5,000 vehicles stranded at Mongla Port
Red tape causes delay in cargo delivery
JAGARAN CHAKMA, back from Mongla Port
At least 4,728 reconditioned vehicles have been stranded at Mongla Port since 201012 as a result of tax complexities and official formalities, disclosed sources at the Mongla Customs House (MCH).
Of the total, 61 vehicles would be auctioned. All necessary initiatives have been taken to conduct the auction, said MCH commissioner Dr Md Al Amin Paramanik.
Besides, there are some 455 cars the imports of which were banned, and which are valued at Tk. 40.95 crore, he said. These cars are being processed to impose duties. Discussions are going on with the commerce ministry to complete deliveries.
The remaining 4,212 vehicles are under process of the payment of usual duties, which would be examined for Customs and duties and would be released soon, he added.
He said if the MPH is able to release these vehicles, it would earn Tk. 445.41 crore as revenues.
The MPH commissioner said these cars were imported by service holders, travellers, students and businessmen who had gone abroad for studies, training and business.
The owners of the vehicles did not take deliveries of their cars from the ports because of the high taxes.
NBR member (Customs policy) Farid Uddin directed the MPH commissioner to work jointly with the Mongla Port Authority to complete the deliveries of the stranded vehicles from the port.
The government offered a total of 90 per cent depreciation facilities to the importers to facilitate the release of imported reconditioned vehicles that have been stranded at Mongla Port for the past few years.
Similarly, the National Board of Revenue (NBR) issued an order last year, allowing 45 per cent additional depreciation facility, in addition to regular 45 per cent depreciation facility, for the speedy release of these old and reconditioned vehicles, sources said.
But the depreciation facility would not be applicable to 512 reconditioned cars that were imported by misusing the import policy between 2010 and 2012, according to NBR officials.
Of the stranded vehicles, 1,587 are cars and 692 microbuses and other vehicles, while 512 vehicles are more than five years old. The import policy bans imports of vehicles older than five years.
Earlier, the Cabinet committee approved a proposal offering 90 per cent depreciation facility to mitigate the long-run dispute over the imported reconditioned cars that were awaiting unloading at Mongla Port.
The government allowed imports of reconditioned vehicles from Japan since 2010 through Mongla Port to reduce pressure on Chittagong Port. But a huge number of cars was not released from the port on account of duty-related complexities and the absence of coordination between the finance and commerce ministries.
Some 512 units of cars are five years old and were imported in violation of the imports policy. At present, the carsworth some Tk. 300 crorehave been abandoned at the port because of various complexities, including the accuracy of the imports,
fixation of import value, exchange rate of yen/dollar, amount of depreciation rate, clearance from the commerce ministry and port storage charges.
Sources said a number of decisions was taken at different stages, including at the finance ministry, the Prime Ministers economic advisers office, car business associations, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the highest level of the government. But the complexities could not be resolved. That is why the cars have been lying at the port for five years.
