Ctg customs' revenue grows 7.15% in Q1 on soaring import prices
The Chattogram Customs House has marked a 7.15% increase year-on-year in its revenue collection in the first quarter of the current fiscal year, mainly on the back of soaring import prices.
According to customs data, the country's largest customs station collected Tk16,484.66 crore in the three months through September, which fell short of the target by 7.73%.
The Chattogram Customs Authority says import price has increased compared to before, leading to enhanced tariff collection.
Moreover, the Audit Investigation and Research (AIR) unit of customs has increased its vigilance, leading to the identification of more cases of duty evasion and fraud. As a result, the customs house has collected additional revenue and penalties from these cases.
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In addition, the customs house has increased the assessment value (purchase price of imported goods determined by customs) from 189 to 933% on pista, caraway seeds, almonds, alu bakhara, cumin seeds, bunium persicum, sweet tamarind, cassia, and chia seeds products in FY24, leading to a higher revenue.
Apart from this, customs has increased surveillance on the import and export of goods to prevent irregularities and fraud. It has identified 700 companies involved in false declarations of goods imports, money laundering without exporting goods, duty evasion, and various unethical activities.
Chattogram Customs House Spokesperson Md Bodruzzaman Munshi told The Business Standard, "Revenue collection has increased due to multifaceted initiatives to stop smuggling, prevent fraud, and prevent duty evasion."
"We have increased intelligence surveillance to prevent duty evasion. This process is ongoing. Legal action is being taken against companies against which evidence of irregularities and money laundering has been found," he added.
Omar Hazzaz, president of the Chattogram Chamber of Commerce and Industry, told TBS, "One reason for the increase in customs revenue could be the general increase in prices in the international market. Since customs duty is based on the percentage value of imported goods, this increase in prices would have led to an increase in revenue."
"Additionally, the supply chain in the country has improved greatly, which has also contributed to the increased customs revenue," he added.
Increased penalties and revenue against irregularities
The AIR unit works to prevent fraud through imports and exports. It intercepts suspicious consignments and carries out a physical examination of the goods. This unit collects penalties against evaded revenue when fraud is detected.
According to data from the AIR unit, in the first three months of fiscal 2023-24, the penalty and additional revenue against irregularities have been collected to the tune of Tk38.08 crore, which is a 54% increase compared to the same period a year ago.
According to the AIR data, revenue income, including penalties against irregularities, stood at Tk24.02 crore, Tk59.54 crore, and Tk60.46 crore, respectively, in three consecutive fiscal years since FY21.
Customs data show that the revenue collection target was set at Tk77,616 crore for FY24, while revenue collection stood at Tk61,632.66 crore and Tk59,169.83 crore, respectively, in the previous two fiscal years.
