The National Board of Revenue has decided to discontinue the facility of importing luxury cars in the country by tourists under the Carnet De Passage as many of the tourists mostly foreign nationals of Bangladeshi origin do not re-export the cars imported under the facility,
violating rules, finance ministry officials said.The NBR has also decided not to allow entry of 70 such cars which were brought at Chittagong port recently.
They said that finance minister Abul Maal Abdul Muhith had already approved the proposal placed by the revenue board.
In a recent investigation, the revenue board found that Bangladesh never signed the United Nations’ conventions related to providing duty-free carnet facility to the international tourists.
The NBR has decided to stop the facility as Bangladesh is not bound to provide such facility as it is not a signatory of the UN conventions, the proposal stated.
Without signing any convention, the revenue board allowed 315 luxury cars including BMW, Mitsubishi Pajero, Mitsubishi Shougun Sport, BMW X5 Sport and Mercedes to enter in the country and 117 cars were not re-exported (sent back) violating the condition of the facility.
The NBR lost more than Tk 200 crore in duties because of non-export of those cars which are now plying the streets of the country, officials said.
Carnet is a special facility offered to tourists for importing (bringing in) their used cars to other countries with a condition of re-export. The tourists can import the cars for a maximum of one year without paying any duty. The facility is provided under two international instruments — The Customs Convention on The Temporary Importation of Private Vehicles, 1954 and the Commercial Road Vehicles, 1954.
Officials said that the revenue board had placed a set of proposals to the finance minister related to the misuse of the facility.
The proposals included closing down the facility until or unless the government signs the UN conventions, serving notice on the president of Automobiles Association of Bangladesh for making the government confused saying that Bangladesh is a signatory country of Carnet De Passage conventions, requesting the Bangladesh Road Transport Authority to cancel the registration to those cars which are not re-exported and arranging auctions for selling 70 cars which are remained stuck at the port as the importers of those cars declined to release the cars submitting bank guarantee in the NBR.
However, the NBR will give a chance to the importers of the 70 cars for re-exporting before auction.
The finance minister asked the NBR to implement the proposals steps by steps.
Before discontinuing the facility the NBR needs to verify further the country’s status related to signing the conventions through foreign and communication ministries, the officials said.
-With New Age input
