Siddhirganj:The Customs Intelligence and Investigation Directorate of the National Board of Revenue (NBR) has uncovered alleged revenue evasion amounting to Tk 85.21 crore through the misuse of bonded warehouse facilities by a company in Siddhirganj, Narayanganj.
According to Bangladesh Sangbad Sangstha, the NBR's investigation revealed that the company had no effective production system, despite declaring exports on paper. The machinery intended for production remained unused for an extended period.
Acting on a tip-off, a preventive team from the Customs Intelligence and Investigation Directorate conducted a raid at UAGM BD Limited located at B/240, Mizmizi South Para in Siddhirganj on September 9. The company, operating under the Customs Bond Commissionerate, Dhaka (South), was importing various raw materials duty-free under the bonded warehouse facility. These materials included PVC flex, PVC film, PET film, artificial leather, duplex board, and color board, which the company claimed to use for manufacturing products for export through back-to-back letters of credit.
During the raid, officials identified significant discrepancies between the company's declared production volume and its electricity consumption. An examination of electricity bills indicated that power consumption was notably low compared to the reported production levels. The investigation also noted the absence of alternative electricity sources, solar power systems, or gas-fired production facilities at the factory.
Further observations revealed that the production machinery was idle and the factory floor lacked conditions conducive to regular manufacturing operations. The NBR's preliminary investigation suggests that the company allegedly sold duty-free imported raw materials in the local market instead of exporting them, while showing exports through back-to-back LCs by obtaining utilization permissions from the bond commissionerate.
Following the raid, investigators reviewed import records, production capacity, electricity consumption data, utilization permissions, and other relevant documents before finalizing an investigation report on the alleged revenue evasion of Tk 85,21,46,495. This report has been forwarded to the Customs Bond Commissionerate, Dhaka (South), for necessary legal action.
The NBR emphasized that bonded warehouse facilities are crucial for the development of the country's export-oriented industries. However, their misuse to sell duty-free imported raw materials domestically results in revenue losses for the government and creates unfair competition for businesses that comply with regulations. The directorate has pledged to continue monitoring bonded warehouse operations, analyzing electricity consumption, actual production capacity, and factory activities to identify misuse, customs duty evasion, and other irregularities.