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Bangladesh in International Affairs
Bangladesh in International Affairs
Bangladesh in International Affairs
Foreign Policy
Foreign Policy is usually viewed as an extension of domestic policy. Foreign policy refers to the
policy of a sovereign state to achieve its desired goals to the foreign countries. The foreign policy
of Bangladesh, like that of any other state is also primarily a projection of the country's socio-
economic and political compulsions in international politics.
o The emergence of Bangladesh as an independent state in 1971 in South Asia appears to
be a unique phenomenon in international affairs.
o Bangladesh's options in foreign policy appear to be limited because of its geographical
location, small size of the territory and limited economic resources.
o It is apparent that the conduct of foreign policy of Bangladesh appears to be a delicate
balancing act between preservation of sovereignty and pressures from external powers.
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Promotion of international peace, security and solidarity
25. The State shall base its international relations on the principles of respect for national
sovereignty and equality, non-interference in the internal affairs of other countries, peaceful
settlement of international disputes, and respect for international law and the principles
enunciated in the United Nations Charter, and on the basis of those principles shall –
(a) Strive for the renunciation of the use of force in international relations and for general and
complete disarmament;
(b) Uphold the right of every people freely to determine and build up its own social, economic
and political system by ways and means of its own free choice; and
(c) Support oppressed peoples throughout the world waging a just struggle against imperialism,
colonialism or racialism.
War
63. (1) War shall not be declared and the Republic shall not participate in any war except with
the assent of Parliament.
Contracts and deeds
145. (1) All contracts and deeds made in exercise of the executive authority of the Republic shall
be expressed to be made by the President, and shall be executed on behalf of the President by
such person and in such manner as he may direct or authorise.
(2) Where a contract or deed is made or executed in exercise of the executive authority of the
Republic, neither the President nor any other person making or executing the contract or deed in
exercise of that authority shall be personally liable in respect thereof, but this article shall not
prejudice the right of any person to take proceedings against the Government.
Principles of Bangladesh foreign policy
There are some principles maintained under the foreign policy of Bangladesh. Bangladesh is a
member of various international key organisations such as the UN, the NAM etc. So the
principles of Bangladesh foreign policy can't be controversial with the principles of these
organisations. There are four basic principles of Bangladesh foreign policy-
Friendship to all and malice towards none:
Bangladesh being a poor country is dependent on the foreign aid which is provided by the states
with various ideologies. That is why the Father of the nation Bangabandhu sheikh mujibur
rahman said: 'We are a small country, we want friendship to all and malice towards none.‘
Respect to the sovereignty, independence and territorial integrity of other states: Bangladesh is
a member of United Nations. The UN charter mentioned in article 2(4) that 'All Members shall
refrain in their international relations from the threat or use of force against the territorial
integrity or political independence of any state, or in any other manner inconsistent with the
purposes of the United Nations'.
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Non-intervention in the domestic matter of any state: Article 2(7) of the UN Charter
mentioned that, 'Nothing contained in the present Charter shall authorize the United Nations to
intervene in matters which are essentially within the domestic jurisdiction of any state or shall
require the members to submit such matters to settlement under the present Charter; but this
principle shall not prejudice the application of enforcement measures under Charter VII. As a
member of United Nations, Bangladesh included this policy in to her principle of foreign policy
which gives assurances to others about Bangladesh's friendly respectful character.
World Peace: Bangladesh wants peace in international arena, and it formulated world peace as
one of the basic principles of her foreign policy as it is also related to her national security and
development. There are various significance of this principles such as Bangladesh believes in
peaceful cooperation, peaceful settlement of conflicts and peaceful changes in international
arena.
Determinants of Bangladesh's foreign policy
Bangladesh's foreign policy is determined by certain basic factors which have impact on foreign
policy formulation.
Geography has put Bangladesh as a neighbour of India and Myanmar in three sides
except the south with the Bay of Bengal. India has surrounded Bangladesh from three
sides and the position of Bangladesh is like a flannel from the Bay of Bengal.
Moreover, Bangladesh is sandwiched between two rising Asia's giants, India and China.
It is a challenge for Bangladesh as to how to maintain a delicate balance of relations
between China and India. Bangladesh has a huge population of nearly 150 million
squeezed into a territory of 147,570 square kilometers which gives the population density
of 1020 persons per square kilometer. Foreign policy of Bangladesh is largely affected by
this population negatively because government can't create a highly dynamic foreign
policy because of population.
Preservation of sovereignty and territorial integrity, economic security, energy security,
environmental preservation and internal peace and cohesion are the important elements of
national interest. Bangladesh has a vital stake that neghbouring countries remain
peaceful, stable and friendly or at least not unfriendly towards Bangladesh. Bangladesh's
security primarily derives from its relationship with countries within South Asian region.
Economic security is another priority and includes some minimal expected level of
economic welfare for the population in the country. To advance economic development,
growth of export, flow of foreign investment, increase of official development assistance
(foreign aid), access to the external market for Bangladeshi goods, transfer of technology
from industrialized countries and human resources development and some of the
priorities are to be addressed.
This implies that Bangladesh has to develop close relations with western countries for
their assistance and support. Bangladesh being independent with the help of India, one
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ally of USSR during the cold war period followed the socialism as one of the foreign
policy criteria.
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After the birth of Bangladesh, recognition came quickly from the Soviet bloc communist
countries. But the western countries were slow in recognising Bangladesh compared to the East
European communist countries. Among the Western countries, Australia and New Zealand were
the first to accord recognition to Bangladesh.
The Islamic world and African countries took their own time to recognise Bangladesh. The only
neutral country which accorded recognition during this early period was Burma. In three and a
half years' time following the country's liberation no countries except Saudi Arabia, Libya and
China considered the reality of Bangladesh as unacceptable.
Immediately after the emergence of Bangladesh, the government demonstrated the left-leaning
economic policy by nationalising all the industries in 1972. The concept of socialism was
enshrined in the Constitution of Bangladesh in 1972.
The first Prime Minister of Bangladesh tajuddin ahmed, refused to accept aid from any country
which opposed our liberation struggle. With the return of Bangabandhu Sheikh Mujibur Rahman
from the prison of Pakistan, he assumed the reins of government in independent Bangladesh. He
set the tone for it by declaring that 'I would like it (Bangladesh) to become the Switzerland of the
East'. The main principle of the foreign policy of Bangladesh was enunciated in lucid terms by
Sheikh Mujibur Rahman when he declared: 'We are a small country, we want friendship with all
and malice towards none' and his Foreign Minister eloquently expressed the tenets of foreign
policy when he declared at the UN General Assembly on 17 September 1974:'
'Bangladesh has consistently pursued an independent non-aligned foreign policy promoting
friendship with all countries of the world on the basis of mutual respect for sovereignty, equality,
territorial integrity and non-interference in the internal affairs of other' states'.
In the first decade of Bangladesh's independence in the years led by Bangabandhu Sheikh
Mujibur Rahman, Bangladesh pursued and won recognition from all the countries of the world as
an independent and sovereign country.
Simultaneously, it also became a member of the United Nations and all other major world
organisations such as the Commonwealth, the Organisation of Islamic Conference (OIC), and the
Non-Aligned Movement. It also became the natural leader of the group of Least
Developed countries. Bangladesh's foreign policy triumphs were also visible in the way the
developed countries came to its aid with economic assistance.
USA that had viewed Bangladesh's emergence with contempt came around to meet Bangladesh's
economic needs together with Japan, the United Kingdom and a number of other developed
nations known at that period as Bangladesh Aid Consortium that used to meet those days under
the joint chairmanship of the World Bank and the Government of Bangladesh.
After the rule of Awami League, General ZIAUR RAHMAN came to the power. He continued
with the policy of his predecessor, but also brought some diversification to it by fostering more
cordial relations with the U.S and bringing Bangladesh closer to Muslim countries. It casts its
preference for China and in the context of China-US rapprochement, Bangladesh chose the
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China-US axis as its new friends. Bangladesh and China came very close in strategic
cooperation, with China undertaking to build the Bangladesh armed forces. China, that offered
economic assistance of various types that were those days extremely attractive for Bangladesh,
became the major driving factor in Bangladesh's foreign policy pre-occupations.
President Ziaur Rahman was interested for a role for Bangladesh in world and regional politics.
He conceptualized a regional organization for South Asia that ultimately became a reality with
the birth of SAARC in 1985. It was due to the foreign policy initiatives of President Zia's
government that Bangladesh won a seat in the UN Security Council for the 1979-80 term,
defeating handsomely a country of the stature of Japan.‘
However, although the theoretical aspects of the foreign policies of the Mujib and the Zia
governments were identical, there were differences in their ideological inclinations and in
selecting their priorities. The Zia government did not abandon the policies of 'opposition to
imperialism, colonialism, and racialism' which were put in the Constitution by the Mujib
government as part of the country's foreign policy, but nevertheless adopted a policy of
establishing relations with the Muslim countries on the basis of Islamic solidarity through
appending a new article (Article 25(2)) to the Constitution. The Zia government repealed Article
12 of the Constitution which upheld secularism, and added instead 'Bismillahir Rahmanir Rahim'
to the preamble of the Constitution.
Next, the Ershad government declared Islam to be the 'State religion' through the eighth
amendment in the Constitution.
Apart from the objective of enhancing the acceptability of the government to the majority of
people, the intention was predominantly to attract the Muslim countries especially the Arab
states.
However, as regards relations with the neighbouring India, the plan of regional cooperation
followed under the South Asian cooperation initiative taken towards the end of the BNP regime,
reduced the tension between India and Bangladesh, and the situation remained unchanged during
the time of the government of JATIYA PARTY.
Another significant contribution of the Ershad era to Bangladesh's foreign policy was that in the
late 1980s Bangladesh started contributing troops to UN Peacekeeping missions.
After the fall of Ershad regime, The Government of BEGUM KHALEDA ZIA adopted as its
foreign policy priorities those were adopted by General Ziaur Rahman.
This government based its foreign policy on close strategic relations with China and the West
and also perceived the importance of geo-economics in the post-cold war era.
In the wave of liberalisation, globalisation and privatisation Bangladesh also moved towards
enhancing trade and investment for the economic development of the country.
When the AWAMI LEAGUE came to power in 1996, there were a few marked changes in the
foreign policy priorities.
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This regime came up with Economic Diplomacy. During Awami Laegue tenure from 1996-2001,
Bangladesh maintained close relationship with neighbours specially India, emphasized of
forming regional pacts and active participation in regional forum like BIMSTEC, D-8.
At that time Bangladesh also achieved a major success in foreign affairs when it got elected to a
term in the UN Security Council.
Khaleda Zia came to power for the second time in 2001.
This tenure Bangladesh took 'look East' policy, maintained and reconstructed relationship with
China, Myanmar and Bangkok. This government also maintained good relationship with the
Muslim world.
After the return of Awami League government in January 2009, Prime Minister SHEIKH
HASINA made it clear that foreign policy of Bangladesh has made a major shift.
After over 3 and a half decade of pursuing mutually unfriendly relations with India, Bangladesh
has assured the latter of total commitment for that country's security concerns.
Present government has also signed an agreement with Russia for the construction of a nuclear
power plant in recent years.
The future of Bangladesh's foreign policy lies therefore in building on our unique advantages in a
time of great change and uncertainty.
So far, we have managed our foreign relations especially with our neighbours in our vicinity and
in the world at large. The foreign policy clich' 'friendship with all and malice towards none' was
current way back in the 1970s, almost 40 years ago. With every passing day, Bangladesh is
losing opportunities which are emerging due to changing global realities.
So we need to rethink our foreign policy priorities, enumerate our advantages and design a
strategy to achieve specific goals.
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Bangladesh’s Foreign Relations with other states
Relations with India
India was the first country to recognize Bangladesh as a separate and independent state and
established diplomatic relations with the country immediately after its independence in
December 1971.The relationship between India and Bangladesh is anchored in history, culture,
language and shared values of secularism, democracy, and countless other commonalities
between the two countries.
It is based on sovereignty, equality, trust, understanding and win-win partnership that goes far
beyond a strategic partnership. In the last couple of years, the relationship has been further
strengthened including through cooperation in new and high-technology areas.
High Level Visits and Exchanges
There have been regular high-level visits and exchanges between the two countries. There have
also been frequent visits at Ministerial level as well as between senior officials on a regular basis.
Prime Minister of Bangladesh Sheikh Hasina paid a State Visit to India from 07-10 April 2017.
During the visit, 36 bilateral documents were concluded in various areas including in high
technology areas of Civil Nuclear Energy, Space, Information Technology, Defence, Capacity
building etc. A 3rdLine Of Credit (LOC) worth US$ 4.5 billion was also extended to
Bangladesh. The two Prime Ministers presided over a commemorative ceremony in honour of
Indian martyrs of Liberation War of Bangladesh. Prior to this visit, PM Hasina had visited India
on 16-17 October 2016 to participate in the BRICS-BIMSTEC Outreach Summit.
Prime Minister Narendra Modi paid a State visit to Bangladesh on 6-7 June, 2015. During the
visit, 22 bilateral documents were concluded, including the exchange of instrument of ratification
for India-Bangladesh Land Boundary Agreement (LBA) and a 2ndLine of Credit (LOC) worth
US$ 2 billion.
Bilateral institutional mechanisms
There are more than 50 bilateral institutional mechanisms between India and Bangladesh in the
areas of security, trade & commerce, power & energy, transport & connectivity, science and
technology, defense, rivers & maritime affairs etc.
A Joint Consultative Commission (JCC) led by the Ministers of Foreign/External Affairs
coordinates and oversees implementation of initiatives taken between the two countries as well
as explores newer avenues for cooperation.
The 3rd JCC was held in New Delhi on 20September, 2014.The 4th JCC is expected to be held
in Dhaka soon. A list of some important bilateral mechanisms and list of important bilateral
documents concluded between the two countries since 1971 is on the website of High
Commission.
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Security & Border Management
India and Bangladesh share 4096.7 km. of border, which is the longest land boundary that India
shares with any of its neighbours. The India-Bangladesh Land Boundary Agreement (LBA)
came into force following the exchange of instruments of ratification in June 2015. On July 31,
2015 the enclaves of India and Bangladesh in each other’s countries were exchanged and
stripmaps were signed. Residents of these erstwhile enclaves, who opted to retain their Indian
citizenship made a final movement to India by November 30, 2015.
A number of agreements related to security cooperation have been signed between both the
countries.The Coordinated Border Management Plan (CBMP) signed in 2011 aims to synergize
the efforts of both the Border Guarding Forces for checking cross border illegal activities and
crimes as well as for maintenance of peace and tranquility along the India-Bangladesh border.
The settlement of the maritime boundary arbitration between India and Bangladesh, as per
UNCLOS award of July 7, 2014, has paved the way for the economic development of this part of
the Bay of Bengal.
Sharing of River Waters
India and Bangladesh share 54 common rivers.
A bilateral Joint Rivers Commission (JRC) is working since June 1972 to maintain liaison
between the two countries to maximize benefits from common river systems. Besides the
meetings of the JRC (37 meetings held so far), JRC Technical level meetings are also held
regularly.
The Ganga Waters Treaty signed in 1996 for sharing of waters of river Ganga during lean season
(January 1-May 31) is working satisfactorily. Regular meetings of the Joint Committee on
Sharing of Ganga Waters are held to take stock of the implementation of the provisions of the
treaty.
Bilateral Trade and Investment
The first Trade Agreement between India and Bangladesh was signed in 1972. The India-
Bangladesh Trade Agreement was last renewed in PM’s visit in June 2015 for a period of 5 years
with a provision for auto renewal.
There are a number of other trade related agreements that have been signed between both
countries. Bilateral trade between India and Bangladesh has grown steadily over the last decade.
In the five years, total trade between the two countries has grown by more than 17%.India’s
exports to Bangladesh in the period July 2016 – March 2017 stood at US$ 4489.30 million and
imports from Bangladesh during FY 2016-17 stood at US$ 672.40 million. More details on
bilateral trade statistics are on the website of High Commission.
India has provided duty free quota free access to Bangladesh on all tariff lines except tobacco
and alcohol under South Asian Free Trade Area (SAFTA) since 2011. Four Border Haats, two
each in Tripura and Meghalaya, have been established for the benefit of bordering communities.
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Additional Border Haats on the India-Bangladesh border are under consideration. Total Indian
investment proposals in Bangladesh registered with the Bangladesh Investment Development
Authority (BIDA) exceed US$ 3billion. Indian Foreign Direct Investment (FDI) in Bangladesh
reached US$ 88.0million in 2015-16. During PM Sheikh Hasina’s visit in April 2017, 13
agreements worth around US$ 10 billion of mainly Indian investment in power and energy
sectors in Bangladesh were signed.
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Connectivity
India-Bangladesh is a good example of connectivity through all modes of transport. The
movement of goods by road is operationalised through 36 functional Land Customs Stations
(LCSs) and 2 Integrated Check Posts (ICPs) along the border. This includes the Petrapole-
BenapoleI CP through which more than 50% of the bilateral trade takes place on account of
which it has been decided to operate these land portson 24x7basis since 01August, 2017. The
Protocol on Inland Water Trade and Transit (PIWTT) has been operational since 1972. It permits
movement of goods over barges/vessels from India through the river systems of Bangladesh on
eight specific routes. Trans-shipment of goods to Northeastern States of India hrough Ashuganj
river port and further through Akhaura Agartala by road commenced in June 2016 under the
PIWTT.
Training and Capacity-Building
A number of training courses are being conducted for interested Bangladesh officials /nationals
including personnel of administration, police, judiciary, fire-fighters, narcotic officials, nuclear
scientists, teachers etc. Bangladesh is also an important ITEC partner country, and around 800
participants from Bangladesh avail of training courses under the ITEC programme annually. In
addition, scholarships are granted by ICCR (Indian Council for Cultural Relations) every year to
students from Bangladesh for pursuing general courses in arts, sciences, engineering and also
specialized courses for culture, drama, music, fine arts and sports, etc.
Cultural Exchanges
The Indira Gandhi Cultural Centre (IGCC), High Commission of India, is a Cultural Centre of
the Indian Council for Cultural Relations of India in Bangladesh. Inaugurated in 2010, IGCC
regularly organizes programmes covering a wide-gamut of cultural activities. The IGCC also
holds regular training courses in Yoga, Hindi, Hindustani Classical Music, Manipuri Dance,
Kathak and Painting. The courses are very popular with the Bangladeshi students. IGCC Hindi
teacher also teaches Hindi at Institute of Modern Languages in University. ICCR has initiated a
Tagore Chair in University of Dhaka since 2011. A MoU was also signed in January 2017 for a
‘Hindi’ Chair in University of Dhaka. A 100-member Youth Delegation is visiting India annually
since 2012. High Commission of India has been publishing a print and electronic edition of
Bengali literary monthly magazine 'Bharat Bichitra' for the last 43 years. The magazine has a
wide readership in Bangladesh
Visa
The Indian High Commission in Dhaka and the two Assistant High Commissions in Chittagong
and Rajshahi together issue the highest number of Indian visas compared to any other Indian
Mission. The numbers are increasing manifold with the figures touching 9.33 lakhs in 2016.
There are 12 Indian Visa Application Centers (IVAC) in Bangladesh managed by the State Bank
of India (SBI): 4 in Dhaka (Gulshan, Dhanmondi, Motijheel and Uttara), Chittagong, Sylhet,
Rajshahi, Khulna, Mynmensingh, Rangpur, Barisal and Jessore.
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Indian community in Bangladesh
About 10,000 strong Indian community is estimated to be living in Bangladesh. Indians in
Bangladesh are well respected for their hard work and managerial skills and as a community are
doing very well socially and economically. Most of the Indians are engaged in Ready Made
Garment (RMG) sector or as top professionals in MNCs. Around 3000 Indian students are also
pursuing medical courses in different Universities/colleges in Bangladesh.
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The militaries, powerful constituency in both countries, cooperated in United Nations
peacekeeping activities. Both countries became deeply involved in SAARC activities, an
organisation that Bangladesh took a modicum of pride in initiating. What evolved was a
favoured relationship, even though without fervour.
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At the 2008 ASEAN Regional forum summit in Singapore, Bangladesh and Myanmar have
pledged to solve their maritime boundary disputes as quickly as possible especially that a UN
deadline in claiming maritime territories will expire in three years time
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Relations with China
Early relations with the People's Republic of China were cold due to the rare use of China's veto
at the United Nations Security Council to block Bangladesh's accession to the United Nations.
Lately however China has made efforts to improve relations with many of its neighbours. Trade
with China reached a record level in 2006 of $3.2 billion under the auspices of the Asia-Pacific
Trade Agreement (AFTA).
The trade balance between the two countries are in China's favour. China has officially agreed to
help Bangladesh on developing their nuclear power plant. Bangladesh has also signed the Apsco
convention with six other nations to form a pact with China on space exploration.
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Non-Aligned Movement
Bangladesh was selected to provide the next chairman of NAM at the summit scheduled for Dhaka
2001, however it was later decided to host the summit at an alternative venue. As a member of the
Non-aligned Movement Bangladesh never took any position in line with big powers. However it
parted from its principle by voting against North Korea at the United Nations in December 2008,
under pressure from Japan.
An international organisation which includes South Asian and Southeast Asian nations. The
member nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and
Nepal. The organisation focuses on regional economy, regional development and trade &
investment.
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The Criminal Law Amendment Act, 1958
Introduction
The Prevention of Corruption Act, 1947 has been enacted for providing more effective law to deal
with cases of Corruption, while the Criminal Law Amendment Act, 1958 has been passed for
providing speedy trial and effective punishment thereof.
Therefore the Criminal Law Amendment Act, 1958 is fundamentally supplemental to the
Prevention of Corruption Act, 1947 for accomplishment of its object. This Act does not create ‘any
substantive offence but deals with procedural matters and special rules of evidence only. This is
undoubtedly a self-contained procedural law but not exhaustive by itself.
Jurisdiction of Special Judges
Sec. 4. (1) A Special Judge shall have jurisdiction within such territorial limits as may be fixed by
the Government by notification in the official Gazette and may take cognizance of any offence
committed or deemed to have been committed within such limits and triable under this Act upon
receiving a complaint of facts which constitute such offence or upon a report in writing of such
facts made by any police officer.
(2) Where two or more Special Judges have jurisdiction, wholly or partly in the same territorial
limits, the Government shall, by notification in the official Gazette, declare one of them to be the
Senior Special Judge for that area 1[; and, notwithstanding anything contained in sub-section (1),
such Senior Special Judge shall have exclusive jurisdiction to take cognizance of all offences
triable under this Act committed or deemed to have been committed within that area.]
(3) An offence shall be tried by the Special Judge within the territorial limits of whose jurisdiction
it was committed or deemed to have been committed, or where there are more Special Judges than
one having jurisdiction within the same territorial limits, 2[by the Special Judge to whom the case
is transferred] by the Senior Special Judge:
Provided that the Senior Special Judge may, by order in writing, transfer, at any stage of the trial,
any case from the Court of one Special Judge to the Court of another Special Judge having
jurisdiction within the same territorial limits
(4) When an offence triable under this Act is committed outside Bangladesh, it shall, for the
purposes of this Act, be deemed to have been committed within the territorial limits of the
jurisdiction of the Special Judge in which the person 3[committing the offence is found or was
ordinarily residing before he left Bangladesh].
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Offenses triable by the court: (Section 5)
Offices specified in schedule us 5 of The criminal law amendment Act1958
Scheduled Offences in ACCC Act are triable by special judges court:
Section 28 of ACCC 2004.(pg 106)
Money Loundering cases: Special jurisdiction is vested u/s 10,of Anti-money laundering
Act 2012(pg 287).
Offences relating income tax as mentioned in chapter-XXI Shall be triable by special judge
court u/s 171 of Income tax ordinance 1984.
Trail procedure
Procedure in trial Section 6 (1)
Obtaining evidence: 6(2)
Bar on trial de novo sec:8
Punishment of offence: Sec: 9
Appeal and revision: Sec: 10.
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Business Law
What are Incoterms®?
Put simply, Incoterms® are the selling terms that the buyer and seller of goods both agree to during
international transactions. These rules are accepted by governments and legal authorities around
the world. Understanding Incoterms® is a vital part of International Trade because they clearly
state which tasks, costs and risks are associated with the buyer and the seller.
The Incoterm® states when the seller’s costs and risks are transferred onto the buyer. It’s also
important to understand that not all rules apply in all cases. Some encompass any mode or modes
of transport. Transport by all modes of transport (road, rail, air and sea) covers FCA, CPT, CIP,
DAP, DPU (replaces DAT) and DDP. Sea/Inland waterway transport (Sea) covers FAS, FOB,
CFR and CIF, which we explain below.
Why are Incoterms® vital in International Trade?
Incoterms® are referred to as International Commercial Terms. They are a set of rules published
by the International Chamber of Commerce (ICC), which relate to International Commercial Law.
According to the ICC, Incoterms® rules provide internationally accepted definitions and rules of
interpretation for most common commercial terms used in contracts for the sale of goods’.
All International purchases will be processed on an agreed Incoterm to define which party legally
incurs costs and risks. Incoterms® will be clearly stated on relevant shipping documents.
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“Free On Board” means that the seller delivers the goods on board the vessel nominated
by the buyer at the named port of shipment or procures the goods already so delivered. The risk of
loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears
all costs from that moment onwards.
The seller delivers the goods on board the vessel nominated by the buyer at the named port
of shipment or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on board the
vessel. The buyer bears all costs from that moment onwards.
iii. CFR (Cost and Freight):
“Cost and Freight” means that the seller delivers the goods on board the vessel or
procures the goods already so delivered. The risk of loss of or damage to the goods passes when
the goods are on board the vessel. the seller must contract for and pay the costs and freight
necessary to bring the goods to the named port of destination.
The seller delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on board the vessel.
The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.
iv. CIF (Cost, Insurance and Freight):
“Cost, Insurance and Freight” means that the seller delivers the goods on board the
vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes
when the goods are on board the vessel. The seller must contract for and pay the costs and freight
necessary to bring the goods to the named port of destination. The seller also contracts for
insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The
buyer should note that under CIF the seller is required to obtain insurance only on minimum cover.
Should the buyer wish to have more insurance protection, it will need either to agree as much
expressly with the seller or to make its own extra insurance arrangements.
The seller delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on the ship.
The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.
The seller also contracts for insurance cover against the buyer’s risk of loss of or damage
to the goods during the carriage.
The buyer should note that under CIF the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need
either to agree as much expressly with the seller or to make its own extra insurance
arrangements.
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