The Hindu Business Line : Hilli truck logjam adding to transaction costs: Exporters

LACK of concerted efforts by government agencies at land customs stations (LCS) is threatening to derail the country's exports to Bangladesh through the LCS in North Bengal, and in the process add to transaction costs in a big way.

While the Customs authorities, armed with a mandate to treat exports as a national priority, are all for exports, the Border Security Force, with priority only to border vigil, do not seem to treat exports the same way. Hundreds of loaded trucks are now standing on the border road in and around Hilli town because of the slow clearance.

Even as a new initiative has been launched by the Commerce Ministry to upgrade infrastructure facilities on a priority basis at the three LCS of Hilli (Balurghat, South Dinajpur), Mahadipur (near Maldah town) and Phulbari (adjacent to Siliguri) in North Bengal, exporters complain that the "overzealous" BSF men are a major cause of worry for the trade.

Talking to Business Line at the Hilli border point recently, Mr Ashok Kumar Mondal, Secretary, Hilli Exporters and Customs Clearance Agents Association, said while the narrow approach road to zero point at Hilli is already causing truck congestion, the attitude of the BSF is not helping matters.

Seeking urgent Central intervention, he said, on an average, only some 90-odd cargo-laden trucks, mostly carrying agri-commodities, are now being cleared against the 150-plus during the whole of 2003, entirely due to the rigid attitude of the BSF personnel who detain trucks for more than 20 minutes, after the "let-export" order had been issued by the Customs authorities.

Asked to clarify, Mr Shantanu Roy, Customs Superintendent, confirmed that after Customs authorities have given the go-ahead, the BSF personnel only need to note down a few small details, such as truck number, item description, names of driver and khalasi, which should not take more than a few minutes. He said the Exporters' Manual with the Customs clearly indicates that no other agency of the Central or state governments have the authority to hinder free movement of any export cargo, and that security personnel can only seek an undertaking from the exporter in case of any doubt based on prior information.

Exporters claim that BSF personnel are totally insensitive to exports as a national priority, and are bent on harassing the exporters for no rhyme or reason. According to Mr Mondal, some trucks are even sent back by the BSF to the parking lot from zero point, after Customs clearance, forcing the exporters to incur needless demurrage charges, which add to the transaction costs. Several appeals to the BSF have not yielded any results so far, it is learnt.

According to Mr Ramen Choudhury, Office in Charge, Immigration Check Post (ICP) at Hilli, the driver, cleaner of exports trucks are already identified and their personal details recorded at the ICP, and any further recording by other security agencies was redundant. We maintain a register, and there is no reason for anyone else to recheck after this, he added.

All export trucks passing through the various LCS points in Bengal to Bangladesh, as per a new order by the Commissioner of Customs, Preventive, Kolkata, (effective from September 1, 2004), will now need a second quick clearance by Customs embossed on the Export Manifest, after the BSF okay, and this has sent further shivers down exporters' back. According to some Hilli exporters, this may further hamper truck movement.

Asked for his comments, Mr Romit Mutsuddi, DM and Collector, South Dinajpur, said he would soon initiate a dialogue with the BSF personnel to ease the congestion at Hilli. On upgradation of infrastructure facilities, the approach road to the border was being widened under a Rs 113-crore ADB-funded road infrastructure development project in the area. Work is expected to start in full swing sometime next month, after the monsoons in the area subside. He said the Jilla Parishad controlled parking lot at Hilli was also being upgraded.

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Hilli truck logjam adding to transaction costs: Exporters