Seized Rolls Royce: An SUV or car?

While slapping Z&Z Intimates Ltd a fine for illegally releasing an imported Rolls Royce, Chattogram Customs House put the vehicle into the category of car, taking into consideration a sticker on the vehicle's bonnet, but the documents term it a Sports Utility Vehicle (SUV). 

Citing the Customs Statutory Regulatory Order 2010, the Customs Intelligence and Investigation Directorate (CIID) said car, pickup and microbus with the engine capacity of up to 2,000cc can be imported under the duty-free facility. Jeep import is also allowed under the duty-free benefit with no cc limit.

The imported Rolls Royce with 6,750cc has lost its duty-free benefit as it does not fulfil the SRO conditions as a normal car. Thus, the customs House fined Z&Z Intimates Ltd, a sister concern of Ananta Group, Tk56.4 crore. 

The CIID in its investigation said jeep has no harmonised system (HS) code and it is also a company brand. That is why it suggests including SUV into the list of HS codes instead of jeep. Besides, stating that there is no engine capacity limit for importing SUVs, the Customs Intelligence recommends fixing a cc limit for importing such vehicles.

The Business Standard has obtained copies of the Chattogram Customs House order and the CIID investigation report.

The Z&Z Intimates Ltd will have to pay the fine as well as the Tk24 crore in unpaid taxes, according to an order issued by Chattogram Customs Commissioner Md Fyzur Rahman on 12 October.

On July 6 this year, the Customs intelligence seized the Rolls Royce Cullinan, from Baridhara's residence of Z&Z Managing Director Sharif Zahir for its illegal release, violating the provisions of the Customs Act.

On May 17, the vehicle was taken to Dhaka from Chattogram after physical assessment without completing the full process.

The taxation process is usually completed within 24 hours for the imported goods of any company listed with the Bangladesh Export Processing Zones Authority (Bepza). 

In the case of this vehicle, the Customs officials did complete the physical assessment but no certificate was issued.

As per the details mentioned in the import permit, the bill of entry of the car was registered on 27 April, and the physical examination was completed on 12 June.

No product can leave the port or the bonded warehouse until assessment by customs officials, according to customs rules.

In the order, Z&Z managing director Sharif Zahir was asked to pay Tk56.4 crore as penalty for violating the Customs Act.

The importer will not get the duty-free facility even though he submitted an application to avail it as an export-oriented company. So, apart from the fine, he has to pay the customs duty of about Tk24 crore, the order said.

Z&Z managing director Sharif Zahir told The Business Standard, "We are not happy with this order because of contradictions in the report. Since the car was allowed to be imported under the duty-free facility as an SUV, we will go for an appeal within 30 days."

He also mentioned that the company has imported this SUV under the duty-free facility with the permission of Bepza, a regulatory body under the Prime Minister's Office. But another department now did not agree with that.