Withdraw fines for mistakes in determining HS codes: CCCI President Mahbubul Alam
In a recent interview with The Business Standard, Chattogram Chamber of Commerce and Industry President Mahbubul Alam talked on different issues on the upcoming budget for FY24
Chattogram Chamber of Commerce and Industry President Mahbubul Alam has urged the government to consider the withdrawal of the existing fining system for mistakes in determining HS codes at the import stage from the next fiscal year.
"The major problem in importing products is now HS code complexity, which causes huge suffering for traders. Importers often face customs penalties and delays for unintentional mistakes in determining appropriate codes," he said in a recent interview with The Business Standard.
The first six digits of HS codes or Harmonized System codes are the same worldwide for a particular type of goods and the next two digits vary from country to country, he explained and noted that the Bangladesh government includes and updates HS Codes every year, which are later added to the Customs Tariff book.
"Since the system is completely manual, it becomes difficult to determine the correct HS code in many cases. This brings up the issue of mistakes and subsequent penalties. The imposition of fines due to such inadvertent mistakes should be stopped. Customs officers can correct or re-determine the codes and charge duties accordingly, instead of imposing fines."
Keep updated, follow The Business Standard's Google news channel
"We want the HS code complexity to be resolved in the upcoming budget so that importers can get rid of hassles," Mahbubul Alam said.
He also suggested an integrated online platform which would be able to determine appropriate HS codes automatically with entries of product descriptions.
For improved customs experience, the CCCI president called for an enriched chemical laboratory at the Chittagong Customs with the necessary equipment and expert workforce. The Alternative dispute resolution (ADR) system should also be made effective to settle customs disputes, he added.
In addition to these, complications related to SAFTA certificates need to be addressed for the simplification of imports and fast industrial development, he said and called for revisiting container storing rents at ports.
Mahbubul Alam noted that the Chattogram Chamber forwarded 90 recommendations related to customs duties, 36 to VAT, 54 to income tax and 9 others on various issues to the finance ministry for its consideration in formulating the FY24 budget.
The key proposals are raising the tax-free income limit from Tk3 lakh to Tk5 lakh, making the gross profit determination process for business people revenue-based rather than anticipation, and adjusting income tax after deduction in advance.
The chamber also called for good allocation for uninterrupted supply of electricity, water and gas to factories, so that industrial production is not interrupted. It also wants sufficient allocation for priority development projects such as the Bay Terminal.
