Bonded yarn seized: BTMA seeks identification of importer, legal action
The yarn was seized from several warehouses in Araihazar of Narayanganj and Madhabdi of Narsingdi
Local law enforcement agencies and National Board of Revenue (NBR) officials today (3 October) seized a large quantity of yarn allegedly imported under the duty-free bonded warehouse facility.
The high-value 80-count yarn was seized from several warehouses in Araihazar, Narayanganj, and Madhabdi, Narsingdi, according to the Bangladesh Textile Mills Association (BTMA). The yarn was reportedly imported from China and India.
BTMA Director Mohammad Khorshed Alam told The Business Standard that more than 500 cartons of yarn had been seized so far. However, a VAT official involved in the operation said the exact quantity would be confirmed after the final count.
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BTMA called for the actual importer and others involved to be identified and brought to justice, saying the seizure highlighted potential misuse of the bonded warehouse facility.
The association said video footage from the operation showed large quantities of yarn stored in warehouses and discussions between those concerned and law enforcement officials.
Bonded warehouse facilities allow export-oriented industries to import raw materials duty- and tax-free for use in production. If such materials are diverted to the local market, it can cause revenue losses and create unfair competition for domestic manufacturers, the BTMA said.
The association alleged that unauthorised storage and marketing of yarn and other bonded raw materials occur in several industrial areas, including Narsingdi, Narayanganj and Sirajganj.
"Stronger investigations, risk-based monitoring and warehouse-level verification could uncover further information about such irregularities," the BTMA said in a statement.
BTMA President Showkat Aziz Russell called for a comprehensive investigation into the seized yarn, including tracing the importer, supplier and the process through which the goods were cleared and transported under the bonded facility.
Such an investigation, he said, could reveal the extent of possible misuse of the bonded warehouse system.
