The National Board of Revenue has tightened conditions for enjoying home consumption bond facilities by local industries following misuses of the benefits.
Customs export and bond wing of the revenue board on Tuesday issued an order, limiting the annual entitlement of duty-free import volume of raw materials under the home consumption bond licence and ensuring collection of dues from the bond licence holders.
Under the licence, manufacturers can import products for home consumption with deferred payment of duties and taxes.
An importer can pay the duties and taxes while releasing the goods from bonded warehouses within six month of import.
Although the revenue board is currently not issuing any new home consumption bond licence, a number of factories, including sugar and vegetable oil refiners, leather, steel, printing and packaging, electric and electronics and tobacco manufacturers, enjoy the home consumption bond facility under the licence previously issued.
According to the order, a licence-holder will be allowed to import raw materials up to 80 per cent of its annual production capacity under the benefits.
The factory will have to obtain permission from the revenue board to have annual import entitlement over 80 per cent, it said.
The bond commissionerates will not issue import entitlement to any factory if it have any unpaid dues arose due to import of higher volume of raw materials than entitlement, illegal release of goods from warehouses and other irregularities.
The factory, however, will be able to import raw materials and release those by giving unconditional and continued bank guarantees equivalent to the duties and taxes despite having unpaid tax claim by the tax authority.
Customs bond commissioners may allow the licence holder to pay the dues in six equal instalments following application of the licence holder on condition that he/she would pay interest at double rate than the bank rate determined by the Bangladesh Bank, according to the order.
Customs Bond Commissionerate, Dhaka commissioner Md Shawkat Hossain told New Age that the order was issued to clarify some issues and bring discipline in the sector.
It will also ensure collection of duties and taxes from the licence holders, he said.
Previously, the conditions and procedures were listed in a scattered manner that was causing complexities in managing the bond system, he added.
Officials said that customs bond commissionerates of the NBR had recently faced several problems in handling the home consumption bond licence as some licence holders were involved in irregularities.
There are cases where licence holders are enjoying the benefits without paying the dues worth over several crores of taka, they said.
Some licence holders are also importing higher volume of raw materials than the entitlement in the absence of specific guidelines, they added.
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