BGMEA calls for easing customs clearance

Garment exporters have urged the Customs Bond Commissionerate to relax procedures in taking clearance of their bonded goods.

It is obligatory for importers to submit details of back-to-back letters of credit (LCs) with the utilisation declaration (UD) certificate to avail the utilisation permission (UP) certificate from customs bond commissionerates.

The UD or UP certificate is used to keep count of the use of raw materials imported duty-free under bonded-warehouse facility.

In case of the factory owners’ failure to comply with the obligation, customs bond officials serve them show-cause notices what factory owners term as nothing but “harassment” in their business operations.

“Customs bond officials are serving show-cause notices to factory owners for not attaching the details of back-to-back LCs with the UD,” said Dr Rubana Huq, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a meeting at the BGMEA office in the capital on Thursday.

Terming it “harassment” for exporters, she sought the customs bond commissioner’s cooperation to resolve the issue.

Dr Rubana also asked customs officials to continue audit activities  until this issue is not settled completely.

The BGMEA president mentioned that there is a lack of trust regarding the customs and bond related issues between customs officials and bond facility users.

Dr Rubana hoped that they will overcome those problems through discussion.

Exporters organised the meeting with the customs bond commissionerate and the customs houses in Dhaka, Chattogram and Benapole, to inform difficulties they are facing with respect to customs services.

The BGMEA president placed a set of proposals, including formulation of a joint commission involving officials from all customs bond commissionerates and customs clearing and forwarding agents, for addressing day-to-day customs and bond related issues.

She also proposed considering harmonised system (HS)code of products up to four digits, inclusion of new raw materials and other related materials with their HS code in bond licences and in case of emergency, release of goods with the association’s approval.

The BGMEA president also promised that she will take action against the abusers of bond facilities.

She requested the bond commissionerate to provide the names of bond misusers to the trade body.   

Md Azizur Rahman, commissioner of the Customs Bond Commissionerate of Chittagong, said they are ready to lend cooperation to achieve the target of $50 billion in garment export by 2021.

He informed the meeting that a committee has already been formed in the Chittagong customs for resolving any customs related problem quickly.