Sherpa Power Engineering Limited, a private firm importing Bangladesh’s first Center Pivot Irrigation (CPI) system, faces mounting penalties due to a customs classification dispute at Chattogram Port.
The firm claims it is being charged Tk1.8 million per month as demurrage fee.
At a press conference held at Dhaka Reporters Unity on Saturday, Abu Taher, Managing Director of Sherpa Power, emphasised that traditional irrigation methods—such as deep and shallow tube wells—waste nearly 50% of extracted groundwater. This inefficiency has contributed to rapidly declining water tables, with northern regions showing early signs of desertification.
The CPI system, imported from Austria’s BAUER Group, is precision agriculture technology designed to improve water efficiency to 85–98%. The Bangladesh Agricultural Development Corporation (BADC) endorsed the system as part of a national effort to modernize irrigation and combat water scarcity, he said.
Stuck at port: Customs vs agricultural classification
The imported CPI systems, valued at €75,000 (approx $87,000), has been held at Chattogram Port after customs authorities classified it as “commercial machinery” rather than agricultural equipment. This classification subjects it to higher tariffs and additional scrutiny.
Officials claim the CPI system must be taxed as a commercial import due to its advanced mechanical components.
“The CPI system is an integrated unit – disassembling it for customs inspection renders it useless,” said Taher.
BADC submitted an official letter urging customs to recognize it as agricultural machinery, but the customs authorities have yet to comply, he added.