Golden Son fined Tk 43cr, loses bonded warehouse licence
Customs authorities have cancelled the bonded warehouse licence of Golden Son Ltd and fined the listed firm Tk 43.29 crore for misusing the facility.
The Customs Bond Commissionerate penalised the company, which manufactures garment accessories and household items, for illegally transferring duty-free imported raw materials from the bonded warehouse, according to a post on the website of the Dhaka Stock Exchange yesterday. The order was issued on October 29 and the company has been ordered to pay the fine in 15 days.
Bonded warehouses are authorised by the customs authorities for storing goods on which duties are deferred until the items are removed for domestic consumption. In case of exports, no duty has to be paid.
According to the post, the company has failed to come up with a satisfactory explanation about a complaint brought against it over the illegal transfer of duty-free imported raw materials from the bonded warehouse.
The authorities fined Golden Son as the allegations were “undisputedly proven and established”.
Golden Son has done it several times, which the authorities concluded to be a tendency and decided to scrap the company's bonded warehouse licence, according to the DSE statement.
Shares of the company, which was listed in 2007 and now traded as a B category stock, fell 2.11 percent to close at Tk 13.90 yesterday on the DSE.
The government has given bonded warehouse benefit for a wide range of industries to expedite exports. Almost all items are entitled to get bonded warehouse. A 100 percent export-oriented manufacturing unit can get bonded warehouse.
The number of bond licences stands at 6,596, according to the Customs Bond Commissionerate.
Daily market:
Dhaka stocks ended up for a third straight session yesterday on the back of buoyant transactions.
The benchmark index, DSEX, rose 29.38 points to 6,159.07. The daily turnover increased 2.83 percent to Tk 765 crore.
The market started the session on a positive note and remained upward throughout the day, said UCB Capital Management in its daily market analysis.
Most of the heavy weight equities reported moderate gain and investors were mostly active in banking stocks, it said.
Among the major sectors, banks gained 0.93 percent while fuel and power sectors shed 0.66 percent.
City Bank was the highest traded share with a turnover of Tk 38.44 crore, followed by GP with Tk 32 crore.