NBR concerned as Dhaka airport’s new cargo terminal skips physical examination facilities

Customs officials have expressed concerns about the lack of physical examination facilities for goods at the Hazrat Shahjalal International Airport’s new cargo terminal, which is currently under construction as part of the airport’s expansion project.

Therefore, it will not be possible to physically examine many commercially valuable and sensitive imported goods, they say. Additionally, if customs authorities need to intervene in a consignment based on confidential information, they will also be unable to conduct a physical examination, say the officials.

Customs officials believe that the lack of physical examination facilities at the third terminal poses a “significant risk” to the accurate collection of import taxes.

However, no official statement on the matter has been received from the Civil Aviation Authority of Bangladesh (CAAB) or the project implementing authorities.

CAAB Chairman Air Vice Marshal M Mafidur Rahman did not take phone calls from TBS. He did not reply to WhatsApp messages either.

Project Director (3rd Terminal) AKM Maksudul Islam refused to make any comment regarding the matter.

According to officials from the National Board of Revenue (NBR), at the beginning of this year, Custom House Dhaka formed a committee to review the infrastructure and logistics of the under-construction import cargo terminal building under the Hazrat Shahjalal International Airport Expansion Project.

The committee submitted a report on the matter on 25 March, highlighting at least six issues related to the operationalisation of the under-construction import cargo terminal building. These include inadequate space for goods storage compared to imports, lack of yard for physical examination, absence of an automated storage and retrieval system, and deficiencies in manpower and other logistical supports.

A senior official at the Dhaka customs house on condition of anonymity told TBS, “The challenges identified in our review have already been communicated to the NBR and the CAAB.”

Although all customs houses in the country currently have arrangements for goods scanning, there is still a provision for physical examination, he said. “The design of the third terminal includes arrangements for goods scanning. However, for imports, commercial goods and suspicious items require a physical examination to control misdeclaration.”

Pointing out the inadequacy of arrangements to store imported consignments for extended periods, the official said, “The design of this terminal perhaps did not consider Bangladesh’s realities.”

According to a Time Release Study report conducted by the NBR that was published in September 2022, Dhaka customs house’s average release time of imported goods was about 8 days. 

The recent customs report stated that the absence of physical examination arrangements poses significant risks to proper revenue collection.

An official of the third terminal project on condition of anonymity told TBS, “It has been designed by a Japanese firm and is being implemented by Japanese and Korean companies. Therefore, they will be able to provide a good explanation on this matter.”