Along with customs agents, exporters and importers are also going to be held responsible for the submission of documents and declarations as proof necessary under the due process.
The government includes such provisions in the new Customs Law 2023, while abolishing its special power of granting duty exemptions without consultation with the National Board of Revenue (NBR).
However, the government’s general power – granting duty exemptions after consultations with the NBR – will remain consistent with the existing Customs Act, 1969, say finance ministry officials involved with the formulation of this bill.
The Customs Bill 2023 was passed in the parliament on Wednesday, aiming to ensure fiscal discipline and accountability in import revenue collection and trade facilitation.
Law Minister Anisul Huq, in absence of Finance Minister AHM Mustafa Kamal, moved the bill and it was passed by voice vote.
According to the objective of the bill, revenue collection at the import level of Bangladesh is being conducted under the Customs Act, 1969.
The government tried to pass the bill as soon as possible, as the global lender International Monetary Fund (IMF) is considering the new law as a condition for the $4.7 billion loan.
Under the Customs Law of 2023, if an exporter, importer or agent confess voluntarily about any irregularities such as false declaration before customs catches them, the guilty party will be exempt from paying any fines.
In the existing Customs Act of 1969, there are general power and special power provisions on granting duty exemptions. The general power provision will remain unchanged.
The existing law states, “If the government is satisfied, after consultation with the Board, that it is necessary in the public interest to do so, it may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by notification in the official Gazette, exempt any goods imported into, or exported from Bangladesh or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon provided that if, in a financial year, exemption under this subsection is given in respect of any goods the rate of duty cannot be changed more than once in that year so as to increase that rate.
“And an exemption granted under sub-section shall be effective from the date mentioned in the notification issued under that sub-section.”
Meanwhile, the government's power to grant exemption from duty in exceptional circumstances may be abolished from the new customs act.
The law further mentions, “If the government is satisfied that it is necessary in the public interest to do so, it may, under circumstances of exceptional nature, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs-duties chargeable thereon.”
The new customs law incorporates provisions on customs guarantee, guarantor, and relevant provisions of the Information and Communication Technology Act, 2006.
This law also mentions that temporary import procedures shall be terminated upon re-export of any goods, and it incorporates inward processing procedures and the duration of inward and outward processing procedures.
It is going to amend the fines regarding different customs incidents and it said that if anyone is punishable under any other law, without undermining it, he or she shall be punished in addition to this law.
Commenting on the matter, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former president Md Siddiqur Rahman said, “Agents are the final authority on submitting proof of documents and declaring the goods imported or exported.
“If our paper is not appropriate, the agents do not accept it. But why will the owners be held liable after submission of the papers? We do not have the scope to scrutinise whether the agents miss-declared the goods or not. So the agents should be solely liable.”
He added that withdrawing the government's special power is not a concern as the NBR is a revenue collecting authority, and without consulting them, any exemption may hamper revenue mobilisation.
“However, due to such changes, getting duty exemptions for essential imports may become more time consuming. Smooth imports of essentials are key to bringing their prices down in the local market, and ensure a steady supply.
