Chattogram Port is a stark example of how rigid policies and bureaucratic inertia are bleeding government coffers and condemning valuable national assets to decay.
Systemic Flaws in Customs and Auction Procedures
- Unrealistic reserve prices prevent timely auctions and vehicle clearance.
- Laws block sales if bids don’t meet minimum reserve price.
- Bureaucratic inertia worsens port congestion and unpaid dues accumulate.
Experts urge urgent auction process reform and legal accountability measures.
Unrealistic Reserve Prices: A Recipe for Decay
These vehicles were imported by individuals who, for various reasons, failed to clear them from the port.
- Consider the case of 112 luxury vehicles – Mercedes, BMW, Jaguar, Toyota Land Cruiser, Range Rover, Mitsubishi, Ford, and Lexus – imported under the Carnet de Passage facility between 2008 and 2012.
- These high-end cars have been put up for auction at least eight times since 2016, with reserve prices set exorbitantly high, some as much as Tk4.3 crore per vehicle.
- In the last auction in 2022, the total reserve price for these vehicles was Tk180 crore, yet bids amounted to only Tk17 crore.
“If the Custom House sets such sky-high reserve value, not a single car will sell even in 100 auctions,” asserted Md Habib Ullah Dawn, former president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).
The Cost of Exorbitant Valuations
“A reconditioned Land Cruiser ZX – two to three years old – typically sells for Tk4 crore to Tk5 crore in Bangladesh. These MPs’ cars came duty-free, so the government loses nothing by clearing them. If the customs duty were recalculated at a lower rate, the cars could sell quickly,”
“If the Custom House sets such sky-high reserve value, not a single car will sell even in 100 auctions,”
Md Habib Ullah Dawn, former president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).
“Customs law stipulates that a sale in the first auction can only proceed if a bidder offers at least 60% of the reserve price,”
Calls for Reform Amidst Allegations
Experts urge reform. “If an auction fails, steps should be taken to sell the auctionable goods through negotiation. A tripartite agreement involving Customs, the importer, and the buyer could help secure a better price for the goods.”
Customs officials acknowledge a provision to sell cars at lower prices in a second auction, but express fear of exploitation by “bidder syndicates” who intentionally place low bids in the first round.
“We are waiting for instructions from the NBR on setting a realistic minimum price for the vehicles.
