Ctg customs’ July revenue logs 3.5% year-on-year growth

Despite a series of virus restrictions setbacks and the Eid holidays, Customs House, Chattogram, clocked a 3.5% year-on-year revenue growth in July, fetching home about Tk3,394 crore.

Revenues collected in July last year stood at around Tk3,293 crore. Revenues in the first month of this current fiscal year were Tk100.52 crore more than in the corresponding period last year.

However, collections still missed the July target of Tk4,981 crore with the 2021-22 FY target set at Tk65,435 crore.   

Chattogram customs is satisfied with the growth since there were collection barriers such as lockdowns, natural calamities, and Eid vacations.

M Fakhrul Alam, customs house commissioner, said, "Our collection fell in the third and fourth week of July due to Eid and virus curbs. Even after these limitations, we are pleased with the positive growth."      

The customs house saw a record Tk6,743 crore in June revenues, the last month of the outgoing fiscal year. Compared to June, July collections, however, fell about 50%, to around Tk3,394 crore.

Businessmen said the first month of any fiscal year is generally marred by sluggish trade since businesses have to renew their licences and complete other paperwork for the new year. They hope and expect business to pick up from August or so.      

With the country going on Eid holidays starting 20 July, bill of entry submissions to customs plummeted drastically during the vacations although customs was open for business operations. Nevertheless, it usually takes customs ten days to shake off the Eid hangover, and hence the slowdown.   

Aside from that, in the face of the runaway coronavirus infection rate, the 'strictest lockdown' was imposed on 23 July – just a day after Eid day. Factories remained closed during the virus curbs, where previous 'lockdown' movement restrictions had allowed for production units to keep running and outside the purview of lockdowns.        

Lockdown-led factory closures have resulted in raw materials piling up at the Chattogram port yards since most importers were not able to take delivery of their consignments in time owing to virus dictated movement restrictions. Now all that pent up demand is picking up with movement restrictions lifted and businesses reopening, giving custom revenues a bit of a boost. 

Mahbubul Alam, president of the Chattogram Chamber of Commerce & Industry, said, "Businesses have been turning around even during the worldwide virus crisis, which has helped customs start the new year with a year-on-year growth score. The customs authorities will have to be sincere to maintain the performance."

In 2020-21 FY, the revenue collection target for Chattogram customs was around Tk64,303 crore and the collection stood at Tk51,576 crore.

However it should be noted that customs revenues for 2019-20 FY were around Tk41,835 crore and 2020-21 FY did see a 23.23% growth over the previous fiscal year.