A chemical import misdeclaration by OSL Pharma Ltd has led to the recovery of Tk2.39 crore by customs authorities after an investigation found that the company had declared a prepared adhesive shipment as epoxide resin under a lower-tax classification.
The Customs Intelligence and Investigation Directorate (CIID) detected the issue after placing a 30,360 kg consignment under physical examination based on intelligence information at its Benapole Circle.
The importer declared the product as “Epoxide Resin” under HS Code 39073000, which carries a total tax incidence (TTI) of 33.63 per cent.
Based on the declared classification, the payable duties and taxes stood at Tk1.01 crore.
However, physical inspection found two separate chemical components in the consignment. To determine the actual nature of the products, customs authorities sent samples to Khulna University of Engineering and Technology for laboratory testing.
The test results identified the samples as epoxide resin and polyamide resin and found that the two components, when mixed in a specific ratio, produce adhesive.
Based on the laboratory findings and tariff provisions, customs authorities classified the consignment as prepared adhesive under HS Code 35069190, which carries a higher TTI of 76.50 per cent.
According to the Customs Tariff’s Section VI Note-3(b) and related explanatory notes, products presented together and designed to be mixed in specific proportions to create a finished product can be classified as a single prepared product.
The revised classification revealed a Tk1.17 crore revenue shortfall against the duties and taxes declared by the importer.
Following adjudication by Benapole Customs House, authorities recovered the unpaid revenue and imposed a Tk1.20 crore penalty along with a Tk2 lakh release fine.
The total recovery from the case amounted to Tk2.39 crore, the National Board of Revenue said on Thursday.
