Misuse of bond facility: Yellow Syndicate fined Tk2.9 crore in Chattogram

Customs bond authority fined the owner of Chattogram-based garment factory Messrs Yellow Syndicate Tk2.89 crore as it was found selling finished garments in local markets though it was enjoying the customs bond facility.

AKM Mahbubur Rahman, commissioner of the Customs Bond Commissionerate, Chattogram handed over the penalty to the factory owner on Wednesday.

Under the customs bond facility, the government allows only the readymade garment exporters to import their raw materials with duty-free facility on condition that the businesses cannot sell their finished goods in local markets.

Mahbubur Rahman told The Business Standard, "Despite enjoying bond facility, the factory was selling finished garments in local markets. As the allegation against it was undoubtely found true, it was given the financial penalty."

"The government offers bond facility only to export-oriented garment manufacturers and they are strictly bound not to sell their finished goods in local market," he said adding that a syndicate, who import raw materials using this facility, sell their goods in open market.

The customs bond authority remains vigilant to thwart this unscrupulous syndicate, the commissioner continued.

Sources said the Chattogram Customs Bond Commissionerate conducted a raid on the warehouse and a six-storeyed building of Messrs Yellow Syndicate on 10 February last year.

The customs authority then allegedly found that the company had stored finished garments for selling in local markets as its owner could not serve any documents that it stored those goods for export purpose.

Then the customs bond authority in an instant decision sealed off that building.

Later, the bond authority tried to contact the factory owner Ayub Ali but could not reach him. After that, the bond authority opened the warehouse in presence of locals and found massive number of finished garments inside it.

Finally, the customs bond authority on Wednesday announced the financial penalty against the factory owner.

TBS tried several times to contact factory owner Ayub Ali over phone but he did not respond to this correspondent.