[ad_1]
The low tariff value shows a third of the import price, income and losses for the local textile industry.
One class of importers is importing at a much lower price than the real price of the fabric, since there is no tariff value (price established by the government) consistent with the international market price. As a result, on the one hand, the government is deprived of fair revenues, on the other hand, the local textile industry faces uneven competition.
Furthermore, the meter is used as the global measurement standard for oven cloth (national shirt and trouser cloth), but in Bangladesh it is valued in kg. And this opportunity is also manipulated by a class of importers.
Sources said that after showing low prices, the rest of the money was illegally sent to exporters through hundi or some collusive banks, which is considered money laundering. A class of banking officials and exporters from the respective countries are also involved in this process.
The Commerce Ministry recently ordered the Tariff Commission to review the issue in response to demands from the owners of the textile industry. After reviewing the matter, the Tariff Commission sent two recommendations to the ministry on December 10. It involves setting the tariff price of imported fabrics based on the international market price and determining the standard for measuring oven fabrics in meters instead of kg.
When contacted, Commerce Minister Tipu Munish told Ittefaq that he had not yet received the recommendation. After a detailed review, the ministry will take further action.
Meanwhile, depending on the local market, there is a large difference between the price of these garments and the retail price. Since there is no liability in the whole process, the revenue department is misleading both local industrialists and buyers. Only importers and sellers make unusual profits. On the other hand, the fabric brought into the duty-free facility (bond service) on the export condition is also being mixed with these fabrics.
The country imports more than seven types of fabrics under different SA codes (product identification numbers) for ovens and knitwear. According to the information received from the National Revenue Board (NBR), in the last fiscal year 2019-20, the import amount of these garments was 3 lakh 35 thousand 693 metric tons. Of this, 2 lakh 97,199 metric tons have been imported for export. These clothing come in a duty-free facility, known as a bond facility. The remaining 36,594 metric tons of fabric arrived as a commercial import. The amount of tax on these clothes is about 90 percent.
According to the NBR, under the surety mechanism, exporters imported 65 per cent of oven cloth made from cotton at Rs 742 per kg. But the same commercial fabric importers (with applicable duties) have shown an import price of only Rs 26 per kg! Its tariff value is three US dollars or about 255 rupees. Similarly, exporters of synthetic filament yarn fabrics imported at an average price of Rs 608 per kg, while commercial importers showed a price of Rs 282 per kg. Its tariff value is four dollars per kg or 340 rupees. The average import price of duty-free man-made staple fiber fabrics is Rs 798 per kg and commercial importers have shown Rs 269. For other fabrics, the price of dutiable fabrics has also been shown to be very low.
Local textile industry entrepreneurs and concerned NBR officials say that since there are no taxes on textiles brought in for export, there is no need to show lower prices. In other words, with a few exceptions, the average price of your imported goods is the standard for the price of fabric on the international market. The lower the price, the lower the import price. This tactic shows up close to the value of the fee set by the government. Whatever the import price, the tariff value is determined on the basis of the tariff value. As a result, commercial importers are seizing this opportunity.
The Rate Commission report says much the same thing. It said: “Since there are no tariffs on imports through bonds, the import price can be considered as the international price of the fabric.” On the other hand, due to high tariffs on commercial imports, the import price is much lower. Imported fabrics tend to be priced lower than the international market price of fabric, mainly due to tariffs. The rate at which the government has set tariff prices on local imports appears to be much lower than that of the international market and local producer prices. As a result, local producers face uneven competition. When asked about the report, the chairman of the Tariff Commission, Munshi Shahabuddin, declined to comment.
Khorshed Alam, a former head of BTMA, an association of textile mill owners and president of Little Group, believes that a class of importers has been committing irregularities for years due to low tariff values. As a result, the government is losing huge amounts of revenue and local industrial owners are losing business due to competition. He said that in addition to the tariff value, there is a lot of manipulation in this, as there is the possibility of imposing duties on the oven cloth in kg. But nowhere in the world is oven cloth loaded per kg. He complained that the rest of the money was sent “differently” by showing lower prices.
Entrepreneurs think that the NBR customs department does not ignore the fraud problem by showing the price difference. When contacted, a senior official in the NBR customs department told Ittefaq, on condition of anonymity, that if the data were sent to us, we would verify it and take reasonable steps to determine a reasonable fee value.
Ittefaq / ZH
[ad_2]
