Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environmental protection, preparation of foreign trade statistics, trade compliance and protection of cultural heritage.
Customs collects 42% of the NBR’s total revenue. The revenue target for the year 2007-08 was Tk. 17,812 Cr. and actual revenue collection so far (July’ 07 to May’08) is Tk. 16, 987.06 Cr. that is 19.04% higher than the previous year. The target has been revised to Tk. 19385 Cr. for 2007-08 and with an increase of 16.25%; it has been set to Tk. 22,536 Cr. for the year 2008-09.
In the present financial year (2007-08) there are 3 duty slabs of customs duties i.e. 10% for basic raw material, 15% for intermediate raw material or semi finished products, and 25% for finished products. In the proposed 2008-09 budget, the duty structure has been restructured and a four tier duty structure has been proposed, i.e. 3% for capital machinery, 7% for basic raw material, 12% for intermediate raw-material or semi finished products, and 25% for finished products.
Since Customs functions at the gateway for import and export of goods, it plays a critical role in the import-export trade chain. In order to make customs procedures more transparent and to achieve more trade facilitation, a number of measures have been taken in past few years. With the introduction of ASYCUDA++ and Direct Traders Input (DTI) automation in customs clearance has begun. Recently, a full automation scheme is on way of implementation in collaboration with the Chittagong Chamber and the Task Force. Once the full automation is completed the importers and exporters will be able to access customs server from their offices or homes and will be able to submit their customs declaration online.
Exemptions from Customs Duty:
Raw materials of Medicine;
Poultry Medicine, Feed & machinery;
Chemicals of leather and leather goods;
Private power generation unit;
Textile raw materials and machinery;
Solar power equipment;
Goods for blind and physically retarded people; and
Import by Embassy and UN.