Conda Art Materials Bangladesh Comnay Ltd, a chinese company at Chattogram Export Processing Zone, imported products — manufactured in China labelled Made in Bangladesh — through false declaration and exported them to United States illigally.
However, there is no provision for export to other countries unless the bond facility is imported without any modification, extension or addition that violates local and international 'Country or Origin' laws which is a punishable offence.
In this the government has evaded revenue of Tk 15,19,99,510. As a result, Chattogram Bond Commissionerate fined the company Tk 18.20 crore. After hearing the allegation, Chattogram Bond Commissionerate inspects the institution on April 13 2022.
At that time, the commissionerate seised 10 curved vans during the illegal removal of goods the truth was found. Same time, visiting NBR server, the company is exporting these products to Dollar Tree in the United States. Prior to that, 14 more shipments were exported to Dollar Tree.
According to Chattogram Bond Commissionerate sources, Conda Art Materials Bangladesh Company Limited is registered as an art material company at Chattogram Bond Commissionerate. At the beginning of 2022, the commissionerate received news that by abusing the bond facilities, they were importing manufactured commercial products instead of raw materials and exporting them directly, evading the eyes of customs by making false declarations.
a team from commissionerate conducts a surprise visit on April 13 2022 got the truth by inspecting the main unit of the company and Intu Bond, X Bond warehouse and production floor of Unit-2. As a result, the officials of the commissionerate completed the inspection in the presence of the company's representatives.
During this time, 1 lakh 3 thousand 862 fabric tote bags, 83 thousand 16 metallic Halloween treat bags and 4 thousand 320 polyester lunch bags were found. The company has no machinery to make it. When the officials present at the institution were interrogated, they could not give any answer.
As a result, they were asked to provide documentary evidence against the storage of the finished products in Intu-Bond warehouse, but they could not produce any documentary evidence. Later for further verification as per product description Custom system Import General Manifest (IGM) from BEPZA automation system from custom system Asycuda Walled system no information about import of product of above description was found even though the company checked the IP. That is, the company has imported the finished goods received in the bonded warehouse under false declaration.
On the other hand, based on another information, the previous day i.e. on the night of April 12, the company placed 10 covered vans loaded with finished products at various points inside the EPZ for illegal removal. Then on April 17, Chattogram Bond Commissioner CEPZ two assistant revenue officers on duty identified the covered vans at different points of CEPZ.
When the organization was initially questioned about detected covered vans they denied it. Later on contacting the shipping line's mobile number written on the covered van, they said the vehicles were supplied to M/s Konda Art Materials Bangladesh Company Limited for export.
Later, when the company accepted the responsibility, the covered vans were seised and taken to unit-2 of the company. Then a team of 15 members of Chattogram Bond Commissionerate conducted a 100 per cent manual inspection at Konda Art Materials Bangladesh Company Limited in the presence of the company's officials. That is, the company was trying to get these products out of the EPZ for export. However, there is no purchase list of any such raw materials either local or imported.
In other words, the company was engaged in trying to import these manufactured products under false declarations, custom permit, BEPZA e-export permit, gate pass, EXP, bill of entry, invoice, packing list, etc.
Chattogram Bond Commissionerate has given the final verdict of the case which started in 2022. It can be seen that the company has evaded revenue of Tk 15 crore 19 lakh 99 thousand 510 through various means. However, as all the allegations brought against the company have been proven beyond doubt, the Chattogram Bond Commissionerate has fined the company Tk182.2 million.
Therefore, the Chattogram Bond Commissionerate has ordered to deposit a total of 33 crore 39 lakh 99 thousand 510 taka through the treasury challan including 15 crore 19 lakh 99 thousand 510 taka embezzled through the institution.
Traders of Bangladesh said that the government has given bond facilities as commercial assistance to traders for the purpose of foreign exchange earnings. Through which traders are collecting raw materials from local or abroad and making products and exporting them abroad.
But by misusing this facility, many traders are importing commercial goods from abroad. On the contrary, the government is losing huge amount of revenue. At the same time, if finished products are imported and exported without any changes, there is a possibility of damaging the reputation of Bangladesh as well as creating major obstacles.
In this regard, Chattogram Bond Commissioner AKM Mahbubur Rahman told The Business Post, “The company has illegally imported both the raw materials used in production stored in the company by false declaration compared to the raw materials obtained during the 2020 audit and the raw materials obtained during the investigation.
“The company has clearly violated the provisions of the Customs Act and the Bonded Warehouse Licensing Rules under various sections by importing the manufactured goods under false declaration and re-exporting them or illegally removing them. This is an offense punishable under Custom Law. As a result, all the crimes brought against the company have been proved beyond doubt and the company has been fined 18 crore 2 million taka.”
Conda Art Materials is a subsidiary company of Ningbo Conda Art Supply Group. The company supplies arts and crafts products to more than 90 countries around the world. The company started investing in Bangladesh from October 2019.
