Customs intelligence investigation has detected a fourfold rise in the abuse of bonded-warehouse facility in the last two years, officials said.
They said the directorate of customs intelligence and investigation under the revenue board had detected irregularities allegedly committed by 67 bond licence-holding companies between July 2013 and October 2015.
Most of the companies that made a wrong use of the facility were involved in plastic grains and duplex board manufacturing and printing and packaging activities. They imported raw materials under bonded-warehouse facility for export items but sold out their products on the domestic market.
This is done in violation of customs law, bonded-warehouse rules and conditions tagged onto issuance of bond licence.
The sources said the customs investigations found out the largest extent of abuse allegedly by Khulna Printing and Packaging Company Limited.
According to the disclosure, the team of tax sleuths nosed out Tk 2.71 billion worth of tax evasion by that particular company in the financial years 2012-13, 2013-14 and 2014-15.
The National Board of Revenue (NBR) prepared an investigation report on the irregularities by the company.
However, the management of Khulna Printing and Packaging Company Limited had filed a writ petition in the High Court (HC) against the tax demand and won the case. Later, the customs filed an appeal with the Appellate Division of the Supreme Court challenging the HC verdict. The apex court overturned the verdict.
"It appears from the report that a gigantic fraud has been detected in securing the interim order and releasing the goods without submitting the bill of entry before the customs authority prior to the date of moving the High Court Division," the Supreme Court in its order said.
It also appears that a huge amount of outsourcing money is lying with the writ petitioner, the sources said, quoting the apex-court order.
The writ respondent was directed by the SC to recover the outstanding taxes and duties, if there be any, in accordance with the law.
"The chairman, the National Board of Revenue, is directed to take legal action immediately against those who in collusion with the writ petitioner released the goods and to report compliance about taking action against them within four weeks from the date of receipt of the order," it said.
Among the other significant irregularities are those allegedly committed by Liberty Enterprise limited, Sunrise Accessories Limited and Fardin Accessories Limited, the officials said.
Liberty Enterprise, situated in Chittagong, evaded payment of Tk 120 million in duty-tax through sale of raw materials imported duty free on the local market. The CI investigators found the company as a cent per cent export-oriented one.
Another such export-oriented company, Sunrise Accessories, dodged payment of Tk 9.8 million through the sell-off of bonded products on the internal market.
Fardin Accessories, at Nilfamari, produces poly-bag, hanger and other garments accessories. The firm evaded Tk 120 million in the form of customs duty, regulatory duty, VAT, Advance Income Tax, Advance Trade VAT.
Talking to the FE, Director-General of the customs intelligence wing of the NBR Moinul Khan said they were conducting crackdown on three stages --import, bond and retail -- to find out duty evasion.
There were several businesses in Urdu Road, Nayabazar and Chawkbazar areas of the city that used to sell products imported free of duty under bonded-warehouse facility on the local market, he said.
The delinquents have been detected by the customs intelligence to stop the irregularities, he added.
"Commercial import will go up if the customs can stop the abuse of bonded-warehouse facility," the DG said.
Some influential quarters are involved in the abuse of the duty waiver under bonded-warehouse arrangement. They, he said, earlier had tried to halt the customs drive.
© 2024 - All Rights with The Financial Express
