Ctg customs to auction 475 containers to ease port congestion

The Chattogram Custom House is set to auction 475 long-stored containers of goods in an effort to reduce congestion at the Chattogram Port and free up crucial space. 

While customs authorities estimate the auction could generate around Tk400 crore in revenue, they stress that easing the container pile-up is the paramount objective.

The auction will proceed in two phases: 350 containers will be sold online under a special order, commencing tomorrow, while 125 additional containers, along with 24 mixer machine vehicles, will be auctioned under a standing order today. All auctions are slated to conclude by 30 July for standing orders and 2 August for special orders.

Customs officials said that the diverse range of items up for auction includes chemicals, ceramic tiles, gypsum boards, fabrics, ceramic vases, engine and hydraulic oils, paper, and garment accessories.

Shakib Hossain, assistant commissioner of the Auction Branch at Chattogram Custom House, told TBS, "Typically, we allow three working days for inspection, but given the volume and size of goods, we are allowing 10 working days this time. This will ensure traders can inspect the items thoroughly."

A backlog of over 10,000 containers currently clogs the port, disrupting normal handling operations. Although the port authority has long urged customs to expedite the auction process, progress was slow under conventional procedures.

However, following a special order issued by the National Board of Revenue (NBR) on 14 May, customs can now finalise sales at first auction prices for goods accumulated up to December 2023. This means 350 containers will be sold without the need for second or third auctions.

For goods arriving from January 2024 onwards, the standing order applies. If a container receives at least 60% of its base value in the first auction, it will be sold. Otherwise, second and third auctions will be arranged as per existing rules. The remaining containers will be brought to auction in phases.

The NBR's new policy aims to break the longstanding cycle of unsold containers that has persisted for over two decades. Under the old system, auctions would frequently stall if the first bidding round failed to meet the 60% reserve threshold, requiring multiple rounds and leaving goods languishing at the port.

Welcoming the reform, Syed Mohammad Arif, president of the Bangladesh Shipping Agents Association, said, "Selling goods under the special order will allow shipping companies to quickly reclaim their containers, resume rentals, and improve port capacity."

Yakub Chowdhury, general secretary of the Customs Bidders Association, said, "The e-auction system allows bids to be placed from anywhere in the world, making the process open and transparent. There is no scope for syndication."

Earlier, Chattogram Custom House formed a dedicated auction committee tasked with swiftly auctioning, impounding, or destroying disposable goods lying idle at the port. The committee was established following a special directive from the NBR issued on 8 July.