Bonikbarta Exclusive

Amid the turmoil sparked by the quota reform movement, the disruption of internet and transportation systems has paralyzed import-export activities at Bangladesh’s main seaport, Chattogram. During this period, traders could not clear their goods from the port. Following a five-day standstill, port authorities resumed full operations last Wednesday. However, complications regarding demurrage fees are now prolonging the clearance process.

Despite government hints at waiving demurrage fees, no official notice or order has been issued. Traders report that they are required to submit separate applications for each consignment. This increases the complexity of the waiver process and raises concerns about additional demurrage fees.

Typically, importers must clear goods within four days of unloading containers from ships. Failing to do so incurs additional charges (demurrage fees). The port authority charges importers USD 6 per day for the first seven days, USD 12 per day for the next eleven days, and USD 24 per day thereafter.

Due to the recent crisis concerning students’ quota reform protests, traders could not clear goods for several days. This resulted in demurrage fees on imported items. In response to traders' demands, the government hinted at considering waivers for these charges.

On Thursday, Minister of State for Shipping, Khalid Mahmud Chowdhury, suggested that the government might waive demurrage fees for affected traders, stating, “Many importers couldn’t clear their goods due to the ongoing situation, facing charges as a result. During the pandemic, Chattogram Port waived over BDT 5 billion. The port was established not just for business but to serve the country’s economy. There’s no need to worry. We will support those who provide proper documentation.”

However, despite these assurances, no official notice or directive has been issued. As a result traders have to file individual applications for fee waivers, which they say adds to the complexity.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), commented, “They (the government) are waiting for our applications. They will review and approve each one individually. This means it will take longer to clear our goods. Processing each application will take a lot of time, impacting our production.”

Mohammad Hatem added, “I have eight containers stuck. The clearing and forwarding (C&F) agent told me that if I don’t clear them today, I’ll face demurrage charges again tomorrow. The port or the ministry can’t waive container demurrage fees; that’s up to the shipping companies.”

Questioning the relevant ministry, Mohammad Hatem said, “Given the circumstances, why hasn’t the government issued an order or notification stating that port demurrage fees will not be considered during this period.”

Omar Faruk, Secretary of Chattogram Port, stated that no decision has been made yet. If the government issues any directives based on traders’ applications, they will be implemented immediately.