Customs to auction off 85 luxury cars
The customs authority plans to auction off 85 luxury cars that were forfeited at Chittagong Port as those did not pay taxes or were not re-exported, a senior customs official said.
These vehicles were imported with a duty-free privilege called Carnet de Passages, under two UN treaties that allow tourists to bring their vehicles to a country without payment of customs duties, provided the vehicles are taken back by the foreign nationals.
The National Board of Revenue scrapped the duty-free import benefit a couple of years ago, seeing that the privilege was being abused.
Many cars that were brought in with the benefit were neither re-exported nor legalised by paying customs duties, according to NBR. The NBR also found that Bangladesh was not a signatory to the treaties under which the Carnet de Passages facility is given.
“These cars have been stuck at the port since 2013. Importers did not release the vehicles by paying the duties and taxes. As a result, these were forfeited,” said Moinul Khan, director general of the Customs Intelligence and Investigation Directorate.
Khan is a member of a committee formed by NBR to suggest ways to clear these cars. This will be the second auction to be organised for these cars.
In August last year, Chittagong Customs House held a special auction for the cars, including Mercedes Benz and BMW. But it received bids for 59 cars and that too at very low quotations, according to the NBR.
For example, the bid for a BMW manufactured in 1999 was quoted at Tk 2 lakh. The auction price for a Mercedes Benz, manufactured in 2001, was quoted at Tk 5 lakh and a 2002 Pajero was called at Tk 3.10 lakh, according to the customs officials.
Many buyers were not interested to take part in the auction because of the hassle in getting permits from the commerce ministry to take delivery of the cars from the port, they added.
As a result, the auction prices were very low and no vehicle was released, according to NBR meeting minutes.
Khan said the NBR plans to hold the next auction in the presence of a representative of the Anti-Corruption Commission.
“We also plan to go for wider publicity to get a good response.”
He said the NBR chairman may also send a “demi-official” letter to the commerce secretary to issue clearance permits to the auction winners.
“Anyone with a taxpayer's identification number will be able to participate in the auction. No trade licence will be required,” he said.
Showkat Ali Saadi, additional commissioner of the customs house in Chittagong, said the date for the auction will be announced soon.
The tax administrator has given authority to the auction committee to cancel the auction, if the quoted prices in the second auction are not satisfactory as well, he said.
Since 1963, the revenue authority has allowed 245 cars under the Carnet de Passages facility. Most of the vehicles were brought in by British-Bangladeshis hailing from Sylhet, according to the NBR officials.