TRW & Co · Customs, VAT & Tax
Customs Valuation Dispute Lawyer in Chittagong: Value and HS Code Challenges in Chattogram
A customs valuation dispute lawyer in Chittagong challenges value uplifts and HS code changes at the Chattogram Custom House. The Customs Act 2023, the Valuation Rules 2000 and a June 2026 NBR order on international price benchmarks favour the real transaction price, but importers must prove it with consistent documents and act within strict ADR and appeal deadlines.
Key pointSince June 2026 customs must compare declared prices with named international benchmarks and needs specific evidence and senior approval to reject a matching price, so a well-documented transaction value is now much harder to override, but classification disputes remain outside ADR.
At a glance
Transaction value first
Section 27 of the Customs Act 2023 values imports at the price actually paid or payable, assessed under rules that follow the WTO Valuation Agreement.
Benchmark order 2026
An NBR general order of 11 June 2026 requires officers to compare declared prices with international benchmarks such as Platts, LME and Bloomberg.
ADR for value only
Customs ADR covers valuation disputes and related fines, but excludes classification, fraud, smuggling and misdeclaration of description, quantity or HS code.
Three-month first appeal
Appeals to the Commissioner of Customs (Appeal) must be filed within three months, extendable by two months for sufficient cause.
Penalty tied to evasion
Untrue statements or false documents attract a penalty from one to two times the duty evaded since the Finance Ordinance 2025, plus confiscation risk.
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What customs valuation and HS code disputes cover in Chattogram
A customs valuation dispute lawyer in Chittagong acts for importers when the Chattogram Custom House refuses to accept the declared price of goods, assesses them at a higher value, or moves them into a different HS code with a higher rate of duty. Because duty, supplementary duty, VAT at import and advance tax all follow the assessable value and the tariff heading, a small change in either can add a large sum to every consignment.
These disputes arise at three points. At assessment, customs may query a price that looks low against reference data or earlier imports. After release, a re-assessment or post-clearance audit may produce a demand for short-levied duty. And where customs suspects a deliberate understatement, the dispute becomes a misdeclaration case with penalties and possible confiscation.
This page explains the valuation and classification rules, how to challenge an assessment and how to avoid repeat disputes. For release of held goods see our customs clearance page, and for the broader picture our Custom House disputes practice.
The valuation and classification rules
Section 27 of the Customs Act 2023
Under section 27 of the Customs Act 2023, as substituted by the Finance Ordinance 2025, the value of imported goods is the price actually paid or payable, or its nearest ascertainable equivalent, at which such or like goods are ordinarily sold in international trade under fully competitive conditions between unrelated parties where price is the sole consideration. The value is then assessed according to the rules made for that purpose.
Section 27 also allows the government to fix tariff values or minimum values for particular goods by gazette notification; where the declared value is higher, duty is charged on the declared value. The exchange rate is fixed by the National Board of Revenue from the average market rate over a defined period in the previous month. Under section 30, the value, rate and classification applicable are generally those in force on the date the goods declaration is registered.
The Customs Valuation Rules 2000
The detailed methods come from the Customs Valuation (Determination of Value of Imported Goods) Rules 2000, issued by SRO dated 23 February 2000, which incorporate the WTO Agreement on Customs Valuation. Rules made under the 1969 Act continue under the 2023 Act's savings provision so far as consistent with it, and the High Court Division applied the 2000 Rules in an April 2026 judgment discussed below. Bangladesh Customs publishes a summary of the valuation procedure.
The 2026 benchmark order
On 11 June 2026 the NBR issued a general order requiring officers to compare declared prices with international benchmarks, including S&P Global Platts, ICIS, the London Metal Exchange, the Shanghai Metals Market, Bloomberg and the International Sugar Organization. A declared value consistent with those references may be accepted as transaction value unless there is specific evidence otherwise, and rejecting such a value requires specific evidence and approval from an Assistant Commissioner or above, according to the Financial Express. Notified minimum values still apply. For commodity importers, this order is now the first line of argument a customs valuation dispute lawyer in Chittagong will use.
HS classification
Classification follows the First Schedule to the Act, built on the World Customs Organization's Harmonized System, applied through the General Interpretative Rules and the section and chapter notes. Disputes typically involve machinery and parts, chemicals, food ingredients, textiles and mixed or multi-function goods. Laboratory reports, manufacturer specifications and the WCO explanatory notes decide most cases. The NBR can issue binding customs rulings and, on application, advance rulings on classification and origin (section 258).
The valuation methods in order
Customs must apply the methods in sequence, moving to the next only when the previous one cannot be used. Much of the work of a customs valuation dispute lawyer in Chittagong is showing that the officer skipped a step or used the wrong comparison.
| Method | When it applies | Evidence that matters |
|---|---|---|
| Transaction value | Default: the price actually paid or payable, with permitted adjustments | Contract, invoice, LC and bank payment records, freight and insurance documents |
| Identical goods | Transaction value rejected; identical goods imported at about the same time | Earlier assessments of identical goods from the same Custom House |
| Similar goods | No identical goods; commercially interchangeable goods available | Specifications showing comparability, quantity and commercial level |
| Deductive value | Based on resale price in Bangladesh, less permitted deductions | Local sales records, margins and post-import costs |
| Computed value | Built up from cost of production, profit and general expenses | Manufacturer's cost data, usually only available from related suppliers |
| Fallback method | None of the above can be applied | Reasonable means consistent with the Rules, not arbitrary or minimum values |
Related-party imports raise particular questions. Where buyer and seller are related, customs may examine whether the relationship influenced the price, and royalties, licence fees or assists supplied by the buyer may need to be added. Group companies importing into Bangladesh should document how intra-group prices are set before the first consignment arrives.
How valuation disputes arise and how to respond
Importers have long complained that customs replaced declared prices with reference values drawn from earlier periods of high world prices. Reporting in The Business Standard in June 2026 described the benchmark order as ending that practice for most commodities. Disputes still arise where goods are not covered by the benchmarks, where the declared price is well below them, or where the invoice and the bank payment do not match.
The practical response depends on what is at stake. Where the difference is small and the goods are urgent, paying under written protest and seeking a refund later may be sensible. Where the uplift is significant or will be repeated on future consignments, the importer should seek provisional release against a guarantee, file evidence of transaction value and pursue ADR or appeal. Where customs alleges misdeclaration, the case needs careful handling from the first response.
When a valuation query becomes a penalty case
If customs alleges an untrue statement or false documents, the Act provides a penalty linked to the duty evaded, which since the Finance Ordinance 2025 ranges from an amount equal to the duty evaded up to twice that amount, with the goods liable to confiscation and, on conviction by a court, possible imprisonment. A customs valuation dispute lawyer in Chittagong will keep a genuine valuation disagreement from being treated as fraud by explaining the price with documents at the outset. Our seizure and adjudication team handles cases that reach that stage.
A valuation dispute is won with the importer's own paperwork: the contract, the invoice and the bank trail must tell one consistent story about the price.
Challenging an assessment: ADR, appeal and writ
Alternative dispute resolution
Sections 216 to 219 allow ADR for disputes about the customs valuation of imported goods and related fines, whether pending before customs, the appellate bodies or the courts. ADR must be started before adjudication or appeal is completed, and the Board appoints facilitators. It is not available for fraud or criminal cases, smuggled or prohibited goods, money laundering, classification disputes, or alleged evasion through misdeclaration of description, quantity or HS code, forged documents or import policy breaches. A customs valuation dispute lawyer in Chittagong will usually see a pure price dispute as a good candidate for ADR; a classification dispute is not.
The appeal route
- Commissioner of Customs (Appeal): appeals against decisions of officers below Commissioner rank within three months, extendable by two months for sufficient cause (section 220). An appeal not decided within two years, plus any six-month extension, is deemed allowed (section 221).
- Pre-deposit: appeals about duty on goods no longer under customs control, or penalties, generally require a deposit of 10 per cent of the duty demanded or of the fine, which the appellate authority may waive for undue hardship (section 223).
- Appellate Tribunal: appeals against Commissioner-level adjudication orders go to the Customs, Excise and VAT Appellate Tribunal within 90 days, extendable by 60 days; an appeal not decided within two years is deemed allowed (section 226).
- High Court Division: a further appeal lies within 90 days of the Tribunal's order and is heard by a bench of at least two judges (sections 229 and 230).
Civil suits against assessment decisions are barred (section 252). A writ petition under Article 102 of the Constitution remains available where customs acts without jurisdiction, ignores the Rules or denies a hearing. In Writ Petition No. 8951 of 2025, decided on 30 April 2026, the High Court Division directed a Dhaka Custom House to finally assess imported carpets under the Customs Valuation Rules 2000, taking account of the value of identical goods it had released, after the goods had been released against a bank guarantee. The Bangladesh Customs appeal process page outlines the statutory route.
How a customs valuation dispute lawyer in Chittagong runs the case
- Read the assessment. Obtain the assessment order or query in writing, identify the value or HS code customs applied and the basis it relied on.
- Secure the goods. Apply for provisional assessment and release against a guarantee, or pay under protest, so that the dispute does not hold up production or sales.
- Build the price evidence. Assemble the contract, invoice, LC, bank remittance, freight and insurance records, benchmark data and earlier assessments of identical goods.
- Answer in writing. Submit a reasoned response applying section 27, the Valuation Rules and the 2026 benchmark order, or the HS interpretative rules for a classification dispute.
- Choose the forum. Decide between ADR for eligible valuation disputes, adjudication and appeal, or a writ where the action is plainly unlawful, before any time limit expires.
- Fund the appeal. Arrange the pre-deposit or apply for waiver on hardship grounds, and file within the deadline with full grounds and evidence.
- Prevent repeats. Seek an advance ruling on classification, align future contracts and invoices, and keep a valuation file ready for every new product line.
Documents and evidence
The quality of the evidence decides most cases. A customs valuation dispute lawyer in Chittagong will ask for:
- Sale contract or purchase order, pro forma and commercial invoices, and price lists from the supplier.
- Letter of credit or other payment instrument, and bank records showing the amount actually remitted.
- Freight, insurance and other cost documents needed to build the CIF value.
- Benchmark data from the sources named in the 2026 order, dated close to the pro forma invoice.
- Earlier bills of entry and assessments for identical or similar goods at Chattogram or other Custom Houses.
- For related-party imports, the group's pricing policy and any royalty or licence agreements.
- For classification, technical data sheets, catalogues, laboratory reports and photographs of the goods.
Keep the price story consistent across every document. The value in the contract, the invoice, the letter of credit and the bank remittance should match, and any discount, rebate or free goods should be documented at the time. Most valuation disputes we see begin with an unexplained gap between two of those figures.
Risks and common mistakes
Arguing value but not getting the goods out
Importers sometimes leave goods in the port while they contest an uplift, hoping customs will relent. Port rent and container detention then exceed the disputed duty, and the deemed handover deadline approaches. Provisional release against a guarantee, or payment under written protest, protects both the goods and the right to challenge. The dispute about value can continue through ADR or appeal without the consignment as hostage.
Using ADR for a classification dispute
ADR under the Customs Act is limited to valuation disputes and related fines. Classification disputes and alleged misdeclaration of HS code are expressly excluded. Importers who spend weeks pursuing ADR on a classification point can find that the appeal deadline has run in the meantime. Identify early whether the dispute is really about price or about the tariff heading, because the forum and the evidence differ.
Missing the appeal deadline or the deposit
Appeals to the Commissioner of Customs (Appeal) must be filed within three months of being informed of the decision, and Tribunal appeals within 90 days of receiving the order, with limited extensions. Many appeals also require a pre-deposit. An importer who negotiates informally for months, or who does not budget for the deposit, may lose the right of appeal. Calendar every deadline from the date of service and apply for a hardship waiver early if the deposit is a problem.
Ignoring re-assessment and audit
A valuation accepted at the port is not always final. Customs may re-assess value, classification or origin after release, subject to the time limits in section 204, which are generally three years from release but unlimited where a false statement is involved. Re-assessed duty must be paid within 30 working days of the written demand. Keep complete records, respond to audit queries with the same care as a show cause notice, and challenge unsupported demands promptly.
Under-invoicing to reduce duty
Declaring a price lower than the real price exposes the importer to penalties of up to twice the duty evaded, confiscation, criminal proceedings and, because payments abroad must match the invoice, problems under foreign exchange and anti-money laundering rules. Section 248 of the Act also bars recovery of money under invoices that misstate value. The benchmark order makes large gaps easier to detect. Declare the real price and defend it with evidence.
Foreign suppliers, group companies and investors
Valuation disputes often depend on documents held abroad. Foreign suppliers may need to confirm price lists, explain discounts or provide cost data for computed value, and group companies may need to justify transfer prices. A customs valuation dispute lawyer in Chittagong can liaise with suppliers and their advisers to obtain evidence in a form customs will accept, including declarations executed and authenticated abroad.
Foreign investors setting up manufacturing in Bangladesh, including in economic zones and EPZs, should settle valuation and classification of machinery and recurring inputs before the first shipment, ideally through an advance ruling. Our import and export and tax dispute practices work alongside the customs team. TRW & Co's offices in Dhaka, Singapore, Dubai and London help coordinate suppliers, parent companies and banks, while our Chattogram advocates handle the Custom House, the Tribunal and the High Court Division.
How TRW & Co helps with valuation and classification
Assessment challenges
We respond to valuation and HS code queries with documented arguments under section 27, the Valuation Rules, the 2026 benchmark order and the interpretative rules.
Provisional release
We secure release against guarantees or payment under protest so the dispute does not stop production, while preserving every right of challenge.
ADR and appeals
We take eligible valuation disputes to ADR and run appeals to the Commissioner of Customs (Appeal), the Appellate Tribunal and the High Court Division.
Writ petitions
Where customs ignores the Rules or acts without jurisdiction, our writ team brings proceedings under Article 102 of the Constitution.
Advance rulings
We prepare applications for advance rulings on classification and origin so that new products are assessed consistently from the first consignment.
Pricing and compliance
We review contracts, invoices and related-party pricing so that the documents support the declared value and survive post-clearance audit.
For a step-by-step outline, see our articles on how to challenge a customs valuation or HS code and the customs appeal process.
Checklist for decision-makers
Before responding to a valuation or classification query, a customs valuation dispute lawyer in Chittagong would want to know:
- What value or HS code did customs apply, and on what stated basis?
- Do the contract, invoice, LC and bank remittance show the same price?
- Are the goods covered by the 2026 benchmark sources, and what do they show for the relevant date?
- Have identical or similar goods been assessed at a lower value recently?
- Can the goods be released provisionally or under protest while the dispute continues?
- Is the dispute about price, eligible for ADR, or about classification, which is not?
- Which appeal deadline applies, and is the pre-deposit funded or a waiver needed?
- Would an advance ruling or contract changes prevent the same dispute next time?
To discuss a valuation or HS code dispute, 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. You can also browse all our practices or read about our law firm in Chattogram.
Frequently asked questions
01How does Chattogram Custom House decide the value of my imports?
Under section 27 of the Customs Act 2023 and the Customs Valuation Rules 2000, the starting point is transaction value: the price actually paid or payable, with permitted adjustments such as freight and insurance. If customs lawfully rejects it, the Rules require the identical goods, similar goods, deductive and computed methods in sequence, then a reasonable fallback. Since June 2026 officers must also compare declared prices with named international benchmarks for covered commodities. Where the government has notified a minimum value, goods cannot be assessed below it.
02What changed with the June 2026 benchmark order?
The NBR's general order of 11 June 2026 requires officers to compare declared values with international price sources, including S&P Global Platts, ICIS, the London Metal Exchange, the Shanghai Metals Market, Bloomberg and the International Sugar Organization. A declared value consistent with those references may be accepted as transaction value unless there is specific contrary evidence, and rejecting it requires specific evidence and approval from an Assistant Commissioner or above. Benchmarks must relate to pro forma invoices issued within 90 days before the declaration.
03Can I use ADR for an HS code dispute?
No. Customs ADR under sections 216 to 219 of the Customs Act 2023 is available for disputes about the valuation of imported goods and fines relating to valuation, but classification disputes are expressly excluded, as are fraud, smuggling, money laundering and alleged misdeclaration of description, quantity or HS code. Classification disputes go through adjudication and appeal. For future consignments, an advance ruling from the NBR on classification is the best protection.
04Do I have to pay the extra duty before appealing?
You usually need to pay or secure it to release the goods, and appeals concerning duty on goods no longer under customs control, or penalties, generally require a deposit of 10 per cent of the duty demanded or of the fine under section 223. The appellate authority can waive the deposit for undue hardship. If the appeal succeeds, the amount found not leviable is refunded. Interest on unpaid duty continues to run unless the demand is set aside.
05What are the deadlines for a customs valuation appeal?
An appeal to the Commissioner of Customs (Appeal) must be filed within three months of being informed of the decision, with up to two further months for sufficient cause. Appeals to the Customs, Excise and VAT Appellate Tribunal must be filed within 90 days of receiving the order, extendable by 60 days. A further appeal to the High Court Division lies within 90 days of the Tribunal's order. The Commissioner (Appeal) and the Tribunal must decide within two years, with a possible six-month extension for the Commissioner, or the appeal is deemed allowed.
06Can customs change the value after my goods are released?
Yes. Section 91 allows re-assessment of classification, origin and value after release, and post-clearance audit can lead to demands. Demands are generally time-barred three years after release, but there is no time limit where duty was short-levied because of a false statement. Re-assessed duty must be paid within 30 working days of the written demand, and the importer must be given notice and an opportunity to be heard first. Keep import records for at least three years.
07Can I file a writ against an arbitrary valuation?
A writ petition under Article 102 of the Constitution is available where customs acts without jurisdiction, ignores the Valuation Rules or denies a fair hearing, although the High Court Division usually expects the statutory route to be used where it is adequate. In April 2026, in Writ Petition No. 8951 of 2025, the court directed a Custom House to finally assess carpets under the Valuation Rules 2000, considering the value of identical goods it had released.
Sources and official materials
- Customs Act, 2023 (authentic English text, NBR) — Sections 27, 30, 91, 216-229, 252 and 258
- Bangladesh Customs: valuation procedure — Valuation Rules 2000 and the WTO methods
- Bangladesh Customs: appeal process — Customs appeals and ADR overview
- Writ Petition No. 8951 of 2025 (HCD, 30 April 2026) — Final assessment under the Valuation Rules 2000
- Global price benchmarks adopted to curb fictitious invoicing (Financial Express, June 2026) — NBR general order of 11 June 2026
- Customs arbitrary valuation of import goods ends (The Business Standard, June 2026) — Background to the benchmark order
- Supreme Court of Bangladesh — Customs appeals and writs in the High Court Division
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.
