NBR says bond facility misuse continues despite automation reforms

PNN News Desk, Dhaka

The National Board of Revenue (NBR) has implemented major digital transformation initiatives in recent years to make the bond management system more transparent and efficient. Online Utilization Permits (UP), digital bond licensing, and automated services have simplified procedures.

However, despite the introduction of technology-driven systems, misuse of bond facilities and customs duty evasion have not been fully eliminated.

Sources say export-oriented industries import raw materials duty-free under the bond system, but some dishonest firms allegedly misuse these facilities by diverting materials away from production and export activities. This has resulted in significant revenue losses for the government.

Analysts believe the actual scale of irregularities may be larger than what is publicly reported. Such misuse is also creating competitive disadvantages for compliant industries, particularly backward linkage sectors.

Officials from bond commissionerates say manpower and logistical constraints remain major challenges in effective monitoring. With thousands of licensed entities to oversee, limited staffing makes regular audits and inspections difficult.

NBR data indicates that recent audits and preventive operations have detected hundreds of crores in irregularities and recovered significant revenue. However, several cases are still pending in courts.

Intelligence reports also suggest that some imported goods under bond facilities are being diverted to the open market, affecting both revenue collection and fair market competition.

Industry representatives emphasize that technological upgrades alone are not enough, and stronger audits, intelligence monitoring, and field enforcement are required.

Experts suggest that a combination of modern technology, skilled manpower, and stronger oversight is essential for ensuring transparency and protecting revenue.