Two Ctg exporters face legal action over forged import documents

The Chattogram Customs Bond Commissionerate is taking legal action against two garment exporters for allegedly forging documents to import duty-free raw materials under the Free of Cost (FOC) scheme and selling them in the local market.

Under the FOC facility, overseas buyers supply raw materials directly to export-oriented manufacturers without opening letters of credit (LCs). The materials enter duty-free on the condition that they are used exclusively for export production.

Tap here to add The Daily Star as a trusted source

Customs authorities are preparing to cancel the bonded warehouse licence of Santex Knitwears Ltd and file criminal charges after an investigation revealed that the company imported 332 tonnes of fabric worth around Tk 20 crore over two years using four forged certification letters.

Officials served a show-cause notice to Santex Knitwears earlier this month after reviewing its import and export records.

Another exporter, Focus Apparels BD Ltd, is under investigation for allegedly using a forged subcontract agreement in the name of Al Yusra Textile Ltd to remove nearly 19 tonnes of imported fabric from its factory and sell it on the local market. Officials confirmed the irregularities during an on-site inspection on July 21.

Customs officials noted that such diversions deprive the government of revenue while undercutting compliant businesses that import raw materials through regular, duty-paid commercial channels.

"We have found evidence that Santex Knitwears abused the FOC facility and used forged certification letters issued by the Bond Commissionerate. We are preparing to cancel its bonded licence and take legal action," said Md Zakir Hossain, commissioner of the Chattogram Customs Bond Commissionerate.

"Legal action will also be taken against Focus Apparels for illegally removing bonded goods using a forged subcontract agreement," he added.

Zakir said around 40 to 42 companies in Chattogram currently import raw materials under the FOC scheme, and authorities have identified irregularities involving 11 firms.

To curb abuse, the commissionerate has imposed 10 compliance conditions, including mandatory stock verification and supervised fabric cutting, to ensure that duty-free materials are used in export production.

Responding to the allegations, Gias Uddin Masud, head of commercial at Santex Knitwears, said the company imports raw materials both under the FOC scheme and via LCs.

"We relied on a person known to us to handle customs and bond-related documentation. He supplied us with forged documents, and we are no longer able to contact him," Masud said.

He added that the company's owner, AKM Alamgir, is currently abroad and that Masud is responding to all notices on the company's behalf.

Mohammad Shahin, commercial manager of Focus Apparels BD Ltd, declined to comment.

Meanwhile, Md Mahbubur Rahman, commissioner of Chattogram Custom House, said customs had tightened scrutiny of FOC imports.

"Besides verifying certification letters, we are checking utility declarations issued by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)," Rahman said, adding that officials conduct physical inspections at factories in suspicious cases.

A senior customs official, speaking on condition of anonymity, said the two cases were not isolated incidents.

"We have identified an organised network abusing the FOC facility through forged certification letters, fake subcontract agreements, and fraudulent export declarations. Action will be taken against all companies involved," the official said.

Customs sources said investigations are ongoing, with more companies under scrutiny. Once the probes conclude, authorities will seek the cancellation of bonded licences, recover evaded duties and taxes, and file criminal cases against those responsible.