NBR issues directive to resolve HS Code disputes, speed up export clearance

NN ONLINE:

The National Board of Revenue (NBR) on Tuesday issued a new directive to address complexities in the customs clearance of raw materials imported under bonded warehouse facilities, aiming to speed up the export supply chain.

The move comes after NBR observed that discrepancies often arise between the HS Codes and product descriptions mentioned in bond licenses, Utilization Declarations (UD), and import declarations, compared with those determined by customs officials during physical examination.

Such differences frequently delay the customs assessment process, hindering timely clearance of raw materials and ultimately disrupting scheduled export shipments, according to a press release.

To resolve the issue, NBR has instructed that if the HS Code determined by customs differs from the one declared by the bonded enterprise but the first four digits match the HS Code in the bond license, the consignment will be cleared quickly.

This will require the concerned company to submit an undertaking to include the newly determined HS Code or product description in its bond license.

Additionally, if customs identifies a different HS Code that is not fully reflected in the bond license, the bonded enterprise may incorporate the HS Code into its entitlement through the Customs Bond Management System (CBMS). In such cases, the consignment must be cleared within a maximum of two days.

By strictly following this directive, bonded warehouse operators will benefit from faster and more cost-effective clearance of raw materials, ensuring smoother export operations.

This, in turn, will contribute positively to Bangladesh’s overall export growth and foreign exchange earnings, the NBR hopes.