Leading exporters of knitwear and woven garments have alerted the National Board of Revenue (NBR) that a handful of dishonest traders are exploiting the bonded warehouse facility with impunity, leaving compliant businesses to absorb the consequences.
At a Meet the Business event at the NBR headquarters in Agargaon, Dhaka, the Presidents of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)—which together account for more than 80% of Bangladesh’s exports—stressed that none of their members are involved in such wrongdoing. They urged the revenue authority to identify offenders and take decisive action.
The bonded warehouse scheme allows fully export-oriented industries to import raw materials and intermediate goods duty-free. However, some traders are allegedly diverting these materials into the domestic market on a daily basis, with little fear of reprisal.
BKMEA President Mohammad Hatem told the programme that abusers rarely face any consequences. He said offenders “know exactly whom to manage” and clear their goods instantly, with no record of action taken against them. He argued that honest companies—those paying taxes, employing workers and exporting legitimately—are ultimately penalised.
Hatem called for visible and exemplary punishment for at least a few offenders, urging the NBR to make their names public and take legal and social measures to prevent them from operating in future. He maintained that misuse would not decline until such steps were taken.
BGMEA President Mahmud Hasan Khan also pressed for strict enforcement against those exploiting the system. He asked the NBR to clearly identify any association members involved, adding that the BGMEA would revoke the membership of anyone found guilty of abuse. While he argued that the scale of misuse is often overstated, he acknowledged that 22 member factories had already received compliance warnings.
Khan further criticised the NBR’s “policy inconsistency” and urged that major changes—such as the withdrawal of existing benefits—should be discussed in parliament rather than implemented abruptly through statutory regulatory orders.
