Ctg port authorities seize illegal cigarette manufacturing plant

The Directorate General of Customs Intelligence and Investigation (CIID) has seized a complete seven-machine cigarette manufacturing and packaging plant at Chattogram port, which was imported under a false declaration of packing and wrapping machinery.

Although initial reports cited six machines, detailed inspections confirmed a total of seven units in the consignment, which had been declared as six packages.

The CIID confirmed the seizure on Thursday (November 12).

According to Md Al Amin, Public Relations Officer of the National Board of Revenue (NBR), the consignment was imported by "JR Business World" (BIN 009035344-0401), a commercial importer based in Mirpur, Dhaka, from "Ali Industries Limited" in the United Arab Emirates. 

The goods were declared under Bill of Entry No. C-1321878, submitted to the Chattogram Custom House on 4 November, identifying the items as a "BNC packing line machine set" under HS Code 84২২৪০০০, which corresponds to packing and wrapping machinery.

However, a physical examination by CIID uncovered an HPL 225 cigarette maker, an HPL packer, an HPL feeder, an HPL gluing machine, a CP1 cigarette pack wrapping machine, a SASIB boxer cigarette packing machine, and a cigarette film or cellophane over wrapper. In essence, the import served as a fully functional cigarette production line disguised as packing equipment.

Declared Invoice Value: $17,600 USD.

Preliminary Estimated Value: Approximately $443,000 USD based on web-based valuation (roughly 25 times the declared value).

Weight: Gross weight of 5,500 kg and net weight of 5,226 kg.

C&F Agent: Express Logistics Limited (AIN 301760621).

According to CIID findings, the exporting company's primary business involves tobacco production and the supply of tobacco industry machinery.

CIID observations note that the importation of cigarette-making machinery or production lines should legally be restricted to approximately 29 recognized cigarette manufacturing companies or their authorized suppliers.

Importing and utilizing such equipment outside established regulations creates a severe risk of counterfeit production, enabling illicit operators to copy well-known brands and top tax-paying enterprises.

Such activities deceive consumers, inflict heavy financial losses on legitimate producers, and deprive the government of substantial revenue. The misdeclaration of the imported goods as packing machinery has been provisionally established.

Detailed investigations are currently underway to verify the importer's credentials, determine the correct HS Code classification, assess the actual market value, calculate applicable duties and taxes, and ascertain the intended final use of the machinery.

Customs Intelligence stated that anti-fraud operations to safeguard revenue in the tobacco sector and curb counterfeit cigarette production will continue.

-SA