110 luxury cars: Auctioning gets uncertain as buyers lack interest

The Chattogram Custom House’s plan to auction off 110 luxury vehicles has fallen into uncertainty as authorities announce yet another schedule for the sale after failing to find any buyers in the previous four attempts.

These vehicles arrived in Bangladesh almost a decade ago under the Carnet-de-Passage facility, but the owners did not follow proper procedures for releasing their cars from the Chattogram port. The latest auction will be held from 9am on November 3 to 1pm on November 4.

Carnet-de-Passage facility allows travelers/tourists to move through countries driving their own vehicles. Such vehicles are allowed to enter the traveling country on temporary importation facilities without payment of any duty and taxes.

On the issue, Bangladesh Reconditioned Vehicles Importers and Dealers Association’s (BARVIDA) Executive Member Zahir Uddin Md Babar Chowdhury said, “Current condition of these vehicles is very poor and it will be difficult to make those roadworthy through repairs.

“This is why buyers are uncertain about buying these vehicles. Besides, such luxury cars are rarely used in our country, and their parts are not widely available. Even if someone buys a car from the auction at a cheap rate, making a profit from this purchase will be difficult.”

The Chattogram Custom House is allowing potential buyers to see the cars being offered on sale from October 27 – October 28 and October 31 – November 2, before the auction takes place.

The National Board of Revenue (NBR) on October 18 also gave potential buyers an orientation on both in-person and online auction processes, but only 20 people showed up at the training.

Speaking to The Business Post, Chittagong Custom House Deputy Commissioner Md Al Amin said, “We hope to find buyers for these cars in the upcoming auction. Beside the orientation, multiple attempts have been made for engaging more buyers in the auction process.

“This auction is different from other auctions. Arrangements have been made for five days of inspection so that potential buyers can confirm the current condition of these vehicles. The current condition of the cars is described in the catalog along with the new inventory.”

He continued, “We have also assured buyers of all possible assistance for importing parts and accessories for the vehicles being auctioned off, so that they can repair the cars.”

The car brands being offered for sale include Land Rover, Mercedes, BMW, Lexus, Jaguar, and Mitsubishi Jeep. These vehicles have been lying in containers and open car sheds in the Chittagong port.

Published by the Chattogram Custom House, the auction catalogue of 110 vehicles shows that most of the vehicles do not have the necessary parts, including steering and keys.

The majority of these vehicles were brought in by British tourists of Bangladeshi descent through the Chattogram port a decade ago. After arrival, these vehicles got stuck at the port after the customs imposed a strict policy to prevent the misuse of the Carnet-de-Passage facility.

After the custom house asked for bank guarantees from the owners to release their vehicles, many did not take delivery of their cars.

According to customs sources, the vehicles have been re-inventoried considering that no buyers were found in the previous four auctions. This move reveals the current condition of the cars, so that the buyers can consider the prices accordingly.

“In the auction, there may be some buyers of Japanese vehicles including Toyota, because their parts can be collected relatively easily. There is also a demand for Japanese cars in Bangladesh’s market,” said Zahir Uddin, a dealer of reconditioned cars in Chattogram.