Chattogram Port, Bangladesh’s primary maritime gateway, continues to face significant cargo clearance delays that raise import costs and contribute to inflationary pressures, according to recent data from Chattogram Customs. The average clearance time has reached 11 days and six hours, imposing additional fees and operational challenges on importers and businesses.

Following a four-day free period, importers are charged $6.90 per twenty-foot equivalent unit (TEU) daily for the subsequent seven days, amounting to approximately $48.30 (Tk6,965) in demurrage fees over the current average clearance period. With value-added tax included, these costs rise further. Inefficiencies at the port have been estimated to cost the economy about Tk30,000 crore annually, a figure highlighted in documentation related to the recent agreement with DP World for the New Mooring Container Terminal.

Experts note that these delays exacerbate the cost of doing business by tying up working capital and delaying access to critical machinery and raw materials. Importer Yasir Arafat emphasized the financial burden, noting that delays increase not only port charges but also interest costs on borrowed funds. Finance professor Mohiuddin Chowdhury pointed out that importers often pass these added expenses on to consumers, fueling inflation.

An internal Time Release Study conducted by Chattogram Customs attributes approximately 75% of the clearance time to importers and customs brokers, with the remaining time split among the Chattogram Port Authority (14%), Customs House administration (8%), other government agencies (2%), and shipping agents (1%). Pre-filing delays—stemming from commercial documentation issues, communication lags between importers and customs agents, and challenges obtaining Letters of Indemnity—consume a significant portion of the clearance period. The remaining 5.8 days involve post-arrival processing and cargo release.

The ports authority handles roughly 3.5 million TEUs annually and processes an average of 2,205 Import Bills of Entry daily, collecting revenue exceeding Tk223 crore each day. Chattogram Customs’ collections have risen substantially, from Tk6,415 crore in fiscal year 1999 to Tk84,171 crore in FY26, reflecting the port’s critical role in Bangladesh’s trade, which accounts for approximately 85% of the country’s imports.

While the customs study indicates that delays are not solely due to the Customs assessment process, a substantial part of clearance occurs before formal customs declarations are submitted. For instance, machinery imports require about 13.3 days on average to clear, with 7.5 days spent between the submission of the Import General Manifest (IGM) and the Bill of Entry filing—representing over half of the total clearance time. Customs agents contest the study’s timing methodology, stating the clock should begin when cargo lands rather than from the earlier IGM submission. Md Showkat Ali, general secretary of the Chattogram Customs Agents Association, said that starting the clock at IGM submission fails to reflect the actual clearance process, especially since Bills of Entry may be completed while vessels are still at sea.

Chattogram Customs Commissioner Mahbubur Rahman acknowledged progress in customs assessments, reporting that 77% of consignments are assessed within one day and up to 90% within three days of the Bill of Entry submission. He indicated that the bulk of the clearance time—over 90%—is accounted for by importers and their agents before formal customs actions occur. Customs has proposed the introduction of a five-day deadline for submitting import declarations as stipulated in Section 84 of the Customs Act, 2023. Although the law currently requires declarations within five days of cargo landing, enforcement mechanisms have yet to be finalized.

Physical inspections of cargo do not appear to be the primary bottleneck. Only 8.99% of shipments are routed through the red channel for physical examination, which takes nearly 20 days on average, while the majority of consignments processed via documentary assessment still experience delays nearing 11 days. Risk-based assessments have limited physical inspections to around 5–6% of shipments, with the remainder cleared after documentary review.

Experts suggest that pre-arrival processing offers the greatest potential for reducing clearance times. Previous studies indicate that shifting administrative work to before vessel arrival could cut clearance time for machinery imports from over 13 days to under four. Recommendations include mandating pre-arrival processing under the Customs Act, expanding the Authorised Economic Operator program, deploying automated alert systems post-manifest registration, and streamlining auction and destruction procedures.

Chittagong Chamber of Commerce and Industry President Amirul Haque called for a collaborative approach among Customs, port authorities, and the National Board of Revenue to identify root causes of delays and implement effective solutions. Without such measures, the economic costs of extended cargo clearance could continue to impede Bangladesh’s ambitions to grow its manufacturing sector and expand its role in global trade.