The government has added nine more conditions in the eligibility criteria for the bond licence to prevent the misuse of the tax-free facilities.
The National Board of Revenue (NBR) has made it mandatory to fulfill nine more new conditions, taking the total number of conditions to 23 for getting a bonded warehouse licence.The revenue authority has already amended the bonded warehouse licensing guidelines through a gazette notification recently.
Sources at NBR said among the new condition, entrepreneurs who seek bonded warehouse facilities will have to have security fences around their factories and in case of the industrial area, entrepreneurs will have to submit security design paper certified by the registered engineer along with the application.
The warehouse designated for raw materials and finished goods inside the factory must be of international standard which means there should be no utility connections or electrical wires inside the warehouse.
The size of the bonded warehouse must be five thousand square feet where the license holders will ensure adequate lighting and ventilation.
The new conditions also said if imported machinery or tools are bought from local sources, applicants have to submit the lifespan of the machinery and tools certified by international surveyors.
Apart from this, in case of procurement of machinery, tools or parts, applicable VAT payment documents, machine import bill of entry, invoice, packing list should be submitted and the minimum value of the machine should be Tk 40 lakh.On the other hand, the audit of all the other concerns of the bond license applicant must be updated. If there is a foreign director whether staying in the country or not will have to submit a copy of TIN and investor visa.
The minimum capital of a limited company should be Tk 1 crore and the minimum turnover in case of sole or partnership based ownership should be Tk 30 lakh, according to the new rules.
Earlier, a bond license could be obtained by submitting 14 types of documents which include BOI or BSCIC registrations certificate, TIN certificate of the company, updated trade license, updated fire license, VAT certificate, recommendations of relevant associations, submission of directors’ name, address and details in a Tk 300 non-judicial stamp and boiler certificate.
Entrepreneurs earlier had to submit a copy of original books in the memorandum and articles of association and certificate of incorporation of the Joint Stock Company, invoice and bill of entry in case of import of machinery or attested photocopy of purchase in case of local purchase, affidavit of complying with the rules and regulations on a Tk 300 non-judicial stamp.
Business leaders think the government should focus on ease of doing business and have to keep vigilant to prevent the misuse of bond license.
Former BGMEA president Siddiqur Rahman said while imposing new rules, it is needed to keep in mind that new entrepreneurs should not face any difficulties in availing the facilities.
He suggested ensuring tough vigilant and legal actions to prevent misuse of bond license.