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Download PDF The National Board of Revenue (NBR) has uncovered more than one hundred flawed pre-shipment inspection (PSI) certificates that could have cost the government over Tk 50 crore in lost revenue.
The NBR has now launched an investigation into the suspicious deals with several customs officials believed to be involved in the crime.
Four foreign companies issue pre-shipment inspection certificates. The certificates specify the quality, value and quantity of imported products.
It is believed that the suspected certificates have been issued giving false details that allow the importer to evade tax, for example, by understating the value of goods.
The NBR started monitoring the activities of the companies that issue pre-shipment inspection certificates in March this year and it has detected 110 defective certifications from over 1,000 complaints, sources said.
“We have primarily identified over 100 defective PSI certificates which will be investigated thoroughly to know the motives of the persons or institutions involved in the wrongdoings,” Dr Rashidul Ahsan Chowdhury, member (Customs) said yesterday.
Behind under-invoicing or over-invoicing, the importers could have several motives including evading taxes and laundering money, he said.
Rashidul Ahsan said evading taxes through under-invoicing not only deprived the government of revenue but created opportunities for illegal drug and arms pedlars to transfer money from one country to another.
The four companies, Cotecna, Bureau Veritas, SGS and Intertech Testing, were given the task of pre-shipment inspection in 2001, in an effort to reduce corruption in the import trade.
However the NBR decided to probe their activities following complaints from local businesses.
To investigate the matter, the NBR has formed an investigation committee that will write to the Bangladesh embassies and high commissions abroad to find out the actual value of imported goods. By comparing the value given by exporters in the country of origin with the value shown by importers in Bangladesh it will be possible to uncover false certificates.
The committee will check the harmonised system code of the products under the certification to track false codes with the help of World Customs Union and Internet searching techniques.
If any certification is found faulty the NBR will impose a fine against the PSI companies concerned and forfeit the assessment fee of the specific deals, sources said.
The NBR will also file cases against those companies under the customs act.
Customs experts claim that each year the government incurs loss worth Tk 15,000 to 20,000 crore or 20 to 25 per cent revenue from customs sector alone due to PSI Companies’ issuance of false CRF (clean report of findings), and corruption in connivance with customs officials.
A recent investigation by joint forces revealed that a PSI company was involved with a gross violation in valuation in importing several expensive cars.
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