Customs releases export containers unscanned

More than 2,386,500 export containers got through Chittagong Custom House (CCH) without scanning in the last eight years, which experts believe might have led to money laundering, smuggling and a huge loss of revenue.

The National Board of Revenue (NBR) made container scanning mandatory in September 2009.

Since then, the CCH has received around Tk 50 crore as fees to scan 24 lakh export containers. Both exporters and importers have to pay a scanning fee of $1.5 and $3 respectively for 20-foot and 40-foot containers.

According to experts, a lack of scanning exposes the country to a loss of valuable archaeological artefacts, live animals or the export of restricted goods.

A study conducted by CCH in December 2016 on the pros and cons of forming a scanning division showed the incidence of smuggling and false declaration cases.

Maruful Islam, former CCH commissioner, also acknowledged the risks.

“There is no data on the actual type and quantity of goods that have been exported.”

It is very easy to make false declaration or smuggle barred items for a lack of checking, he told The Daily Star.

Furthermore, there are export goods that are eligible to receive cash incentives, but whether those items were exported remains to be questioned, he added.

There is a window of opportunity for money laundering by false declaration of goods, said the commissioner.

According to a report sent by the CCH to the NBR in January 2017, only four scanners were being used to scan the import containers only.

The report proposed the installation of eight scanners for all containers.

According to customs officials, authorities began scanning import containers with four machines worth Tk 57 crore in 2010; export containers remained out of the purview due to an inadequate number of scanners.

Customs officials said there are scanners at only four out 12 gates at the port and the NBR and CCH failed to install any more scanners despite several initiatives.

Explaining past efforts, AKM Nuruzzaman, commissioner of CCH, said, “We floated a tender in March to procure scanning machines. But the tender was later cancelled as only one company participated.”

A tender will be floated soon to buy two scanners. “We hope they will be up and running by the end of the year.”

A high official of CCH said the scanning of import containers often reveal irregularities in documentation and product type. According to the 2016 study, at least 150 import containers were seized a month at that time for irregularities.

It only shows the extent to which there must be irregularities in the export containers as well, the official added.