26-tonne Cigarette papers imported under false declaration seized at Ctg Port
These shipments are suspected to be part of a multi-crore tax evasion racket
Customs officials at Chattogram Port seized two consignments of cigarette paper imported under false declarations — listed as straw paper and ribbon. These shipments are suspected to be part of a multi-crore tax evasion racket.
The consignments, imported in mid-July by Dhaka-based firms RM Enterprise and Smart Move, were intercepted after customs investigators flagged irregularities in their documentation. RM Enterprise had declared 16 tonnes of straw paper from Hong Kong, while Smart Move declared nearly 10 tonnes of paper ribbon.
Had the consignments been cleared without reclassification, the government would have lost an estimated Tk86 crore in VAT and Tk1 crore in customs duties from RM Enterprise's shipment alone. Smart Move's consignment would have cost the exchequer Tk50 crore in VAT and Tk70 lakh in duties, officials said.
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Records show RM Enterprise previously imported eight consignments valued at over Tk27 crore, which included 489 tonnes of cigarette paper and other raw materials for tobacco production. Officials suspect those shipments also carried cigarette paper under false declarations, and most of the consignments were imported in the names of little-known or non-existent firms.
A VAT official, seeking anonymity, told The Business Standard that the potential tax loss from these raw material imports could reach Tk4,000 crore. "Recovering this amount seems highly unlikely since field inspections revealed that the listed company addresses do not even exist," he said.
Chattogram Customs House Additional Commissioner Tafsir Uddin Bhuiyan said the seized consignments cannot be released under their declared names. "If the importers want clearance, they must pay the duties applicable to cigarette paper and face penalties for false declaration."
He added that Customs would formally request the VAT authorities to review the past imports and sales records of the companies to ensure the government recovers due revenue.
The seizures highlight a growing trend of tobacco raw materials being smuggled in under paper-related categories, using shell companies or firms with fake addresses.
