TRW & Co · Customs, VAT & Tax
Customs Lawyer in Chittagong: Chattogram Custom House Disputes
A customs lawyer in Chittagong protects importers and exporters when the Chattogram Custom House disputes a value or HS code, holds a consignment, alleges misdeclaration or demands duty after release. The Customs Act 2023 changed deadlines, appeal routes and penalties, so knowing how adjudication, ADR and appeals now work can save both goods and money.
Key pointUnder the Customs Act 2023, appeals that the Commissioner (Appeal) or the Appellate Tribunal fail to decide within the statutory period are deemed allowed, but orders deeming uncleared goods handed over to the government are outside the ordinary appeal route, so early action on stuck cargo matters most.
At a glance
New Customs Act 2023
Passed on 31 October 2023 and in force from 6 June 2024, it replaced the Customs Act 1969 with a 269-section Bangla statute.
Seven-day assessment notice
If declared goods are not assessed within 7 working days, the importer can serve notice requiring assessment or a show cause notice.
Three-month first appeal
Appeals to the Commissioner of Customs (Appeal) must be filed within 3 months, with a further 2 months only for sufficient cause.
Ten per cent pre-deposit
Appeals on duty demands or penalties generally need a 10 per cent deposit, which the appellate authority may waive for undue hardship.
Civil suits barred
Section 252 bars civil suits against customs assessment decisions, so challenges go through adjudication, appeal, ADR or a writ.
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What Custom House disputes look like in Chattogram
A customs lawyer in Chittagong helps importers, exporters and their agents when a consignment, a duty demand or a penalty at the Chattogram Custom House turns into a legal problem. Because most of Bangladesh's seaborne imports pass through Chattogram port, the Custom House here sees more valuation disputes, misdeclaration cases, seizures and appeals than any other customs office in the country.
Disputes usually begin with a decision at the assessment stage: a higher value than the invoice, a different HS code, a demand for a laboratory test, a finding of misdeclaration, or a hold pending documents. They continue after release, when post-clearance audit or investigation produces a demand for short-levied duty, interest and penalty. And they can end in confiscation, fines in lieu of confiscation and, in serious cases, criminal proceedings.
This page explains the legal framework under the Customs Act 2023, how adjudication and appeals work, and how to protect your goods and your position. For narrower issues see our pages on customs valuation and HS classification, seized goods and adjudication and clearance problems.
The legal framework: the Customs Act 2023
Parliament passed the Customs Act 2023 on 31 October 2023, replacing the Customs Act 1969. It took effect on 6 June 2024. The new Act is written in Bangla, with 269 sections, and brings in World Customs Organization tools such as Authorised Economic Operators, risk management, post-clearance audit and advance rulings. The NBR published an authentic English text by gazette notification in November 2025, reflecting amendments by the Finance Act 2024 and Finance Ordinance 2025.
Every customs lawyer in Chittagong now works from the 2023 Act, but older disputes can still raise 1969 Act questions under its savings provisions. Annual finance laws amend customs provisions each year, so the text in force on the relevant date must always be checked.
Key provisions for importers and exporters
- Assessment and release: if declared goods are not assessed within 7 working days (other than goods detained, seized or under adjudication), the importer may serve notice on the Commissioner, who must then assess or issue a show cause notice (section 95).
- Provisional assessment: where final assessment is not possible, goods may be released provisionally against payment or guarantee, with final assessment due within 120 working days (section 93).
- Payment and interest: duties are payable within 10 days of notification unless another date is given, and late payment attracts simple interest of 1 per cent per month, capped at 24 months (section 32).
- Refunds: refund claims can be made within three years, compared with three months under the old law (section 34).
- Limitation for demands: except in fraud and false statement cases, demands and penalty notices are generally time-barred after three years (section 204).
- Advance rulings: the NBR may issue binding customs rulings and advance rulings on classification and origin (section 258).
- Civil suits barred: no civil suit lies against customs decisions on levy, assessment or realisation of duties (section 252), so challenges must follow the statutory route or, exceptionally, a writ.
Who decides in Chattogram
Assessment, examination and first-instance adjudication take place at the Chattogram Custom House. Bonded warehouse matters are handled by the Customs Bond Commissionerate in Chattogram. Policy, rulings and many exemptions come from the National Board of Revenue. Appeals go to the Commissioner of Customs (Appeal) and the Customs, Excise and VAT Appellate Tribunal, with a further appeal to the High Court Division.
The disputes a customs lawyer in Chittagong sees most
Valuation
Valuation disputes arise when customs does not accept the invoice price and assesses on a higher value, often by reference to other imports or internal databases. The importer's best answer is evidence that the declared price was the real price actually paid, with a credible commercial explanation for anything unusual. Our valuation team prepares that evidence and, where suitable, takes the dispute into ADR.
HS classification
Classification disputes matter because duty rates, supplementary duty and import restrictions all follow the HS code. They often involve machinery parts, chemicals, food ingredients and mixed consignments. Technical literature, laboratory results and the General Interpretative Rules decide most cases. Because classification disputes are excluded from customs ADR, they go through adjudication and appeal, and an advance ruling is the best way to avoid repeat disputes.
Misdeclaration, seizure and confiscation
When examination finds goods that differ from the declaration in description, quantity or code, customs may seize them, issue a show cause notice proposing confiscation and fines, and offer release on payment of a fine in lieu of confiscation under section 205. Serious cases can lead to criminal proceedings and money laundering investigation. A customs lawyer in Chittagong should be involved before any statement is signed, because the first explanation on the record is hard to change later.
Exports, bonds and exemptions
Export-oriented factories, especially in the garment sector, import raw materials under bonded warehouse licences or exemptions, and disputes arise over utilisation declarations, wastage, audits and sales outside the bond. These matters often involve the Customs Bond Commissionerate as well as the Custom House. Our bonded warehouse lawyers advise on licence conditions and audit findings.
Adjudication, appeals and ADR
When customs proposes to confiscate goods or impose a penalty, it must first serve a show cause notice and give the owner a chance to reply and be heard (section 203). The officer who adjudicates depends on the value of the goods. Under the table in section 202, as substituted by the Finance Ordinance 2025, a Commissioner decides cases above Tk 60 lakh, with lower thresholds for Additional, Joint, Deputy and Assistant Commissioners and Revenue Officers.
| Route | Against | Time to file | Key conditions |
|---|---|---|---|
| Alternative Dispute Resolution | Valuation disputes pending at any level | Before adjudication or appeal is complete | Excludes fraud, smuggling, money laundering, classification and misdeclaration cases |
| Commissioner of Customs (Appeal) | Decisions of officers below Commissioner rank | 3 months, extendable by 2 months for sufficient cause | Pre-deposit of 10 per cent of duties demanded or fine, which may be waived for hardship; decision due within 2 years plus any 6-month extension |
| Customs, Excise and VAT Appellate Tribunal | Commissioner-level adjudication orders and Commissioner (Appeal) orders | 90 days, with up to 60 further days for sufficient cause | Filing fee depends on amount; Tribunal may stay the order; decision due within 2 years |
| High Court Division | Orders of the Appellate Tribunal | 90 days | Heard by a bench of at least two judges |
| Writ petition | Action without jurisdiction or in breach of natural justice | Without unreasonable delay | Usually only where the statutory route is ineffective |
The Act contains an unusual safeguard: if the Commissioner (Appeal) or the Tribunal fails to decide within the statutory period, the appeal is deemed allowed. A customs lawyer in Chittagong will track those deadlines from the date of filing. Orders under section 94 (goods deemed handed over to the government) and section 119 (warehousing periods) are excluded from the ordinary appeal route, which makes early action on stuck cargo all the more important.
The Bangladesh Customs appeal guidance still describes the 1969 Act, but the structure of appeals and ADR is similar. Our guide to customs appeals to the Commissioner (Appeals) and the Tribunal explains each stage in more detail.
Choosing a strategy: release first, argue later?
When a customs lawyer in Chittagong is instructed on a held consignment, the first commercial question is usually whether to pay and release the goods, then challenge the decision, or to hold the goods and fight. Storage charges at the port, demurrage and detention from the shipping line and production delays all push towards early release. A strong legal position and a large disputed sum push towards a challenge before payment.
The cheapest customs dispute is the one settled at assessment: a reasoned objection with evidence, made before the bill of entry is finalised, often avoids an appeal altogether.
Provisional release against a guarantee, payment under written protest, ADR for valuation disputes, and an appeal with a hardship application for waiver of the pre-deposit are all tools for balancing cash flow against the merits. Where the root problem is classification, an advance ruling for future shipments can stop the same dispute recurring.
Your C&F agent acts for you, and under section 245 of the Customs Act 2023 what the agent does is presumed to be done with your knowledge and consent. Review declarations before they are filed, keep the authority you give the agent precise, and involve a customs lawyer in Chittagong as soon as an examination finding or show cause notice suggests misdeclaration.
How a customs dispute is handled step by step
- Stabilise the consignment. Establish the goods' status in ASYCUDA and at the port, the reason for any hold, and the deadlines for deemed handover, storage and detention.
- Collect the commercial evidence. Gather the contract, invoice, LC, payment proof, packing list, catalogue and technical specifications, certificate of origin and any prior assessments of identical goods.
- Respond at assessment. File a reasoned written objection to the proposed value, HS code or finding, and request the basis for any alternative value used.
- Answer the show cause notice. Reply in full, within time, on facts and law, and ask for a personal hearing before the adjudicating officer.
- Decide on release. Consider provisional assessment against a guarantee, payment under protest or ADR for valuation disputes, depending on cash flow and risk.
- Appeal on time. File with the Commissioner (Appeal) or the Appellate Tribunal within the limit, with any pre-deposit or hardship application, and seek a stay where needed.
- Escalate on law. Appeal to the High Court Division from the Tribunal, or bring a writ where the authority acted without jurisdiction.
- Recover and prevent. Claim refunds within three years, correct internal declaration processes and consider an advance ruling or AEO status.
Documents and evidence to assemble
- Bill of entry or export declaration, assessment notice, examination report and any laboratory or test results.
- Commercial invoice, sales contract, purchase order, LC and bank payment documents.
- Bill of lading, packing list, insurance documents and certificate of origin.
- Product literature, technical data sheets and photographs supporting the HS code.
- Evidence of transaction value: price lists, correspondence on price, and prior clearances of identical or similar goods.
- Import registration, licences, permits and any exemption or bond documents.
- Show cause notice, reply, hearing record, adjudication order and proof of the date of receipt.
- Authority letter and correspondence with the C&F agent.
Risks and common mistakes
Missing the appeal deadline
Appeal periods run from receipt of the order, and extensions are only available for sufficient cause and within fixed outer limits. Businesses often lose time negotiating informally while the clock runs. Record the date each order is received, diarise the deadline for the Commissioner (Appeal) or Tribunal, and file a protective appeal if negotiations are still continuing. A late appeal may be refused outright, leaving only a writ, which is narrower and harder to win.
Letting goods slip into deemed handover
Under section 94, goods not released within the period set by the NBR, for example because documents are missing or duties are unpaid, can be deemed handed over to the government and then sold or destroyed after notice. Orders under section 94 are excluded from the ordinary appeal route. If a consignment is stuck, file missing documents, seek extension and, where necessary, take legal action before the deadline. Our guide to uncleared cargo auctions explains the process.
Arguing valuation without evidence of transaction value
Customs generally starts from the price actually paid or payable, but it can reject a declared value it doubts and move to alternative methods. Importers who cannot show the contract, payment trail and reasons for a low price will struggle. Prepare the evidence before shipment for sensitive goods: price negotiations, discounts explained in writing, and comparisons with genuine identical imports. Our guide to challenging a valuation or HS code sets out the approach.
Treating misdeclaration as a clerical error
A wrong description, quantity or HS code can be treated as an offence with heavy fines, confiscation and, where evasion is alleged, money laundering scrutiny. Disputes about misdeclaration and evasion are excluded from customs ADR. If an examination reveals a discrepancy, do not sign statements or accept findings without advice. A prompt, documented explanation, and where appropriate an application to amend the bill of entry, can make the difference between a correction and a prosecution.
Ignoring post-clearance audit
Clearance is not the end of the story. The Act allows audit of records after release and demands for short-levied duty within three years, or without limit where a false statement is involved. Keep import files complete for at least that period, reconcile declarations with accounts, and respond carefully to audit queries. Voluntary disclosure before an investigation starts can reduce exposure, so advice should be sought as soon as an error is discovered.
Foreign suppliers, investors and Bangladeshis abroad
Customs disputes at Chattogram often have a foreign dimension. A supplier in China, India or Europe may need to provide price evidence; a foreign parent may have to explain transfer pricing on intra-group imports; a buyer abroad may be waiting for an export consignment held for examination. EPZ and economic zone enterprises face their own customs rules on bonded status and sales to the domestic market.
TRW & Co's offices in Dhaka, Singapore, Dubai and London help foreign suppliers and investors understand the Chattogram position quickly, gather documents across jurisdictions and coordinate customs strategy with tax and foreign exchange advice. Foreign investors should also note that BIDA has been succeeded by the Invest Bangladesh Authority under the Invest Bangladesh Act 2026, which matters for incentives and duty exemptions linked to investment registration.
How TRW & Co helps as your customs lawyer in Chittagong
Assessment and release
We prepare objections to valuation and classification, negotiate provisional release and coordinate with the port to limit storage and detention costs.
Show cause and adjudication
We draft replies to show cause notices and represent importers and exporters at personal hearings before adjudicating officers at the Custom House.
Appeals and ADR
We file and argue appeals to the Commissioner (Appeal) and the Appellate Tribunal, apply for stays and pre-deposit waivers, and use ADR where it fits.
High Court Division
Our advocates handle customs appeals and writ petitions in the High Court Division, including urgent applications to stop sales or encashment of guarantees.
Seizures and investigations
We act in seizure, confiscation and investigation matters, including those with money laundering or criminal elements, alongside our criminal defence team.
Compliance and rulings
We review declaration processes, agent arrangements and classification positions, and apply for advance rulings or AEO status to reduce future disputes.
We work alongside our import and export compliance team, our VAT lawyers and our port dispute lawyers. Browse all our practice areas or read about our Chattogram office.
Checklist for decision-makers
- Do you know the current customs status of the consignment and the deadline for deemed handover?
- Have you received a written basis for any change in value or HS code?
- Is a show cause notice outstanding, and when is the reply or hearing due?
- Which appeal route applies to the order, and when does the time limit expire?
- Is pre-deposit required, and do you have grounds to seek a hardship waiver or stay?
- Is ADR available for this dispute, or is it excluded?
- Are your C&F agent's authority and declarations under your control?
- Have you asked a customs lawyer in Chittagong to check the Act and finance law amendments in force on the relevant dates?
To discuss a customs matter, contact our Chattogram office at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000, email info@trw.co or call +880 1779 127165.
Frequently asked questions
01Can I go to a civil court against a Chattogram Custom House decision?
Generally no. Section 252 of the Customs Act 2023 bars civil suits against decisions on the levy, assessment, exemption or realisation of customs duties. The proper routes are the statutory ones: reply to the show cause notice and adjudication, ADR for eligible valuation disputes, appeal to the Commissioner of Customs (Appeal) or the Customs, Excise and VAT Appellate Tribunal, and then appeal to the High Court Division. A writ petition is available only in limited cases, such as action without jurisdiction or in breach of natural justice.
02How long do I have to file a customs appeal?
Under the Customs Act 2023, an appeal to the Commissioner of Customs (Appeal) must be filed within three months of being informed of the decision, extendable by two months for sufficient cause. An appeal to the Appellate Tribunal must be filed within 90 days of receiving the order, with up to 60 further days if sufficient cause is shown. Appeals from the Tribunal to the High Court Division must be filed within 90 days. Always check later finance law amendments.
03Do I have to pay anything before appealing?
For appeals concerning duties demanded on goods no longer under customs control, or penalties, the Act generally requires a deposit of 10 per cent of the duties and taxes demanded or, where none apply, 10 per cent of the fine. The appellate authority can dispense with the deposit, fully or on conditions, if it would cause undue hardship. Tribunal appeals also carry a modest filing fee that depends on the amount in dispute.
04Can a valuation dispute be settled through ADR?
Yes, in many cases. Chapter XXV of the Customs Act 2023 allows importers and exporters to apply for alternative dispute resolution in valuation disputes, and related fines, while the case is pending before customs, an appeal authority or a court, provided ADR starts before adjudication or appeal is complete. ADR is not available for fraud or criminal cases, smuggled or prohibited goods, money laundering allegations, classification disputes, or evasion through misdeclaration or forged documents.
05What can I do if customs does not assess my goods?
Section 95 of the Customs Act 2023 helps. If declared goods, other than goods detained, seized, confiscated or under adjudication, are not assessed within 7 working days, the importer may serve notice on the Commissioner within 3 working days. The Commissioner or an authorised officer must then assess the duties if the import is lawful or issue a show cause notice if it is not. Detained goods include those held for testing, classification or valuation questions.
06How far back can customs demand unpaid duty?
Except in fraud cases and certain specified situations, section 204 of the Customs Act 2023 sets a three-year limit for demands for duties, taxes or charges, generally running from release of the goods, and for notices proposing fines or confiscation. There is no time limit where duties were short-levied because of a false statement. Importers should keep complete records for at least three years and seek advice as soon as an audit query arrives.
07Is my C&F agent responsible for a wrong declaration?
Both of you may be. Under section 245 of the Customs Act 2023, an authorised agent has the same rights and liabilities as the principal, and acts of the agent are presumed to be done with the principal's knowledge and consent unless the contrary is proved. Duty short-levied for reasons other than the agent's wilful act, negligence or default is not recovered from the agent. Review declarations and keep the agent's authority precise.
Sources and official materials
- Customs Act, 2023 (authentic English text, NBR) — Assessment, adjudication, ADR and appeals
- National Board of Revenue — Customs acts, rules, SROs and rulings
- Bangladesh Customs: appeal process — Overview of customs appeals and ADR
- Supreme Court of Bangladesh — High Court Division customs appeals and writs
- New customs law passed in parliament (TBS, Oct 2023) — Passage and main features of the 2023 Act
- New Customs Act to be effective from June 06 (Financial Express) — Commencement and key changes
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
