Sunday, May 25, 2025

Customs Strike Cripples Chittagong Port, Disrupting Import-Export Trade

 

Chittagong, May 25, 2025: The ongoing strike by customs officials and employees, protesting the dissolution of the National Board of Revenue (NBR), has severely disrupted operations at Chittagong Port, the country’s primary seaport. While containers are being unloaded from ships, importers are unable to clear their goods from the port, leading to a severe container backlog.

Due to the suspension of customs activities, including duty assessment and inspections, the port’s container storage capacity is nearing its limit. Port officials report that the facility can hold up to 53,000 TEUs (Twenty-foot Equivalent Units), but operational efficiency requires keeping some space vacant, limiting storage to around 45,000 TEUs. Currently, approximately 41,000 TEUs are piled up at the port, with an average of 1,000 TEUs unloaded daily. However, importers are unable to clear containers at the same rate, exacerbating the congestion. If the situation persists, the port may be forced to halt container unloading within days.
Over the past three months, multiple disruptions, including protests by container truck drivers and workers, have compounded the issue. The latest customs strike, ongoing since May 14, has pushed the container count from 36,000 to over 41,000 TEUs. This bottleneck is particularly affecting the garment industry, which accounts for 30% of the port’s imports, as delays in raw material clearance disrupt production. Importers are also incurring additional costs in storage rent, demurrage, and detention charges.
SM Abu Tayeb, former vice-president of BGMEA, stated, “The customs strike is delaying access to raw materials, creating uncertainty for exports.” Ismail Khan, managing director of Falguni Traders Limited, a C&F agent, noted that importers are facing up to four times the usual fees for some containers.
Port Secretary Md. Omar Faruk warned, “With customs clearance halted, delivery speeds have slowed significantly. If this continues, the situation could spiral out of control.” As 95% of import-export customs clearance occurs at the Chittagong Customs House, the strike has created a major bottleneck in port operations.
Customs officials declined to comment on the issue. The strike stems from a government ordinance issued on May 12, dissolving the NBR and Internal Resources Division to form two new departments: Revenue Policy and Revenue Management. Since then, NBR officials and employees have been protesting, with a work stoppage announced on May 13 under the banner of the “NBR Reform Unity Council.” Work stoppages were observed on May 14, 15, 17, 18, and 19, with further actions planned after a temporary suspension on May 20.

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