Chittagong Custom House has introduced a new mechanism to accelerate disposal of uncleared, seized and confiscated goods stuck in containers at Chattogram Port, aiming to ease congestion in port yards.
Under a policy decision of National Board of Revenue (NBR), Customs issued a standing order allowing eligible goods to be sold to Bangladesh Machine Tools Factory Limited (BMTF) at a price equivalent to at least 60 per cent of the determined reserve price before they are put up for open auction. The order was recently issued by Chittagong Custom House Commissioner Md Mahbubur Rahman.
Nazmul Hasan, Assistant Commissioner of Auction Branch at Chittagong Custom House, said Customs recently sent a list of 113 containers containing goods in 36 lots to BMTF for consideration. According to Chattogram Port data, 8,568 TEUs of auctionable containers were lying in port yards as of September 24.
A significant volume of imported cargo remains uncleared because importers fail to complete required customs procedures within the stipulated period. In other cases, goods are detained during physical examinations when Customs detects suspected duty evasion or irregularities.
Under existing procedure, Customs issues notices- if goods remain uncleared, they become eligible for auction. Repeated auctions delay disposal because bids below 60 per cent of the reserve price are not accepted. Goods with no acceptable bid remain in storage and are offered again.
Under the standing order, the Customs auction division will prepare an inventory of eligible goods, categorised by container or lot. Following a decision by the Chattogram Customs auction committee, details of each consignment- including legal status, reserve price, VAT and advance income tax- will be sent to BMTF. BMTF will have seven working days to communicate in writing whether it is interested.
For assorted or mixed goods, where specifically listed items constitute 50 per cent or less of contents, the entire lot may be sold to BMTF if it agrees to purchase the complete consignment. Goods involved in ongoing court proceedings or investigations remain outside this mechanism.
A straight-line depreciation benefit of 10 per cent per year, subject to a maximum of 80 per cent, will be calculated from the end of the first year following importation. After depreciation, goods may be sold to BMTF at not less than 60 per cent of the determined reserve price. Once a sales order is issued, BMTF must deposit the agreed purchase price, along with applicable VAT, income tax and other government dues, into the designated Customs bank account within seven working days. Where government clearance, laboratory testing or other required test reports are necessary, the payment period counts from completion of the relevant process.
Customs officials expect the alternative disposal mechanism to reduce the backlog of auctionable containers while ensuring better utilisation of port space, protecting government revenue and assets, and facilitating trade.
Sharif Mohammad Al Amin, spokesperson and Assistant Commissioner of Chittagong Custom House, said BMTF-based disposal process would make the auction mechanism simpler and more dynamic. “This process will help reduce the backlog of auctionable containers lying in the port yards,” he said.
