Customs draws work plan to realise huge stuck-up duty, boost revenue
Sunday, 12 August 2007
Doulot Akter Mala
The National Board of Revenue (NBR) has formed a three-member high-powered cell for speedy disposal of the law suits that blocked realisation of Tk 15.60 billion in customs duties.
The members of the cell, constituted recently with senior officials, will be present in the court to explain the customs law on behalf of the customs department.
When contacted, Member, customs of the NBR, Rashidul Ahsan said: "This year the government has resolved 600 cases and, of the cases, the customs department has won 80 per cent of them."
He said a large volume of revenue will be realised with the quick disposal of the writ petitions filed by businessmen against customs department.
As part of a work plan to achieve customs revenue target of Tk 178.12 billion in fiscal 2007-08, the department has formed the special cell and initiated some other measures.
The department in pursuance of the plan asked different customs houses, excise and VAT commissionarates to closely monitor the activities of the pre-shipment inspection (PSI) companies that issue Clean Report of Finding (CRF) and price declaration certificates.
The departments concerned will inform the NBR about the measures taken in this connection.
The NBR has also directed customs houses, excise and VAT commissionarates to prepare a list of those Harmonised Commodity Description and Coding System (HS code) products, which are vulnerable for misdeclaration, for proper scrutiny.
In some cases, C&F agents seem to be reluctant to pay tax or release products despite completion of taxation of the bill of entry.
The board has asked the departments concerned to lock the agent identification number (AIN) of clearing and forwarding (C&F) agents to realise pending duty of those products.
The NBR also ordered to expedite the sale of the products through auction. The customs department will arrange two auctions a month.
The board said the department will speed up process of bringing all bills of entry under taxation.
The departments concerned will prepare a list of its respective dues under indemnity bond and deferred payment. The wings will file cases to realise the arrears.
The work plan also stressed the need for boosting risk management factors and increasing intelligence activities to thwart duty evasion.
The NBR will also conduct a post audit on import of those products that involve a large volume of revenue.
The customs department has been facing problems for frequent duty exemption of essential commodities.
Recently, the board withdrew duty from import of dates for two months to facilitate supply of the dry fruit in the local market ahead of the month of Ramadan. The exemption will cause Tk 170 million losses in customs duty.
Duty exemption from chhola, gram, lentil and onion will cause losses worth Tk 740 million and on account of rice and wheat the amount will be Tk 600 million a month.
Duty exemption did not bring any positive impact in the market, but it caused revenue losses, the member, customs said.
"The revenue board has been losing a large volume of revenue for exemption of customs duty on import of essential commodities, but the consumers do not see any positive impact in the market," he said.
A section of importers and businessmen are taking the advantage of this duty exemption, he claimed.
It has been alleged that the neighbouring countries sometime increase the prices of those commodities for the importers following the duty exemption of essentials.
Such a practice also pushes the price of imported goods higher in the local market despite the duty waiver, sources said.
The National Board of Revenue (NBR) has formed a three-member high-powered cell for speedy disposal of the law suits that blocked realisation of Tk 15.60 billion in customs duties.
The members of the cell, constituted recently with senior officials, will be present in the court to explain the customs law on behalf of the customs department.
When contacted, Member, customs of the NBR, Rashidul Ahsan said: "This year the government has resolved 600 cases and, of the cases, the customs department has won 80 per cent of them."
He said a large volume of revenue will be realised with the quick disposal of the writ petitions filed by businessmen against customs department.
As part of a work plan to achieve customs revenue target of Tk 178.12 billion in fiscal 2007-08, the department has formed the special cell and initiated some other measures.
The department in pursuance of the plan asked different customs houses, excise and VAT commissionarates to closely monitor the activities of the pre-shipment inspection (PSI) companies that issue Clean Report of Finding (CRF) and price declaration certificates.
The departments concerned will inform the NBR about the measures taken in this connection.
The NBR has also directed customs houses, excise and VAT commissionarates to prepare a list of those Harmonised Commodity Description and Coding System (HS code) products, which are vulnerable for misdeclaration, for proper scrutiny.
In some cases, C&F agents seem to be reluctant to pay tax or release products despite completion of taxation of the bill of entry.
The board has asked the departments concerned to lock the agent identification number (AIN) of clearing and forwarding (C&F) agents to realise pending duty of those products.
The NBR also ordered to expedite the sale of the products through auction. The customs department will arrange two auctions a month.
The board said the department will speed up process of bringing all bills of entry under taxation.
The departments concerned will prepare a list of its respective dues under indemnity bond and deferred payment. The wings will file cases to realise the arrears.
The work plan also stressed the need for boosting risk management factors and increasing intelligence activities to thwart duty evasion.
The NBR will also conduct a post audit on import of those products that involve a large volume of revenue.
The customs department has been facing problems for frequent duty exemption of essential commodities.
Recently, the board withdrew duty from import of dates for two months to facilitate supply of the dry fruit in the local market ahead of the month of Ramadan. The exemption will cause Tk 170 million losses in customs duty.
Duty exemption from chhola, gram, lentil and onion will cause losses worth Tk 740 million and on account of rice and wheat the amount will be Tk 600 million a month.
Duty exemption did not bring any positive impact in the market, but it caused revenue losses, the member, customs said.
"The revenue board has been losing a large volume of revenue for exemption of customs duty on import of essential commodities, but the consumers do not see any positive impact in the market," he said.
A section of importers and businessmen are taking the advantage of this duty exemption, he claimed.
It has been alleged that the neighbouring countries sometime increase the prices of those commodities for the importers following the duty exemption of essentials.
Such a practice also pushes the price of imported goods higher in the local market despite the duty waiver, sources said.