Bangladesh
Bank has asked banks not to open letters of credit for duty-free import of
industrial raw materials under bonded warehouse system in favour of the
businesspeople who do not have licence or renew them from the Customs Bond
Commissionerate.
The
BB on Monday issued a letter to managing directors and chief executive officers
of all banks in line with directions given by the Customs Bond Commissionerate
asking them (banks) to take required measures in this regard to tackle duty
dodging.
A
BB official told New Age on Monday that the Customs Bond Commissionerate had
issued a letter to the central bank on March 25, requesting it to ensure the
government revenue as some banks frequently opened LCs for the duty-free
back-to-back imports in favour of some businesspeople who did not have licence.
The
Customs Bond Commissionerate offered the licence for due-free raw material
imports to the businesspeople who use the products to produce export-oriented
goods, he said.
But,
some businesspeople sell the imported raw materials in the local market without
using the products to produce the export-oriented goods, the official said.
The
Customs Bond Commissionerate in its letter said that it had already created a
web site in which the list of the licence-holders, who are considered to enjoy
the duty-free facility, was attached.
The
banks should follow the web site before opening the letters of credit for the
duty-free imports, the letter said.
Besides,
the banks will have to issue Proceed Realisation Certificate after ensuring the
export worth’s repatriation, the Customs Bond Commissionerate said.
The
banks give the certificate to the exporters after they repatriate the worth of
the exported products to the country, the BB official said.
Some
banks, however, provide the certificate without ensuring the repatriation worth
of the exported products, he said.
The
Customs Bond Commissionerate earlier suspended a number of licences of the
businesspeople as they were found selling the back-to-back imported-products in
the local market after enjoying the duty-free facility illegally.
For
this reason, the Customs Bond Commissionerate has also attached the list of
businesspeople with its web site whose licences were earlier cancelled or
suspended.
The
central bank earlier unearthed that some persons patronised by the ruling
parties had managed the licence to enjoy the duty-free import although they had
not played any role in export-oriented business, the BB official said.
‘After
selling the products in the local market, the persons never went for any import
again meaning that they did so just to evade the duty’, he said.
The
central bank will take punitive measures against the banks which will open such
type of LCs to facilitate the businesspeople illegally, the central banker
said. (Source: New Age, March 31, 2015)