Bangladesh has agreed to allow India to use Chattogram and Mongla ports for freight transport to its northeastern states.
To this end, the cabinet approved the draft of a possible deal with India regarding use of ports, as per agency reports.
The decision was taken of Monday in the weekly cabinet meeting with Prime Minster Sheikh Hasina in the chair, held at the premier’s office.
Customs duties and transportation costs will be charged on this freight as it makes its way through Bangladesh territory, said Cabinet Secretary Shafiul Alam to reporters after the meeting.
“A draft of the communication network being built for connectivity between the Chattogram and Mongla ports has been approved for India’s signing. One of the provisions says that Nepal and Bhutan can be added to the agreement if they wish.”
The decision is another step in improving the friendly relations between Bangladesh and India, Alam added.
The Chattogram and Mongla parts will be used to transport goods to northeastern Indian states.
Only Bangladeshi vehicles may be used as freight transport to move the goods while they are in Bangladeshi territory, Alam added.
India must also follow GATT and Bangladeshi regulations and also pay the customs duties and buy tax equivalent bonds.
A tracking system will be used to monitor the cargo moving through Bangladesh, he said.
“Priority will be given according to the capacity of the Chattogram and Mongla ports. Bangladesh will also collect customs duties and transport costs according to the GATT principles.”