Ctg port to get new scanners to check trade-based money laundering

Infograph: TBS

Chattogram Port is set to receive two new export container scanners to check fraudulent activities, including trade-based money laundering, and save the exchequer crores of taka in cash incentives.

The move comes six years after a delegation from the US Coast Guard, during a visit to the country's largest seaport, stipulated that exports should be scanned before shipment.

According to the terms of International Ship and Port Facility Security (ISPS code), the US delegation in 2017 made 16 observations, including the installation of container scanners at all 12 gates of the port.

Taking advantage of the lack of scanning, a racket resorted to fraud in the export of various products and embezzled crores of taka in cash incentives for the export of goods.

During a recent investigation, the Customs Intelligence and Investigation Directorate (CIID) found evidence of laundering around Tk450 crore by 29 garment exporters. Another investigation is underway regarding the alleged laundering of Tk400 crore under the guise of ready-made garment exports.

Although the responsibility for installing scanners at the port lies with the Customs, the Chattogram Port Authority took the initiative to purchase scanners with its own funds to fulfil the conditions of the US Coast Guard.

Two scanners bought from China for Tk90 crore are expected to arrive here on 22 September.

Manufactured by Nuctech Company Limited, the scanners will be installed at two gates for the sole purpose of scanning export containers.

Chattogram Port currently has seven scanners, including two mobile scanners.

Of these scanners, two were installed in 2020, and the remaining five were installed 14 years ago in 2009 and are now unable to produce container scanning images properly, according to Customs authorities.

The port and Customs officials say the installation of the scanners has been delayed due to the Covid situation, tenders, and procedural formalities.

CPA Secretary Md Omar Faruq said Customs is responsible for installing scanners at the port. But the port is now installing two export container scanners as per the government's decision to implement the guidelines of the ISPS Code. Hopefully, the two scanners will go into full operation within the next two months.

On 27 July, the CIID wrote to the National Board of Revenue (NBR) to prevent false declarations in export trade, revenue evasion through over- and under-invoicing, money laundering, and embezzlement of export incentives.

In the letter, CIID Director General Fakhrul Alam mentioned the names of the accused companies and provided six recommendations to address national and international issues, such as trade-based money laundering.

According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), approximately 82% of the country's exports consist of apparel products, with 25% of them being shipped to the USA. Implementing the ISPS code in ports from which the world's largest economy imports goods is in the interest of that country.

Rakibul Alam Chowdhury, vice president of BGMA, said some businesses engaged in fraudulent activities in the export trade by exploiting the absence of container scanners.

"We expect Chattogram Port and customs to combat fraud by employing state-of-the-art technology," he told TBS.

In January, the NBR announced its plan to install six scanners, with four designated for Chattogram port, and two for two land ports. It also entered into an agreement with China's Nuctech Company Limited for this purpose.

Chattogram Custom House Spokesperson Deputy Commissioner Md Bodruzzaman Munshi said, "Four new scanners are scheduled to arrive next October, and they will be installed at various gates of Chattogram port."