Customs issues new order to stop import irregularities

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Jasim Uddin Haroon
The Customs authorities through an order issued recently made stuffing of a container with goods imported under more than one letter of credit (LC) pretty expensive.
The order was issued, according to sources, to help curb irregularities by the consignees. There are allegations that importers often resort to unethical practices such as mis-declaration taking advantage of the existing part FCL facility.
Under the new instruction, the status of a container will be declared as Less than Container Load (LCL) in case of stuffing of the same involves more than one bill of lading.
This means if the multiple shipments are loaded in one container each shipment will be treated as LCL status.
Generally garment factories and importers of essential commodities consolidate, separately, their goods in containers which having a number of bill of ladings because of different letters of credits. Such containers involving imports worth about $20 to $25 million a year used to be regarded as part Full Container Load (FCL).
Importers, however, said the new order will make their import cargoes costly as the freight cost of the LCL cargoes are much higher than that of the FCL cargoes.
The freight of a 20-foot container for LCL cargoes is US$ 130 plus 15 per cent value added tax (VAT) while the freight for 20-foot container of the FCL cargoes is only $ 43 plus 15 per cent VAT.
Apart from this, the delivery of imported goods will be delayed as the LCL cargoes are un-stuffed at the Container Freight Station (CFS) of Chittagong port.
Sources at the importers and shipping sector people told the FE that the government issued the order without any prior discussion with port users and other stakeholders.
President of Bangladesh Garment Manufactures and Exporters Association (BGMEA) Anwar-ul Alam Chowdhury Pervez told the FE that the country's apparel sector would be adversely affected due to the new instruction.
While talking to the FE, Chittagong Customs House Commissioner Lutfor Rahman said the authorities are watching keenly the developments over the new order.
"My immediate past colleague introduced it. I will not amend it immediately. If needed, necessary amendments might come later," he added.