The National Board of Revenue has taken a move to streamline the existing customs procedure codes (CPC) suspecting huge amount of revenue loss due to misuse of the codes.
Customs officials said many of the importers are availing duty and tax benefits on import of some of the goods, for which they are not entitled to get the benefits, because of mismatch between the CPCs and NBR orders on duty exemption on import of goods.
They said field level offices have recently identified such cases.
CPCs are generated by NBR at the Asycuda World System (a global data system) against every statutory regulatory order (SRO) and special order and other gazette notifications offering duty and tax benefits, either fully or partially, for import of goods and services.
Currently, there are more than 220 CPCs in the system.
Customs wing of NBR on July 31 formed a six-member committee to examine the authenticity of the CPCs as per SROs, orders and other notifications related to tax benefits.
The committee comprising officials from customs, income tax, VAT and information technology wings of NBR will match the codes with the SROs and orders.
It will also prepare a draft order by updating the CPC list.
Customs officials said that field offices identified some cases where the CPCs were offering duty benefits in excess to the original scheme offered through SROs and other orders.
Such mismatch is causing revenue loss of the government, they said.
Benapole Customs House commissioner Belal Hossain Chowdhury in last week told New Age that they detected that importers had been availing exemption of advance trade VAT and
advance income tax on raw materials of biscuits for years under a CPC containing duty waiver.
But, the items were not supposed to get the benefit, he said, adding that NBR would get at least Tk 100 crore from the sector.
Earlier he made a proposal to NBR to address the problems through issuing a separate order containing specific CPC for all SROs on duty benefits.
In the proposal, he said that the many duty exempted items were not exempted from payment of ATV and AIT.
But the related CPCs show zero ATV and AIT on import of those items which is wrong.
In that case, the customs officials collect AIT or ATV through treasury chalan from the importers.
So, each of the SRO of duty-free items must have another separate order from NBR defining all applicable taxes to resolve such complexities, the proposal said.