Not all sectors to benefit from port duty waiver

Nazmul Hossain Published: 29 July 2024, 05:51 PM
Not all sectors to benefit from port duty waiver

The government has announced a waiver of the seven-day port demurrage charge (delay fee for goods clearance) for garment exporters due to disruptions caused by the recent violence surrounding the quota reform movement. 

This decision has led to expectations among other sectors that they might also receive similar benefits. However, no decision has been made regarding the extension of this waiver to other affected sectors, as stated by an additional secretary of the Ministry of Shipping.

All import-export sectors have experienced some degree of disruption due to the shutdown of port operations. On Sunday (July 28), State Minister for Shipping Khalid Mahmud Chowdhury acknowledged the various demands from different sectors related to the National Board of Revenue (NBR), the Ministry of Finance, and the Ministry of Commerce. He assured that these issues would be addressed through discussions with the government.

"We have made a policy decision to waive the maximum seven-day demurrage charge for the garment sector. If BGMEA (Bangladesh Garment Manufacturers and Exporters Association) provides us with a list, we will take the necessary actions accordingly," said Khalid Mahmud.

Other sectors, like the garment sector, have also been impacted by the movement and are seeking similar waivers. The Bangladesh Agro-Processors Association (BAPA), representing commodity processors and exporters, reported a loss of Tk 120 crore among its members.

BAPA General Secretary Iktadul Haque said, "Every sector is affected by this movement. Everyone wants a port duty waiver. This benefit should be extended to all sectors, not just one."

Due to the ongoing curfew and issues with online connectivity at ports and customs servers, many sectors could not release their goods on time. Now that the servers are operational, the goods release process has resumed, but previous delays have caused container congestion at the port, resulting in additional demurrage charges for importers.

Manzoor Ahmed, an advisor to the Bangladesh Fruits Vegetables Allied Products Exporters Association, said, "During the agitation, our export of products worth around one hundred crore rupees was disrupted. We have reported the damage to the Ministry of Commerce and also demand that demurrage charges be waived for all sectors."

Recently, the apex body of traders, FBCCI, demanded the waiver of port and shipping demurrage charges for all sectors. They also requested that charges not be imposed until 15 days after the normalization of port clearing operations.

On Monday (July 29), FBCCI President Mahbubul Alam told Jago News, "We are advocating for exemptions at all levels. We want the importers and exporters of goods to be exempted from charges in all sectors."

Speaking to Jago News, Bidhayak Roy Chowdhury, Additional Secretary (Ports) of the Ministry of Shipping, said, "The Shipping Minister  has announced that the garment sector will benefit. However, there has been no formal correspondence or instructions regarding other sectors yet. I cannot confirm if they will receive it."

Commerce Secretary Selim Uddin added, "The issue is with the Ministry of Shipping. They will make the decision on this matter."