With a move to ensure hassle free release of capital machinery and spare parts from country's sea ports, the National Board of Revenue (NBR) has framed a policy which will not only reduce reported harassment by customs officials, but will also bring the importers under strict surveillance so that the products are being used properly.
The customs wing of the revenue authorities has framed the policy titled “Tax and Duty Waivers on Import of Plant Machinery or Capital Machinery and Spare Parts,” which is expected to alleviate the importers from alleged harassment at ports while availing the duty exemption benefits for capital machinery, plant machinery, and spare part for country's industrial units.
Finance minister AMA Muhith has already approved the policy, which was framed by NBR in consultation with the business leaders from Federation of Bangladesh Chambers of Commerce and Industry.
Importers have long been alleging that customs officials interrogates them in the ports while releasing the capital machinery, imported under the duty benefits which creates delay in releasing the machines.
Importers can import capital machines by paying only 1% duty.
In such a situation, the NBR has framed the policy to extend the benefits to importer by resolving the complexities that are mostly created for classification related differences.
However, the customs will bring the importers under strict surveillance to ensure use of the imported capital machines for their industrial units.
Importers have to install the machines, imported through duty exemptions, in their factories by six months of the import, the policy reads.
Importers will also have to submit a bond to the customs on non-judicial stamp that they will use the products in their relevant industries.
If importers changes the ownership of the machines, they will have to pay the duties in the regular rates, it reads.
The policy, however, will be very fruitful for new and technology-based sectors, as it suggests formation of a committee consisting of representatives from NBR, industries ministry, the Board of Investment (BoI), Bangladesh Tariff Commission and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to recommend the benefits.
