The introduction of automated systems in Chittagong Customs House (CCH) was supposed to reduce corruption, but graft is taking place there in vast magnitude.
The authorities have failed to fully implement automation. Some manual systems have been retained in export-import procedures. This allows the unscrupulous elements in the CCH to get unlawful benefits.
The Transparency International Bangladesh (TIB) observed this in a recent study on the port automation. The findings of the study were made public last week. Such illegal transactions hamper revenue collection at the port and increase the price of products shifting the price-burden on the consumers, TIB observed. It suggested that there should be one-stop service under automation at CCH and Chittagong Port instead of several steps to complete export-import activities.
Currently, there are at least 17 steps in customs valuation, including physical examination of products, while the traders have to overcome at least 16 steps to release their imported goods after the 'implementation' of automation project.
According to the TIB study, importers and exporters are forced to pay Tk 4.75 million per day as bribe to officials and employees of the CCH at different stages of customs procedures. And the importers have to pay Tk 1.72 million as bribe to the officials of Chittagong Port Authority (CPA) at different stages to release their imported goods to avoid harassment.
The same case is with the feeder vessel operators. They are also to pay a significant amount of money ranging from Tk 500 to Tk 30,000 to customs, port and mercantile marine department officials for berthing the ships at port and taking different types of approval from the authorities. Some 60-70 brokers, commonly known as 'Faltu' or 'Badi Alam' to the stakeholders, are involved in negotiations over the amount of bribe or illegal transactions on behalf of the customs officials and traders.
The TIB alleged that customs officials were generally dependent on such brokers to carry on their regular activities and the brokers even know the password of computers of the officials. A section of traders is also involved in this illegal transaction to get unlawful benefit. The CCH activities have been held hostage by these brokers, the report added.
On his part, CCH commissioner claimed that the allegations were made quite indiscriminately, but he admitted that there were some irregularities. If there was any specific allegation, the authority concerned would investigate it and take actions against the involved persons, he added.
Earlier, CCH put forward a proposal to the National Board of Revenue (NBR) to form a customs marine unit for intensifying monitoring activities to prevent smuggling and offences related to export-import within the international water boundary of the country. As incidents of smuggling and leakage of products have increased significantly against the backdrop of substantial expansion of international trade of Bangladesh, customs officials are facing challenges to prevent smuggling and offences related to tax evasion in international trade through waterways as they are not properly equipped. It is thus important to increase the capacity of customs officers and prepare them with modern equipment in this connection.
Customs marine unit will also be needed in the future after construction of the proposed deep sea port at Sonadia or any other place. CCH officials said most of the import products were carried in big ships and those were unloaded at deep sea and outer anchorage and then brought to the port in small vessels. In course of such transhipment, there is a possibility of smuggling or duty evasion which the customs officials cannot always monitor due to lack of logistics support. Currently, the CCH has two patrol boats for conducting monitoring activities but the boats are not well-equipped to go to the sea.
The CCH has also put forward a proposal to the NBR to form separate dog squads for the Chittagong port and the Hazrat Shah Amanat International Airport to make the CCH better equipped to check smuggling of contraband goods, particularly narcotics. However, strengthening of the CCH depends on full automation of its activities and honest and dedicated services of its officials and employees.
The TIB put forward a nine-point recommendation, including taking stern action against the unscrupulous officials involved in corruption, formation of codes of conduct for customs and port officials and their implementation, evaluating efficacy of the automation system and submission of wealth statements of customs and port officials every year.
TIB also suggested the introduction of online system at all organisations related to customs duty and import-export release, stopping the opening and delivery of products at the port and making of evaluation reports by an independent third-party regarding the effectiveness of automation and the officers' efficiency. It also suggested formulating behavioural guidelines and technical training for officers and bringing the corrupt people to book.
There is no denying that much depends on the efficient functioning of the Chittagong Port. Most of the country's export and import cargoes are handled through this port. The country's main export product - ready-made garments (RMG) -- is vitally linked to the performance of this port.
As long as the port remains hostage to the extortion and bribery of port and customs officials, it will not be able to perform its function properly, and the country will continue to suffer for its poor business environment.
szkhan@dhaka.net
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