NBR move to stop misuse of duty-free machinery

The National Board of Revenue (NBR) is going to empower both poultry farm and breeders' associations to give clearance to companies on proper use of machinery imported under duty-free facility.
The Board has taken the decision in a bid to resolve nearly two-year long row between poultry farm and breeders' associations over awarding the authority.
In the budget for 2011-12 fiscal, the NBR awarded the certification authority shifting it from the poultry association to the breeders.
After awarding the certification authority, the poultry industry insiders reacted sharply. They alleged that many of the industries relating to import of capital machinery for their industry are facing difficulties to get the clearance certificates.
Both the associations sought certification authority on duty-free machinery claiming themselves as mother body for the poultry sector.
According to the Customs rules, poultry and breeder industry owners can import duty-free machinery for local farms.
Clearance certification on proper use of duty-free machinery in poultry industry is required by the Customs authority.
The Customs needs to make sure about stopping abuse of the duty-free facility that takes place through sale of the machinery in local market.
The association leaders have to furnish a certificate after inspection of farms on proper use of duty-free machinery within six months of import.
Officials said the NBR shifted the authority following request of the Ministry of Fisheries and Livestock.
After shifting the authority, the Bangladesh Poultry Industry Association (BPIA) leaders expressed their concern. They claimed that some of small industry and marginal farmers are facing problems to get the certificates after change of the rules.
To address the issue, the NBR held several meetings with the leaders of the two associations. The poultry association leaders urged the Customs authority to re-introduce the previous system while breeders demanded continuation of the existing rules.
A senior Customs official said considering the arguments of the association leaders, the NBR decided to award the certification authority to both the associations.
Bangladesh Poultry Association President Syed Abu Siddique said the duty-free facility is being enjoyed by some five to six large industries which are members of the breeders' association.
He said a small farmer can not afford to be a member of breeders' association as it comprises all big firms with a quite big membership fee.
 "The poultry association comprises around 10 to 15 thousand firms. Of them, the majority are small farmers," he said.
Mr Siddique expressed his fear over abuse of the duty-free facility by some big companies.
Industry insiders said poultry association includes all other associations related to poultry, dairy and fisheries farms.
Syedur Rahman Babu, General Secretary of the Breeders Association of Bangladesh (BAB) said breeders are the main users of duty-free capital machinery as they own large poultry firms.
"Small industries hardly need the imported capital machinery. Importers of the duty-free capital machinery are mainly breeding firms," he added.
However, Mr Babu said the breeders' association is yet to receive any application from small poultry firms seeking clearance certificates.
"We are ready to issue the certificates to poultry firms if they want," he added.