Discharging Ports

Chittagong Port

Kutubdia Anchorage -
>40K
Outer/Alfa Anchorage
-40K
Distribution Network
Imported Raw Material

4 Feed Mill
and Ctg
Warehouse

Chittagong Port

Ctg port to Feed Mill

Ctg port to Ctg Wh
Ctg port ot Feed Mill
Landing Cost - Steps
Commodity : Bulk Maize/Corn

Usually, we do analysis local vs imported which one is cheap before

importing and help management by providing information so that they can
take decision easily.

1. Cost means product cost : Paid to exporter

2. Fright means (Inland + Ocean Fright) : Paid to exporter on CFR basis LC

3. Insurance means - Insurance Premium : Paid to local insurance company

4. IP cost means – Import Permission cost : Paid to National Plant

Quarantine Authority

5. NOC means No Objection Certificate : Paid to Department of Livestock

6. Bank related cost - LC opening cost : a) LC opening commission, b) VAT

on LC opening commission, c) SWIFT/Cable charge, d) VAT on Swift charge,
e) Stationary charge, f) VAT on Stationary charge, g) Stamp charge
Landing Cost - Steps
Commodity : Bulk Maize/Corn
7. Bank Related – Others cost : a) Supplier credit report collection - Importer
cost, b) LC Advising cost, c) LC confirmation charge, d) Reimbursement
cost/Document processing fees, e) Acceptance charge – Importer cost if
required, f) Bank Guarantee charge - Importer cost if required.

8. Quarantine cost : Paid to Quarantine Wing

9. C&F cost : a) Duty, b) Others duty, c) Port charge/River Dues, d) VAT on

Port charge/River Dues, e) C&F commission

10. Survey Cost : Cost to be paid to the surveyor

11. Transportation cost : a) Lightering cost, b) Lighter agent commission

12. Load/unload cost : cost to be paid to the delivery agent

13. Manpower cost : a) Supervisor cost, b) Scot cost

14. Adjustment of excess/short received

15. Warehousing Cost : Paid to Wh Vendor

Assessable Value Calculation

For Example : Let C&F Cost = Tk. 100

Add Insurance Cost - 1% = (100 x 1%) = Tk. 1

C&F + Insurance Cost = Tk. (100+1) = Tk. 101

Add Landing Charge - 1% = (101 x 1%) = Tk. 1.01

Assessable Value ( C&F Cost+Insurance Cost+Landing Charge)

= Tk. (100+1+1.01) = Tk. 102.01
Duty Calculation Procedure at Customs
Product - Ice Cream

Duty Structure of Ice-cream :

CD – Custom Duty : 25%
RD - Regulatory Duty : 3%
SD – Supplementary Duty : 20%
VAT – Value Added Tax : 15%
AIT – Advance Income Tax : 5%
AT – Advance Tax : 5%
TTI – Total Tax Incidence : 89.32 %

How to calculate Duty Structure at Customs :

For Example : AV - Assessable Value Tk 100
CD = AV x 25% = 100 x 25% = Tk. 25
RD = AV x 3% = 100 x 3 % = Tk. 3
SD = (AV+CD+RD) x 20% = (100+25+3) x 20% = Tk. 25.60
VAT = (AV+CD+RD+SD) x 15% = (100+25+3+25.60) x 15% = Tk. 23.04
AIT = AV x 5% = 100 x 5% = Tk. 5
AT = (AV+CD+RD+SD) x 5% = (100+25+3+25.60) x 5% = Tk. 7.68
TTI = (CD+RD+SD+VAT+AIT+AT) = (25+3+25.60+23.04+5+7.68) = Tk. 89.32