The National Board of Revenue instructed the country鈥檚 customs houses to clear consignments for bonded factories even if there are minor discrepancies between the declared HS Code and product description during customs inspections.
In this regard, NBR issued a letter to all customs houses across the country on Tuesday.
According to the letter, it has come to NBR鈥檚 attention that bonded warehouse license-holding companies often experience delays in getting their goods cleared by customs, mainly when customs officials conduct inspections of imported consignments.
The issue arises particularly when the HS Code or product description declared in the bond license, entitlement sheet, or relevant Utilisation Declaration does not match what is found during inspection.
Such delays, however, have been disrupting the timely shipment of export orders amid the challenging scenario of international trade.
To resolve this, the NBR directed customs houses that if the first four digits of the HS Code match the bonded item, the goods can be released quickly.
Importers, however, must submit an undertaking to include the new code in their license and UD within 30 days.
Businesses welcomed the move, saying they had long urged NBR to resolve this complexity.
They added that since issues with HS Codes were a form of non-tariff barrier, the directive would improve the ease of doing business.
The NBR letter further stated that if goods are declared for import based on the product description and HS Code, but Customs determines a different product description, importers must give the update in the UD within 30 days for clearance approval.
Moreover, if Customs determines a different HS Code, bonded companies must update the revised code in their entitlement through the Customs Bond Management System and complete the clearance process within a maximum of two days.
NBR also said the directive, effective immediately, would apply to consignments currently pending due to such disputes.
Proper compliance with this directive would make export operations of bonded facilities faster, smoother, and more cost-effective, NBR noted.
Talking to 抖阴精品, Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the NBR鈥檚 decision was a smart move to ease the business environment.
鈥楾he issues with HS Codes were one of the major non-tariff barriers for business, which NBR removed with a very simple notification,鈥� he added.
He also said that there are still unresolved issues, such as zero VAT and entitlement limitations for bonded companies, which should be addressed immediately to accelerate the country鈥檚 business.
鈥榃e urge the NBR and the government to focus on this,鈥� he added.
Earlier on September 3, the NBR decided to hold a view-exchange session with all stakeholders on the second Wednesday of every month, giving the highest priority to trade facilitation, a move that was also widely welcomed by businesses.
At these sessions, business representatives will be able to directly present their field-level problems related to Customs, Income Tax, and VAT before the NBR chairman and members.
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association, said everything depends on good wish.
The issues of HS Codes were a tool to harass businesses. With the recent notification that harassment will stop,鈥� he hoped. He added that since NBR resolved the HS Code issue, it showed that every complexity can be resolved if there is goodwill. He urged NBR to address other outstanding issues soon.
Businesses also stressed that Bangladesh must address all non-tariff barriers, including those related to NBR and land, to remain competitive in the global trade arena.
