Despite strong protest from importers and exporters to the substantial rise, the Chittagong Port Authority (CPA) began implementing the higher duties after midnight today.
All ships bringing goods and containers to the port have been billed at the new rate for various services from 12:01 am. The rates are, on an average, 41% higher than those of the prior tariffs. Companies said that this would make them less competitive.
According to CPA Secretary Md. Omar Faruk, the updated tariff went into effect on 30th September in accordance to a CPA circular.
Before receiving clearance for arriving vessels, the circular directed all enlisted shipping agents to deposit enough money at banks using the updated rates.
The CPA has significantly revised the fees, charges, leases and tolls for several of its services, including container and vessel handling, for the first time in 40 years.
Businesses opposed any significant increase for several months before the new tariffs went into force. It started on 24th July of this year after the revised prices were approved by the Finance Minister.
The government first postponed enforcing the charges and the Shipping Ministry met with port users to discuss the matter. Businesses had no positive news from the discussions because the government last month went ahead and imposed the higher tariffs.
The CPA stated on 30th September that the new tariff would take effect on 15th October.
Loading and unloading export and import containers, the most common operations, now cost US $ 68 for a 20-foot full container load (FCL) container, up from US $ 43.40. This represents a 56.68% increase.
Business leaders in Chattogram expressed their alarm over the increase and encouraged Chief Adviser Prof. Muhammad Yunus to re-evaluate the new tariffs yesterday.
The government and the CPA received a legal notice from the Bangladesh Maritime Law Society asking for the price hike order to be revoked.
