10,459 Chattogram customs cases leave Tk2,661cr revenue tied up

In FY2025-26 alone, 656 new cases involving Tk1,094.87 crore were filed, adding to a long-standing litigation backlog over imported goods.

Highlights:

• 656 new cases filed in just FY26
• High Court holds 9,283 customs cases
• 20 high-value cases involve Tk135cr
• Litigation keeps disputed revenue from the treasury
• Limited resources hamper case management
• Disputes leave imported goods stranded

The Chattogram Custom House has 10,459 cases pending before courts and quasi-judicial forums, leaving over Tk 2,661 crore in disputed revenue unresolved. 

This puts heavy pressure on the customs authority as it balances pursuing thousands of legal cases with collecting revenue from new imports.

In FY2025-26 alone, 656 new cases involving Tk1,094.87 crore were filed, adding to a long-standing litigation backlog over imported goods.

According to Chattogram customs data up to June 2026, 9,283 cases involving Tk2,258.36 crore are pending before the High Court Division.

Another 161 cases involving Tk109.64 crore are pending with the Appellate Division of the Supreme Court.

The Customs, Excise and VAT Appellate Tribunal has 863 cases involving Tk281.47 crore, while 148 cases involving Tk11.84 crore are pending before the Commissioner (Appeal).

Three additional cases are pending under certificate proceedings and alternative dispute resolution mechanisms.

The prolonged litigation means the government cannot treat the disputed amounts as realised revenue until the cases are resolved. Customs also has to spend administrative and legal resources defending its claims.

20 cases alone involve Tk135cr
A separate list maintained by the customs house’s legal branch shows the financial stakes involved in some high-value disputes.

Twenty cases on the list involve a combined Tk135.03 crore in disputed revenue. One is pending before the Appellate Division and the remaining 19 before the High Court.

The largest case involves Akij Shipping Lines Ltd, with Tk18.25 crore in disputed revenue.

Three cases involving Orascom Telecom account for Tk17.08 crore, Tk10.12 crore and Tk9.77 crore, respectively, totalling nearly Tk37 crore.

Grameenphone Ltd has Tk9.50 crore involved in one case.

Meanwhile, four cases involving Axiata (Bangladesh) Ltd account for Tk24.46 crore, while another four cases involving its affiliate Airtel Bangladesh Ltd involve Tk13.55 crore.

Other high-value cases include CP Bangladesh Company Ltd, with Tk8.39 crore, and Sufi Apparels Ltd, with Tk7.17 crore.

Santana Enterprise has Tk4.48 crore involved in one case, while Brothers Apparels Ltd has Tk4.15 crore.

Cases involving Partex Sugar Mills Ltd, Abul Khair Tobacco and Max Trading account for Tk2.90 crore, Tk2.65 crore and Tk2.57 crore, respectively.

How customs disputes reach courts
According to customs officials and agents, disputes between customs and importers commonly arise over the classification, valuation and assessment of imported goods. Differences can also emerge over the interpretation and application of customs laws and regulations.

An importer who disagrees with a customs assessment or additional revenue demand can pursue the prescribed appeal process. In some cases, disputes eventually reach the High Court and Appellate Division.

The problem becomes more serious when cases remain unresolved for years, passing through writ petitions, appeals and other legal procedures.

Until a final legal decision is reached, the disputed amount cannot be treated as fully realised government revenue, creating uncertainty over how much of the claimed revenue will ultimately reach the treasury.

Double pressure on customs
The litigation backlog puts Chattogram customs under pressure on two fronts. Officials have to collect revenue from new imports while preparing documents, collecting evidence, coordinating with lawyers and responding to proceedings in thousands of old cases.

A customs official, requesting anonymity, said the customs house has only Tk2 lakh allocated for case-related activities and four officials coordinating court cases through the Attorney General’s Office.

The limited resources make it difficult to manage such a large number of cases efficiently, the official said.

Once a case reaches court, customs also has limited control over how quickly it is disposed of. The authority can present documents and evidence supporting its assessment, but the final decision rests with the judiciary.

Customs: Case settlement a priority
Sharif Al Amin, assistant commissioner and spokesperson of Chattogram Custom House, said settling the cases and recovering outstanding revenue are among the customs house’s priorities.

“Cases are pending at several forums, from the Commissioner (Appeal) to the Supreme Court. We have dedicated coordinating officers and a legal branch working to expedite their disposal,” he told TBS.

“We are in regular contact with the Attorney General’s Office. But these are judicial proceedings that have to follow statutory and systematic procedures to ensure that neither party is harmed and justice is ensured. This is why the process sometimes takes time,” he said.

Sharif said customs has a large number of bank guarantees pending in connection with disputed cases.

“Once the cases are disposed of, we can encash them where applicable. This will significantly increase our revenue and contribute to the government exchequer,” he said.

He said customs must balance importers’ interests with the state’s need to protect revenue when deciding disputes.

“There are many issues involved in these cases. Decisions are made based on those issues so that importers are not harmed while the state is not deprived of revenue,” he said.

Disputes can leave goods stranded
The litigation backlog can also have consequences beyond disputed revenue. Imported goods may remain stuck at the port because of customs objections or legal disputes, exposing importers to storage, demurrage and damage-related costs.

“These cases should certainly be resolved quickly. When goods remain stuck and get damaged, it causes considerable suffering for importers. Ultimately, the cost falls on the end user,” Sharif said.

However, he said customs must follow relevant laws and regulations when disputes arise to protect government revenue. Once courts settle a particular legal issue, similar disputes involving future consignments could potentially be resolved more quickly, he added.

Customs agents seek dedicated unit
Kazi Mahmud Imam, former general secretary of the Chattogram Customs Agent Association, said the alternative dispute resolution mechanism was introduced partly to prevent disputes from turning into lengthy court cases.

But the mechanism has not become sufficiently effective.

“The ADR system was introduced for resolving these disputes, but it has not become very dynamic. From what I see, it has almost become inactive,” Imam told TBS.

He said some businesses obtain release of goods by providing bank guarantees but then fail to take further steps to resolve the underlying disputes.

“If the authorities verify these cases and take quick action, the government will receive the revenue that is currently stuck. At the same time, businesses will be relieved of bank guarantees in cases where the disputed claim was not justified,” he said.

Imam proposed forming a dedicated unit within Chattogram customs, even temporarily, to review and dispose of pending files.

“There are thousands of files lying here. A separate unit could be formed, even temporarily, using existing officials to scrutinise and settle these files. If the customs authority takes up the challenge in this way, both the country and businesses will benefit,” he said.