Chittagong port: Fourth transit shipment unloaded

Nearly two months after arriving at Chattogram Port, Bhutan’s transit shipment has finally been unloaded. On Wednesday night, the shipment was unloaded by Bangladesh’s representative appointed for handling Bhutanese cargo. The shipment is now en route by road toward the Burimari land port. From there, it will enter Bhutan using Indian territory.

The shipment is being transported on a trial basis under the Agreement on the Movement of Traffic-in-Transit and its protocol, signed between Bangladesh and Bhutan. The agreement and protocol were signed on 22 March 2023.

Since Bhutan is a landlocked country and has no seaport, this initiative aims to transport goods through Bangladesh. Earlier, three trial Indian transit shipments were unloaded through Chattogram Port. In total, four transit shipments have now been unloaded through Chattogram Port since 2020.

The Bhutanese shipment arrived from Thailand. The 6,530-kilogramme shipment contains shampoo, dried palm fruit, iced tea, chocolate, and juice. The exporter of the shipment is Thailand’s Abit Trading Company. It was imported by Bhutan’s Abit Trading.

Although the shipment reached Chattogram Port two months ago, it could not be unloaded due to pending approvals from various government agencies. After receiving the necessary clearances, the shipment was unloaded on Wednesday.

Shahidul Alam Khan, managing director of NM Trading Corporation-Bangladesh’s representative appointed for unloading Bhutanese cargo, said that on Wednesday evening, one container carrying the shipment departed by road on a prime mover trailer toward the Burimari land port. From Burimari, the container will be transported to Bhutan through Indian territory.

If Bhutan is satisfied with this trial transit operation through Bangladesh, regular transit shipments may begin. However, that depends on Bhutan’s interest.

Officials involved in the transit shipment unloading process said fees and charges were collected by three government agencies from Bhutan’s single-container shipment.

Customs received Tk 68,874 in various duties and charges (including VAT). The Roads and Highways Department received Tk 16,792. In total, Tk 85,666 was deposited into the government treasury.

Additionally, the Chattogram Port Authority collected Tk 16,047 in port charges. Altogether, the three government agencies earned Tk 101,713 from this transit shipment.

A transit shipment container may be stored at the port rent-free for 21 days. Beyond that, storage rent applies. However, although Bhutan’s trial shipment was stored for more than two months, the additional storage fees were waived.

Apart from the government, the private sector also earned revenue from this transit shipment. This includes transport charges and service fees collected by companies involved in unloading and handling. However, the amount earned by the private sector remains unknown.

But since the container remained at the port for an extended period, detention fees must be paid to the shipping line. According to shipment documents, no detention fee would have applied had the container been unloaded within 21 days. However, since that period was exceeded, a fee of USD 3,780 must now be paid.

Sahedul Islam, managing director of TI2 Shipping Line, shipping agent for the Bhutanese shipment, said that typically, if goods are unloaded within 14 days, no detention fee is charged. For transit shipments, this fee is imposed after 21 days.

Before Bhutan, three Indian transit shipments were transported using Chattogram Port. The first Indian transit shipment was handled in July 2020. From that four-container shipment, customs and port authorities earned Tk 58,900 in revenue.

Later, in 2022, two more trial shipments from India were unloaded. Additionally, two shipments were transported through Mongla Port. After transporting India’s five trial transit shipments, the National Board of Revenue issued a permanent order in April 2023 to begin regular transit operations. However, regular transit shipments have not yet started following the trial phase.

Revenue generated from transit shipments depends on the volume of goods and the number of containers. The fees collected by customs, the Roads and Highways Department, and the port are determined mainly by shipment size and cargo quantity.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said that if Bhutan regularly uses this route, Bhutanese importers and consumers will benefit. Bangladesh’s public and private sectors will also earn revenue. Earlier, a regular transit route opened with India, but it has not been utilised. Now, it must be ensured that no obstacles arise in transporting Bhutan’s transit cargo.