BANGLADESH. Country Report
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1 Association of Cargo Agents of Bangladesh (ACAB) BANGLADESH Country Report For presentation to Delegates attending the 33 RD EXECUTIVE COUNCIL MEETING OF THE FEDERATION OF ASIA PACIFIC AIRCARGO ASSOCIATION (FAPAA) AT Genting, Malaysia 9 TH 10 TH JUNE 2006 Page # 01
2 ACAB Address Association of Cargo Agents of Bangladesh House 45, 3rd Floor, Road 17 Banani Commercial Area Dhaka-1213, Bangladesh. Tel: Fax: Page # 02
3 Profile and brief background During the calendar year 1992 an organization under the title Association of Air Cargo Agents of Bangladesh (AACAB) was formed and registered. Later on in 1998 the senior freight forwarding leaders of the country felt the necessity to expand the activities in both Air & Sea amended the title as Association of Cargo Agents of Bangladesh (ACAB) with due approval from the Ministry of Commerce, Govt. of Bangladesh. Since its formation the leaders in the then AACAB and ACAB have been participating in the activities of International organizations like FAPAA, FIATA and SAFFFA. The ACAB leadership feels that freight forwarding activities virtually form an important part of International trade and economic activities. Economic Trend The major products and exportable items from Bangladesh are Readymade Garments i.e. RMG, Jute goods, Jute yarn, Handicrafts, Fish and dry fish, Finished Leather and Tea. Out of which about 77% are RMG exports. In the post-mfa era there was an apprehension in business and economic circle that the increasing trend of exports particularly the RMG sector would face a setback. But it is heartening to note here that both Govt. authority and the business community of the country had faced the problem so efficiently that the increasing trend of exports has been maintained undisturbed. The RMG sector alone have employed over two million workers. And thus substantially unemployment problem of the youths has been solved. The RMG of exports has contributed much to maintain healthy economic growth of the country. Executive Committee As per Memorandum and Articles of Association of ACAB the Executive Committee is elected for a term of two years. Accordingly, the present EC for was elected and took over charge of the Association in February Sl. No. Name Position Company/Firm 01 Capt. Md. Saifur Rahman President EBD Limited 02 Mr. S. A. Ashraf Abdullah Senior Vice President Transair International Ltd 03 Mr. Md. Nasir Uddin Mahmud Vice President Crown Logistics Ltd 04 Mr. Md. Abu Baker Sarker General All-trans Cargo Services Ltd Page # 03
4 05 Mr. Zahid Hossain Asstt. General 06 Mr. M. A. Sobhan Asstt. General Awards Transportation Ltd Sunnytrans International Ltd 07 Mr. Sultan Ahmed Treasurer M/S Concord Express 08 Mr. Demien Gonsalves Public Relation 09 Mr. Md. Mafizul Islam Port Affairs 10 Mr. Md. Saidur Rahman Port Affairs United Services Agency Mukta Enterprise Prime Logistics Ltd 11 Mr. Mohammed Faiz Khan Member Cargo Plan Int l (BD) Pvt. Ltd 12 Mr. S.M Bakhtiar Member Active Logistics Ltd 13 Mr. Md. Anwar Iqbal Member Transparent Cargo Services Ltd 14 Mr. Khorshed Alam Member Marvel Freight Ltd 15 Mr. Mofizur Rahman Chowdhury Member Maple Consolidations Ltd Sub-Committees: Besides, the EC formed the following Sub-Committee for dealing with different field of the trade. 1. Membership Sub-Committee 2. Air Affairs Sub-Committee 3. Ocean Affairs Sub-Committee 4. Foreign Affairs Sub-Committee 5. Legal Affairs Sub-Committee 6. Training Sub-Committee 7. Govt. Affairs Sub-Committee 8. Fund Raising Sub-Committee 9. Arbitration Sub-Committee 10. Custom Affairs Sub-Committee 11. Publication Sub-Committee 12. ACAB-IFFAB Co-ordination Sub-Committee The Sub-Committees have been conducting their activities successfully. After taking over charge of the Association in February 2005, the Executive Committee sat several times and identified the obstacles to the freight forwarding trade of the country and listed out solutions. By this time several steps have been taken by the EC Page # 04
5 for solution of the obstacles and to implement the objects of the Memorandum and Articles of Association. Cargo Handling at Dhaka International Airport Position of cargo handling in Zia International Airport is shown in the following table. Outbound perishable cargo: Outbound dry cargo: Year MT Year MT Inbound dry cargo: Year MT It may be noted here that ACAB member companies have handled almost 90% of the outbound dry cargo traffic from Bangladesh. Police Verification of ACAB Members Personnel Since last year the Civil Aviation Authority of Bangladesh (CAAB) has been attaching much importance of improving the security situation of the ZIA cargo handling areas of Zia International Airport. As desired by the CAAB the ACAB management have successfully completed police verification of about 60% of the personnel of member companies engaged in handling process of cargo in preparation of export documents etc. The matter is still under process. ACAB Jackets As per decision adopted in a joint meeting of ACAB management, Civil Aviation authority and the Bangladesh Biman authority, ACAB has already arranged to supply ACAB Jackets which is binding upon all the personnel of member companies engaged in cargo handling Page # 05
6 process at Airport to wear those during duty period. The personnel are now wearing jackets which has helped to improve their over all performance and discipline. Involvement of ACAB Management in Zia Airport Management & Security For a few years past the Civil Aviation Authority of Bangladesh and Bangladesh Biman authority have been seeking cooperation of ACAB Executive Committee representatives in formulation policies and Action Plans for improvement of management, discipline and security of the entire area of cargo handling process in Zia International Airport. In almost all meetings of the Civil Aviation Authority and Biman Bangladesh have been inviting ACAB representatives. Normally Capt. Saifur Rahman, President attended those meetings. In several meeting proceedings the Civil Aviation Authority of Bangladesh has recorded with satisfaction the active role of the President. Membership Strength The total strength of membership of ACAB is now 354 companies/firms. There is a good response in business community to enroll themselves as members of this Association. Employment Opportunity The member companies of this association have employed a large number of unemployed educated youths of the country. Thus to some extent these companies have solved the employment problem of the country. Liaison with National & International Organizations As reported earlier that the ACAB management has been attaching much importance in maintaining close liaison and obtained membership with International organizations like FIATA, FAPAA, SAFFFA. Similarly it has obtained membership with national organizations like the Federation of Bangladesh Chambers of Commerce & Industry, Shippers Council of Bangladesh. It has been also maintaining close liaison with Bangladesh Bank (Central Bank), Bangladesh Shipping Association, International Container Shipping Association, Ministry of Commerce, Ministry of Civil Aviation and Tourism, Ministry of Shipping, Civil Aviation Authority of Bangladesh, Bangladesh Biman, different Air and Shipping lines etc. Page # 06
7 Role in Policy formulation In formulation of national policy in some sectors ACAB management has been playing prominent role. As a member of the national committee on fruits and vegetables exports the President and General have been playing vital role. In making amendment of Foreign Exchange Regulation Act-1947 initiated by the central bank, ACAB management submitted written proposal for amendment. In 2000 the representatives of ACAB actively participated in preparation of draft licensing rules initiated by National Board of Revenue. ACAB Newsletter This association, since 2001, has been publishing a monthly Magazine under the title ACAB news. Contents of the magazine are, interallia, news on export, import, trade & industry, ACAB activity reports including editorial. In also publishes some articles on shipping, Air shipments, economy etc. 600 copies magazine are distributed among member companies, Airlines, Shipping lines, media, Govt. and semi govt. offices, banks, etc. The feedback of readers are encouraging. Licensing Rules There was no enactments and specific Govt. rules for conducting freight forwarding activities in the country. During the later part of nineties, both govt. and senior freight forwarding leaders felt the necessity of framing licensing rules within the frame works of Customs Act with a view to bring discipline in the trade. Since 1998 both Govt. officials and ACAB leaders sat several times and formed licensing rules for freight forwarders within the framework of Customs Act. The said rules was also issued through a Govt. Statute Regulatory Order (SRO) in the year But for unknown reasons the National Board of Revenue (NBR) authority did not implement the said rules. ACAB management repeatedly requested the NBR authority to implement the same which went in vain. In fine a few members of ACAB filed writ petitions in the Hon ble Supreme Court of Bangladesh, High Court Division praying for implementation of the said SRO which is pending for final hearing. ACAB-IFFAB Unification It may be noted here that there is another freight forwarding trade body named International Freight Forwarders Association of Bangladesh (IFFAB). This organization Page # 07
8 being established in 1998 has also been conducting activities. Both Govt. and senior freight forwarding leaders felt the necessity of unification of these two trade bodies. And as such a committee was formed by the Govt. taking representatives from ACAB & IFFAB with the President of Federation of Bangladesh Chambers of Commerce and Industry as Chairman. The committee submitted recommendation to the Ministry of Commerce proposing unification and formation of one single national trade body for freight forwarders of the country along with a Memorandum and Article of Association for the proposed national trade body. However, the matter of unification is under process. ACAB Pandle at ZIA Since the beginning ACAB management tried much to arrange office accommodation for the ACAB members personnel engaged in Zia International Airport cargo handling area. But did not succeed. Again in 2005 the ACAB EC approached the Biman Bangladesh Airlines authority for office accommodation. This time the Biman allotted open pucca space in front of the Cargo building to erect a temporary pandle. Accordingly, ACAB has erected a temporary pandle at its own cost in the open protected space where the boxes of the member companies have been placed and the personnel are working for preparation of export shipment documents in a peaceful and harmonious atmosphere. Now negotiation with the Biman and CAAB authority are going on for taking lease of the space for construction of steel structure in place of the present temporary pandle. The ACAB ID Cards For a few years past ACAB has been issuing Identity Cards to both personnel and management of the ACAB member companies for facilitating entry into cargo handling area of the Zia International Airport. Without ACAB ID cards no civilians are allowed to enter into the said cargo handling area. ACAB Calendar 2006 During the year 2005 ACAB printed about annual calendar for 2006 on behalf of the 55 member companies at a lower cost depicting various activities through photographs and were distributed among them. Page # 08
9 Bill of Lading The Bill of Lading issue has been creating confusion in conducting transportation of goods. The problem was originally created by the Central Bank through issuance of a circular in The problem is that letter of credit stipulated Bill of Lading and carrier Bill of Lading being consigned to the authorized dealer at the destination. This has created a serious obstacle to our freight forwarding business. The Executive Committee had filed writ petition (case) with the Hon ble Supreme Court of Bangladesh, High Court Division, which is pending for hearing. However recently another circular reference no.: 4 have been issued by Central Bank on 29 March 2006 allowing Freight Forwarders to issue FCR and HAWB. Prepared by: Mr Raisur Rahman, Office, ACAB Edited by: Mr Zahid Hossain Firoze, Asst. General, ACAB. Page # 09
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