Ports crippled as NBR officials escalate protests, threaten full trade halt

Import operations at key ports across Bangladesh were severely disrupted yesterday as officials of the National Board of Revenue (NBR) escalated protests against the government's plan to dissolve the agency. The action has sparked widespread fears among businesses of a complete trade halt, with industry leaders warning of severe economic repercussions.

The "NBR Reform Unity Parishad," a platform representing NBR officers, has announced its intention to suspend all customs activities, including import and export clearance, starting tomorrow. International passenger services are the only exception to this planned suspension, which will be implemented if the government fails to meet their demands.

Chattogram Port, the nation's primary trade hub handling approximately 90% of Bangladesh's foreign trade, saw import operations fully suspended until 5 pm yesterday. Benapole Custom House also halted operations, while Dhaka Customs House maintained limited activities. Nationwide, all tax and VAT office operations remained suspended.

The abrupt disruption has triggered alarm among foreign buyers, with several exporters reporting inquiries from overseas clients concerned about potential supply chain disruptions. Industry leaders warn that continued disruption could severely damage Bangladesh's global reputation, trigger price hikes, and destabilise the domestic market.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, told The Business Standard that imports and exports were halted on Saturday and a full suspension is anticipated from Monday. He warned, "If this happens, the economy could suffer a daily blow of $250 million. Missing shipments could result in order cancellations and discounts. Our reputation in global markets is at risk."

Kabir Ahmed Khan, president of the Bangladesh Freight Forwarders Association, echoed these concerns. "Customs clearance for imported goods was completely stopped on Saturday. Officials have told us export services will only continue until Sunday. From Monday, everything stops. If that happens, we are in deep trouble." He noted that a Korean buyer had already contacted him about possible supply chain disruptions, fearing delays in receiving goods, calling it a "terrible signal abroad."

Port operations impacted

At Chattogram Custom House, Deputy Commissioner Saidul Islam confirmed that the strike, from 9 am to 5 pm, brought all import assessments to a halt. He stated that limited operations resumed after 5 pm, with export services continuing uninterrupted throughout the day.

Traders reported significant losses due to the delays. "The strike has paralysed port operations. Importers are incurring huge expenses due to port congestion and storage fees," said SM Saiful Alam, president of the Chattogram C&F Agents Association.

Md Zakir Hossain, Commissioner of Customs House Dhaka, stated that export activities remained normal, with some flexibility shown in clearing perishables and emergency items. In Benapole, clearing agent Nur Hossain reported that a consignment of garment fabrics could not be assessed, as their attempt for customs valuation was unsuccessful.

Chattogram Port data indicates that approximately 3.2 million import-export laden and empty containers are handled annually. In 2024, the port processed 3.276 million TEUs of containers and 124 million tonnes of cargo, with 3,867 commercial vessels arriving. Chattogram Custom House reported imports of 78.7 million tonnes from July to April of the current fiscal year, up from 74 million tonnes in the same period last year. Revenue collection at Chattogram Custom House reached Tk62,818 crore in the first ten months of the current fiscal year, with daily revenue averaging between Tk1,900 crore and Tk2,000 crore. Total revenue collected in the full 2023-24 fiscal year was Tk68,867 crore. A previous import clearance suspension at the port from May 13 to May 19 until 3 pm resulted in over 4,000 stranded containers.

Officials adamant on demands

Hundreds of customs, VAT, and income tax officials from across Dhaka gathered at the NBR headquarters in Agargaon yesterday. At a press conference, they reiterated four key demands: the scrapping of the ordinance dissolving the NBR, the resignation of NBR Chairman Abdur Rahman Khan, public disclosure of the Revenue Reform Committee's recommendations, and a stakeholder consultation before any reform.

A spokesperson stated, "To keep the economy and supply chains stable, and revenue collection on track in the final months of the fiscal year, we demand a clear government statement. If our demands are met, we'll withdraw the strike immediately and work extra hours to clear pending cases."

Security has been heightened at the NBR headquarters, with police and military personnel stationed outside, and only employees with valid ID cards permitted entry. The NBR Reform Unity Council had previously initiated a pen-down strike on May 14, which was suspended on May 19 following a government proposal for dialogue, initiated under the chief adviser's directive.

Calls for discussion and resolution

Mohammad Hatem urged, "If the officials' demands are reasonable, the government should consider them. We must resolve this crisis through discussion to keep trade and the supply chain running."

Anwar-Ul-Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, added, "If necessary, the ordinance should be suspended until a solution is reached. This crisis is sending a negative message to international buyers who may cut orders."

An economist, who requested anonymity, commented, "There are concerns both about the way the ordinance was passed and how the officials are now holding trade operations hostage."