BGMEA, BICDA row over unloading of imported goods

The Bangladesh Garment Manufacturers Association (BGMEA) and the Bangladesh Inland Container Depots Association (BICDA) are in confrontational mode over the unloading of imported raw materials for the readymade garment industry from the ICD.

The BGMEA has claimed traders are wasting both money and time due to the unloading of imported goods from ICDs instead of Chattogram Port. But the BICDA termed the BGMEA's claim unreasonable and ignorant.

On 12 August, the BGMEA wrote to the commissioner of Chattogram Custom House seeking instructions over not unloading the containers of imported goods from the ICD.

According to the letter, the total cost of unloading a 20-foot container from Chattogram Port was Tk4,277. The cost of unloading a container of the same size from the ICD is Tk13,755, which is Tk9,478 more than the cost incurred at the ICD.

At the same time, the cost of unloading a 40-feet container from the port is Tk5,988 while it costs Tk18,092 at the ICD, which is Tk12,104 more.

Meanwhile, the Chattogram Chamber of Commerce and Industries (CCCI) has supported the BGMEA's demand. In a letter sent to the chairman of the National Board of Revenue (NBR) on 16 August, CCCI President Mahbubul Alam mentioned that the unloading of goods is being delayed due to a shortage of space, equipment and labour in private ICDs. Goods can be unloaded from Chattogram Port in just two days, whereas unloading at ICD takes up to 7-8 days. Moreover, charges for private ICDs are comparatively much higher than those at the port. Therefore, due to the extra cost and delay in the unloading of goods, the industrial establishments concerned face huge financial losses, which cannot be desirable in the current pandemic conditions.

To protect domestic industries and importers, Mahbubul Alam made a special request to the NBR chairman not to send additional imported goods other than the 37 approved products to the ICD; and to provide instructions on the unloading of those goods from the port as in the past.

After a container jam was created at Chattogram Port due to the lockdown, on 25 July, the NBR allowed all kinds of imported goods to be unloaded from private ICDs beside the port.

Hundred per cent of export goods are filled in containers and 37 types of imported goods, including shipping and food products, are unloaded at private ICDs.

BGMEA First Vice Chairman Syed Nazrul Islam said, "Though the deadline for sending containers of all imported goods to the ICD is set to expire on 31 August, we have come to know that the directive is going to be made permanent. If it lasts, the garment industry will be in dire straits. So we have informed the customs authorities about the matter.

He said there is no container jam in the port at present. So, it is not logical to send garment owners to private ICDs for unloading imported raw materials.

Meanwhile, in the wake of the BGMEA's letter, BICDA wrote a letter to the commissioner of Chattogram Custom House on 16 August.

According to the letter, the actual cost of unloading a 20-foot container from the ICD was Tk7,930 while a 40-foot container costs Tk9,150. The difference between unloading these two sized containers from the port to the ICD is Tk3,000 to Tk3,500. It takes only one day more than the port to unload the container from the ICD.

BICDA Secretary General Ruhul Amin Sikder termed the BGMEA's claim that it costs more time and money at the ICDs as unreasonable and ignorant.

He said there is no shortage of equipment and labour to handle 100% of BGMEA's exports. They only make such allegations when it comes to container handling of imported goods. Their claims are baseless and ridiculous.

"BICDA implements the instructions of the government on keeping the activities of the port running. There is no scope of spreading confusion," he added.

Chattogram Customs House Commissioner Mohammad Fakhrul Alam said the NBR's directive did not oblige one to unload all types of imported goods from the ICD instead of the port. The BGMEA can unload its goods from the port instead of from the ICD if it wants. The time limit for this instruction comes to an end on 31 August.