Customs intelligence has detected an attempt to evade Tk 1.17 crore in revenue for the government by allegedly declaring a shipment of prepared adhesive as epoxide resin, resulting in the recovery of Tk 2.39 crore in additional revenue, fines and release charges.
The Customs Intelligence and Investigation Directorate (CIID), through its Benapole Circle, brought a consignment imported by OSL Pharma Ltd under physical examination following a tip-off.
The importer had declared 30,360 kg of the goods as “Epoxide Resin” under HS Code 39073000, which carries a total tax incidence (TTI) of 33.63 percent.
Based on the declared HS code, the customs duty and taxes payable on the consignment amounted to Tk 1,01,63,070, according to a press release.
Physical examination, however, found two types of chemical products in the consignment. Samples were sent to Khulna University of Engineering and Technology (KUET) for laboratory analysis to determine their actual nature and classification.
The laboratory report identified the two samples as Epoxide Resin and Polyamide Resin. It also found that the two products, when mixed in a specified ratio, produce an adhesive.
According to Section VI Note 3(b) of the Bangladesh Customs Tariff (BCT) and the relevant explanatory notes, the two components, presented together in the same consignment and intended to be mixed in a specific proportion for direct use as a finished product, are classifiable as prepared adhesive.
The correct HS Code for the goods is 35069190, which carries a TTI of 76.50 percent.
Following application of the correct HS code and TTI, customs authorities detected an additional revenue liability of Tk 1,17,23,103.06.
Under an adjudication order issued by the Customs House, Benapole, Tk 1,17,23,103.06 was recovered as evaded/additional customs duty and taxes.
The importer was also fined Tk 1.20 crore and charged Tk 2 lakh as a release penalty.
Thus, a total of Tk 2,39,23,103.06 was realised by the government through the customs proceedings.
The CIID said the case demonstrates the importance of physical examination, scientific laboratory testing and proper application of the Customs Tariff in determining the correct classification of chemical products.
The action also prevented an attempt to use an HS code carrying a significantly lower TTI than the applicable rate, it said.