Customs detects Tk1.59 crore revenue irregularities in export consignments of two garment exporters

Customs officials have detected alleged irregularities in export consignments of two garment exporters, involving the illegal removal of fabrics imported under bond facilities and suspected revenue evasion of more than Tk1.59 crore.

The irregularities were uncovered during separate inspections at two off-dock facilities in Chattogram, where customs officials found large quantities of garments that did not match the exporters’ declarations, according to a press release issued by Customs House, ICD, Chattogram yesterday evening (12 November).

In the first incident, customs officials inspected an export consignment of Eagle Textiles at QNS Container Service Ltd off-dock on 11 November.

The exporter, based in Katgara Bazar, Savar, Dhaka, had declared four categories of garments – ladies’ shirts, men’s shirts, ladies’ trousers and ladies’ dresses – packed in 237 cartons under Bill of Export No C-712836, dated 9 November.

However, a 100% physical examination found 173,349 pieces of stock-lot garments across 14 categories, made from knit and denim fabrics and packed in 237 bags. The products were not included in the export declaration.

Customs officials also found that the fabric composition mentioned in the Utilisation Declaration (UD), issued by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), did not match the inspected goods.

The UD, issued on 16 August, specified a fabric composition of 95% polyester and 5% spandex woven print.

According to the customs release, the estimated revenue involved in the alleged illegal removal of bond-facility imported fabrics exceeded Tk80 lakh. Officials also estimated that around Tk9 lakh in VAT had been evaded on locally sourced garments, calculated at 7.5%.

In the second incident, customs officials detected similar irregularities in a consignment of Reaz Knitwear Limited at Shafi Motors Limited off-dock on 28 October.

The exporter had declared 687 cartons of men’s polo shirts under Bill of Export No C-649046, dated 27 October.

However, physical inspection found garments made from knit and denim fabrics across 50 categories that were not covered by the export declaration.

The inspection also found that 65,050 pieces of garments made from fabric with a composition of 96% polyester and 4% spandex, as specified in the company’s UD issued by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), were missing from the consignment.

The UD was issued on 2 July.

Customs officials estimated that the revenue involved in the alleged illegal removal of bond-facility imported fabrics in this case exceeded Tk70 lakh.

Customs House, ICD, Chattogram, said final reports were being prepared and legal proceedings were underway in both cases.

The customs authority said it would continue surveillance and enforcement operations to protect government revenue and prevent the misuse of bond facilities.