C&F agents demand remedy for HS code complications

The clearing and forwarding (C&F) agents have sought legal remedy for complications stemming from the much talked about Harmonised System (HS) Code that often leads to importers having to pay hefty fines.

Representatives of the C&F agents' association made the call on Sunday during a pre-budget meeting of the National Board of Revenue (NBR) at the capital's Segunbagicha.

A top leader of the association said that the part of The Customs Act that addresses issues related to untrue statements should be free of ambiguity and further clarified. 

Further explaining the implications, the C&F leaders said when importers bring in products under NBR-announced reduced rate, it is often the case that the product is evaluated under a different HS code at the discretion of customs officials. As a result, importers end up being deprived of the government facility and on top of it, they are forced to pay a 200% fine for misdeclaration.

Importers of various industries including the Readymade Garments (RMG) industry have been talking about harassment and complications over the HS code for a long time now. There are allegations that importers face difficulties over the HS code and customs valuation when importing products including raw materials, parts and machinery as customs officials hold discretionary authority. Because of this, importers either have to count extra tax or make officials "happy".

Masud Sadiq, a member of the NBR, presided over the meeting, attended by senior NBR officials and representatives of many associations linked with export and imports.  

In the pre-budget meeting, the Bangladesh Inland Container Depot Association proposed to lower the existing corporate tax rate from 30% to 10% and fix the Tax Deduction at Source at 2%. The association also proposed to make the import of parts and machinery required for container handling tax-free.

Bangladesh Ship Breakers & Recyclers' Association made three proposals including the lowering of scrap vessel import tax by one third.

Bangladesh Shipping Agents' Association also proposed to lower corporate tax rates and ensure freight tax equality.

Other associations including the Bangladesh Freight Forwarders' Association made proposals of their own during the meeting.

During another pre-budget meeting on the same day, NBR chairman Abu Hena Md Rahmatul Muneem said that the so-called "Non-profit and service-oriented" private medical practice does not make sense to him.

Recalling a personal experience, he said, "The expenditure I had to make against the medical service I received does not match in my opinion."

Despite various facilities by the NBR for the private healthcare sector, questions are regularly raised over the high treatment cost in contrast to the quality.

The Bangladesh Private Medical College Association, however, termed the private healthcare sector non-profit and service-oriented.

They also proposed to slash income tax by 15% and lower tax for machinery import.

In response, the NBR chief remarked that if private healthcare was non-profit, there would not be any earnings in the sector.

The Indenting Agents' Association proposed to withdraw Vat on their transactions.