Since 18 November, customs authorities in Chattogram were destroying 5 lakh kg of decayed fruits and spices on the city company’s garbage dumping yard.
These goods, valued at approximately Tk12 crore—including Tk4 crore for imports, customs obligations, and other costs—were imported by 11 businessmen and stored in 21 containers at Chattogram Port since 2023.
On the opposite hand, the importers by no methodology took supply of the goods, and customs officers were unable to auction them in a successfully timed formulation. Low auction costs additional uncomfortable sales.
This prolong in auctioning goods has ended in an rising backlog of auctionable containers on the port. As of 20 November, there were 9,786 TEUs (twenty-foot equal objects) of auction-eligible containers within the port yard, making up 32% of the total 30,841 TEUs of imported containers.
Data from Chattogram Port uncover that these containers were imported after 2004, and, in step with files from importers and auction traders, the 9,786 auction-eligible containers possess over 2.15 lakh tonnes of goods. Merchants estimate that these goods would possibly be rate over Tk3,900 crore, with every container valued at a median of Tk40 lakh.
The collection of auction-eligible containers has been rising since 2021, with 1,516 more containers eligible for auction in 2024 in comparison with the outdated year.
Shafiqul Alam Jewel, vice chairman of the Bangladesh Shipping Agents Association, instructed TBS, “Unresolved auctions motive containers to remain stuck on the port for years, combating their exercise for import and export activities. This ends up in financial losses for shipping corporations, as they are unable to make a selection up container rental charges.”
“Though goods must be auctioned 30 days after importers fail to comprehend supply, the device customarily drags on for years, leading to paunchy financial losses for shipping corporations,” he added.
Repeated auctions fail to sell goods
Chattogram Customs Condo has area a troubling file by placing up a single consignment of goods for auction more than 27 events.
This repeated auctioning now no longer absolute top increases auction-connected charges however additionally leads to the deterioration of goods, making it impossible to sell them at cheap costs. Which skill, many products are within the extinguish destroyed on the dumping area, including to the financial losses.
Public sale traders comprise expressed frustration with the arbitrary choices made by the customs auction committee, which they deem are combating the sale of goods. This has ended in a loss of hobby from possible bidders.
One indispensable case alive to a chemical shipment weighing 2,010kg, imported in 2007, which used to be put up for auction for the twenty seventh time on 23 January 2022. Despite its normal value of Tk3.31 lakh, the chemical deteriorated over the 15 years it remained unsold due to the prolonged and unresolved auction path of, within the extinguish leading to its destruction.
KM Company, the internal most firm in price for managing auctions for Chattogram Customs Condo, acknowledged that it earns appropriate 0.11% of the earnings from the sales. The monthly charges for conducting these auctions—including promoting in newspapers, offering logistics increase, paying workers salaries, and other costs—exceed Tk3 lakh.
Customs sources acknowledged that if a bidder offers now no longer as a lot as 60% of the reserve mark area by customs, the goods can’t be accepted for sale. In consequence, goods are repeatedly dropped at auction unless they secure no now no longer as a lot as 60% of the reserve mark.
Mohammad Yakub Chowdhury, no longer unusual secretary of the Chattogram Customs Public sale Merchants Welfare Association, acknowledged, “The reserve costs area by customs have a tendency to be too excessive in the case of the quality of the goods. This deters possible shoppers, as they are buying this stuff for resale, now no longer internal most exercise. Nobody is gripping to aquire goods at a loss.
“Which skill, with out reference to repeated auctions, many goods stay unsold. And as they sit in storage, their situation worsens, additional reducing their value.”
Containers with hazardous chemical substances broaden safety concerns
The port at this time shops 218 containers carrying hazardous chemical substances, such as sulfuric acid and sodium and potassium hydroxides. A form of these containers, some as musty as 15 to twenty years, comprise begun to corrode, leading to leaks and creating essential safety dangers on the port.
Apart from these 218 containers, the Chittagong Port Authority these days auctioned and delivered four tank containers with extremely flammable sodium nitrochloride. These containers, additionally over 15 years musty, were sold on 27 October. Plans are additionally in dwelling to extinguish nine more containers of hazardous offers through Colombo Port in Sri Lanka.
At a press conference on 19 November, Rear Admiral SM Moniruzzaman, chairman of the Chittagong Port Authority, announced that efforts were initiated to clear or extinguish 9,000 musty containers that were on the port since 2004.
The port has made several makes an attempt to hump up the auction path of for uncleared vehicles, cargo and containers, and the pickle has been raised with the chairman of the Nationwide Board of Earnings.
Customs scraps 121 undelivered vehicles
Customs has scrapped spherical 121 vehicles that were imported from a form of worldwide locations however by no methodology delivered because of considerations. Each one of these vehicles, which were in storage for as a lot as 40 years, comprise deteriorated over time.
The scrapped vehicles encompass microbuses, internal most cars, dumper vehicles, mini pickups, toy cars, drum vehicles, sweeper lorries, LPG carriers, AC buses, mini-covered vehicles, and Jeeps. Amongst them used to be a Mercedes-Benz.
After being dismantled, the vehicles are in actuality piled within the customs auction yard to be sold by weight.
What customs says about unsold auction goods
Customs officers explained that, in step with recent regulations, if the expose mark for a product within the first auction is now no longer as a lot as 60% of the reserve mark, the sale can’t be accepted. In the 2d auction, the product would possibly additionally additionally be sold if the expose exceeds the outdated provide. In later auctions, the reserve mark would possibly additionally additionally be reduced step by step.
On the opposite hand, traders claim that bureaucratic components created by customs officers prolong the auction path of. The auction committee, in price for atmosphere costs and making sale choices, customarily would no longer lower costs adequate, causing goods to continually fail to plot shoppers.
Saidul Islam, deputy commissioner of Chattogram Customs Condo, instructed TBS, “Customs is defending regular auctions, including online and dwelling auctions for perishable goods, to help clear the backlog. On the opposite hand, apt disputes customarily prevent goods from being cleared.
“Even when customs approves the sale, the plant quarantine area would possibly additionally now no longer permit the launch of goods if their quality has deteriorated.”
