300 used cars remain stuck-up at Mongla Port

Doulot Akter Mala | Published: March 18, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Around 300 stuck up reconditioned cars in the Mongla Port following a sudden suspension of issuance of Clearance Permit (CP) by the Ministry of Commerce (MoC) have become a burden of the revenue authority.
Importers earlier released those above 5-year-old cars with the CP of the MoC as those are restricted to enter the country as per import policy order of the Ministry of Commerce (MoC).
The cars remain stuck in the port for about two years for which, the customs authority is suffering from dual problem as they are neither authorised to destroy the cars nor to put those in auction following the procedural complexities.
Customs officials said they do not have the technology to destroy the cars as asked by the MoC. They also consider it as a financial loss to local businessmen and tax revenue as those automobiles have been imported with the bank loans.
Customs wing also needs CP to put those cars on auction.
The used cars, involving Tk 200 million in taxes, are restricted to enter the country under import policy order although it is not included in the foot-note of banned products, said a senior customs official.
There was a practice of issuance of CP on release of those cars which has been suspended suddenly without any prior notice, he added.
Earlier, the Mongla port released some 155 cars as MOC issued CPs.
However, Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) president Habibullah Dawn opposed release of the five-year-old cars terming it 'self-contradictory' of the government's order.
"Release of such cars will create uneven competition in the market. We strongly recommended to the government not to release the cars," he added.
The importers of these cars are not members of BARVIDA, he added.
"We are following the government rules to import those cars while those importers are being benefited by violating the rules," he added.
Importers of those stuck up cars moved the High Court (HC) and got CP with the instruction of court, sources said.Â Â
In the import policy there is a provision to issue CP for the release of restricted products from ports, if it is necessary. There is a process to issue gazette notification prior to suspension of CP which was not followed by the MoC.
Commerce secretary could not be reached over phone for his comment regarding the matter despite several attempts.
Revenue officials said the cars are being worn out gradually as those are lying idle in the port causing problems for both customs officials and importers.
They said a large number of cars have occupied a sizeable portion of the port making it difficult for accommodation of other goods.
Importers also claimed that they are getting bankrupt gradually as a large amount of their investment is stuck with the cars.
In a recent letter, the Mongla customs house Commissioner SM Humayun Kabir urged the NBR to take necessary action regarding release of those cars from ports.
He explained the logical ground for issuance of CP by the MoC. CP will be needed to put those stuck up cars in auction, he added.
"Auction is a lengthy procedure. Both importers and government will face financial loss if customs put those cars in auction," he wrote.