Bangladesh court stays for 30 days 41% increased tariff imposed by CPA

The bench of Justice Kazi Zinat Hoque and Justice Aynun Nahar Siddiqua passed the order after a preliminary hearing on a writ petition filed by the Bangladesh Maritime Law Society (BMLS).

The court directed the shipping secretary, the CPA chairman and other concerned officials to implement the order and submit their replies within a month.

CPA enforced the increased tariff across various service sectors from October 14 midnight—the first tariff hike since 1986. Port users had been demanding suspension of the new tariff since it was announced.

BMLS president Mohiuddin Abdul Kadir had earlier served a legal notice to the secretaries of three ministries and the CPA chairman seeking suspension of the increased tariff.

The notice stated that the average charge per 20-foot container had been raised from Tk11,849 to Tk16,243, increasing costs by Tk5,720 for import containers and Tk3,045 for export containers. Moreover, the per-unit charge for loading and unloading containers from ships was hiked from $43.40 to $68.

BMLS argued that since the tariff was fixed in US dollars, any depreciation of the taka against the dollar would further escalate expenses. The resulting cost surge would affect import-export trade, essential commodity supply, industrial raw materials, production costs and inflation.

The organisation also alleged that none of the consulting firms involved in determining the tariff had expertise in port management or the maritime sector. The process of hiring consultants lacked transparency and procedural legality, the organisation was cited as claiming by domestic media reports.

The notice pointed out that under the Port Act 1908, new tariffs cannot take effect within 60 days of being published in the gazette. However, the new tariff announced on September 14 was enforced from October 14, and hence, was unlawful and invalid.

The society and other stakeholders demanded that the implementation of the tariff be suspended and a joint consultation committee be formed with stakeholders to review the decision.

ALCHEMPro News Desk (DS)