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Lockdown congestion at Chittagong port

NBR asked to allow private ICDs to handle imported goods

Saleh Noman
17 Jul 2021 22:22:54 | Update: 17 Jul 2021 23:34:44
NBR asked to allow private ICDs to handle imported goods
— UNB Photo

The Ministry of Shipping has asked the NBR to allow the private ICDs (Inland Container Depots) to handle all kinds of imported goods on an emergency basis to reduce an ensuing clutter of containers.

The “stricter” lockdown beginning from July 23 aims at shutting down all industrial plants, thereby leading to a more decline in goods delivery.

The just-concluded two-week shutdown caused a haphazard situation at the port.

A further lockdown will cause a domino effect on the entire processing required to release goods after a series of formalities.

Chattogram Port Secretary Mohammad Omar Faruq said it has been proposed to use the private ICDs at full capacity to handle the situation.

If the ICDs can be used for delivery and storage of all types of imported goods, the situation can be controlled to some extent, he added.

“The Ministry of Shipping has sent the proposal to the National Board of Revenue and we are looking forward to an immediate NBR decision in this regard,” said the official.

The privately-owned ICDs, the custom bonded area outside the port, now handles all types of exports and 35 types of imported goods.

Source said there were about 37,000 Twenty Equivalent Unit (TEUs)of containers inside the port yard with a storage capacity of 49,000 TEUs.

About 5,000 TEUs of containers are unloaded from the ship every day and importers take delivery of the same quantity of containers during the normal period.

However, even though the port was open during the lockdown, the delivery was reduced to around 3,000-3,500 TEUs.

The delivery of goods will further face a decline if all types of factories remain closed during the next lockdown, thus bringing in a tangled situation.

However, due to the crisis that has been going on for the last few months, the ICDs have been cluttered with empty containers and containers carrying export goods.

According to the Bangladesh Inland Container Depot Association (BICDA), 52,879 TEUs of containers occupied the yard out of 7,77,000 TEUs capacity till Saturday.

Of them, 15,764 TEUs of containers are with export goods.

BICDA Secretary Ruhul Amin ShikderBiplob said as containers are piled up at the ICDs, export items are being shipped slowly causing a lot of concern.

At least 25 per cent are container goods among all imports through Chittagong port with a daily volume of 4,500-5,000 TEUs while 4,000 TEUs of containers filled with export goods are shipped per day.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says it fears that 63,000 TEUs of containers will be frozen at the port by August 5, if all industries including readymade garments are closed from July 23.

“The port situation would be in disarray and very difficult to handle. The effect would last long,” said Nazrul Islam, first vice-president of BGMEA.

He suggested opening a “One-Stop Service” centre at the port customs, bank and all other agencies relevant with export, import activities inside the port.

However, customs sources said even if the ICDs are allowed to handle all imported goods they would not be able to provide the desired service due to various limitations.

Asked about it, Chattogram Customs House Commissioner FakhrulAlam said the NBR would decide on the use of ICDs.

“If the NBR wants, the Customs House will provide its own opinion on the issue,” he added.

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