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Thursday, December 25, 2025
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Garment sector blasts bonded warehouse abuse, seeks transparency

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Top leaders of the country’s woven and knitwear sectors have urged the National Board of Revenue (NBR) to publicly identify and take action against a small group of traders who are allegedly misusing the bonded warehouse facility – a system meant to support 100per cent export-oriented industries.

Speaking at a “Meet the Business” event held Sunday at the NBR headquarters in Dhaka, BGMEA President Mahmud Hasan Khan and BKMEA President Mohammad Hatem said that misuse of the facility is hurting genuine exporters, while the real offenders continue operating without consequence.

The bonded warehouse scheme allows export-oriented factories to import raw materials duty-free. But there have long been allegations that some materials are secretly diverted to the domestic market.

“Name Them and Take Action”
BKMEA President Hatem said that although misuse is widely discussed, violators rarely face punishment.

“They know exactly whom to manage before their goods even arrive. They clear everything instantly. There is no record of them facing action,” he said. Meanwhile, legitimate businesses bear the pressure, despite paying taxes, employing workers, and contributing to exports.
Hatem urged the revenue board to make an example of a few offenders.

“Publish their names. Take social and legal action so they can never run businesses again.”
BGMEA President Mahmud Hasan Khan echoed the call.

“Please clearly specify the names of any of our members who misuse the facility,” he said, adding that the association would even cancel membership if any factory was found guilty.
Concerns Over Policy Changes Khan also criticised what he called “policy inconsistency” at the NBR. He welcomed the decision to place exemption approvals under parliament, but said that any withdrawal of existing benefits should also require parliamentary approval.

“Too often, policies change overnight through SROs. It’s like inviting someone to climb a tree and then removing the ladder,” he said, referring to reduced incentives for economic zones.
BKMEA President Hatem highlighted problems related to HS code classification and frequent transfers of customs officers. He said such disruptions cause long delays at ports, demurrage losses, and severe stress for businesses.

Automation from December 1
NBR Chairman Md Abdur Rahman Khan announced that the automated Customs Bond Management System will become mandatory from December 1.
“No paper-based work will be accepted anymore. Everything must be 100 percent automatic,” he said.

The chairman said the system will help catch abusers and protect compliant exporters.
“Automation will eliminate such issues,” he added.

However, he explained that the NBR cannot publicly disclose the names of all offenders, as some are still active in the market. “We have begun addressing these issues, and many will be resolved quietly.”
The chairman also warned that revenue officials will face strict evaluation. All ROs and AROs will undergo a week-long training followed by an examination. Those who fail will be deemed unfit and removed from duty without exception.

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