Customs Software Glitch Slows Down Cargo Clearance in Bangladesh
Cargo entering and exiting Bangladesh’s Chattogram Port has been severely disrupted this week after a software update caused the port’s customs clearance systems to malfunction.
The incident came when the country’s National Board of Revenue, the parent organization of the Chattogram Customs House, upgraded its automated customs data system on Sept. 20. The system is the customs house’s online software through which it gives approval for all kinds of export-import related documents daily.
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The update resulted in a glitch that has since prevented customs officials and clearing and forwarding agents from accessing the system properly and submitting import and export data and bills of lading (BOLs). Due to the glitch, import clearance and export shipment processes have been delayed.
These entries contain information on the cargo such as product name, type, exporting country, company details, product price and applicable duties. Due to the software issues, much of this data is being scrambled, resulting in inaccurate information regarding the number of containers, the products they hold and their weight.
No containers can exit or enter Bangladesh without submitting proper information into the system.
Quazi Mahmud Imam, secretary general of the Chattogram C&F Agent Association, told Bangladesh publication The Business Standard that since last Sunday, software issues have slowed operations to the point that tasks that typically take one day are now taking two.
Submissions of daily BOLs into the system since Sunday have been almost halved, according to a report from supply chain publication The Loadstar, dropping by 800 against a daily average of 2,000. At least 5,000 import bills have backlogged with no sign of when the glitch will be remedied.
“We had 20 consignments due for clearance since last Sunday, but as of Wednesday, only 12 have been processed,” Sarwar Alam Khan, owner of the clearance and forwarding agent Warisha Enterprise, told The Business Standard. “Eight consignments remain stuck, and the delays are holding up shipments at the Chattogram Port.”
As of Thursday morning, six vessels were at the outer anchorage, with 11 loading and unloading boxes at the port jetties.
The ASYCUDA (Automated System for Customs Data) system was introduced at Chattogram Port, also known as Chittagong Port, in 2023 to enable customs authorities to track and manage the flow of goods while reducing paperwork and manual intervention. The automated system is designed to speed up cargo clearance, reduce processing times and enhance port operations.
Software issues have hampered ports in the past, with the Port of Charleston in the U.S. having to briefly close for a day and a half earlier this year after one of its servers went down. A global IT outage in July that stemmed from a glitch in Microsoft’s cloud computing services forced thousands of planes to ground, disrupting the worldwide flow of air cargo for the day.
Syed Mohammad Arif, chair of the Bangladesh Shipping Agents’ Association, plans to meet with customs commissioner next week seeking an immediate solution if the glitch isn’t fixed by then. Arif has requested the port create a backup server so work can be continued in case of emergency.
Such slowdowns can be dangerous for the apparel industry given the country’s positioning as the second-largest garment exporter worldwide. In 2023, Bangladesh exported $47.4 billion in total apparel, representing 85.3 percent of the $55.6 billion in total goods shipped out of the market, according to the country’s Export Promotion Bureau (EPB).
Chattogram Port has seen plenty of calamity in recent months, namely due to the ongoing student protests throughout Bangladesh in the summer, which resulted in the resignation of Prime Minister Sheikh Hasina and forced the port shutter at one point for nearly six days in July.
The length of time it took for workers at the port to load and unload containers as space constraints piled up in its yard caused container vessels to wait at berth for an average of seven to 10 days. The Chattogram Port Authority and Chattogram Customs House had to operate 24/7, including weekends and public holidays, to reduce the container congestion.
And in late August, torrential downpours pummeled the country for days on end, resulting in the slowed movement of cargo both by rail and by road in and out of Chattogram Port. The flooding impacted 3 million people in the country.
Cargo exiting Bangladesh also saw a speed bump at Dhaka Airport on Tuesday.
About 250 metric tons of air freight ended up stuck at the airport after all four of the hub’s explosive-detection scanners failed, forcing flights to leave without export cargo, which has skyrocketed in price over the past year.
Mainly Europe and U.K.-bound cargo was affected, as they require the scanners to operate.
Two of the airport’s scanners are near-permanently out of action. Another was repaired alongside efforts to fix the fourth, after “excessive pressure” caused faults.
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