Ctg customs demand Tk 5,227cr from Petrobangla in unpaid duties

The Chattogram Customs House has demanded Tk 5,227 crore as unpaid duties from Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) against 89 consignments of liquefied natural gas (LNG).  

Despite writing several letters requesting to clear the dues, Petrobangla has not paid the import tax.

Petrobangla imported the consignments through the waterways. Since the energy product is channelled into the national gas network at the Floating Storage Regasification Unit in Moheshkhali of Cox's Bazar in the sea, it was supposed to submit documents, including the bill of entry, after having the LNG released.    

A bill of entry is a legal document that is filed by importers or customs clearance agents on or before the arrival of imported goods. It's submitted as a part of the customs clearance procedure.

But the state-run agency brought in the super-chilled gas without submitting any documents in the last one year.

Releasing goods without submitting a bill of entry is a major crime under the Customs Act and a punishable offence. There is a provision of collecting a fine at least five times the value of imported goods for the crime, according to customs officials.

The customs department can even file a criminal case against the company if the fine is not paid, they say.

However, since Petrobangla is a government enterprise and provides emergency services, customs officials have only taken the initiative to collect the revenue.

According to customs sources, Petrobangla imported around Tk 34,000 crore worth of LNG in the last one year. But the customs house did not get a revenue of Tk 5,227.32 crore.

The revenue has been determined based on information provided by representatives of local shipping companies since no data were provided by Petrobangla.

On October 27, the Chattogram Customs House requested the National Board of Revenue (NBR) to collect the revenue.

According to the letter, Petrobangla has not paid any revenue against the consignments even though it cleared 89 invoices from December 2021 to October 13 this year. Of the consignments, the corporation did not submit any bill of entry for 30 consignments from September this year to 13 October.

In two letters sent to Petrobangla in June and July, the customs said the corporation's imports and all banking activities will be frozen in accordance with the Customs Act 1969 and the Value Added Tax and Supplementary Duties Act 2012.

However, the customs delayed taking such stern actions due to the country's ongoing energy crisis.

In a letter on September 19, Petrobangla told the customs house that the payment of the dues is subject to the receipt of subsidies from the finance division of the finance ministry.

HM Kabir, deputy commissioner of the Chattogram Customs House, said no amount has been paid so far.

"The NBR is being informed in this regard besides issuing regular demand letters to the corporation."

Petrobangla Chairman Nazmul Ahsan could not be reached for comments. Its General Manager SM Nurul Aurangajeb declined to comment.

An official of Petrobangla, on condition of anonymity, said: "We contacted the finance division for the payment of the customs duty. It will be paid as soon as the money is received."

Regarding the non-submission of the bill of entry, he said LNG is not similar to other products. The quantity of the goods varies after receiving them from ships.

LNG is cooled to approximately minus 160C. This turns the gas into a liquid, which takes up 600 times less space. It is then shipped in tankers. At its destination, it is turned back into a gas and used, like any other natural gas, for heating, cooking and power, according to BBC.

So, the bill of entry is submitted after calculating the amount of LNG received. The delay in calculating the volume of the energy received sometimes causes the delay in filing the bill of entry, said the official.