Economic Correspondent //

The Customs Intelligence and Investigation Directorate has uncovered an attempt to evade revenue by declaring a shipment of “prepared adhesive” as “epoxy resin”—a category subject to a lower Total Tax Incidence (TTI) rate—using an incorrect HS code. Following intelligence operations by the Benapole Circle and the subsequent correct classification of the shipment, an additional BDT 2,39,23,103 in revenue was collected.

Yesterday, Thursday (September 24), the National Board of Revenue (NBR) announced that, acting on a tip-off, the Customs Intelligence and Investigation Directorate subjected a shipment from importer OSL Pharma Limited—declared with a net weight of 30,360 kg—to a physical inspection.

The shipment had been declared under the HS code for “epoxy resin,” which carries a TTI of 33.63 percent. Based on the declared HS code, the assessed tax and duty amounted to BDT 1,01,63,070.

However, the physical inspection revealed two types of chemical products. Samples were sent to Khulna University of Engineering & Technology (KUET) to verify the true nature of the goods. The test report identified the samples as epoxy resin and polyamide resin, respectively. The tests also revealed that mixing the two products in specific proportions creates an adhesive.

Consequently, applying the correct HS code and TTI rate instead of the initially declared ones revealed a revenue shortfall of BDT 1,17,23,103.06.

Subsequently, in accordance with the adjudication order from Customs House, Benapole, the authorities collected BDT 1,17,23,103.06 in evaded revenue (or additional duties and taxes), a fine of BDT 1.20 crore, and a redemption fine of BDT 2 lakh. The NBR stated that, overall, the efforts of the Customs Intelligence and Investigation Directorate resulted in the collection of an additional BDT 2,39,23,103.06 in government revenue.

The Customs Intelligence and Investigation Directorate reported that a significant attempt at revenue evasion was thwarted in this instance. Physical inspections, scientific laboratory tests, and the proper application of customs tariffs played a crucial role in ensuring the correct classification of the goods.

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