The Directorate of Revenue Intelligence (DRI) has directed the customs to carefully scrutinise the origin of certificates issued for garments imported from other countries through Bangladesh. Garments that are being imported through Bangladesh from other countries take advantage of duty concessions offered under the free-trade pact.

There was concern over growing cheap imports from third countries through Bangladesh and that the agency wanted to ensure that imports from only Bangladesh were brought in. In August, the agency issued a show-cause notice on 83 garment consignments that were allegedly imported from third countries and routed through Bangladesh to avail of zero import duty. Also, the DRI fears that other importers would abuse the route and hence wants the customs to stay alert.

The customs department is also watching over garment imports entering the country through Bangladesh under the South Asian Free Trade Area agreement.

For import by other countries, a 30 per cent local value addition is mandated by the South Asia Free Trade Agreement in least developed nations. These local value addition rules are included in the trade pacts to ensure contribution to the exporting partner’s economy and local job creation through a criterion of very strict value addition, as well as to protect the importing partner.