Business leaders demand resolution to NBR deadlock today, warn of daily Tk2,500cr trade disruption

Bangladesh's top business leaders are sounding the alarm over the escalating crisis caused by the ongoing "complete shutdown" protests by National Board of Revenue (NBR) officials.

They warn of a daily disruption to export-import activities valued at a staggering Tk2,500 crore, threatening the collapse of smaller businesses and significant losses of crucial export orders. The protests, which began today (28 June) and are set to continue today, have brought customs services to a standstill across the country.

At a press briefing in the capital, prominent figures from the business community expressed their deep frustration and urged immediate government intervention.

"The government has failed to grasp the full gravity of the crisis caused by the current impasse," asserted Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), questioning the delay in finding a resolution. "Why is the meeting scheduled for Tuesday? This needs to be resolved by today."

Mahmud highlighted the severe economic repercussions, stating, "The complete shutdown of operations disrupts import and export activities worth approximately Tk2,500 crore every single day." He warned that without swift resolution, "smaller exporters will not be able to survive in business and will go bankrupt. Consequently, workers will not receive their salaries on time, which is also linked to the law and order situation."

The press conference was also attended by Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, Md Shahriar, president of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, Mir Nasir Hossain, former president of the Federation of Bangladesh Chambers of Commerce and Industry, among others.

Trade grinds to a halt

The NBR officials' "complete shutdown" program has effectively paralysed all import and export activities. Crucial tasks such as submitting bills of entry, assessment, banking transactions, and consignment clearance are suspended. Export activities are also impossible without customs clearance.

Adding to the woes, VAT office certifications required for clearing imported goods and approval of raw material import entitlements or Utility Permissions for exports are unavailable. Banking-related activities are also suspended, leading to increased port demurrage charges for which importers bear no responsibility.

Operations at the Chattogram Custom House, the main customs authority for the Chattogram port, were entirely halted today. This cessation has disrupted cargo movement and jeopardises the fiscal year's revenue targets. Officials confirmed that customs clearance for all imports and exports remained suspended, crippling trade through the country's busiest gateway.

Businesses on the brink

Business leaders unanimously labeled the NBR shutdown a "suicidal move," emphasising that customs services do not cease operations in any country except during wartime. They stressed that under immense pressures from both local and global economic conditions, businesses are already struggling, and this added disruption could push many over the edge. They implored protesting NBR officials to immediately withdraw their program and facilitate the resumption of regular business operations.

Anwar-Ul-Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries (BCI), detailed the crippling impact. "Due to the partial working hours caused by the pen-down programme, it is now taking more than 10 days to get a Utility Permission that was previously expected in a single day." This delay, he warned, is "leading some foreign buyers to threaten air shipments or even cancellation of export orders." He added that port demurrage charges are now four times the usual rate.

Parvez underscored the critical timing for export-oriented factories, particularly in readymade garments, leather goods, shoes, ceramics, pharmaceuticals, agro-processing, and plastics, which are currently under pressure to produce goods for the upcoming winter season. "If goods cannot be exported on time due to this stalemate, buyers may cancel orders and become disinclined to place new orders in the future," he cautioned. "The international market will not wait for Bangladesh; these orders may shift to other countries, which would be an irreparable loss for Bangladesh's economy."

Calls for immediate intervention

Mahbubur Rahman, president of the International Chamber of Commerce in Bangladesh, appealed to the officials to retract their "suicidal decision" to halt import-export activities, highlighting the importance of government-private sector interaction, which he noted is "almost stagnant" with the interim government.

Echoing concerns about export losses, Syed Nasim Manzur, president of the Leather and Footwear Manufacturers and Exporters Association, stated, "Neither the local nor the international market will wait for Bangladesh." While acknowledging the right of NBR officers to express concerns about their future under ongoing reforms, he stressed the need for the government to consider their future.

However, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, expressed strong indignation. "Now, it's a fight over the distribution of power and money," he asserted. "They (NBR officials and employees) have troubled us our whole lives. Now they are troubling the government and the nation."

Leading garment exporter MA Rahim Feroz, vice chairman of DBL Group, confirmed that "a huge volume of export-oriented consignments are now stuck at the port." He noted the significant increase in port demurrage charges. A managing director of a leading spinning mill, speaking anonymously, revealed they incurred Tk26 lakh in port demurrage during a previous protest phase and fears similar losses now.

The root of the NBR standoff

The current dispute stems from a government ordinance issued on 12 May, which dissolved the NBR and created two separate divisions, reportedly disregarding objections from NBR officials. The NBR Reform Committee had recommended separating the NBR and appointing the heads of both divisions from within the NBR. However, the ordinance stipulated that the head of the Revenue Policy Division would be "an officer deemed suitable by the government," while prioritising NBR officials for the Revenue Management Division.

NBR officials argue these provisions are strategically worded to allow administrative cadre officers to assume leadership of the two newly separated divisions, claiming such linguistic loopholes are deliberately used to grant control to administrative cadres. They also allege that the finance adviser did not give due importance to their concerns when they attempted to communicate directly.

Md Farid Uddin, a member of the NBR reform committee, expressed concern that administrative cadres had "infiltrated this process." He questioned, "The concerns of NBR officials should be taken into account. But why is the finance adviser unwilling to meet them directly?" He concluded, "The chief adviser should take the initiative for a quick resolution."