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The National Board of Revenue (NBR) has relaxed customs assessment procedures for the export-oriented industries on import of their raw materials.
In an order, the NBR instructed the customs officials not to obstruct the imported raw materials under bonded warehouse facility in case of variation in HS code or product description.
Exporters hailed the decision to resolve their sufferings at customs point on release of raw materials.
Shovon Islam, managing director of Sparrow Group, appreciated the NBR's effort to simplify export process and stay competitive in the international market.
He, however, demanded withdrawal of HS code provision for exporters under the bonded warehouse facility.
"I find it a barrier on smooth import of raw materials for exporters as they are bonded industry require auditing once a year," he added.
Earlier, bonded industries were allowed to import raw materials without HS code, he added.
NBR, in a press statement on Tuesday, said it has observed that, in the case of bonded warehouse license-holding enterprises, there are often variations in the HS Code or product description mentioned in the bond license, entitlement sheet, or related Utilization Declaration (UD), and the HS Code or product description determined by Customs authorities through physical examination of the imported goods declared for release.
Due to such variations, the customs assessment process becomes prolonged, delaying the timely release of goods, it added.
Consequently, export shipments are hampered and exporters fail to meet deadlines stipulated in export orders, it said.
In view of the urgent necessity of facilitating bonded enterprises' goods clearance and in the greater interest of export trade, the NBR has issued the instructions to its customs stations.
"If, after submission of the import declaration according to the product description and HS Code included in the bond license, the Customs authority determines a different HS code or product description, and if the first four digits of the determined HS Code match the first four digits of the HS Code in the bond license, then the Customs House concerned shall allow prompt clearance of the consignment subject to submission of an undertaking to include the determined HS Code or product description in the bond license."
It also said, if the customs authority determines a different HS code after submission of the import declaration as per the HS code and product description in the bond license, the bonded enterprise may include the newly determined HS Code in its entitlement through the Customs Bond Management System (CBMS) and obtain clearance of the goods within a maximum of two days, it added.
The NBR believes that strict compliance with this instruction will help make the export operations of bonded enterprises easier, faster, and more cost-effective, thereby contributing positively to the country's overall export growth and foreign exchange earnings.
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