Diplomatic bonded warehouses are importing alcoholic liquor and beer at the price of water due to the lack of a fixed quantity or minimum import price. As a result, more liquor and beer is entering the country than the actual annual demand of diplomatic and privileged foreign citizens. Liquor and beer in excess of demand are going to the open market. Even to homes. After learning about these manipulations by bonded warehouses, the Customs Intelligence and Chittagong Customs wrote a letter to the National Board of Revenue (NBR). There, it was proposed to fix a minimum price or quantity for duty-free facilities to control manipulation. However, even after seven months, no effective action has been taken on the proposal.
The minimum import price for a liter of non-alcoholic beer is set at $2.50. However, diplomatic bonded warehouses are importing alcoholic beer (330 ml cans) for less than $1. Not only that, they are importing whiskey-like liquor for $1.50 to $2.
According to the information, a diplomatic bond recently imported 35,500 liters of beer, 13,000 liters of whiskey and about 14,000 liters of wine. The import price of beer was declared at 63 cents (less than a dollar). The price of whiskey and wine is one dollar 91 cents and one dollar 12 cents respectively. However, the minimum price notification in the current fiscal year's budget has set the minimum import price of alcohol-free liquor at two and a half dollars.
In this regard, Chittagong Customs Commissioner Fakhrul Alam said, "That consignment was seized. Later, temporary customs clearance was done in view of the court's interim order. There are alternative considerations in the future for such consignments."
Incidentally, the minimum price is the price fixed for imported goods. Even if the importer buys the goods from abroad at a price lower than this price, the goods are assessed at the fixed price in Bangladesh.
According to customs data, 2.2 million 4 thousand 905 liters of liquor and beer have been imported through 147 import consignments under duty-free facilities in the last one year. Only diplomatic bonds can import these products under duty-free facilities on the condition of sale to special beneficiaries and diplomats. According to the information provided by the source, the number of diplomats stationed in Bangladesh is about 1500. If this is calculated, a person is supposed to drink about 1500 liters of liquor and beer per year. However, according to the World Health Organization, the country that drank the most pure alcohol per capita in 2019 was the Czech Republic with a little more than 14 liters. Next in line are Latvia with 13 liters, Moldova and Germany with more than 12 liters respectively. American citizens drink close to 10 liters. This shows that the liquor and beer brought under duty-free facilities are being misused.
According to sources, the NBR launched a software to stop the sale of duty-free liquor and beer in the open market. In this software, each diplomatic bond is instructed to enter all the information about the import of liquor and beer, such as the bill of entry number, brand and name of the imported product, quantity, CIF price. At the same time, at the time of selling the product, it is ordered to verify the passbook or tax exemption certificate number and passport information of the diplomatic or special privileges person and sell the product as allocated and enter the X-bond number, name of the product sold, quantity in the software. But the diplomatic bonds expressed their reluctance to use the software on the pretext of cyber security and filed a writ in the court. The writ case has not been settled yet.
Analysts say that the NBRE itself is keeping the path of alcohol theft open. However, it is possible to close the path of alcohol theft in other ways besides software. For example, currently, diplomatic bonds are given import availability in dollars. Taking advantage of this opportunity, institutions are redeeming alcohol and beer through underinvestment. Let's say, the international market price of a bottle of beer is one dollar. But the country's diplomatic bonds are importing a bottle of beer for 50 cents. In this way, 2 bottles of beer are being redeemed for one dollar. In this way, it is possible to bring more alcohol within the price fixed by the NBR and sell it in the open market. It is possible to easily prevent theft by imposing a minimum import price for alcoholic alcohol and beer like alcohol-free beer. Or, if diplomatic bonds are given import availability in liters instead of dollars, misuse will be reduced to a large extent.
In this regard, former NBR member Farid Uddin told Jugantar, 'The NBR and the relevant ministries have done nothing to stop the misuse of diplomatic bonds. They are still where they were when they were established. It is doubtful whether the NBR and the Ministry of Foreign Affairs have an updated list of privileged individuals and diplomats residing in Bangladesh. Basically, the bonds are taking advantage of this. Liquor and beer are sold on the passbooks of those who have returned to their countries after fulfilling their diplomatic duties. This liquor and beer can also be seen in various clubs and homes of the high-class. He further said that if you want to sell duty-free liquor and beer, the entire process has to be digitalized. Before that, the list of diplomats residing in Bangladesh has to be updated. The Ministry of Foreign Affairs, NBR, Chittagong Customs and Bond Commissionerate can work together in this regard.'
No initiative is seeing the light of day: On May 16, Chittagong Customs sent a letter to the NBR detailing the under-invoicing of diplomatic bonds in the import of liquor and beer. To stop this malpractice, it was proposed to impose a minimum price on the import of liquor and beer or to give the import availability in liters instead of dollars. But no action was taken in view of that letter. Similarly, on November 18, a meeting was proposed to be convened by VAT Detective, Customs Valuation, Chittagong Customs, Dhaka Customs, Dhaka Bond Commissionerate, and all Dhaka VAT Commissionerates to bring diplomatic bonds under control and determine the minimum price. At the same time, it was proposed to form an investigation committee consisting of Customs Detective, Customs Valuation, Bond Commissionerate, and Customs House officials to investigate the laundering of diplomatic bond money. But that too did not see the light of day.
Chittagong Customs Commissioner Fakhrul Alam told Jugantor that under-invoicing is taking place in the import of liquor and beer under duty-free facilities. Two proposals have been given to the NBR to stop this. Now the NBR will take further action.
Customs officials say that diplomatic bonds are committing one crime after another in the name of the Vienna Convention. They are not paying any attention to the laws and regulations. Recently, the Customs Assessment and Audit Commissionerate got involved in auditing an organization. When the organization was asked for information on the import of liquor and beer, the organization did not provide the information. Customs detectives are also investigating money laundering in another organization. When the organization was asked for information, the organization did not provide it. In addition, the VAT detectives asked the organization for VAT returns and annual audit reports to investigate VAT evasion of a local bar. Since the organization did not cooperate, the organization's audit reports and returns from the VAT circle were collected from the relevant bank. Not only the Customs-Income Tax Department, but also the Narcotics Control Department are not paying attention. For example, according to the Narcotics Control Act, bonded warehouses are obliged to obtain permission to import liquor. But they are importing liquor without following the rules. As a result, the department does not have information on how much alcohol and beer the companies are importing annually.
Incidentally, the Vienna Convention is an international agreement on diplomatic relations between independent countries. In countries that have signed this agreement, diplomats from other countries enjoy special privileges. For example, diplomats can import daily necessities and personal vehicles duty-free. Diplomatic personnel are exempt from prosecution for criminal activities, except in special cases.
