Luxury cars at the Chittagong port are not fetching fair prices at auction. Repeated auctions are failing to attract the expected response. The main reasons cited for this are the expiry of the cars’ lifespan, damage to parts, delays in obtaining clearance from the Ministry of Commerce, and the alleged manipulation by auction syndicates.
Luxurious cars like Land Cruisers, Mercedes-Benz, Range Rovers, BMWs, and Harriers – with market values often exceeding 10 crore Taka – are failing to sell at satisfactory prices at auction by the customs authorities. Due to being left at the port for extended periods, the cars’ parts are getting damaged, and sometimes even stolen. Additionally, delays in obtaining clearance from the Ministry of Commerce and alleged harassment from the BRTA (Bangladesh Road Transport Authority) are discouraging potential buyers.
To overcome this situation, the customs authorities have recently put up 44 new cars for auction, brought in by 24 former Members of Parliament (MPs). These include 26 Japanese-made Land Cruisers, 5 Toyota Harriers, 2 Toyota RAV4s, and 1 Toyota Esquire. Among these, 24 Land Cruisers are completely new, imported by the former MPs under duty-free privileges.
Mohammad Omar Faruk, Secretary of the Chittagong Port Authority, stated that the car auction process and price determination are controlled by the customs authorities. Bijan Kumar Talukdar, a revenue officer at Customs, mentioned that according to NBR (National Board of Revenue) guidelines, they have to call for auctions repeatedly if they don’t receive bids close to the reserved price.
The online auction for these vehicles began on January 27th, and the bids will be opened on February 17th. Customs officials have stated that the reserved price for the cars, including duties and taxes, has been set at 9.67 crore Taka. In the first auction, bidders offering 60% or more of the reserved price will be eligible to purchase the cars.
Mohammad Saidul Islam, Deputy Commissioner of Customs, explained that if imported goods are not cleared within 30 days of arrival at the Chittagong port yard, the port authority sends a list to the Customs auction branch. If the importer doesn’t take delivery even after a 15-day notice, Customs can put the goods up for auction within a total of 45 days. However, due to delays in conducting the auctions on time, the cars become damaged, parts are stolen, and there are delays in obtaining clearance from the Ministry of Commerce.
According to traders, if the NBR simplifies the auction process and takes effective steps to remove obstacles, luxury cars would not have to be sold as scrap, fair prices would be achieved, and government revenue would increase.
Previously, 34 luxury cars were sold for only 9.28 crore Taka. In 2022, the average selling price of each car was approximately 32 lakh Taka.