Benapole customs falls Tk115cr short of revenue target in H1

Revenue collection at Benapole Custom House fell short by Tk115.23 crore in the first six months of the 2024-25 fiscal year, as imports from India through the Benapole Land Port declined. 

Traders attributed the drop in imports to the dollar crisis, the global slowdown, and various trade barriers.

The customs house had set a target to collect revenue for the July-December period was Tk3,337.4 crore, but the actual collection stood at Tk3,022.17 crore. 

But, revenue collection increased during the year's last three months (October-December). The target for this period was Tk1,794.1 crore, whereas Tk1,918.29 crore was collected.

There are 24 land ports in the country, of which 16 engage in trade with India. Among them, the highest volume of trade occurs through the Benapole-Petrapole route.

Benapole Port imports raw materials, ready-made garments, baby food, fish, and chemicals, while major exports include jute, jute products, garments, chemicals, Bashundhara tissues, melamine, and fish.

Abu Taher, vice-president of the Benapole Clearing and Forwarding Agents Association, said, "Annually, goods worth Tk50,000 crore are imported from India, while exports stand at around Tk8,000 crore. Due to the convenient communication system, most importers prefer Benapole port." 

He added, "Traders often face harassment due to slow clearance procedures. If trade facilitation measures are ensured, both imports and revenue collection will increase."

Since 2019, amid the COVID-19 pandemic and subsequent global economic downturn, the rising dollar exchange rate has contributed to the decline in imports. 

Tanvirul Islam Sohan, secretary of the Jashore Chamber of Commerce and Industry, said, "Due to the dollar crisis and other adverse conditions, the country has been experiencing a business slowdown for the last few years. Lower imports naturally lead to lower revenue collection. Also, the port lacks essential equipment, which hampers the speed of cargo clearance."

Revenue target and collection 

According to Benapole Customs House, the revenue collection target for July in the current fiscal year was Tk413.99 crore, while the actual collection stood at Tk413.22 crore. In August, the target was Tk520.99 crore, but only Tk401.55 crore was collected. 

For September, the target was Tk608.32 crore, with Tk489.11 crore collected. The target for October was Tk598.1 crore, while Tk524.63 crore was achieved. 

In November, the target was Tk599 crore, and Tk614.71 crore was collected. Finally, the revenue target for December was Tk597 crore, whereas Tk778.95 crore was collected.

Speaking to TBS, Benapole Customs Commissioner Md Kamruzzaman said, "A decline in imports naturally results in lower revenue collection. But, in the last three months (October-December), our import and revenue collection rates have been positive. We are hopeful of achieving our revenue targets in the coming months."

Govt takes initiatives to promote trade 

Benapole port authorities say after the interim government assumed office, several initiatives were undertaken to promote trade expansion.

In the last two months, a cargo vehicle terminal has been inaugurated at the Benapole port's zero point, and scanning machines have been installed.

Benapole Port Director Md Mamun Kabir Terafder told The Business Standard, "Several development projects have already been completed at the port, including the installation of CCTV cameras across the facility. Infrastructure development work is ongoing, and once completed, it is expected to contribute significantly to trade growth."