Dhaka,  Friday 17 Oct 2025,
02:51:29 AM

Export-Oriented Apparel Sector Faces ‘Dire Warning’ Over Increased Port Tariffs

Staff Reporter ।। Daily Generation Times
16-09-2025 04:26:14 PM
Export-Oriented Apparel Sector Faces ‘Dire Warning’ Over Increased Port Tariffs

The Chattogram Port Authority has issued a gazette notification increasing tariffs on all types of port services, with an average hike of 41 percent. Among these, container-handling charges have been raised by 37 percent. Apparel industry leaders have described the decision as a “dire warning” for the country’s export-oriented garment sector.Garment exporters have blamed the port authority for the sudden tariff hike, alleging that their recommendations were ignored during earlier consultations.

On Sunday (September 14), the gazette signed by Rear Admiral S M Moniruzzaman, Chairman of Chattogram Port, was published. According to the announcement, the new tariff structure took effect on Monday (September 15). Since container transport makes up the bulk of port operations, most of the hike has been imposed there.

A review of the gazette shows that charges for a loaded 20-foot equivalent unit (TEU) container have risen to Tk 16,243 on average, up from Tk 11,849 previously. This means users now have to pay around Tk 4,395 more per container — a 37 percent increase.

Earlier, on August 25, the Ministry of Shipping convened a meeting with all port stakeholders, chaired by Brig Gen (retd.) Sakhawat Hossain, adviser to the ministry. Exporters at the meeting had suggested that any increase should not exceed 10 percent. However, the published gazette reflects none of those recommendations.

Speaking on the issue, BGMEA Chattogram Director and Managing Director of HKC Apparels Ltd., Rakibul Alam Chowdhury, said:

“We no longer understand who is actually running these authorities. Tariffs have been raised at a time when exports are not increasing at the same pace. Our main export is apparel, but competition is intensifying globally. Has the port authority considered this? At a time when we are struggling for orders, raising tariffs will only worsen the situation.”

He further warned that the negative impact of the tariff hike could begin to hurt the industry by January next year.

“From January, our sector will face new challenges. With the US imposing tariffs on India, Indian exporters are now shifting their focus to Europe — a market where Bangladesh has significant business. If buyers turn to India, our industry will be at greater risk. We have already written to the port authority requesting reconsideration. The economy cannot remain dynamic if the garment sector suffers — and if we suffer, the entire economy suffers,” he added.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has also demanded a review. Its president, Mohammad Hatem, said:

“Chattogram Port is not a commercial company; it is a service-oriented organization. The port has never incurred losses; it has consistently made profits. There is no justification for raising tariffs by 41 percent on average at this time.”

Hatem also criticized the lack of justification from port officials during the August 25 meeting:

“We told the adviser that the proposed hike was unreasonable. Now, this decision will hurt the garment sector most, because apparel is the largest stakeholder in port services. Our production costs are already rising, and this tariff hike will reduce our competitiveness in the global market.”

Both BGMEA and BKMEA have urged the government to reconsider the new tariff structure immediately to prevent further strain on Bangladesh’s export-dependent economy.