Customs and Trade Regulations

Customs Vision

• An innovative, professional, and ethical Customs service significantly contributes to Bangladesh's happiness, safety, economic prosperity, and environmental health.
• Achieved through modernizing and reforming in line with international best practices.

Customs Mission

• Border management is crucial to protect the community and environment.
• Ensures efficient and timely revenue collection.
• Trade, travel, and fiscal policy are implemented while complying with Customs and allied legislation.
• Operates in accordance with international standards and best practices.

NBR Functions

• The National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh.
• NBR was established by the President's order, no. 76 of 1972.
• NBR collects taxes, including import duties, Value Added Tax, Supplementary Duty, Excise Duty, and Income Tax.
• NBR formulates tax laws and policies related to the Customs Act, VAT Act, Excise and Salt Act, and Income Tax Act.
• Customs, VAT, and Income Tax services are administered under the supervision of the Internal Resources Division (IRD).
• NBR negotiates tax treaties and agreements with foreign governments and world bodies.
• NBR maintains communication with international organizations such as WCO, WTO, RILO, and OPCW on international rules and trade policy obligations.
• NBR participates in international discussions on economic issues, fiscal policies, and tax administration.

Key functions of Customs

• Customs collect revenue at import and export.
• Implement laws and regulations related to transnational trade and commerce.
• Expedious, hassle-free clearance is ensured
• Illicit trade and smuggling are prevented.
• Money laundering activities are prevented.
• Support is provided to legitimate trade.
• Ensure trade facilitation.
• Ease of doing business is ensured.

Laws implemented by Customs

• Customs Act 1969, 2023
• Imports and Exports Control Act, 1950
• Foreign Exchange Regulation Act, 1947
• Import Policy Order & Export Policy, 2021-24
• VAT & Supplementary Duty Act 2012
• Income Tax Act 2023

Allied Acts

• Arms Act, 1878
• Explosives Act, 1884
• Merchandise Marks Act, 1889
• Livestock Importation Act, 1889
• Trademark Act 2009
• Destructive Insects and Pests Act, 1914
• Copyright Act 2000
• Merchant Shipping Act, 1923
• Post Office Act, 1898
• Narcotics Control Act, 1990
• Patent and Design Act 1911
• Bangladesh Patent Act 2022
• Anti-Money Laundering Act, 2002

Stakeholders

• Importers
• Exporters
• Sea Ports, Airport, Land port authority
• Civil Aviation authority
• Clearing & Forwarding Agents
• Shipping Agents & Cargo Agent
• Freight Forwarding Agents
• Courier Service Operators
• Airline Operators
• Bank and Financial institution
• Other Govt. Agencies [Drug Administration., BSTI, Atomic Energy, Quarantine Dept, CCI&E, DPHN, etc]

License for Import & Export

• Trade License: From Local govt
• TIN Certificate: From Income Tax Dept
• VAT Registration: From VAT Dept
• Import Registration Certificate (IRC): From CCI&E
• Export Registration Certificate (ERC): From CCI&E
• Opening of LC/LCA: From AD Bank
• Drug License & Block list: From Drug Administration
• Explosives License: From Explosives Dept
• Chemical License: From Ministry of Home
• Other formalities laid down in other Acts.

Important definitions

• "Agent" definition: any person, including a shipping agent, clearing and forwarding agent, or cargo agent, licensed under section 207, or allowed to transact any business under sections 208, 243, or 244.
• "Appropriate officer" definition: the customs officer assigned functions under the Act.
• "Bill of entry" definition: a bill delivered under section 79 that specifies the details required by the Board, including those transmitted electronically.
• "Bill of export" definition: A bill of export delivered under section 131 and any required details.
• "Conveyance" definition: any transport method for carrying goods or passengers, such as a vessel, aircraft, vehicle, or animal.
• "Customs-area" definition: includes the customs-station specified under section 10, including locations where imported or export-bound goods are kept before clearance by customs.
• "Customs computer system" definition: the Board's established computerized entry processing system for this Act.
• "Customs-port" definition: Any place declared under section 9 for shipment and landing of goods.
• "Customs-station" definition: Customs-port, customs-airport, or any land customs-station.
• "Export manifest" definition: Manifest delivered under section 53, including its electronic version, containing details specified by the board for export.
• "Goods" definition: Includes all movable goods, conveyances, stores, materials, baggage, currency, negotiable instruments, and electronic data.
• "Import manifest" definition: manifest delivered under sections 43 and 44, including its electronic version, containing details specified by the Board for import.
• "Person-in-charge" definition:
  • In relation to a vessel, it is the master of the vessel.
  • Regarding an aircraft, it refers to the commander /the pilot in charge of the aircraft.
  • In relation to a railway train, it is the conductor, guard, or other person in charge of the train.
  • For any other conveyance, it is the driver or anyone in control.
• "Smuggle" definition: includes taking goods into or out of Bangladesh in violation of prohibitions or to evade customs duties or taxes.

ASCUDA World Software

• A Customs operational software developed by UNCTAD.
• Shipping agents or persons in charge can submit online cargo declarations 24/7.
• Importers or exporters, or their nominated agents, can submit online Goods Declarations 24/7.
• Bangladesh Customs can process 12,000-14,000 Goods Declarations daily.
• Easy to generate import, export, revenue, and other trade-related statistics.
• Data can be exchanged among Customs Stations using the software.
• Reports can be viewed from all Customs Stations, NBR, and other concerned offices.

Important sections of the Customs Act

• Section 4: Powers and duties of Customs officers.
  • An officer appointed under section 3 has the authority to execute powers and duties under this Act.
  • The Board can impose conditions on the exercise of powers.
• Section 6: Entrustment of functions to other officers.
  • The Board can assign tasks to other officers, conditionally or unconditionally, through a notification.
• Section 19: General power to exempt from customs duties.
  • The government can exempt goods via Gazette notification after consulting with the Board.
  • This is subject to conditions and limitations.
  • Duty rates on exempted goods cannot be changed more than once in a financial year so as to increase the rate.
  • An exemption granted under sub-section (1) will be in effect from the date mentioned in the notification issued for that sub-section.
• Section 20: Power to grant duty exemptions in exceptional circumstances.
  • The government has the authority to provide exemptions from tariffs in special cases given public interest, subject to the special circumstances being recorded.
• Section 15: Prohibitions.
  • Specifies goods prohibited from being brought into Bangladesh by air, land, or sea.
  • These include counterfeit coins, forged currency notes, and obscene or restricted materials.
• Section 16: Power to prohibit or restrict importation and exportation of goods.
  • The Government is empowered to prohibit or restrict the import/export of specific goods via official gazette notification.
• Section 17: Detention and confiscation of goods imported in breach of section 15 or section 16.
  • Goods imported or attempted to be exported in violation of these sections are subject to detention and confiscation without prejudice to other penalties.
• **Section 25: Value of goods for assessment purposes.
  • Value is based on the actual price paid in international trade under fully competitive conditions.
  • "Time of importation" means the date of bill of entry delivery under section 79.
  • "Time of exportation" defines the time when a bill of export is delivered under section 131.
  • "Place of importation" refers to customs-port, customs-airport, or the customs station, where the bill of entry is first submitted.
  • "Place of exportation" refers to the customs port or station at which the bill of export is submitted.
  • Subject to sub-section (1), the price of imported goods will be determined according to relevant rules.
  • The government can set tariff and minimum values for customs duties via official Gazette.
  • If the declared value is higher than the fixed tariff value, customs duties will be based on the declared value.
  • The average exchange rate of the thirty days preceding the third week of the previous month during which the bill of entry is delivered will be implemented.
  • The rate of exchange is determined by the Government for currency conversion.
  • The goods' value includes freight, insurance, commission, and other costs incidental to sale and delivery.
• Section 18: Goods Dutiable
  • Except as otherwise provided, customs duties are levied on:
  • Goods imported into or exported from Bangladesh
  • Goods transhipped or transported through a customs station without duty payment
  • Goods brought in bond between customs stations.
  • Exemption: No customs duty or regulatory duty is levied if the value of goods in a consignment does not exceed two thousand taka, subject to conditions set by the Board.
  • Regulatory Duty:
  • The Government can levy regulatory duty on goods specified in the First Schedule
  • The rate cannot exceed two times the highest customs duty rate.
  • The regulatory duty is in addition to other imposed duties.
  • This notification expires at the end of the financial year it was issued.
• Section 30: Date for determination of rate of duty, value and exchange rate for imported goods.
  • The rate of duty, value, and exchange rate are determined based on
  • The date a bill of entry is presented for goods cleared for home consumption under section 79.
  • The date a bill of entry is presented for goods cleared from a warehouse under section 104
  • The date of payment of duty for other goods.
  • If a bill of entry is presented before the conveyance arrives, the determination date is when the manifest is delivered.
• Section 30A: Value and effective rate of duty.
  • Value and duty rates respectively include the value determined under Section 25 and the amount of duty imposed under sections 18, 18A, or 18B.
  • Also includes the amount of duty that may have become payable in case of withdrawal of exemption or concession from duty.
• Section 31: Date for determination of export duty
  • The rate of duty applicable to goods should be the rate prevalent on the date the bill of export is delivered under Section 131.
  • If export is permitted without a bill, the applicable rate is that of the date when leading of the goods on the outgoing conveyance commences.
• Section 80: Assessment of duty.
  • After the bill of entry is delivered or transmitted, the Customs authority must assess the duty of the goods and the owner of the goods may proceed to clear the same.
  • In case any statement of bill is found incorrect in any matter relating to assessment then the goods re-assessed to duty without prejudice to action taken under this act.
  • The board is entitled to notify for the exemption of examination to the goods imported.
  • Upon the delivery of the assessment, the duty is deemed to be assessed properly for this section.

Amendment of assessment, time for amendment, Audit of Records

• 83A. Amendment of assessment: -(1) An officer of Customs may be able to have amendments done to an assessment of duty or assessment of value that relates to the duty if it has been thought to be necessary in order to ensure the correctness of the assessment. (2) If the amendment enhances the value of the existing value, the officer of the duty must make sure that it can be given to the person liable of the duty. -(3) Unless the act says otherwise, the due date of paying against the aforementioned is 30 working days from the written demand notice by the officer of Customs.
• 83B. Limitation of time for amendment assessments: -(1) Where the assessment of duty has been set by an officer, that officer is not authorized to touch the value after the date in which the original assessment was made. -(2) However, in any case that happens, it can be raised regarding the value of the assessments in the value that was either misrepresented or fraudulent.
  • 83C. Audit or examination of records: -(1) Officer of Customs may conduct an examination or any records that can be entered by that officer at any time. -(2) officer of Custom authorized to do so shall have the ability to access those places by anyone of the records to make sure that the officer considers all factors involved.

* Duty / sales elements:

• Customs tariff Goods specified in the first schedule with customs tariff are marked with assessable value. Exceptions available for specified goods.
• Regulatory duty imported goods where the rate of customs duty is 25%.
• Advanced income tax all imported goods are marked an AV for specified goods.
  • Supply goods are covered by the second schedule Goods are rated under custom tariff
  • Value added tax all imported goods are under advanced value.

Session: 05 Untrue statements Consequences Of Untrue Statement, Error (Offences And Penalties). *

• If a person makes a statement by making any changes in the document, is liable for making such offence. (Section 32)
• The expression relevant date is the date for assessment ( Section 32) Whoever commits any changes that is mentioned in the table of the section will give subjected as per the law. ( Section 32)
• Keeping Of Business Record if an agent has an license, then they must keep any record as per the law of the authorities. ( Section 211)

Questions cover customs operational software like ASYCUDA, the powers of customs officers, the role of the Board, duty assessment amendments, and payment timeframes. It also covers the conditions under which functions and duties can be entrusted and amended.