Conda asked to pay Tk13.43cr in lost revenue

The Chattogram Custom Bond Commissionerate has demanded Tk 13.43 crore in lost revenue from Conda Art Materials Bangladesh Ltd, a Chinese company based in the Chattogram Export Processing Zone (CEPZ), for misusing the bond facility, said officials.

A show cause notice was sent to the company in August this year in this regard, according to people familiar with the matter.

Customs officials said as a factory located in an EPZ, the company is allowed to import raw materials duty-free as per its bond licence. However, the company imported finished goods under the duty free bond facility with “Made in Bangladesh” labels by declaring those as raw materials and exported the items directly to the United States in violation of both local and international rules.

Besides, after the matter came to the authorities’ attention, Conda tried to remove illegal goods stored at its establishment using covered vans.

“The company has clearly violated the Customs Act and Bonded Warehouse Licencing Rules by importing the finished products through false declaration, exporting them and illegally removing them,” Chattogram Bond Commissioner AKM Mahbubur Rahman told The Business Post.

The offences are punishable under the Customs Act, he said, adding that the company has been sent a show cause notice and demanded Tk 13.43 crore in lost revenue.

Conda Art Materials began its operation in the CEPZ in October 2019.

The Custom Bond Commissionerate began investigating the allegations against Conda on April 13 this year after receiving a tip-off.

Visiting the company’s establishments in CEPZ, a team of the commissionerate found finished goods that the company did not have any machinery to manufacture. Further investigation revealed that the company imported the goods using false declarations. 

Later on April 17, acting on another tip-off, the commissionerate seized 10 covered vans full of illegally imported goods from the company premises that were to be removed from the CEPZ.