The National Board of Revenue (NBR) has taken the initiative to bring the entire process of Utilization Permission (UP) issue to an online system to bring transparency and speed in bond management.
For this purpose, it has been decided to make the use of automated customs bond management system (CBMS) mandatory.
The decision was taken after discussions with business organizations of the relevant sectors at the ‘Meet the Business’ discussion organized by NBR on Sunday.
The NBR launched CBMS from January 1 this year to make bond management modern and technology-based.
Currently, online services are being provided using 24 parts of the software in three Customs Bond Commissionerates.
However, since it is not mandatory, most institutions are still collecting UPs manually.
As a result, even after 10 months, the use of the software has not reached the desired level.
The NBR said that the software has been improved and made more user-friendly based on the opinions of users.
In a day-long discussion, five organizations of the readymade garments, knitwear, accessories, textile and leather goods sectors—BGMEA, BKMEA, BIGAPMEA, BTMA and LFMEAB—agreed to make CBMS mandatory.
They proposed that, if possible, all services related to UP issue should be done online only from December 1.
The NBR said that formal instructions in this regard will be issued soon.
Benefits that will be available if CBMS is made mandatory:
- NBR’s services will be faster, transparent and accountable
- Bonded institutions will save time and cost
- All accounts related to the arrival and use of raw materials will be automatically saved
- The hassle of submitting papers will be reduced
- Various complications and disputes related to bonds will be greatly reduced
NBR says that the investment-friendly environment will be further strengthened by introducing a fully automated system in bond management.
They plan to increase the scope of automation in all areas of revenue management step by step.
BGMEA demands list of bond abusers
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has taken a strict stand against misuse of bond facilities.
The organization’s president, Mahmud Hasan Khan, during the discussion, said that the list of which institutions are misusing bonds should be clearly communicated to BGMEA.
He also warned that if misuse is proven, all services of the concerned members will be stopped.
“The responsibility for the misdeeds of a handful of people cannot be imposed on the entire industry. Our 22 member institutions have already been warned. We will take strict action against those whose names the NBR gives us.”
He further said that if the opportunity to import raw materials through bank guarantees without bond licenses is implemented, about 200 members will voluntarily surrender their bond licenses, since many organizations are interested in getting out of the various complications of maintaining licenses.
Welcoming the devolution of the power of tax exemption to the parliament, the BGMEA president said: “The facilities that will be given will be through the parliament; again, the facilities that will be stopped should also be through the parliament. It is undesirable to suddenly cancel the facilities by issuing SRO.”
Highlighting the need for automation, he said, “Corruption will not reduce without automation. All processes, including bonds, must be automated quickly.”
In response, NBR chairman Md. Abdur Rahman Khan said that it is not possible to publish the list of those who misused the bond facility.
He said that bond management is being brought under complete automation and a one-week mandatory training has been arranged for bond officers. If they fail the training, it will be difficult to remain in the job. He also hinted at the removal of inefficient officers.
