High-tariff goods imports decline sharply

Imports of high-tariff goods such as vehicles, electronics and cosmetics have fallen sharply in Bangladesh, dealing a major blow to revenue collection at Chattogram Custom House, the country’s largest revenue-generating customs station.

As a result, the customs authority is heading towards another significant revenue shortfall in the 2025-26 fiscal year.

The National Board of Revenue (NBR) set a revenue collection target of Tk100,000 crore for Chattogram Custom House at the beginning of the fiscal year. However, the customs station collected Tk84,000 crore during the first 10 months, from July to April, leaving a shortfall of Tk16,000 crore.

Officials concerned said even if revenue collection reaches expected levels in May and June, the customs authority may still end the fiscal year with a deficit of at least Tk17,000 crore.

Chattogram Custom House may also miss its revenue target for the fifth consecutive fiscal year.

Customs data showed that although overall import volumes increased, revenue suffered due to a decline in high-duty goods imports.

Customs spokesperson and Assistant Commissioner Sharif Mohammad Al Amin said authorities maintained restrictions on opening letters of credit (LCs) for commercial imports throughout the year.

“Imports of products that generate the highest amount of revenue declined significantly,” he said.

He added that the government also reduced or waived duties on several essential commodities to provide relief to consumers, affecting overall revenue collection.

Officials said luxury vehicles remain the single largest source of customs revenue, carrying duty rates ranging from 300 % to 800%.

However, government restrictions aimed at conserving foreign currency reserves and tighter LC controls by banks pushed imports of vehicles and expensive electronic goods close to record lows this fiscal year.

NBR data showed import volumes through Chattogram Port rose by 14.5% during the July-March period compared with the previous fiscal year.

Measured by weight, imports increased by nearly 10 million tonnes.

However, most additional imports involved rice, pulses, edible oil, sugar and fertiliser, many of which carry little or no customs duty.

As a result, higher cargo clearance volumes did not translate into expected revenue growth.

Former joint general secretary of the Chattogram Customs C&F Agents Association Golam Rabbani Reagan said import growth has remained sluggish for the past one and a half years.

“At least seven to eight banks suspended LC opening because of severe liquidity and dollar shortages,” he said.

He added that geopolitical tensions and recent Iran-US tensions also affected business sentiment.

Business owners have also avoided importing high-duty products because domestic demand weakened, he said.

He added that demand for consumer products, vehicles and luxury electronics declined, contributing to the slump in high-tariff imports.

Revenue trends showed Chattogram Custom House failed to meet monthly targets throughout the July-April period.

September came closest to achieving the target, with revenue collection reaching around Tk7,000 crore.

December recorded the largest gap, with revenue collection falling Tk4,500 crore short of the target.

Despite missing overall targets, Chattogram Customs maintained nearly 8% growth in revenue collection compared with the same period of the previous fiscal year.

Revenue collection increased by Tk4,785 crore year-on-year.

Chattogram Port handles nearly 93% of Bangladesh’s import-export trade and around 98% of the country’s container cargo.