Bangladesh’s Customs Intelligence and Investigation Directorate (CIID) has launched an investigation into six textile companies in Narayanganj over alleged customs duty and tax evasion amounting to Tk269.48 crore, following raids that uncovered significant discrepancies in bonded warehouse inventories. Read Here
The companies allegedly imported yarn, fabrics, chemicals and other raw materials duty-free under bonded warehouse facilities but failed to account for substantial quantities, raising suspicions that the materials were illegally diverted to the domestic market.
CIID teams, assisted by the Special Response Battalion (SRB), conducted simultaneous operations on October 8 at six bonded textile establishments across Rupganj, Bandar and Araihazar in Narayanganj.
An analysis of import records obtained from the National Board of Revenue’s (NBR) Management Information System (MIS) initially estimated the alleged revenue evasion at Tk269,48,55,807.
Sim Fabrics Ltd in Rupganj recorded the highest preliminary discrepancy at Tk90.77 crore, followed by Jahin Knitwears Ltd in Bandar at Tk64.61 crore and Sanjana Fabrics Ltd in Rupganj at Tk60.33 crore.
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Bonafide Knitting Mills Ltd in Araihazar accounted for an estimated Tk39.50 crore, while Jamal Uddin Textiles Pvt Ltd in Bandar and Mozzaffar Hossain Spinning Mills Ltd in Rupganj were linked to preliminary estimates of Tk9.45 crore and Tk4.83 crore, respectively.
During the inspections, investigators identified substantial differences between physical inventories and records maintained in stock registers and the Customs Bond Management System (CBMS). Some factories reportedly had significant shortages of yarn and fabrics, while others held stocks exceeding their declared quantities.
Bonded warehouse facilities allow export-oriented manufacturers to import essential production materials without paying customs duties and taxes. However, diverting these materials into the domestic market can undermine government revenue and create unfair competition for duty-paying businesses.
The CIID said it had collected documents covering imports, production, inventory and raw material consumption from the companies. Verification and analysis are ongoing, and the preliminary estimate could change following the completion of the investigation.
The directorate said legal action would be taken against those found responsible under existing laws after determining the actual amount of revenue evasion.