FE REPORT |
Sept. 23, 2021, 10:36 a.m.
September 24, 2021 11:39:00
Exporters are now free to sell their imported used machinery and spare parts in the local market duty-free at lower prices, duty-free.
Until now, 100 percent export-oriented industries have the right to benefit from a bonded warehouse, but had to pay customs taxes to sell or locally transfer these machines duty-free.
The customs wing of the National Board of Revenue (NBR) on Wednesday issued a circular lifting the deadweight to clear the path for affordable resale.
Exporters said restrictions on the sale of used machinery are a problem for many when they want to replace existing machinery or import advanced machinery. Due to the financial barrier, they used to dispose of used machines despite their working capacity.
Under current customs law, the sale of machinery duty free in the local market would require payment of all customs taxes applicable to commercial imports.
As such, despite the demand for such machines in the domestic market, exporters have been unable to sell them as none can afford the high price of second-hand capital goods.
The NBR issued the order, signed by the Second Secretary of Customs, Export and Obligations, Mashiur Rahman Mondol, under Section 219B of the 1969 Customs Act.
There had previously been no such rules or orders regarding the transfer or sale of used duty-free machinery or parts, a senior customs official said.
The absence of specific directives has also created confusion in customs offices in the field, to the great embarrassment of manufacturers.
“In the event of transfer or sale of used machinery duty free from one bonded exporter to another, the exporter will benefit from preferential prices excluding customs duties, but the prior approval of the customs commissioners will be required” , indicates the circular.
However, for the sale or transfer of machinery equipment to non-bonded exporters, a calculation of depreciation over the period of use, production capacity and the amount of tax refund must be followed.
The discount will be granted on the basis of the differences between the customs duties actually payable and the preferential rate enjoyed by the bonded exporter for importing the capital equipment.
In the absence of an expiration date certificate for duty-free machines, exporters will need to have an investigation carried out by a reputable investigative company to determine the lifespan of such machine.
However, duty-free machinery would be considered waste after 15 years of importation and it would have to be disposed of under a separate customs order, a senior customs official said.
The order will be valid for export-oriented industries under the Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Economic Zones Authority (BEZA) and Export Processing Zones (EPZ) ).
Responding to the latest circular, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) First Vice President and General Manager of Well Designers Ltd, Syed Nazrul Islam, said they should study the order before commenting. this new window opened on compensation. customs operations.