NBR allows increased foreign stake in customs agents

Staff Correspondent | Published: 23:37, Aug 01,2017 | Updated: 00:05, Aug 02,2017

 
 

The National Board of Revenue has relaxed the provision of customs agents licensing rules allowing foreign investors to own 49 per cent shares in a joint venture company in the sector.
Previously, foreigners could own 40 per cent of shares of a JV company in logistics services like shipping and freight forwarding services for transportation of goods in international trade by sea, land and airways.
The revenue board on July 26 issued a notification amending the provision which raised the percentage of share of foreigners in a JV company following lobbying from the European Union.
Officials of the NBR said that the decision was taken as per the discussion of 2nd EU-Bangladesh Business Climate Dialogue held in December last year.
The EU Business Council demanded to enhance the percentage of foreign ownership in a JV company in the sector saying that the 40 per cent ownership cap was contradictory
to the investment policy.
The issue has also been discussed at the 3rd dialogue held last week in Dhaka.
The NBR in budget for fiscal year 2015-16 formulated the Customs Agents Licensing Rules-2016 replacing the old rules framed in 2009 and reduced the percentage to 40 per cent from previous 49 per cent to promote the domestic companies in the sector.

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