Chattogram Port Authority seeks to purchase five land cruisers from cars imported by former MPs

The Chattogram Port Authority (CPA) is interested in purchasing five Land Cruiser vehicles from a batch of over 50 luxury cars imported under duty-free privileges by former Awami League parliamentarians. 

A formal request, signed by CPA Secretary Mohammad Omar Faruk, was sent to the Ministry of Shipping on 5 March, outlining the necessity of these purchases.

According to Chattogram Customs, the reserve price for each vehicle has been set at Tk9.67 crore. The port authority intends to purchase them at this rate.

Meanwhile, a previous auction of 24 Land Cruisers imported under similar duty-free provisions failed to attract the desired bids, resulting in no sales. In response, Chattogram Customs is now preparing for a second auction, adding six more vehicles to the list, bringing the total to 30. This auction is scheduled to take place after Eid-ul-Fitr.

Port authority sources stated that the five cars have been in storage at the port's car shed for more than seven months. Due to a shortage of official vehicles, the CPA has expressed interest in acquiring them for port operations. 

"We have sent a letter to the Ministry of Shipping seeking approval to buy five of the vehicles imported by former MPs under duty-free facilities for official use. We are waiting for a response from the ministry. Our intention is to purchase them at the reserve price set by customs," CPA Secretary Mohammad Omar Faruk told The Business Standard.

Md Shakib Hossain, assistant commissioner of the Auction Branch at Chattogram Customs House, told TBS, "We have been informed that the port authority is interested in purchasing five of these cars at auction, which is positive news. The process for the second auction, which will include 30 vehicles, has already begun. The auction will be conducted online after Eid-ul-Fitr."

He further explained that if the bidding in the first auction does not reach at least 60 percent of the reserve price, the cars cannot be sold. However, if the highest bid in the first auction exceeds those in subsequent auctions, the sale can be approved.

During the first auction, the highest bid for Land Cruisers, each valued at Tk9.67 crore, was Tk3.1 crore, while the lowest bid was Tk1 lakh. If bids in the second auction exceed Tk3.1 crore and customs authorities grant approval, the vehicles can be sold.

Chattogram Customs sources revealed that the auction process for 44 cars, including 24 belonging to former MPs, began on 27 January, with tender submissions closing on 17 February. A total of 14 bids were placed for 24 vehicles, but 10 cars received no interest. As per auction rules, bids must reach at least 60 percent of the reserve price to be considered for sale. 

The vehicles became subject to auction after their clearance was stalled following the ouster of the Awami League government on 5 August 2024. 

On 21 August, Chattogram Customs sought guidance from the National Board of Revenue (NBR) regarding the clearance of these vehicles. 

In response, the NBR instructed that the cars could only be released if normal customs duties were paid. Importers were given a 15-day deadline to comply, which passed without action, leading to the decision to auction the vehicles.