Smugglers not traced yet

Despite seizing consignments of smuggled-in cigarettes at the port, Chattogram Customs House has been unable to track down the smugglers over the last couple of years as documents related to the import have either gone missing or they had been forged.

During the period, the authorities seized at least nine large consignments of cigarettes brought into the country labelled in most cases as garment factory equipment.

But officials have failed to hold the smugglers accountable as the related documents went missing or the smugglers had set up companies that existed on paper only, two investigations by CCH and Customs Intelligence and Investigation Directorate (CIID) have found in February 2016 and July this year.

The probe bodies also found evidence of negligence of duty by bank and customs officials which helped smugglers bring in cigarettes under false declarations.

On May 6, officials seized two consignments worth about Tk 10 crore in the local market. Brought by M/S N Islam Enterprise and Anwar and Co, the cigarettes were labelled as machinery to evade high tax.

The tax on industrial machineries is up to three percent while it is up to 600 percent for imported cigarettes. Some readymade garment factories were also caught in the last couple of years smuggling in cigarettes labelled as tax-free raw materials.

On April 28, the CIID seized another haul worth about Tk 10 crore labelled as raw material by Gram Bangla Food Corporation.

Investigators said the three companies that brought the cigarettes exist only on papers.

Importers can be easily identified after submission of taxation documents, said Nuruddin Milon, deputy commissioner of CCH. “But in these cases, we conducted the drives before submission of the relevant documents, as we had information that the hauls would soon be replaced with some other goods.”

In March last year, customs seized cigarettes worth about Tk 37 crore from 12 containers labelled as machinery.

A case was filed against the importers Henan Anhui Agro Lc and Agro BD & JP with Paltan Model Police Station in the capital. Several months later, National Revenue Board in two separate investigations found that only one person was behind the two companies that existed mainly on paper. The case is being investigated now.

Although there is a rule that a bank official must visit a company before issuing it a letter of credit (LC), it is hardly followed. Moreover, some customs officials are negligent in thoroughly examining the import related papers and the containers, the customs investigators found.

In 2016, the customs busted cigarettes of FRC Knit Composite worth Tk 4.70 crore, M/S Genetic Fashion Ltd Tk 7.20 crore, RAZ Apparel Ltd Tk 9 crore and Kadera Sportswear Ltd Tk 9 crore.

The companies told investigators that their names and addresses were used by frauds.

Smaller amounts of cigarettes are often busted by customs officials, but smugglers remain untouched in most cases.

Customs employees help the smugglers by making passbook, importer's permission letter and BKMEA utilisation declaration disappear, multiple CCH investigations found in recent years.

The investigation reports recommended properly examining customs procedure codes, verifying LCs, importer's permission letter and imported goods.

The reports also recommended engaging customs employees in handling important documents. At present, import-related files are often handled by importers and their agents.

Asked about this, customs Commissioner AKM Nuruzzaman said all documents are supposed to be handled by customs employees, but due to manpower shortage, the importers take the documents from one section to another. He admitted that forgery and disappearance of documents resulted from the practice.