Commerce Ministry
Trade fair to continue maintaining health guidelines
Dhaka International Trade Fair (DITF) will continue at Purbachal in compliance with health protocols until a decision is made to close it, Commerce Ministry sources said.
The National Technical Advisory Committee on Covid-19 has not yet recommended closing of the fair, it will be closed if the committee suggests it, they said.
Read: Dhaka International Trade Fair kicks off at Purbachal
A senior official (export wing) of the ministry told UNB on Tuesday that the number of stalls has been reduced and the authorities will ensure mask wearing by visitors and maintenance of other guidelines including physical distancing.
"We have a monitoring team at the fair premises to monitor whether the visitors are following the hygiene rules. Officials of the Export Promotion Bureau have been given the responsibility of monitoring through an office order,” he added.
The government is going to implement 11-point restriction across the country from Thursday (January 13) as the coronavirus infections keep rising in the country.
The 26th edition of Dhaka International Trade Fair kicked off on January 1. Prime Minister Sheikh Hasina inaugurated the fair at Bangabandhu Bangladesh-China Friendship Exhibition Center (BBCFEC) at Purbachal on the outskirts of the capital.
The Ministry of Commerce and the Export Promotion Bureau have been organizing trade fairs since 1995.
However, this is the first time the fair has been organised in a permanent fair complex.
Read: Dhaka International Trade Fair begins Saturday in Purbachal
BRTC buses have been arranged from Kuril Biswaroad to the fair venue for the convenience of general visitors. There are 30 special buses running from Kuril to the trade fair venue. The fare is Tk 30 per person. BRTC buses also run from Motijheel and Mirpur to the fair venue.
A total of 23 pavilions, 27 mini pavilions, 162 stalls and 15 food stalls of different categories have been allotted to local and foreign companies in the trade fair.There were 11 foreign stalls participating in the fair.
Commerce ministry’s wings work to identify syndicates behind price hike
Essential commodities monitoring cell and Bangladesh Competition Commission are working to identify illegal syndicates and hoarders for breaking the trap of price hike of the essentials by rumours. Both the wings of the commerce ministry are collecting information from the markets regarding illegal syndicate and hoarding for final action following instructions from high ups of the government, said AHM Shafiquzzaman, additional commerce secretary on Sunday.
Read:TCB truck comes as relief amid price hike He told UNB that despite having enough supply of the essentials a group of people sometimes spread rumours among common people to enhance the sale of particular commodities. He believed the common people are not aware enough about the price hike trap and as a result they would buy particular goods more than their need at higher price on the rumours of short supply. The government is taking strict action against the businessmen who are making hefty profits, Shafiquzzaman said. They are being brought under the law by finding out why the market is unstable even after the supply of essential commodities is adequate. When contacted, Mofizul Islam, chairman of BCC said, “We are reviewing various products and services, including daily necessities, to understand the market." Necessary information is being collected from various organizations to understand whether the market is anti-competitive or not.” Information on who is importing these products or producing them in the country, at what price they are being sold are being reviewed, he said. He said that legal action would be taken against the concerned organization if any discrepancy was found after investigation. Giving example, he said, ‘Suppose a pharmaceutical company is selling the same class of medicine at a price higher than the market price. We investigate the reasons for the price difference. At the same time, let's see if the market is being affected in any dishonest way. ' The Commission will take action against the responsible organization or person in two ways, by fines and criminal cases.
Read: 25% price hikes of construction materials: FBCCI urges government to curb price Depending on the type of crime, fines are imposed. There are rules for a minimum of 1 per cent and a maximum of 10 per cent fines for the amount of transactions or products sold by the company in the previous three years. Mofizul said, "There is no provision for direct imprisonment in the law of the Competition Commission. Only financial penalties can be imposed. However, if we do not obey the order, there is a chance of a criminal case. There is a provision of jail in criminal cases.”
E-commerce scam: Commerce Ministry seeks information from police
The Commerce Ministry has sought information from police on all cases filed against the e-commerce companies for refunding the customers’ money stuck in different payment gateways.
The police headquarters has been asked to provide information to the ministry within the next seven working days.
Read:Cabinet committee seeks Law Division’s opinion to retrieve e-commerce customers' money stuck in gateways
AHM Safiquzzaman, additional secretary to the Ministry and coordinator of a high-level government committee on e-commerce issue, disclosed it after a meeting at the secretariat on Tuesday.
The customers of the e-commerce companies, against which there is no case, would be reimbursed on priority basis, Safiquzzaman said.
Police headquarters has been asked to report all cases against e-commerce companies to the ministry and based on that information, Bangladesh Bank will instruct the payment gateways to return the money to the customers, he said.
Non-submission of report on money laundering by e-commerce firms irks HC
The High Court on Tuesday expressed discontent as the authorities concerned failed to submit reports in time on steps taken against money laundering by e-commerce firms and policy to collect tax and VAT from the firms.
The HC bench of justice M Enayetur Rahim and Md Mostafizur Rahman expressed their dissatisfaction during a hearing on three writ petitions filed by victims of fraudulence by e-commerce companies .
The bench said the court will take the matter seriously as the concerned government bodies did not respond to the notice issued by the High Court.
Also read: BFIU seeks bank account details of 23 e-commerce platforms
The court asked Deputy Attorney General Bipul Bagmar to inform the matter to the Attorney General.
The court then set November 23 for next hearing and extended the time for report submission till then.
Earlier on September 30, the court asked the Ministry of Commerce, the National Board of Revenue (NBR) and Bangladesh Financial Intelligence Unit (BFIU) to submit separate reports on money laundering by the e-commerce platforms by November 8.
The court asked the BFIU to inform it the steps it has taken on money laundering by e-commerce firms and also wanted to know from NBR its policy on collecting VAT and Tax from these firms.
The court also inquired about the area of work of the 16-member technical committee formed by the Commerce Ministry for the e-commerce sector.
Lawyers Mohammad Shishir Monir, Md Anwarul Islam and Pallob Kabir M Humaun appeared for the petitioners, while Deputy Attorney General Bipul Bagmar represented the state during the hearing.
Earlier on September 20, Supreme Court lawyer Anwarul Islam filed a writ petition seeking its directive on creating an independent e-commerce monitoring institute to protect the interest and rights of customers of e-commerce.
On September 22, another SC lawyer Mohammad Humayun Kabir filed a petition seeking its directive on forming a probe-committee to find out the responsible individual or government authority whose negligence or failure has caused lakhs of consumers monetary losses from renowned e-commerce like Evaly, e-orange, Dhamaka, Daraz, Qcoom, Aladiner Prodip, Alesha Mart, and Dalal Plus.
On September 23, thirty-three consumers of e-orange filed a writ to get back their money from the company.
Also read: 49 e-commerce platforms are blacklisted, refund of customers’ money in process: Commerce Ministry
The petition was filed by advocate Shishir Monir seeking bar on the senior officials and authority of the risky e-commerce companies like e-orange from leaving the country and seeking a committee for protecting the interest of both the customer and company coordinated by economists, IT experts, and stakeholders.
49 e-commerce platforms are blacklisted, refund of customers’ money in process: Commerce Ministry
The authorities have blacklisted 49 e-commerce platforms and legal action will be taken against them as per recommendation of the commerce ministry, an official said on Monday.
AHM Shafiquzzaman, additional secretary to the commerce ministry and chief of Digital Commerce Cell (DCC), said this at a press briefing after a meeting of the DCC with the senior officials of different ministries, departments and agencies of the government at the commerce ministry office in Dhaka on Monday.
Shafiquzzaman, also the head of 15-member Cabinet committee on e-commerce, said that a report on the issue will be submitted to the Cabinet Division before November 11.
Also Read:Registration is a must for E-commerce firms: Committee
Regarding the Tk214 crore stuck in payment gateways since the introduction of an escrow service, the official said, "Criminal Investigation Department (CID) has blocked the money. We will write to the home ministry to defreeze it. Customers will get refund afterwards."
"We are hopeful that the CID will defreeze the accounts soon so that we can pay back the money of the affected consumers and merchants in the shortest possible time," Shafiquzzaman said.
Some 1 per cent or 2 per cent service charges may be applied on the consumers and merchants while disbursing the money stuck up in the escrow payment gateway, the chief of the DCC also said.
A large number of customers have been deceived by various e-commerce companies, including Evaly, e-Orange, Dhamaka even after paying money in advance.
Also Read: E-orange owner Sonia, 2 others remanded again
To curb such fraud and protect the interests of consumers, the government issued guidelines for the management of digital commerce, which calls for the use of escrow services.
Later, the Cabinet formed a committee to restore discipline in the industry and protect customers and merchants from further losses.
E-commerce firms must get registered within 2 months: Cabinet
All the e-commerce firms will have to be registered with the Commerce Ministry within the next two months, according to a directive of the Cabinet.
The directive came from a Cabinet meeting held virtually with Prime Minister Sheikh Hasina in the chair. She joined the meeting from her official residence Ganobhaban.
Read:Registration is a must for E-commerce firms: Committee
Other cabinet members attended the meeting from the Bangladesh Secretariat.
Identify new market trends to diversify export: Hasina
Prime Minister Sheikh Hasina on Tuesday asked the private entrepreneurs to identify new market demands and trends across the world to diversify the country’s export items.
“We’ve to find out through market research what new items we can produce to give a big boost to our exports…we need to focus on that,” she said.
The Prime Minister said this while inaugurating Bangladesh Trade and Investment Summit 2021 at Bangabandhu International Conference Center (BICC). She joined the programme from her official residence Ganobhaban.
Read: South Asian nations should work together: Hasina
The Commerce Ministry and the Dhaka Chamber of Commerce and Industry (DCCI) jointly arranged the weeklong summit to mark the Mujib Year and the Golden Jubilee of the country’s Independence, aiming to connect traders and investors from around the world.
Hasina said the exporters have to identify which country looks for what types of products, and the producers and manufacturers should think about producing those items.
“I request business organisations, especially the private sector, to give due attention to this issue because, I think, we need to increase the number of items in our export basket,” she said.
Hasina also mentioned that different countries have different demands. “Bangladesh is such a country where we can do (produce) anything, if we want…I’ve that confidence,” she said.
Talking about Bangladesh’s geographical position, the Prime Minister said domestic and foreign investors can export their items to South Asian and South East Asian countries from here. “They’ll get opportunities to grab the markets in these countries and export items,” she said.
Hasina mentioned that Bangladesh will become a bridge between the east and the west in the future. “This will help us flourish our trade and business further,” she said.
Read: Vested quarters out there to tarnish Bangladesh’s image: Hasina
Recommendations to recover scammed e-commerce money within a month
The committee formed for safeguarding rights of scammed e-commerce consumers will submit a report with recommendations within one month to restore discipline in the sector.
“According to the mandate we will determine a method for recovering the lost money of consumers in e-commerce and will send it to the cabinet”, said Additional secretary of the Commerce Ministry AHM Shafiquzzaman on Monday
He said this to journalists on Monday after attending a meeting held in this regard at the secretariat.
Also read: Money laundered by e-commerce firms to be recovered: Murad Hassan
“Arrangements will be made according to the cabinet’s decision. For Evaly the High Court itself is appointing administrators which can be followed for others too,” he said.
From June 30 an escrow system has been introduced where a third party holds the payment money until the product is delivered properly, said the additional secretary.
“The report will include recommendations on bringing all the e-commerce sites under one payment gateway and bringing them under VAT, TAX.” he said.
A total of eight recommendations will be sent to the cabinet within a month for securing the consumer rights, said Shafiquzzaman.
According to which policy makers will be able to make a digital commerce guideline or a way to bring e-commerce under discipline, he added.
The additional secretary said, the incidents regarding e-commerce have definitely caused damage which has to be repaired for taking it forward.
Also read: HC wants to know steps taken to prevent money laundering by e-commerce firms
Regarding the registration of e-commerce, the official said a format has already been made and the committee is working on the online registration process now.
“A meeting will be held next week in this regard,” he said.
Evaly in admin: HC receives three ex-secys' names
The Commerce Ministry has proposed the names of three former secretaries in response to a request from the High Court, which is in the process of appointing a board to administer controversial e-commerce platform Evaly.
Retired secretary of the Ministry of Land Maksudur Rahman Patwari, retired secretary of Local Government and Rural Development Rezaul Ahsan and former chairman of the Land Reforms Board Yakub Ali Patwari.
HC had asked for names of currently serving secretaries along with three former one.
Read: HC bans sale-transfer of Evaly’s property
At the same time, it said that the orders on the formation of the board of administrators for Evaly will be passed on October 18.
HC company bench of Justice Muhammad Khurshid Alam Sarkar on Wednesday passed the order.
As the top two officials (CEO and chairman) of Evaly are in jail, the same bench on Tuesday said it would form a four-member board for Evaly to try and track the money the platform has allegedly embezzled.
Read: Evaly CEO remanded again, wife lands in jail
Commerce Ministry lawyer Taposh Kanti said the names of the three retired secretaries have been given. The court said to provide the names of the working secretaries as well.
However, HC said that the board members would be finalized after verification.
Muted response to e-commerce SOP reflects recent troubles in the industry
The Commerce Ministry has recently completed its task of formulating a set of Standard Operating Procedures for the e-commerce industry.
Yet the muted response to the SOPs reflect the significantly deeper concerns surrounding the industry, that have come to light recently in the form of troubling revelations about some of its biggest players, most notably Evaly, that have come straight from investigations carried out by an authority as important as Bangladesh Bank.
Given the seriousness of some of these concerns and allegations, a set of guidelines rooted in global best practices, that would essentially allow the rapidly growing industry to regulate itself.
Firms would be responsible for implementing the SOPs within their own organisations, while a failure to do so would not carry the threat of incurring a legal penalty. None of the SOPs in that sense would be legally binding.
Also read: Potential of e-commerce hemmed in by bottlenecks
Although this kind of light-touch approach can be entertained in a situation where the assumption is that one is dealing with good faith-actors, the recent revelations regarding Evaly, that include possible money laundering, have effectively blown the credibility of such a working assumption out of the water.
It suggests the more prudent route forward for harnessing the sector's potential may well be regulatory oversight by a competent authority.