Bangladesh's NBR enforces e-seal mandate for Chittagong Port transit

This move aims to enhance security and ensure the accuracy of shipments to their destinations by conducting e-tracking through GPS systems even if the previous RFID system for tracking imported goods remains valid.

The decision to replace the Electronic Seal and Lock Service Rule-2018 with the ‘Electronic Seal and Lock Rules 2024’ reportedly stems from controversies surrounding contractor appointments and other related issues.

Effective from April 4, 2024, the new regulation aims to streamline processes and increase transparency.

While only transit and transshipment goods are subject to mandatory e-tracking under the Bangladesh-India agreement, the NBR intends to expand this requirement to include additional import goods, such as fabric under bonded warehouse facilities, to mitigate revenue loss risks.

To ensure fairness and transparency in contractor selection, appointments will follow Public Procurement Rules (PPR), favouring the lowest bidder who meets compliance criteria.

However, recognising the operational challenges faced by importers, electronic seals and locks are not mandatory for all.

The forthcoming Standard Operating Procedures (SOP) will define vehicle routes equipped with e-seals or locks even if any deviation from these routes, detected through tracking, will incur penalties.

Charges for e-tracking will be levied based on contractor bids and quotations.

Despite the potential benefits of electronic seals and locks in minimising transit risks, opposition from trade bodies and major business organisations, including FBCCI, MCCI, CCCI, BGMEA, PUF, and CCCFAA, persists due to concerns over increased business costs and operational disruptions.

Under the new rules, exporters and importers face fees for container transportation to and from Chittagong Port, further raising concerns about increased expenses and port congestion. 

Fibre2Fashion News Desk (DR)