Digitising and modernising Customs key to Ctg Port's regional hub ambition

The Chattogram Port has the potential to become a regional shipping hub, but a lack of customs management and modernisation have become obstacles to the port in keeping pace with growing imports and exports, business leaders said at a roundtable on Sunday.

Speaking at the roundtable organised by The Business Standard titled "How Chattogram Port can be turned into a regional hub" at its Eskaton offices in the capital, entrepreneurs highlighted the immense potential of the ports and blamed the customs department of the National Board of Revenue (NBR) as being an obstacle to realising those.

Many business leaders also raised objections to employing foreign operators in container handling at the New-mooring Container Terminal of Chattogram Port and the newly built Patenga Container Terminal.

Stressing that the port is a nationally important facility, with the Bangladesh Navy, Air Force bases and an international airport located next to it, they said handing the container operations to foreign companies may undermine the security of the country.

At the event, moderated by TBS Executive Editor Sharier Khan, business leaders also came down hard on the slow pace of implementation of mega projects like Matarbari deep sea port and the bay terminal.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the NBR was the main obstacle to imports and exports.

Infographic: TBS

The customs block the clearance of goods over minute differences in the Harmonised System (HS) code of the product, he said, adding that the authority was the main reason behind goods remaining stuck at ports for long periods.

The Customs does not benefit the government, but it makes businesses suffer, Hatem said.   

Mahfuzul Haque Shah, former director of the Chittagong Chamber of Commerce and Industry (CCCI), also levelled the blame on customs for 94% of the delay in clearance of goods from the port.

"The customs officers join work at 10:00am. No work is done without them," he said.

Regarding the complications related to the HS code, he said a faulty policy leads to goods being denied clearance. As a result, it takes two months to clear a consignment, instead of two days.

"The capacity of the board should be increased and accountability should be ensured."

Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, said, "There wouldn't be a problem if goods were taken to the warehouse as soon as they arrived at the port. Customs could then inspect the goods there. But there is no such system here."

He said the customs' role was one of the reasons behind Bangladesh being ranked 168th out of 190 countries in the World Bank's Ease of Doing Business Index.

Speaking as the chief guest at the event, State Minister for Shipping Khalid Mahmud Chowdhury underscored the port's potential, saying, "The Chattogram port has already become a regional hub. We are in the middle of the East and the West. Cox's Bazar Airport will become a regional hub. Matarbari Deep Sea Port will also soon become a regional hub. I have already started working towards this."

He, however, said one entity should not be blamed for the problems plaguing the ports. The capacity of customs has been enhanced and more scanners installed. 

He, however, said a large group did not allow installations of scanners at ports. When launched, they destroy it, he alleged. This mentality has to be changed, the minister added.

Chowdhury also pointed out instances of false declaration, saying that letters of credit were opened to import microphone, but the consignment contained stones and sand instead.

"These should be taken into consideration."

Admitting weakness in the logistical side from the beginning, he said, "No institutional capacity was developed. We are doing this slowly." 

Bangladesh Freight Forwarders Association Vice President Khairul Alam Sujan, presenting the keynote, said although some port-related works could be done online, others required physical visits to the ports, customs or other offices.  

Rear Admiral M Shahjahan, chairman of Chattogram Port Authority, said, "It takes more time to clear the consignment due to lab tests and HS code of the product. It is the responsibility of the customs and NBR."

He said at the current capacity, the port can release a ship within 48 hours. But, this will require assistance of the relevant parties, including customs and freight forwarders.

The chairman also said the customs introduced automation in certain areas.

Speakers at the conference also emphasised long-term sustainable development of the port, speedy construction of relevant infrastructure, trained manpower, improved navigability, automation and modernisation to reduce time and cost of foriegn trade.

In the latest fiscal year 2021-22, Bangladesh imported goods worth around $90 billion and exported goods worth $52 billion.

Traders and port authority representatives say these numbers will grow, with readymade garments already targeting exports of $100 billion over the next eight years. 

The dependence on Chattogram port – already accounting for 90% of all foreign trade – will only rise. The implementation of the Matarbari Deep Sea port, Bay Terminal and Patenga Container Terminal will more than double the current container handling opportunities by 2026. 

Md Zafar Alam, member (Admin & Planning), Chattogram Port Authority, CCCI director Anjan Shekhar Das, Ainul Islam, general secretary of the Bangladesh Economic Association, Syed Mohammad Arif, chairman of Bangladesh Shipping Agents Association, Captain Kamrul Islam Mazumder, director of Summit Alliance Port Limited among others, also spoke on the occasion with Inam Ahmed, editor of The Business Standard, present.