishnapatnam Port Company.

The new shipping regime could also allow coasting to replace road traffic within India, as goods destined for the northeastern states of India could first be shipped to Bangladesh. Under the agreement, shipping from India to Bangladesh is considered a coastal transport, so it is cancelled for 40% of the concession to collect shipping and freight charges. India and Bangladesh have reached a cabotage agreement to expand trade between the two nations. To further improve trade, an agreement was signed in October 2018 on the use of Chittagong and Mongla ports in Bangladesh for trade in Bangladesh and to India. Ships operating under the agreement are subject to port charges and other taxes on local vessels from the countries concerned that travel exclusively on domestic routes and are lower than the rates levied by foreign vessels. You will also receive a priority. According to the maritime sector, “a service between Chennai and Chittagong does not require the use of smaller vessels.” India also asked Bangladesh to include in the agreement the transfer of export-import cargo from third countries (EXIM) by authorizing transshipment through ports on the east coast of India. Hosting the cabotage between India and Bangladesh will increase bilateral trade between the two countries and reduce Exim`s freight transportation costs, according to the statement. Exporters and importers, he said, “confused” that each ship between India and Bangladesh should be only 6,000 GT. “It`s not fair,” he said.

Bangladesh is India`s largest trading partner in South Asia. The opening of the coastal road between India and Bangladesh should provide an alternative route for transporting Exim freight between the two countries. “The question of whether foreign vessels with a larger (unrestricted) GT with equivalent safety certificates can move between the seaports of the two countries can also be negotiated to extend the benefits of mooring fees and priority tariffs to these vessels,” said a Ministry of Navigation official.

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