NBR blocks BINs of 3,505 firms for irregularities

Staff Correspondent

4 May, 2021 12:00 AM printer

The National Board of Revenue (NBR) has recently published a list of 3,505 business entities whose business identification numbers (BINs) have been blocked for non-compliance with the terms of the licence and other regulations.

The Customs Bond Commissionerate (Dhaka), a wing of NBR, has also unlocked the BINs of 300 licence holders of bonded warehouse facility based on applications by the firms after fulfilling the licensing conditions, a customs official said.

Currently, there are more than 7,000 bond-license holding entities, including the BIN-locked and inactive firms, issued mainly to export-oriented industries such as direct exporters and deemed exporters.

Of the locked BINs, there are around 900 bond-licence holding entities without any real business activities.

Businesses require an active BIN to conduct export and import activities but there are fears that BIN-locked companies may continue duty-free import due to loopholes in the system, the officials said.

Customs officials said the BINs of the bond-licence holding businesses were locked mainly due to non-compliance issues, including not providing the annual export and import data and non-cooperation in audit activities, and misuse of bond facilities.

Information related to export and import data is important for bond offices to examine whether the license holders utilized the raw materials imported under duty-free benefits in producing finished products and exported those products, the official said.

They also said many businesses also sold the raw materials on the local market, violating the conditions of the licence.

The Commissionerate often issues orders to lock or suspend BIN due to irregularities of exporters and violations of conditions of the bond licence and the Asycuda World (AW) system implements the order by locking BINs.

Some businesses maintain two active BINs (nine-digit and 13-digit BINs) at a time and that is why the information related to BINs are not updated in the bond database and the AW system. As a result, the AW system faces difficulties in complying with the customs bond Commissionerate’s instructions.

To address this issue, NBR has asked customs houses to release data on relevant import and export consignments activities.