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1 Country Report: For presentation to Delegates attending the 37 th EXECUTIVE COUNCIL MEETING OF THE FEDERATION OF ASIA PACIFIC AIRCARGO ASSOCIATION (FAPAA) SCHEDULED TO BE HELD AT SINGAPORE (JUNE 4 & 5, 2010)

2 Bangladesh Freight Forwarders Association BAFFA Address House 45/E, Road 13/C Banani Commercial Area Dhaka-1213, Bangladesh. Tel: , Fax: Present Listed BAFFA Members: common = *667 members of former ACAB. *411 members of former IFFAB, International Freight Forwarders of Bangladesh. *Out of the above members 54 members are common members. *International AirPorts: At Dhaka and Chittagong. *International Sea Ports: At Chittagong and Mongla *Land Ports: Benapole, Burimari, Tamabil, Banglabanda & several others with India & Teknaf with Mayanmar. *Members of International Organizations: FAPAA, FIATA and SAFFFA. 2

3 Country Report from Bangladesh Freight Forwarders Association, BAFFA From July 2009 to May Preface: BAFFA welcomes all FAPAA members at the 37 th Executive Committee Meeting of FAPAA at Singapore. We would like to inform to FAPAA that finally the formation of Bangladesh Freight Forwarders Association (BAFFA) is completed and Ministry of Commerce has already issued T.O. License on canceling the T.O. License of ACAB and IFFAB. The Registrar of Joint Stock Companies and Firms (RJSC) has issued incorporation certificate on in favour of BAFFA. We all here will be now treated as distinguished members of BAFFA. I would discuss more about BAFFA in the next slot of this report. You are aware that the Association of Cargo Agents of Bangladesh, ACAB started it s journey in 1992 and today, the Association has emerged as a viable and strong trade body and is capable of safeguarding and protecting the interests of members. International Freight Forwarders of Bangladesh, IFFAB started its journey in ACAB has officially handed over all charges to BAFFA at its AGM held on 22 nd May,2010 and at the grand launching ceremony of BAFFA held on the same day at the same venue at Dhaka with its accounts updated upto 30 th April, IFFAB will also held its AGM on 3 rd June, 2010 and will hand over their charges at the upcoming launching ceremony of BAFFA to be held on the same day at the same venue at Chittagong. A brief report on IFFAB activities should have been given but please take into consideration our limit on this issue. The recently past ACAB Executive Committee, after taking over charge in April, 2007, met in successive meetings and reviewed the prospect of the different activities and action-plans previously initiated; identified different problems of the trade, prioritized the same, listed solution of the problems and adopted decisions for taking future action-plans and steps for implementation of the objects of the Memorandum and Articles of the Association. 3

4 ACAB Executive Committee, EC Meeting: The year 2009 was very important period when many important events took place in the history of ACAB. Therefore, the EC had to hold so many meetings (17 in all including upto May 2010) and taken very important decisions to solve the problems and obstacles in conducting the activities of the trade. It should be noted here that the attendance of the Executive committee members in the EC meetings and other meetings was really satisfactory. Sub-Committees: Besides, the EC formed the following 15 Sub-Committees for dealing with and giving advisory services on different fields of the trade. The Sub-Committees had conducted their activities from time to time effectively. 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 13. ACAB shed irregularities Sub-Committee 14. Destination Charge/NOC Sub-Committee 15. ACAB Secretariat pending works Sub-Committee 4

5 Formation of BAFFA: With the strong foundation pillar of freight forwarders association in Bangladesh, BAFFA has emerged as only one national body on this soul for our trade by unification of ACAB and IFFAB. Being a member of the ACAB and IFFAB, we shall automatically become the member of BAFFA. Let us thank pioneers who thought about the formation of BAFFA. Now time has come to built stronger pillar as a leading stakeholder of the country through BAFFA. I believe coming day s activities of BAFFA will promote, safeguard and protect the more interest of the hon ble members. Destination Charge: Freight forwarders have been serving silently engaged in contributing towards Bangladesh import and export trade since past 32 years but recognized by the government and concerned stakeholders upon formulating and implementation of SRO 2008 by the competent authority. Freight forwarders are fully responsible for submitting IGM and others related works of import consignment and as a result overhead expenditures of freight forwarders has increased than previous in respect of licensing cost, security deposit, revolving a/c deposit with Banks and Customs, Bank interest, office equipments and stationery cost, IT and software cost, office rent and staffs salaries etc due to price hike in all. In pursuance of the decision taken in the Extra Ordinary General Meeting of Association of Cargo Agents of Bangladesh (ACAB) held on at Baton Rouge Convention Centre, Gulshan-2, Dhaka, forwarders are allowed to collect Tk. 2,500/- per H/BL as Destination Service Charge. But still we are facing problem to collect the above mentioned amount due to Bangladesh Garments Manufacturers and Exporters Association (BGMEA) & Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Finally, Ministry of Shipping has constituted a committee under NBR on comprising different stakeholder for recommendation of DSC amount. 5

6 Training and Seminar: To develop knowledge and skill of personnel, training is essential. It also helps to change their attitude to a great extent. Freight Forwarding has become nowadays an important part of international trade. Besides, for successfully conducting this business, personnel of member companies are required to be properly trained. ACAB has been imparting training on various topics in the Bangladesh Airlines Training Centre (BATC), Dhaka and Data Soft Ltd. In 2009, a total number of 72 personnel received DGR Training in 06 batches at BATC and 48 personnel received TOT in 03 batches at Data Soft Ltd. Iftar Party: Like previous years, ACAB arranged an Iftar Party on September 06,2009 in a local hotel where attendance was very satisfactory. A brief session of meeting was held prior to the Iftar. The meeting was presided over by Capt. Saifur Rahman, President, ACAB. He gave a brief resume of the progress in different activities of the association. He thanked the members for their attendance and cooperation extended to the EC throughout the year. Scanning Machine problem at DAC Airport: The present scanning service is providing by a local agent company named AMS appointed by the Civil Aviation Authority (CAAB) which is inadequate and we demanded the necessity of bigger scanning machine over the years. Recent past a lot of efforts have made with Chairman, CAAB and Hon ble Minister of Civil Aviation and Tourism. Chairman, CAAB has assured us during the meeting on that within the next 180 days necessary formalities will be completed to set up the bigger scanning machine. 6

7 Communication with International / National Organizations: Since it s inception, ACAB had been maintaining good communications with several international organizations like International Federation of Freight Forwarders Association (FIATA), Federation of Asia Pacific Air Cargo Association (FAPPA) and South Asia federation of Freight Forwarders Associations (SAFFFA) as regular member. Every year representatives of ACAB Executive Committee attending the conferences of the aforesaid organizations and presenting country reports highlighting the activities of this Association and the trade as well. ACAB is also a regular A class member of the apex trade body FBCCI and Shippers Council of Bangladesh. Besides, ACAB has been maintaining close liaison with Bangladesh Bank, Ministry of Commerce, Civil Aviation, Shipping and Biman Bangladesh Airlines Ltd, National Board of Revenue (NBR) and with other sister trade bodies. FAPAA Conference: 36 th Executive Council Meeting of the Federation of Asia Pacific Air-cargo Association (FAPAA) was held at Bangkok (June 5 & 6, 2009) and ACAB was represented by the President Capt.Saifur Rahman and Mr. Zahid Hossain Firoze, Asstt. General Secretary those who are also successfully initiating the process so that the 38 th FAPPA Council Meeting could be held at Dhaka, Bangladesh. The FAPPA Management has since confirmed Dhaka as the venue of the 38 th EC Meeting. 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 Hazrat Shahjalal International Airport former Zia International Airport, Dhaka. Without ACAB ID cards no civilians are allowed to enter into the said cargo handling area. With a view to facilitating entry into the cargo village, 3565 numbers of ID cards have been issued in the year 2009 including 2010 to the management and personnel of the member companies. 7

8 Gate Pass: The ACAB management has been entrusted by the Biman authority to control the cargo village gate. ACAB has been controlling the cargo village gate by issuing gate pass, through which trucks with goods get entry into the cargo village. And in this way the cargo village has been brought into discipline to a great extent. The total Gate Passes sold this year were 79,645 pieces including 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 process at Airport to wear those during duty period. The personnel of the members are now wearing ACAB jackets which have helped to improve their over-all performance and discipline. ACAB Shed: In absence of office space, freight forwarders/cargo agents had been facing serious obstacles in preparation of export documents at Hazrat Shahjalal International Airport. Since long past, attempts had been made to get office space within the premises of cargo village or its adjacent areas. The present EC succeeded in obtaining permission from Biman Bangladesh Airlines Authority for the 5414 sq ft space with signing the lease agreement initially for 02 years which has expired on 31 December,2009 and as such a functional shed has been constructed in front premises of cargo village. The expired lease agreement has been renewed for another 02 years from ACAB is grateful to Civil Aviation Authority of Bangladesh and Biman Bangladesh Airlines for their cooperation in conducting freight forwarding activities in the cargo village. 8

9 Summing Up: We are extremely happy to express that the members in general have always extended their sincere corporation in all possible ways. Our members always sincerely participated in all activities for which we express our gratitude to them. Now ACAB is self sufficient and self reliant organization and is capable of safeguarding and protecting the interest of the members. We assure you that as in the past we tried our best to protect the interest of the members and in future also we shall boldly face any situation and try our best to solve the problems of the members and the trade. We humbly urge upon you to come forward and remain united in the days to come under the umbrella of unified BAFFA. Prepared by: Zahid Hossain, Firoze on May 26, Asst.General Secretary, ACAB & Director, BAFFA on basis of the ACAB, General Secretary Annual Report at ACAB AGM on 22 nd May, Under supervision of: President of BAFFA, Mr Helaluddin Akbar. 9

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