Chattogram customs sees 4% growth in revenues amid falling imports

The Chattogram Custom House witnessed a 4% revenue growth year-on-year in 2023 despite nearly 6% fall in imports through the country's largest Chattogram port.

Businessmen say the rise in import cost due to devaluation of the local currency taka and an increase in assessment value by Customs mainly contributed to the surge in revenues. 

The customs authorities say collection of import duty rose in the just-concluded calendar year thanks to its various initiatives for curbing smuggling, fraudulence and tax evasion.   

Lutfor Rahman, former member of the National Board of Revenue (NBR), told The Business Standard, "Businesses find it hard to open letters of credit (LCs) for the prevailing dollar crisis, which has actually caused the fall in imports."

While explaining the rise in revenues, he said the currency devaluation against the greenback and curbing false declarations has played a vital role in raising the revenues.    

According to Custom House data, the total volume of imports through Chattogram Port was 10.70 crore tonnes in 2023, which was 5.80% lower than that of 2022.

The total value of those imported goods was Tk1,72,000 crore, a 3% decline from that of the calendar year 2022.

Chattogram customs earned Tk64,616 crore in revenues in 2023 from export and import duty, a 4% percent rise year-on-year. 

Chittagong Chamber of Commerce and Industry Director Mahfuzul Haque Shah told TBS, "Import and export volumes were low in 2023 because of the dollar crisis. Price of dollars increased and the importers had to pay more. As a result, imports decreased, but there was no major disruption in revenues."

Around 90% of the country's total exports and imports take place through Chattogram Custom House. 

Custom House Spokesperson and Deputy Commissioner Md Bodruzzaman Munshi told TBS, "Despite the revenue shortfall as per target, there was a positive growth in the overall revenue income last year. Revenue collection increased because of various initiatives to stop smuggling, prevent fraudulence and duty evasion."

First 6 months' revenue deficit Tk5,475 crore in FY24

Chattogram Custom House has undershot its revenue target by 14.17% or Tk5,475 crore during the first half of FY24 predominantly thanks to the fall in imports due to the Russia-Ukraine war and the dollar crisis. 

The country's largest customs house managed to earn Tk33,155.38 crore revenues against its Tk38,630 crore target set for the July-December period. 

A year earlier, the revenue shortfall was higher at Tk17.43% or Tk6,388.87crore. It earned Tk30,171.13 crore against Tk36,560 crore target.

In a span of a year, the number of bills of entry, import value and volume of imports – all witnessed a downturn, suggest Chattogram customs data.   

The number of bills of entry decreased by 5.15% or 6,787 in the July-December period in the current financial year.

Compared to six months of last fiscal year, half yearly imports in ongoing FY24 decreased by 2,74,848 tonnes or nearly 1%. 

In terms of value, imports dipped by Tk18,593,26 crore or 7.72% this fiscal year so far.

Despite the shortfall, the Custom House, however, witnessed a 9.89% revenue growth year-on-year in the first of the current fiscal year. 

Chattogram customs has increased the assessment value from 189% to 933% on pistachio, caraway seeds, almonds, alu bukhara, cumin seeds, Bunium persicum, sweet tamarind, cassia, chia seeds from FY2023-24.