The Customs Bond Commissionerate of Dhaka has asked banks to open letters of credit in favour of active firms only.

The field office of the National Board of Revenue also directed the banks not to give overseas trade-related services to the companies that face regulatory measures for noncompliance with bonded warehouse rules.

The commissionerate has recently taken a series of measures that include listing of non-existent firms, putting a freeze on bank accounts of 123 companies and 385 directors of these companies and suspension of many bond licences.

The number of active firms having bond licences is 3,793 now, with the number of total bond licensees being 6,227. The bond licences of the rest 2,434 have been declared inactive, officials said.

The field office of the revenue authority said the firms whose licences were made inactive owe Tk 3,790.53 crore to the state.  "We have sought revenue from these companies for misuse of the bonded warehouse facility," said Md Shahidul Islam, a commissioner of the Customs Bond Commissionerate.

Bonded warehouses allow exporters to store taxable imports, mainly raw materials, in secured areas without payment of duties and taxes, and use them in manufacturing for export.

The authorities issue bond licences to export-oriented firms, allowing them to import raw materials at zero duty on condition that they will make finished products with the same imported raw materials and export them.

Of the firms with inactive bond licences, 75 percent represent the apparel sector followed by firms that make accessories and packaging items for export-oriented industries, according to the commissionerate.

In a letter to banks last week, the commissionerate said it has taken a series of measures to facilitate proper functioning of firms having bond licences, curb duty evasion and bring about transparency and accountability. 

The field office said it updates status of the firms having bond licences on its website regularly and asked bankers to check the status before extending overseas trade related services. "You are requested to open LCs, issue PRC (proceed realisation certificates) and perform other lawful jobs in favour of only active firms," said the letter signed by Islam.

A recent survey found that some 476 factories have vanished after taking tax and duty-free benefits under the bonded warehouse facility, costing the country hundreds of crores in lost revenues.