Customs Intelligence and Investigation Directorate (CIID) has seized 150 metric tonnes of raw tobacco imported from Pakistan in 10 containers at Chattogram Port, raising concerns over possible tax evasion and revenue losses.
The shipment was imported by Global Leaf Tobacco Company Limited under the bonded warehouse facility.
According to the CIID, the seized tobacco could be used to manufacture approximately 214.3 million premium cigarettes, with an estimated retail market value of Tk494 crore.
Sagar Sen, joint director of the CIID’s Chattogram regional office, confirmed the seizure to TIMES. He said the directorate would disclose further details at a press briefing scheduled for Thursday afternoon at its regional office in Chattogram.
According to the CIID, discrepancies have been identified in the declared import value of the tobacco.
While similar goods imported under the same Harmonised System (HS) code are generally valued at $5.10 per kilogram, the shipment was declared at just $1.45 per kilogram.
Based on previous import valuations, the authorities estimate that potential revenue from the import stage alone could amount to approximately Tk21.12 crore.
The CIID has expressed concern that inadequate monitoring of goods imported under the bonded warehouse facility could create opportunities for tax evasion at various stages, including importation, manufacturing and marketing.
Under the bonded warehouse system, eligible businesses can import certain raw materials without paying applicable customs duties and taxes upfront, subject to compliance with prescribed conditions.
Authorities must ensure that the imported materials are used for authorised purposes and that production and export records are properly maintained.
The directorate has warned that failure to verify the actual use of bonded tobacco and reconcile it with production records could expose the government to substantial revenue losses.
The declared value of the seized shipment, its actual utilisation and the associated tax and revenue implications are now under scrutiny, according to the CIID’s notice announcing the press briefing.
