CCH finds some importers' link to under-invoicing

FE Team | Published: May 20, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

Jasim Uddin Haroon
The Chittagong Customs House (CCH) in an investigation has found some importers involved in under-invoicing while bringing in products from a third country.
The CCH that formed a nine-member committee conducted a five-day investigation last month after a preliminary report of the Anti Corruption Commission (ACC) revealed that some importers were involved in such practices for long evading a large amount of taxes.
The committee has identified pre-shipment inspection companies and a section of customs officials in connivance with importers involved in the malpractices.
It investigated imports of three specific products like full cream milk powder, infant formula baby milk and fabrics.
The committee verified a total of 297 invoices of full cream milk powder, 43 invoices of infant formula baby milk powder and seven invoices of fabrics for fiscal 2006-07 and 2007-08.
The investigation report was sent to the Central Intelligence Cell (CIC) last week.
The team found that in all the cases in 2007 the PSI companies showed under value of the three products imported from third country. It also revealed that all the infant milk powder was imported from third country during the period between July 10 and March 31, 2008 evading taxes worth over Tk 62 million.
Besides, the investigation team found that prices of per kilogram of full cream milk powder was shown at US$4.04, $3.94 and $4.70 when it was imported from the countries of origin.
But the prices were shown at $2.51, $2.40 and $3.05 when the same product was brought in through transshipment from third country.
However, the committee did not find any proof of tax evasion by the importers of fabrics.
When asked officials of the National Board of Revenue and the CIC said they have already received the report prepared by the CCH.
"We will now submit the report to the government for action," said one CIC source.
When contacted, one accused PSI told the FE that it submitted a letter to the committee explaining its position relating to the allegation.
"We have received a letter from one PSI where it has expressed its interest to cooperate on further investigation on the issue," said one joint commissioner involved in the investigation.