Home ›› 12 May 2022 ›› Front
The Chattogram Port Authority (CPA) has finalised its new tariff rates that have led taxes on goods to become twice as much and in some cases, the new duty rates have gone up by 100 per cent.
Besides, all tariffs should be paid in US dollar or its equivalent to local currency.
According to the port authority, the new tariff proposal will be sent to the ministries concerned for approval before making it effective, but some port users say the proposal is more complicated than earlier and exporters and importers both have to dig down into their wallets.
Two years back, the CPA appointed M/S IDOM, a consulting firm based in Paris, and a Dhaka-based Logicforum Limited for reappraisal of the charges under the title – Formulation and Evaluation of Tariff Structure and Submission of a Revised Tariff Proposal for Chattogram Port Authority.
The consultants have completed their final tariff proposal and submitted it to the port authority, said Muhammad Omar Faruq, secretary to the CPA.
“The current tariff charges of Chattogram port were fixed decades ago. That is why we had to set the new tariff according to the current reality which is done in all the ports of the world,” added Faruq.
A copy of the new 94-page tariff book had been available on Wednesday evening, and in its preface, Rear Admiral Mohammad Shahjahan, chairman, Chattogram Port Authority, said for the convenience of all concerned this manual is published by way of codification and compilation of all the rules for the working as well as for the scales of tolls, dues, rates, charges, duties and fees of the port.
The new tariff includes charges $0.367 per GT Grace Tonnage of ship up from $0.241 previously. With the new charge, the ships have to pay $102.35 to use the automated vessel traffic system.
In the case of handling loaded containers, the new tariff for 21-foot containers is $23.15 up from $15. The tariff for 20 to 40-foot containers has been set at $34.83 up from $22.50 previously. The new charge for piloting for ocean-going ships is $700 up from $357 previously.
Many port users including Bangladesh Shipping Agents Association are reviewing the new tariff book and are getting ready to vent their reactions to this matter soon.
“We are reviewing the new tariff book,” said Syed Mohammad Arif, Bangladesh Shipping Agents Association president.
“The average tariff in each sector has increased by 70 to 90 per cent and in some sectors it has gone up to 100 per cent. The consultants had been informed of our opinion, but to no avail.”
The Chattogram port, the country’s prime gateway, handles more than 90 per cent of imports and exports, and is one of the largest sources of revenue for the government which has been raising all kinds of tariffs since 1987.
Even it tried to raise tariff more than once, but backed down in the face of protest by the port users. Even in 2008 during the caretaker government backed by the army, tariffs were increased in only four sectors including storage charges. However, storage charge has gone up relatively less. At present, the rent for every 20-foot container is $6 for the first seven days after four free days, but in the new tariff it is $6.9.
The rent for a 40-foot container is $12 for seven days after free four days, but in the new tariff it increased to $13.80.
Reacting angrily to the finalisation of the new tariff, Chattogram Chamber of Commerce and Industries president Mahbubur Alam said the port is a prime service agency of the government and since it is trying to make profit through increasing tariff rates, it will have a negative impact on the country’s economy.
He added that raising tariffs on ports would shoot up the cost of doing business in the country, and port tariffs should not soar as Prime Minister Sheik Hasina promised to reduce trade and commerce costs.
Meanwhile, sources said the CTG port has been providing services at the same tariff rate for a long time but revenue earning did not improve even though the cost of the port has risen.
A huge amount of investment is required to increase the capacity of the port.
