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Import cost at Chittagong Port falls 9% in Q1 of FY24

Imports via Chattogram port remained virtually unchanged in the first quarter of the current fiscal year, with a year-on-year decline of just 0.12%. However, import costs fell by about 9% during the same period.
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According to Chattogram Customs House data, about 2,16,30,394 tonnes of goods were imported through the country’s premier seaport in the July-September period of FY24 compared to 2,16,57,444 tonnes imported during the same period of FY23.

Import expenditure for the July-September period of FY24 stood at around Tk1,09,430 crore, down by 8.81% from Tk1,20,007 crore for the same period in FY23.

Mahfuzul Hoque Shah, director of the Chittagong Chamber of Commerce and Industry, told The Business Standard that import expenditure fell due to fewer imports of luxury goods such as cars, industrial raw materials, and high-cost capital equipment. Additionally, some consumer goods prices began to decline in the international market.

Revenue collection rises by 7.8%

Chattogram Customs House received about Tk16,475 crore of revenue from imports in the July-September period of FY24 compared to Tk15,385 crore collected during the same period of FY23.

Despite a slight decline in import volume, import revenue increased by 7.08% due to higher prices for some products. Revenue was also boosted by fines collected from cases of duty evasion. 

Chattogram Customs House Spokesperson and Deputy Commissioner Md Badruzzaman Munshi told TBS, “By cracking down on under- and over-invoicing, smuggling, fraud, and duty evasion, we have reduced import costs while increasing customs revenue.”

Imports of 20 products fell

Imports of 20 types of products declined between 12% and 97% during July-September in FY24, compared to the same period in FY23.

According to officials, Chattogram Customs House lost Tk1,077 crore in revenue during July-September in FY24 due to a decline in imports of these 20 products which include furnace oils, high-speed diesel oils, hot-rolled steels, structures and parts, polyvinyl chloride, electric conductors, stranded wire cables, liquid dielectric transformers, motor cars and other vehicles, ceramic electrical insulators, double cabin pickups, and seamless iron.

Imports of these products fell by 793,493 tonnes in the first quarter of FY24, compared to the same period in FY23, resulting in a Tk4,247 crore decrease in import expenditure.

Imports of six products rise

Imports of six types of products — broken or crushed stone, milk and cream powder, polypropylene, fresh or dried oranges, petroleum oils, and palm oil — increased from 2% to 264% during July-September in FY24 compared to the same period in FY23, generating an additional Tk802 crore in revenue.

Ship arrival at Chittagong port and container handling dropped

Chattogram Port handles about 92% of Bangladesh’s imports and exports, but the number of commercial ships arriving at the port has been declining in recent months. In July, August, and September 2023, the port received 369, 350, and 338 ships, respectively.

Container handling at Chattogram port decreased by 23,671 twenty-foot equivalent units or TEUs from July to September 2023, according to port data. In July, August, and September, the port handled 277,161, 259,143, and 253,490 TEUs, respectively.

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