NBR faces trouble with e-L/C system

The authority is facing problem applying the electronic letter of credit (e-L/C) system as many importers and exporters have furnished partial information about their L/C documents, tax officials said.

They said many of the businesses did not provide the commercial banks with necessary information while opening L/Cs.

The e-L/C system was introduced on January 25 last in a bid to check false declaration under and over-invoicing of import products.

The National Board of Revenue has identified five major problems which are barring it from getting desired result in e-L/C system since its introduction.

The problems include outdated BIN (business identification number) or TIN (taxpayer's identification number) in L/C documents, absence of specific value, HS code problem and country of origin etc.

Taxmen found the banks opening L/Cs using old BIN or TINs, although the NBR made them 12-digit.

NBR Chairman Md Nojibur Rahman has recently sent a letter to the Bangladesh Bank (BB) governor and urged him to instruct commercial banks to be cautious about keeping information on L/Cs.  

The revenue board also stressed the need for keeping up-to-date information about L/Cs in the BB system.

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