Sherpa Power Engineering Limited has accused the Chittagong Customs of treating imported center-pivot irrigation (CPI) systems, designed exclusively for agriculture, as commercial machinery, resulting in daily penalties of approximately Tk 12,000 ($96).
The practice has led to an estimated monthly loss of nearly Tk 7 lakh for the company, its Managing Director Abu Taher revealed this at a press briefing in Dhaka Reporters Unity.
During the briefing, Taher highlighted water wastage in Bangladesh, where only half of the water drawn by deep and shallow tubewells is effectively used, contributing to falling groundwater levels and signs of desertification in the country’s north.
Sherpa Power had therefore imported a complete CPI system from renowned Austrian firm BAUER to improve irrigation efficiency, which could raise water usage effectiveness from 85% to 98%. This was introduced for the first time in Bangladesh through the Bangladesh Agricultural Development Corporation (BADC).
However, the CPI equipment remains stranded at the Chittagong Port due to customs classification issues.
‘Commercial machinery’
According to Taher, the Customs Commissioner at Chittagong has deemed it “commercial machinery,” whereas the system must remain intact to function.
Classified as agricultural equipment, it is now subject to heavy fines and additional duties —despite its 75,000 euro ($87,000) import value — preventing timely installation and risking project delays.
Sherpa Power approached the BADC for assistance in the matter, which prompted the corporation to write to port authorities to correctly classify the CPI system.
However, revenue officer AHM Mahbubur Rashid and Deputy Customs Commissioner Mohammad Saidul Islam have reportedly refused to reclassify it, citing National Board of Revenue (NBR) guidelines.
Taher emphasised that appointing qualified officials in national institutions is essential, noting that procedural inefficiencies can directly impact both administration and the country’s economy.
Also present at the event were Sherpa Power’s Deputy Manager Ruhul Amin and Project In-Charge Mahbubur Rahman, alongside dignitaries from the media.
Meanwhile, Sherpa Power Engineering Limited continues to seek urgent resolution so that the irrigation system may be deployed with technical support from Bangladeshi representatives without further delay.