Customs strike paralyses Chattogram port, halts trade for 5 days

A five-day work stoppage by officials at the Chattogram Custom House has severely disrupted operations at the country's main seaport, leading to a backlog of over 4,000 containers and a significant drop in customs processing.

On average, around 2,000 bills of entry are submitted daily for imported goods at the Chattogram Custom House. However, due to the ongoing pen-down strike, this number has dropped by half, raising concerns over its impact on customs revenue.

Businesses are already feeling the pinch. 

Traders report rising costs from prolonged delays in customs clearance, including mounting container storage fees and warehouse rent, as imported goods remain stuck at the port without assessment or release.

According to Chattogram Port data, 40,078 TEU containers were in the port yard on May 12. By 8:00 am on May 19, that number had surged to 44,211 TEUs—an increase of 4,133 TEUs within just one week.

In total, 7,402 additional TEUs have accumulated in the port yard over the past eight days, considering both the recent strike and a previous slowdown.

Md Obaidul Hoque Alamgir, first joint general secretary of the Chattogram C&F Agents Association, told The Business Standard that importers are bearing the brunt of the delays. 

"Due to the customs officials' pen-down strike, there's already a significant backlog at the port. Each product's documentation is taking extra time to process. This is increasing the cost burden on importers through additional storage and warehouse fees," he said. 

"We urge a permanent resolution to this issue."

Port officials are concerned that continued disruption could seriously hamper both imports and exports. Perishable goods and raw materials critical to the industrial sector are already stuck, potentially disrupting production lines and the broader supply chain.

Md Omar Faruk, secretary of the Chattogram Port Authority, acknowledged the situation, stating, "The pen-down strike has affected container deliveries. The number of undelivered containers has increased, and it will take a few more days for operations to return to normal."

Chattogram Port has the capacity to store 53,518 TEUs. To maintain smooth operations, it generally operates best with around 35,000 containers in the yard. Exceeding this limit risks further disruption to port activities.

Despite the strike, the Chattogram Custom House claims to be continuing assessments and customs clearances, albeit at a slower pace. 
Deputy Commissioner Saidul Islam said, "Even with the pen-down strike until 3:00 pm, our officers are working until 8:00 pm to clear consignments. So far, revenue collection has not been significantly impacted."

According to data from the Chattogram Custom House, import duty collection from 13 May to 18 May this year stood at Tk1,536 crore.

However, from 13 May to 18 May in 2024, a total of Tk1,064 was collected in revenue.

During the strike period, daily revenue collection fluctuated sharply, with Tk287 crore on 13 May, Tk327 crore on 14 May, Tk374.46 crore on 15 May, dropping drastically to just Tk0.54 crore on 16 May, before partially recovering to Tk205.92 crore on 17 May and Tk341.25 crore on 18 May. 

Similarly, the submission of bills of entry saw a steep decline—from 1,135 on 13 May, 1,278 on 14 May, and 1,127 on 15 May, to just 5 on 16 May, then rising slightly to 654 on 17 May and 485 on 18 May— well below the usual daily average of around 2,000.

This afternoon, clearing and forwarding (C&F) agents and their staff were seen waiting outside various rooms at the Custom House, holding documentation for goods awaiting clearance. The customs clearance and assessment hall remained largely empty.

A C&F staff member, requesting anonymity, said he submitted a file on 15 May for two tonnes of raw materials destined for the garment industry. As of 19 May, the file had not been processed. 

"Due to the delay, we are incurring extra freight and storage charges," he said.