The Bangladesh Export Processing Zones Authority (Bepza) has taken a number of restrictive measures so that the duty-free bonded warehouse products cannot be illegally channeled to local market from export processing zones (EPZs). The measures include reinforcing vigilance over the EPZs and hike in staff salaries.

The Bepza sources hoped that the measures would help achieve the target of earning over Tk 50 crore revenue every year. Meanwhile, a recent letter written by Bepza chief to the National Board of Revenue (NBR) has sought the NBR’s permission for the local and foreign industrial units at the EPZs to sell their excess raw materials and rejected finished goods in the local market through paying duty to the national exchequer.

According to the NBR, the industries located at the EPZs enjoy exemption of import duty, value added tax and supplementary duty on imported goods only for processing and export in accordance with Section 10 of the Bepza Act and Section 19 of the Customs Act. The capital machinery and spares, instruments, apparatus and appliances, including testing and quality control equipment, that are imported for installation in an EPZ, are also entitled to duty-free facility.

NBR officials alleged that some of the manufacturing companies in the EPZs cash in on such facility and flood the local markets with the duty-free products evading a huge amount of revenue, and also posing an uneven competition to other importers who pay 7.5 percent to 25 percent duty and supplementary duty for the same products.

The Bepza chief said in the letter to the NBR the board’s strict monitoring on the facility of importing duty-free car for the owners of the industrial units in the EPZs has also been asked for, as some of those had abused the facilities and evaded government duty. Besides, he said, the NBR has been asked for strong vigilance in and outside the EPZs to prevent any smuggling attempt.

The Bepza chief also disclosed that bonus and incentives for the members of the Bepza staff have been increased with a view to motivating them to refrain from any sort of involvement in illegal activities.