NBR detects Tk85.21 crore revenue evasion through bonded warehouse misuse
The Customs Intelligence and Investigation Directorate of the National Board of Revenue (NBR) has detected Tk 85.21 crore in alleged revenue evasion through the misuse of bonded warehouse facilities by a company in Siddhirganj, Narayanganj.
In a press release issued today, the NBR said an investigation found no effective production system at the factory, although the company had declared exports on paper. Machinery installed for production also remained unused for a long period.
Acting on a tip-off, a preventive team of the Customs Intelligence and Investigation Directorate raided UAGM BD Limited at B/240, Mizmizi South Para in Siddhirganj on September 9.
The company operates under the Customs Bond Commissionerate, Dhaka (South), as a deemed exporter. It had been importing various raw materials, including PVC flex, PVC film, PET film, artificial leather, duplex board and colour board, duty-free under the bonded warehouse facility.
According to the NBR, the company claimed to manufacture products using the imported materials and export them through back-to-back letters of credit (LCs).
During the raid, officials found major discrepancies between the company's declared production volume and its electricity consumption. A review of electricity bills showed that power consumption was extremely low compared with the reported level of production.
The investigation also found no alternative electricity connection, solar power system or gas-fired production facility at the factory.
Officials further observed that production machinery remained idle and that the factory floor lacked an environment suitable for regular manufacturing operations.
The NBR's preliminary investigation suggests that the company obtained utilisation permissions (UPs) from the bond commissionerate and showed exports through back-to-back LCs, while allegedly selling duty-free imported raw materials illegally in the local market.
Following the raid, investigators analysed import records, production capacity, electricity consumption data, utilisation permissions and other relevant documents before finalising an investigation report on the alleged revenue evasion of Tk 85,21,46,495.
The directorate has sent the report to the Customs Bond Commissionerate, Dhaka (South), for necessary legal action.
The NBR said bonded warehouse facilities play an important role in developing the country's export-oriented industries. However, misuse of the facilities to sell duty-free imported raw materials in the domestic market causes revenue losses for the government and creates unfair competition for compliant businesses.
The directorate said it would continue monitoring bonded warehouse operations by analysing electricity consumption, actual production capacity and factory activities to identify misuse of bonded facilities, customs duty evasion and other irregularities.
