Lack of Proper Management, Monitoring of Bond-related Activities
Irregularities grip CEPZ, Karnaphuli EPZ
Customs Bond Commissionerate Chittagong region will start overseeing the bond-related activities of Chittagong Export Processing Zone (CEPZ) and Karnaphuli EPZ by next month as the irregularities have increased at the two export processing zones.
Customs Bond Commissionerate, Chittagong region is now overseeing bond-related activities of the bonded warehouses, including those in Korean Export Processing Zone (KEPZ) and Comilla Export Processing Zone.
But, the CEPZ and Karnaphuli EPZ along with the bonded oil depots have been under the Chittagong Customs House (Export).
The customs house has to control bond related activities of these two EPZs side by side with looking after the delivery activities of imported raw materials. It also oversees export of finished products by 100 percent export oriented firms through Chittagong port or other private depots as well as auction activities of goods imported through Chittagong port.
It has become difficult for the customs house to give required attention and perform bond-related activities like determining quantity of raw materials for import, making export and consumption sheets through assessment and renewing bond license after conducting audit, said the sources a Customs House (Export) and Bond Commissionerate, Chittagong.
Due to lack of proper management and monitoring of bond-related activities and absence of proper physical examination of goods imported under bond facilities, irregularities have increased at the two EPZs in the recent months, the sources said.
The irregularities included pilferage of goods imported under bond facilities outside EPZ areas and import of contraband drugs, valuable machineries and electronic items through false declaration.
Though a few of such consignment of pilfered goods are seized, occasionally many of them are found in the open market depriving the country of huge revenue.
Jamal Hossain, commissioner of Customs House (Export), said many major irregularities remain untraced or unearthed due to absence of annual audit of export and import of the firms inside EPZs and non-implementation of Bonded Warehouse Licensing Act 2008, Standing Order 14/2008 and 15/2008 by Chittagong Customs House (export).
When contacted, Chittagong regional Customs Bond Commissionerate Additional Commissioner Dr Md Matiur Rahman said they are ready to oversee CEPZ and Karnaphuli EPZ.
But, bringing the two EPZs under Bond Commissionerate through the usual process of gradual handing over of licence and audit files, irregularity related documents, import-export registers and transfer of database of hundreds of firms may take around four to six months.
Due to a lengthy handing over process, incidents of irregularities are feared to take place in a massive way threatening revenue collection.
“To avert irregularities National Board of Revenue (NBR) can issue an executive order for performing bond related activities of the two EPZs under Customs Bond Commissionerate, Chittagong regional office within the minimum time,” he said.
“Such an order can immediately put EPZ branch of Chittagong Customs (Export) along with its manpower and setup under Bond Commissionerate, Chittagong,” Dr Matiur told The Daily Star on Monday.
“It would also be helpful for uniting customs house (export) and customs house (import) while paving the way for turning Bond Commissionerate, Chittagong into a full-fledged one as well,” he added.
Customs Bond Commissionerate issues bonded warehouse licences to traders to import raw materials without any duty charge against commitment of exporting the finished products.
All the imported goods are stored at the bonder's warehouse and in case of failure in exporting products against imported raw materials they are to pay duty and taxes for the rest of the goods imported.
The bond commissnioerate checks misuse of bond facilities through risk management and preserve and record various data to ensure proper collection of revenue while facilitating the export business with bond facilities.
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