Custom.pptx

The Institute of Chartered Accountants of Bangladesh CUSTOM Md. Mohiuddin Ahmed, FCA Partner Ashraf Uddin & Co. Chartered Accountants...

The Institute of Chartered Accountants of Bangladesh CUSTOM Md. Mohiuddin Ahmed, FCA Partner Ashraf Uddin & Co. Chartered Accountants Phone: 01891490550 E: [email protected]  NBR AND IT’S FUNCTION National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh. NBR is established by the President's order no- 76 of 1972. Collect tax revenue (Import duties, Value Added Tax, Supplementary Duty, Excise Duty, Income Tax, other fees & Charges) for the government. Formulate tax laws & policies in relation to the Customs Act, VAT Act, Excise and Salt Act & Income Tax Act. Administer Customs, VAT, & Income Tax services under supervision of Internal Resources Division (IRD). Negotiate tax treaties and agreements with foreign Govt.& world bodies. Maintain liaison with international organizations like, WCO, WTO, RILO, OPCW on international rules, obligations related to trade  DEFINATION "appropriate officer", in relation to any functions to be performed under this Act, means the officer of customs to whom such functions have been assigned by or under this Act; “bill of entry” means a bill of entry delivered under section 79, and includes, an electronically transmitted bill of entry in such cases and in such manner containing such particulars as the Board may specify; “bill of export” means a bill of export delivered under section 131, and includes an electronically transmitted bill of export in such cases and in such manner containing such  DEFINATION "smuggle" means to bring into or take out of Bangladesh in breach of any prohibition or restriction for the time being in force; or evading payment of customs- duties or taxes leviable there on  IMPORT MANIFEST It is a legal document filed by the carrier of the goods at the destination customs location. It contains detailed information about any goods arriving at that location. The IMPORT GENERAL MANIFEST is regarded as confirmation that the cargo has successfully arrived at its destination.  IMPORT MANIFEST It is a mandatory document for importing goods, which must be presented to the customs officials at the destination port. Since the transport process is declared complete after filing the IGM, it is important for an importer/carrier importing the goods to thoroughly understand this document.. IMPORT MANIFEST to be submitted Vessel Captain, Shipping Agent, Freight Forwarding agent, Airlines Authority or its agent need to submit the IGM to the custom before leaving last port of call.  Section:15 Prohibitions: No goods specified in the following clauses shall be brought whether by air or land or sea, into Bangladesh (a) counterfeit coin; (b) forged or counterfeit currency notes and any other counterfeit product; (c) any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film or article, video or audio recording, CDs or recording on any other  Section:15 Prohibitions: (d) goods having applied thereto a counterfeit trade mark or a false trade description within the meaning of the ট্রেডমার্ক আইন, ২০০৯ (e) goods made or produced outside Bangladesh and intended for sale, and having applied thereto, a design in which copyright exists under the Patents and Designs Act, 1911  EXCHANGE RATE "rate of exchange" means the rate of exchange determined by the Government for the conversion of Bangladesh currency into foreign currency or foreign currency into Bangladesh currency;  TRANSACTION VALUE As per rule 3(i) of Valuation Rules, the ‘Transaction Value’ of imported goods is taken as the assessable value for computation of import duties. ‘Transaction Value’ has been defined under rule 4 of the valuation rules to mean the price actually paid or payable for the goods when sold for export to Bangladesh subject to conditions, inter-alia, that the buyer and seller are not related. DIFFERENT METHODS OF VALUATION Rule 5 : Transaction value of identical goods Rule 6 : Transaction value of similar goods Rule 7 : Deductive value Rule 8 : Computed value Rule 9 : Residual Method [i.e., the value shall be determined using reasonable means consistent with the principles and general provisions of these rules and on the basis of price data available in Bangladesh] Goods on which customs duty is leviable based on fixed tariff value or minimum value – under section 25(3) of the Customs Act. Section 25(3) of the Customs Act empowers the Government to fix tariff values or minimum values for any goods imported or exported as chargeable with customs-duty ad valorem. The Government has issued Statutory Regulatory Orders (SROs) specifying the tariff value, minimum value and the unit of measurement of specified goods for the purpose of payment of customs duty. (SRO no. 203-Law/2022/111/Customs dated 28 June 2022 of IRD, MoF, GoB) The above section further provides that any imported or exported goods, the declared value of which is higher than its tariff value fixed under the above sub-section, shall be  DUTIES AND TAXES COMPUTATION In general, duties and taxes, collected at import stage, are given below. Customs duty – levied on goods specified in First Schedule of Customs Act, 1969 [Bangladesh Customs Tariff] Regulatory duty – levied on imported goods where the rate of customs duty is 25%. In addition, other rates are listed for specified imported goods  DUTIES AND TAXES COMPUTATION Advance Income Tax (AIT) - levied on all imported goods (unless specifically exempted) Supplementary Duty (SD) - levied on goods imported under the 2nd Schedule of VAT & SD Act Value added tax (VAT) - levied on all imported goods (unless specifically exempted) Advance Tax (AT) - levied on all imported goods (unless specifically exempted) However, these duties and taxes may be reduced by special duty reduction programs and trade preferences and may be increased by means of antidumping or countervailing duties or safeguard duties.  Where any goods are allowed to be cleared or delivered on the basis of provisional assessment, then within how many working days the final assessment should be done? within a period of one hundred and twenty working days from the date of the provisional assessment, where there is a case pending at any court, tribunal or appellate authority, from the date of receipt of the final disposal order of that case, be Section 30: Date for determination of rate of duty, value and exchange rate for imported goods: The rate of duty, value and exchange rate applicable to any imported goods, shall be the rate of duty, value and exchange rate in force, - (a)in the case of goods cleared for home consumption under section 79, on the date a bill of entry is presented under that section and a bill of entry number is allocated thereto; (b)in the case of goods cleared from a warehouse for home consumption under section 104, on the date a bill of entry was presented under section 79 and the bill of entry number was allocated thereto; and SEC: 82 Procedure in case of goods not cleared or warehoused or transhipped after unloading within a specified period If any goods are not entered and cleared for home- consumption or warehoused or transhipped within 22[thirty] days of the date of unloading thereof at a customs-port or a land customs-station 23[or customs-inland container depot], or within 24[twenty one] days of the date of unloading thereof at a customs airport or within such extended period as the appropriate officer may allow, such goods may, after due notice given to the owner, if his address could be ascertained, or published in the newspaper, if his address could not be ascertained, be sold under the orders of the  Section 82: Procedure in case of goods not cleared or warehoused or transshipped after unloading within a specified period Provided that – (a)animals and perishable and hazardous goods may, with the permission of the appropriate officer, be sold at any time; (b)arms, ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Government, direct: Provided further that nothing in this section shall authorise removal for home-consumption of any  Section 32: Untrue statement, error, etc.: If any person, in connection with any matter of customs, - (a)make or signs or causes to be made or signed, or delivers or causes to be delivered to an officer of customs any declaration, notice, certificate or other document whatsoever, or (b)makes any statement in answer to any question put to him by an officer of Customs which he is required by or under this Act to answer, or (c)transmits any statement, document, information or record through electronic device or produces soft  Relevant date "relevant date" means- (a)in any case where duty is not levied, the duty on which an order for the clearance of goods is made; (b)in a case where duty is provisionally assessed under section 81, the date of adjustment of duty after its final assessment; (c)in a case where duty has been erroneously refunded, the date of its refund; (d)in any other case, the date of payment of duty or charge.