The National Board of Revenue (NBR) has turned down a plea from the ministry of shipping (MoS) to waive 50 per cent duty and other charges on goods imported through the Paira seaport, officials said. The MoS made the request for waiver for a period of two years with the objective of encouraging the traders to use the newly built anchorage port located in Patuakhali district, they added. On the other hand, the NBR said since there is no option to raise or reduce the rate of duty on the basis of customs stations, thus they cannot take the request into consideration. It said import or export duty will be realised as per Section 18 (1) of Customs Act-1969. A senior MoS official told the FE that the issue was discussed with NBR top officials several times, but no positive results emerged. He said Prime Minister Sheikh Hasina on November 19, 2013 formally inaugurated the port as an anchorage port before construction of the full-fledged port. Afterwards various development works including land acquisition and installation of navigational aids have been completed. During the last two and half years, the port authority had set several dates for starting operation of the anchorage port, but failed due to procedural delays. Finally, the port authority set January last as the deadline, but there they failed too, officials said. In its proposal for duty reduction the MoS said importers will feel encouraged to use the port if they are given 50 per cent duty & charges waiver. They (importers) will only get interested in using the anchorage port if the waiver is given as incentives since necessary infrastructure as a full-fledged port is yet to be developed, the ministry noted. Meanwhile, a feasibility study report has said the construction of the full-fledged Paira port may cost US$ 20 billion. Of the amount, some $ 3.5 billion will be needed for capital dredging to make the port channel navigable. The study also said every year some $350 million will be needed for regular dredging of the channel. For other components including connectivity of the port towards Dhaka through waterways and railways and building jetties and buying equipment, some $ 16 billion will be required, it said. British consultancy company Wallingford has conducted the feasibility study and submitted the report to the government in February last. Based on the feasibility study report, a preliminary development project proposal has been sent to the Planning Commission, MoS officials said. Several countries including China, the UK, Denmark, Belgium, the Netherlands, France, India, and the United Arab Emirates have expressed interest to help construct the Paira port. Proposals put forward by several companies of these countries are being evaluated by the Paira Port Authority, sources said. A senior MoS official said the government has listed the Paira port as fast-track project to expedite its construction since it was an election pledge of the present government.
