NBR detects abuse of CARNET facility

The National Board of Revenue (NBR) has recently instructed the Chittagong Customs House (CCH) not to release luxury cars imported, allegedly, through the abuse of the CARNET facility. Nearly 40 luxury cars are now stuck up in the port for non-clearance from the customs department. Customs intelligence has identified 11 luxury cars that were imported using the duty-free CARNET facility with a motive to sell those in the local market violating the rules of re-export. The intelligence has requested the authorities concerned not to give clearance to the cars as investigation will be carried out on the basis of secret information. Customs intelligence and investigation wing of the National Board of Revenue (NBR) has identified those cars as mainly BMW, Mitshubishi Pajero, Mitsubishi Shougun Sport, BMW X5 Sport and Mercedes which were imported for sale in the local market abusing the facility. Those cars are subject to payment of higher duty at a maximum rate of 800 per cent. CARNET is a special facility offered to tourists for importing their used cars to other countries with a condition of re-export. The tourists can import the cars without paying any duty for one year. According to clauses of the Geneva Convention, a standing order was issued in 1963 from the Customs Collector's house offering the facility. Customs Member Shah Alam said: "We are examining the issue on the basis of allegation." The facility has been offered according to international convention, and as such it is not possible to withdraw the benefit right now, he said. "We are preparing a guideline by updating the existing rule for the country," he said. The customs officials have identified a significant rise in import of luxury cars after duty hike of the cars. Before 2000, import of cars under the facility was negligible but it started increasing from 2005, officials said. In 2009, the customs found that 14-15 luxury cars were imported under the facility only from London, said a senior customs official. It has been found that majority of the cars were imported by non-resident Bangladeshis of Sylhet but those were not re-exported, he added. Following this irregularities, NBR recently instructed the Chittagong Customs not to give clearance to the cars imported under the facility. Talking to the FE Tuesday, Chittagong Customs House (export) Commissioner Jamal Uddin said: "We have blocked 35 cars in the Chittagong port as per instruction of the NBR." Influential quarters are involved in this kind of irregularities, he said. "We have already sent details of cars imported through CARNET to 19 government agencies including the law-enforcing ones and the registration authority," he said. The persons who brought these cars will be traced within a short period as all concerned agencies have their information, he added. "We have also informed the local CARNET office of the irregularities. The local offices conveyed their concern to the London office and requested it to be cautious about giving permission for enjoying the facility," he said. Customs officials said some big fishes are now creating pressure on customs officials to release those stuck-up cars. Syed Musfequr Rahman, director of the customs intelligence, recently requested the Chiitagong Customs House not to release those 11 luxury cars.