Bangladesh’s Customs Bond Commissionerate (CBC) revealed that two export-oriented apparel companies had evaded duty of around BDT 12 crore misusing the duty-free bonded warehouse facility. In a recent spot inspection, CBC officials found that KC Apparels Limited and Knit Concern Limited, sister concerns of a same business group, were storing much higher amounts of raw materials in the bonded warehouses than the registered amount. According to the sections of Customs Act, 1969, the taxmen can confiscate the goods and the individuals behind the irregularity are liable to a penalty not exceeding (five times) the value of the goods. The section also empowers the taxmen to punish the guilty of rigorous imprisonment for a term not less than three months but not exceeding two years.
