Goods imported under BWFs being misused

Shah Alam Nur | Published: January 17, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Goods imported under bonded warehouse facilities (BWFs) are being misused as those are being sold in the open market in absence of monitoring by authorities concerned, officials and traders said.
A numbers of companies have been misusing goods including fabrics and accessories, imported for export-oriented apparel units under the BWFs, violating the Custom Act 1969, they said.
They informed that existing duty on imported clothes varies between 30 to 100 per cent, but these materials are available at cheaper prices in Islampur and other wholesale markets in and around the city.
"A large number of local companies are allegedly selling fabrics and other accessories in the local market, which were imported under BWFs. It is surely a violation of the existing Custom Act 1969", Customs Intelligence and Investigation Directorate (CIID) Director General Moinul Khan told the FE. Â
"In the last one year, the custom intelligence unit detected over 300 readymade garment (RMG) and backward linkage companies which were involved in selling duty-free imported goods in the open market instead of using it in their export oriented industries," he said.
He said trucks and covered vans carry imported foreign fabrics for the export-oriented apparel units and unload those for local consumption at around midnight.
Mr Khan said the customs authorities are going to introduce security teams to stop sale of goods, which are getting duty-free benefit, in the open market.
He said, "NBR is going to introduce security teams composed of Police, RAB, Ansar VDP and other law enforcing agencies to stop 'disappearance sale' of bonded warehouse goods in the open market.
An NBR official told the FE a good number of companies located in and around Dhaka, which had received licences for duty-free import of raw materials on condition of producing exportable goods using the same as inputs, have been found to be involved.
He said in the last one year the customs authorities seized 50 loaded trucks from Dhaka-Chittagong highway which were going to sell goods in the open market violating bonded warehouse facilities.
At that time the authorities also suspended bond licences of more than 160 exporters and launched certificate cases against 20 companies, he said.
Imported fabrics getting bonded warehouse facilities are being sold in city's Islampur, Babubazar in Narshindi and other markets, he informed.
Admitting such sale, Islampur Cloth Merchant Association (ICMA) vice president Delwar Hossain Matin told the FE, "Some wholesalers may sell imported (BWF) cloths in this market, but the authorities should monitor it."
He said, "More than 85 per cent locally produced cloths are sold in Islampur wholesale market."
He informed that a good number duty-free imported fabrics are sold at Sadarghat and other markets in the capital.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Shahidullah Azim told the FE, "We don't have any information as to which companies have been misusing bonded warehouse facilities".
He said if any company is found violating the law and misusing bonded warehouse facilities, his association will take stern action against that company.
According to the Customs Intelligence and Investigation Directorate there are 6000 industrial units which are cent per cent export oriented and are getting bonded warehouse facilities.