Agri machinery importers accuse Ctg customs officials of harassment

Agricultural machinery importers claim they are facing harassment at Chattogram Customs House, where officials "delay valuations and inflate duties" by assessing integrated systems as individual components, leading to higher costs and delayed deliveries of farming equipment.

Take the case of Sherpa Power Engineering Ltd, which imported a Centre Pivot Irrigation (CPI) system from an Austrian firm on 17 June under a project of the Bangladesh Agricultural Development Corporation (BADC). 

"Although the expected duty was around Tk12 lakh, Customs officials have demanded nearly Tk42 lakh, citing valuation on separate components and penalties," said the company's Managing Director, Abu Taher, in a press conference at Dhaka Reporters Unity yesterday.

According to Sherpa, the CPI system is an integrated unit. But, Chattogram Customs is insisting on separately assessing components, particularly five tonnes of perforated pipes for water distribution, leading to a duty burden nearly three and a half times higher.

"The pipes have thousands of tiny holes that spray water like rainfall. But customs officials claim these pipes can be used for commercial purposes like transporting oil and gas. How can anyone transport oil or gas through pipes full of holes?" asked Taher.

He alleged that revenue officer AHM Mahbubur Rashid (Section 5A) and Deputy Commissioner Mohammad Saidul Islam (Preventive) have refused to accept the CPI as a single, functional system and are intent on separating components for individual tariff assessments.

"This kind of harassment happens because people without any understanding of agricultural machinery are in charge at customs," said Taher, calling for simplified procedures for importing farm equipment.

According to BADC and Sherpa sources, the CPI system was imported by Sherpa after it secured a tender under an irrigation development project aimed at utilising surface water in Pabna, Natore, and Sirajganj.

Abu Taher said, "The Austrian manufacturer exported the machine as a single system. Both the BADC work order and a letter from BADC to the Chattogram Customs commissioner specify that the CPI system should be considered as one unit."

He added that the customs delay is causing them a monthly loss of Tk4 lakh.

Highlighting BADC's initiative to introduce the CPI system to protect northern Bangladesh from desertification, Taher said, "We have worked with BADC for years to advance agriculture and are now implementing this cutting-edge irrigation technology under a BADC project."

He warned that if customs non-cooperation continues, the entire project risks collapsing.

When contacted by phone regarding the matter, Chattogram Customs Deputy Commissioner Mohammad Saidul Islam told TBS, "If someone wants to import a full system, they can bring it as a plant [a complete industrial or agricultural setup]. In that case, a system may include several products. But I don't know under what category they applied. I would need to see the file."

Sherpa's case is not unique

Other agricultural machinery importers like Sherpa have lodged similar complaints of harassment and delays against customs officials, resulting in financial losses.

Alimul Ahsan Chowdhury, president of the Agricultural Machinery Manufacturers Association of Bangladesh and MD of Alim Industries Ltd, said, "Almost all agricultural machinery importers face harassment similar to Sherpa. For example, when importing a combined harvester, customs officials demand separate duties on individual parts. But it's one complete machine."

He added, "There is no one with specific expertise in agricultural machinery at customs. Officers apply their own judgments based on whoever is in charge, which discourages many newcomers to the sector. Many of us have also become defaulters on loans because of this."

Md Rafiqul Islam, MD of Banglamark Ltd, said, "Any product entering the port should be cleared within three days. But customs paperwork assessments often take 7-8 days or more, causing daily financial losses. Each shipment costs us an extra Tk15-20 lakh due to these delays."

He recounted, "Six months ago, we imported three combined harvesters composed of many parts. Customs refused to consider it as one machine and instead assessed the parts separately. We counted an additional loss of $9,000 for just three harvesters in one container."

TBS also spoke to at least three other agricultural machinery importers, all of whom reported facing similar obstacles with Chattogram customs.