International Trade Fair-2010
Steps taken to check possible duty evasion by foreign cos

FE Report

The foreign companies willing to take part in the upcoming Dhaka International Trade Fair (ITF) will have to provide the bank guarantee, equivalent to 150 per cent of the assessed Customs duty on their products to be sold at the fair, according to a decision of an inter-ministerial meeting.

The meeting, held recently at the National Board of Revenue (NBR), was presided over by Hussain Ahmed, Member (Import Policy), NBR. The representatives from ministries of finance and commerce, Export Promotion Bureau and leaders of different trade bodies attended the meeting.

The meeting decided to enforce strict monitoring and vigilance to check any irregularity in the way of evading Customs duty at the time of allowing the goods of foreign companies to enter the country and re-exporting a part or whole of the same after the fair.

The meeting has encouraged Customs officials to impose duty before releasing the goods from the port. In the event of unwillingness of any foreign company to pay duty, it would have to provide necessary bank guarantee equivalent to 150 per cent of the assessed duty, sources said.

The meeting decided to conduct 100 per cent physical examination of the imported goods of foreign companies to be displayed and sold at the fair.

The month-long ITF is scheduled to start from January 01 next. A total of 465 local and foreign companies or business establishments will take part at the fair. Of the total, 32 foreign companies have been given permission to take part and sell their products at the fair, officials in the Export Promotion Bureau said.

The NBR will refund or adjust the bank guarantee money in the case the goods of foreign companies remaining unsold, the meeting also decided.

Besides, both foreign and local companies and establishments have to pay value added tax on their total sales.

The EPB will supply the information relating to ports of entry of foreign companies to the NBR.

The strict regulations will be observed for both local and foreign companies as lots of irregularities and incidences of tax evasions were detected during the previous international trade fairs, officials said.

"A good number of foreign companies in connivance with local officials evaded tax as they demanded refund of the bank guarantee money saying their items were not sold at the fair,' a top NBR official said.

"There provision for bank guarantee was not compulsory before."

"This time, we are serious about checking irregularities in the way of tax evasion."