Three Chinese-owned factories in the newly opened Bangladesh Export Processing Zone Authority (BEPZA) run Economic Zone at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram are facing difficulties in releasing imported raw materials.
They are required to submit bank guarantee under a new rule imposed by Chattogram Customs Bond Commissionerate, despite they have made huge investment.
They alleged that export-oriented factories must provide bank guarantees, a rule not present in other EPZs (Export Processing Zones) in Bangladesh. This is causing delays and financial burdens for companies, they said demanding abolishion of the rule.
Chinese investors Kaixi Lingerie Bangladesh Co Ltd, Fengqun Composite Material Co (BD) Ltd, and KPST Shoes (BD) Co Ltd started production and export activities in November last year.
According to BEPZA, they have submitted bank guarantees totaling Tk2.55 crore against 15 import consignments to release imported raw materials at Chattogram Customs Bond Commissionerate.
KPST Shoes (BD) Co Ltd submitted Tk82.3 lakh in six consignments, Fengqun Composite Material Co (BD) Ltd submitted Tk74.21 lakh in six consignments and Kaixi Lingerie (BD) Co Ltd submitted Tk98.61 lakh in three consignments.
Investors report financial losses due to dollar crisis, increased dollar prices, and a global trade recession. Additionally, they struggle with labour shortages and inadequate infrastructure, including housing, water, utilities, and road connections. The bank guarantee complexity worsens these challenges.
Mohammad Anamul Haque, project director of BEPZA Economic Zone, said Bepza acts as the guarantor for companies in this zone. He said, "Companies have invested by depositing security money."
It is unnecessary to provide bank guarantee to customs department for importing raw materials. It is illogical for customs to demand bank guarantee from companies, which have invested hundreds of crores of taka, will evade customs duty.
"I have spoken to customs on this issue several times. This rule should be abolished. BEPZA Executive Director (Enterprise Services) Md Khorshid Alam said companies at BEPZA Economic Zone have informed in writing about the difficulties faced in clearing goods with bank guarantees. "We have informed NBR to cancel this rule…. "
In response, HM Ahsanul Kabir, second secretary (Customs: Export and Bond Branch) of NBR, recently sent a letter to the executive director (Enterprise Services) of BEPZA, questioning why companies in the economic zone are required to provide bank guarantees despite importing under duty-free bond facility.
"We will update NBR on this issue next week after gathering information from factory owners. Since this rule is not in place in other EPZs and there are foreign investors here, we hope the NBR will consider the factory owners request to maintain their interest," Khorshid Alam added.
The customs office has not yet been established in the BEPZA Economic Zone, making it impossible to monitor whether imported raw materials are being sold in the open market.
