Currently, Bangladesh has 10–11 high-end Rolls-Royce automobiles; four of these would be imported as electric vehicles through Chattogram Port in 2024, greatly lowering charges from Tk35–40 crore to Tk4 crore. The Customs Intelligence and Investigation Directorate (CIID) found that the Chattogram Custom House lost at least Tk120 crore in revenue from these four oil-powered Rolls-Royce vehicles, each of which avoided paying at least Tk30 crore.
Along with the four vehicles, since 2015, CIID has been investigating at least 40 luxury vehicles from well-known international brands, such as BMW, Mercedes-Benz, Audi, Nissan Safari, and Nissan GTR, for allegedly being imported fraudulently. In Chattogram and Dhaka, three of the cars have already been confiscated.
Customs authorities estimate that a total of Tk500 crore was lost in revenue as a result of the remaining 36 automobiles avoiding an average charge of Tk10 crore each, for a total of Tk360 crore. Information on the cars is also being collected, according to CIID officials.
“We have requested import information on 40 vehicles released through Chattogram and Mongla ports,” Md. Minhaj Uddin, additional director general of the CIID, Chattogram, told The Business Standard. Following under-invoicing, these cars were cleared by changing their model and series. Based on the results, the importers will face consequences.
Customs claims that the highest tariff on automobile imports is 827%, which means that a car costing Tk1 crore would have to pay Tk8.27 crore in duty. The engine capacity and the car’s hybrid or non-hybrid status affect duty rates. Unscrupulous organisations change the model year and declare luxury automobiles as auto components for clearance in order to avoid paying taxes.
On November 25 last year, the CIID confiscated a high-end Nissan Safari from a garage in Khulshi, Chattogram, due to the absence of import documentation. The vehicle, valued at around Tk10 crore in duties and taxes, was registered as a Nissan Patrol by the BRTA in 2016 but was later identified through its chassis number as a premium Nissan Safari model.
Earlier, on November 13, the CIID seized a BMW Seven Series in Dhaka’s Tejgaon Industrial Area, imported using false declarations. These back-to-back incidents underscore the prevalence of fraudulent practices in luxury car imports, resulting in an estimated Tk20 crore in evaded duties.
Md Habib Ullah Dawn, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association, informed TBS that certain Rolls-Royce vehicles, originally oil-powered, were converted to electric and imported into Bangladesh in late 2023. He emphasized that any organization found guilty of fraud during the clearance process should face appropriate consequences.
He also urged the Customs Intelligence and Investigation Directorate to take action against any entity involved in customs evasion related to other luxury vehicles.
Analysts have suggested investigating whether customs officials are involved in these frauds, noting that such incidents are unlikely to occur without their participation. Customs is losing a significant amount of revenue due to these activities.
Advocate Akhtar Kabir Chowdhury, president of the Conscious Citizens Committee in Chattogram Metropolitan, told TBS that corruption is widespread nationwide, including within customs. He stated that clearing luxury vehicles in this manner would not be possible without the involvement of customs officials. He also pointed out the involvement of bank defaulters in such fraudulent activities and stressed the need to hold these corrupt individuals accountable under the law.
Source: The Business Standard
