Audit renewal must to avail bonded warehouse facility14 September 2021
The National Board of Revenue (NBR) has decided not to extend tenure of the bonded warehouse facility without renewal of audit report of the company to bring more transparency in it.
Besides, the quality of imported raw materials must be remained standard and the company must have ability to export finished goods by using the raw materials to expand the bonding tenure, NBR officials said.
In a circular issued on Sunday, the NBR said it has been noticed that some export-oriented bonded companies are failing to export finished goods within the assigned bonding tenure.
This has created complexities in exporting finished goods by using the imported raw materials, despite the quality of the raw materials having standard, added the circular.
Under this circumstance, the expansion of bonding tenure should be given with the conditions, it added.
The requirements are quality of raw materials must be remained standard, the company has the ability to export fished-goods by using the raw materials and audit report must be up-to-date.
Currently, the exporters are enjoying 30 months tenure for raw materials and 18 months for accessories for producing export-oriented finished-goods.
NBR officials said the circular has been issued with a view to maintaining rules of the bonded warehouse facility strongly and preventing misuse of it.
It will also facilitate the businesses, increase foreign currency, bring transparency in the warehouse facilities and ensure legal base for using the raw materials after the bonding tenure is expired, they said.
Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The New Nation, "NBR has issued the circular newly for maintaining bonded warehouses rules strongly."
"It will also bring transparency in using the duty-free benefit," he added.
NBR provides the bonded warehousing benefits to a wide range of industries to encourage export-oriented industrialization and facilitate exports.
Availing the facility is important for the export-oriented industries as it enhances their export competitiveness.
All the imported goods cleared under bonded warehouse license are stored at the bond holder's warehouses.
In case of failure to export, importers are to pay duty charges and taxes for the rest of the goods imported.
Bondholders are required to maintain bond registers and other documents as the beneficiaries are subject to mandatory yearly audit.