Advertisement

Business costs rise as customs delays persist

Business costs rise as customs delays persist
CCCI Logo
Advertisement
Advertisement

Despite clear instructions from Finance and Planning Minister Amir Khosru Mahmud Chowdhury to ensure the release of imported goods from ports within four days, customs clearance continues to face lengthy delays, increasing business costs and undermining the competitiveness of Bangladeshi products.

Citing prolonged clearance procedures, repeated inspections and administrative inefficiencies, Chittagong Chamber of Commerce and Industry (CCCI) President Md Amirul Haque has written to the newly appointed Acting Chairman of the National Board of Revenue (NBR) Ahsan Habib, urging immediate reforms to streamline customs operations and reduce the financial burden on businesses.

In the letter, sent on July 12, the Chamber president said that importers continue to suffer from unnecessary delays despite the finance minister’s recent directives aimed at expediting cargo clearance and lowering the cost of doing business.

During a meeting with business leaders, customs officials and port authorities at his Chattogram residence, the finance minister had instructed customs to complete clearance and release of goods within four days. He also directed authorities to activate idle container scanners at Chittagong Port to reduce vessel congestion and speed up cargo handling.

According to the Chamber, however, those directives have yet to be reflected in day-to-day customs operations.

Advertisement
Advertisement

The letter identifies seven major obstacles in the customs clearance process that are causing goods to remain stuck at the port for seven to eight days or even longer in many cases.

Among the key concerns raised is the repeated examination of the same cargo by multiple government agencies. Even after containers are scanned using modern equipment, customs officials often order physical inspections based on unspecified “secret information,” resulting in additional delays.

The Chamber also alleged that many samples are unnecessarily sent to Dhaka for laboratory analysis because of limited local testing facilities, significantly extending the clearance period.

Related News

Another issue highlighted is the verification process for electronic Certificates of Origin (e-CO). Although the internationally recognised electronic certification system is already in use, customs officials reportedly continue to hold files for days while verifying the signatures of issuing authorities.

The Chamber further complained that many products are being referred to the Bangladesh Standards and Testing Institution (BSTI) for testing even when such certification is not mandatory at the container unstuffing stage.

Repeated physical inspections by different agencies, sometimes conducted during adverse weather conditions, are also damaging imported goods, the letter said. In several cases, products become unsuitable for sale after repeated unloading and inspections, causing substantial financial losses to importers.

The Chamber also expressed concern over customs valuation practices, alleging that officials frequently impose higher assessable values through arbitrary “loading” instead of following the valuation provisions outlined in the Customs Act 2023. This, it said, makes the clearance process more complicated and time-consuming.

According to the letter, although the Customs Act 2023 introduced internationally recognised reforms, including paperless customs, pre-arrival processing and risk-based inspections, businesses are yet to enjoy the intended benefits because of what it described as the persistence of outdated administrative practices.

As a result, traders continue to face additional storage charges, demurrage, testing fees and documentation costs, all of which ultimately increase the prices of imported goods in the domestic market.

In his letter, Amirul Haque expressed confidence in the leadership of the new NBR chairman and called for urgent measures to establish a more business-friendly customs system in line with international best practices.

He urged the revenue board to simplify customs procedures, eliminate unnecessary inspections and ensure the speedy release of imported goods to reduce business operating costs and enhance the global competitiveness of Bangladeshi industries.

Chattogram Custom House spokesperson and Assistant Commissioner Sharif Md Al-Amin told TIMES that around 10 per cent of import consignments arriving through Chattogram Port are locked for inspection due to various irregularities, including false declarations. These consignments are subjected to physical examination, which results in delays in customs clearance.

He added that importers are able to clear the remaining 90 per cent of consignments within the stipulated timeframe.

Follow TIMES on Google News

Get trusted updates and editor-picked stories in your feed.

Follow
Related News