RMG-makers concerned buyers could lose confidence

Infographic: TBS

Export-import impasse due to NBR shutdown: 

• At least 4 container vessels unable to sail on schedule
• Daily demurrage charges per ship range between $15,000 and $20,000.
• As of this morning, Ctg port yard was holding 40,722 TEUs
• It held 38,862 TEUs on the previous day
• The number could climb by another 2,000–3,000 TEUs by today
• Goods are also piling up at Dhaka Customs House
• Garment manufacturers are under pressure from buyers
• Failure to deliver on time might lead to massive losses for manufacturers
• 5-7 containers of raw materials stuck at Chattogram Port

The protests by officials of the National Board of Revenue (NBR) and the subsequent shutdown of customs operations halted both export and import activities across the country today (29 June).

Until the NBR Reform Unity Parishad called off their "complete shutdown" programme last night, exporters were unable to ship goods, while imported raw materials and other essential items remained stuck at ports. 

As shipment deadlines are missed, international buyers are reaching out to exporters for explanations. Concern is growing that failure to meet deadlines could result in penalties such as air freight costs or product discounts – a burden smaller exporters say they may not be able to bear.

Chattogram Port has already seen a backlog of around 4,000 containers due to suspended customs clearance. Meanwhile, at Dhaka Customs House, where all services other than passenger processing are suspended, a large volume of goods is also piling up. Similar conditions prevail at Benapole Land Port and other key entry points across the country.

Industry leaders have met with the finance adviser to seek a resolution to the crisis.

Aminul Islam, former general secretary of the Bangladesh Garment Buying House Association (BGBA), told The Business Standard, "Buyers are messaging and calling buying houses, asking why we are failing to meet shipment deadlines."

"If we fail to deliver on time, we will have to offer discounts. Just one such discount could wipe out any profit – in fact, it could lead to massive losses," he added. "June and July are peak months for winter shipments. This port paralysis during such a critical time will severely hurt our businesses."

Only a day earlier, the president of BGMEA stated that port disruptions were affecting about Tk2,500 crore worth of daily operations in the garments sector alone.

Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers and Exporters Association, said, "Such a shutdown will damage foreign buyers' confidence in doing business with Bangladesh. In the long term, this will cause us great harm."

At a previous press conference, he remarked, "I don't know of any country in the world where port operations are halted like this outside of war."

In addition to port activities, import approvals for raw materials, VAT office certifications, and other export-related operations have also come to a halt, affecting the supply of critical inputs.

About 90% of the country's import-export activities are conducted through Chattogram Port. The complete shutdown by officials has brought cargo clearance and export shipments to a standstill throughout Saturday and Sunday.

Export operations at Chattogram Port have been severely disrupted due to a complete shutdown by customs officials under the NBR, leaving at least four container vessels unable to sail on schedule and triggering a growing container congestion both at the port and inland depots.

The Portuguese-flagged container ship AS SICILIA was scheduled to depart for Singapore yesterday morning with 564 TEUs of export goods. However, 243 TEUs could not be loaded as they remained stuck at inland container depots (ICDs) due to the customs officials' indefinite work stoppage. If the backlog is not cleared by today, the vessel will be forced to depart without the remaining cargo.

The problem is not limited to AS SICILIA. Three more ships — HONG DA XIN 68, HONG YONG CHANG SHENG, and X-PRESS NILWALA — are also stuck at the New Mooring Container Terminal (NCT), unable to load a combined total of 1,849 TEUs of export cargo. In total, over 3,000 export and empty containers are affected across the four vessels docked at the NCT, CCT, and GCB terminals.

The shutdown has also caused a domino effect on import operations. Ships waiting at the outer anchorage are unable to berth as outgoing vessels cannot vacate the jetties, further delaying unloading activities. Daily demurrage charges per ship now range between $15,000 and $20,000.

"Three container ships are idle at the NCT berths as export containers have not arrived due to the customs issue. Even import container unloading has stopped," said Mosharraf Hossain, terminal manager at Saif Powertech, which operates the NCT and CCT terminals.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed concern that delayed shipments could prevent ready-made garments from reaching key transshipment hubs and ultimately missing connections to Europe and North America.

"There's a risk of missing mother vessels, and raw material delays will also affect factory production," said BGMEA Director Rakibul Alam Chowdhury. "We need an immediate solution to this crisis."

The Chattogram Port's routine container delivery operations have ground to a halt since Saturday. Normally, the port delivers 4,000 to 4,500 TEUs daily, but that figure dropped to just 139 TEUs between 8 am Saturday and 8am Sunday. In contrast, 5,048 import containers were unloaded during that time, causing a container pile-up in the yard.

As of yesterday morning, the port yard was holding 40,722 TEUs, up from 38,862 TEUs the previous day. Port authorities fear this number could climb by another 2,000–3,000 TEUs by today, leading to a severe congestion crisis.

Md Omar Faruk, secretary of the Chattogram Port Authority, confirmed that neither import containers are being delivered nor export containers arriving at the port due to the complete customs shutdown.

Export cargo congestion at the 19 private inland container depots in Chattogram has worsened since customs clearance was halted last Wednesday. These depots, which typically handle around 8,000 TEUs of export containers, now have 14,371 TEUs stockpiled — a 44.33% increase. That figure is expected to exceed 16,000 TEUs by today if the shutdown continues.

"Normally, about 2,000 TEUs move from depots to the port daily," said Ruhul Amin Sikder, Secretary General of the Bangladesh Inland Container Depots Association (BICDA). "None were transported on Saturday or Sunday, causing a backlog of 4,000 containers and severely hampering depot operations.

A senior official at Dhaka Customs House, speaking on condition of anonymity, told The Business Standard, "Except for passenger and diplomatic services, all import-export clearance was suspended."

"We typically process over 4,000 bills of entry (import consignment documents) daily. Almost all cargo clearance has been halted, causing a massive stockpile," he added.

S M Aftab Uddin, Manager (Commercial Operations) at Gunze United Limited in the Dhaka Export Processing Zone (DEPZ), told TBS, "We have five to seven containers of raw materials, including chemicals, stuck at Chattogram Port due to the shutdown. No assessment was carried out at EPZ customs."

"While our production is still running for now, if this continues, we will face serious trouble," he warned.

Md. Shariful Islam, Executive Director of DEPZ, confirmed the matter, saying, "Customs operations were completely suspended today – no work at all. This affected assessment and all other customs activities, not just at our EPZ, but across all EPZs in the country."

Export operations resumed after 'shutdown' call off

Mohammad Ruhul Amin Sikder, secretary general of the Inland Container Depot (ICD) Owners' Association (BICDA), told TBS last night that customs officials began work at various depots after the NBR protesters called off their programmes. 

"Preparations are now underway at all depots to send export containers to the port. We plan to send at least 2,000 TEUs of export containers, which have been stuck at 19 depots, to the port overnight. Containers meant for vessels waiting at the port since Sunday are being prioritised for dispatch," he said.