NBR detects Tk 85.21cr revenue evasion

The National Board of Revenue (NBR) has detected alleged revenue evasion worth Tk 85.21 crore through the misuse of bonded warehouse facilities by a company in Siddhirganj, Narayanganj. 

An investigation found that the company claimed to export goods, but officials found no evidence of regular production at its factory.

The Customs Intelligence and Investigation Directorate under the NBR found the alleged revenue evasion at UAGM BD Limited, located at B/240, Mizmizi Dakshin Para in Siddhirganj.

In a press release issued on Wednesday, the NBR said its preventive team inspected the factory on 9 September following a tip-off.

The company operates under the Customs Bond Commissionerate, Dhaka (South). It imports raw materials duty-free under the bonded warehouse facility, which allows eligible export-oriented businesses to import materials without paying customs duties, subject to certain conditions.

The materials imported by the company included PVC flex, PVC film, PET film, artificial leather, duplex board and colour board.

According to the NBR, the company claimed to use these materials to produce goods for export. It also showed exports through back-to-back letters of credit (LCs), a system that links import payments to export orders.

However, investigators found major differences between the company's declared production and its electricity use.

A review of electricity bills showed that power consumption was too low compared with the level of production reported by the company. Officials also found no alternative power supply, solar power system or gas-based system that could support production.