Bangladesh's Customs Intelligence and Investigation Directorate has seized 150 metric tons of raw tobacco from Pakistan in 10 containers at Chattogram port, the agency said on Thursday.
The tobacco was seized at Chittagong port after investigators found that the importer had declared it at a price far below the usual customs valuation. Global Leaf Tobacco Company Limited brought the shipment in under a bond facility, according to a press statement reported by Dhaka Post.
The agency said the declared price was US$1 and 45 cents per kg. Goods under the same HS code are assessed at US$5 and 10 cents per kg, which suggests suspected under-invoicing. Customs intelligence also warned that weak control over bonded tobacco creates a risk of duty and tax evasion at every stage, from import to production to sale.
How much tobacco was seized, and how many cigarettes could it make?
The shipment held 150 metric tons of raw tobacco in 10 containers, Dhaka Post reported, citing the directorate's statement issued on Thursday, 29 October.
The agency estimated that the tobacco could produce about 21 crore 43 lakh sticks of premium cigarettes.
It put the potential retail market value of those cigarettes at about Tk 493 crore 86 lakh. Dhaka Post's headline rounded the figure to about Tk 494 crore.
That retail figure is the agency's estimate of what the finished cigarettes could sell for. It is not the value of the raw tobacco at import.
What is the alleged tobacco under-invoicing in Chattogram?
A preliminary review found a significant discrepancy in the shipment's declared import value, the agency said, according to Dhaka Post.
The directorate's comparison is between two prices:
- Assessed value for goods under the same HS code: US$5 and 10 cents per kg
- Declared value for this shipment of raw tobacco: US$1 and 45 cents per kg
The declared price is less than a third of the assessed rate. Import duties are calculated on the value of goods, so a lower declared value means lower duty owed at the border.
These are the agency's findings. The research available does not include any response from Global Leaf Tobacco Company Limited, and it does not mention any charges filed against the company.
How much revenue is involved in the seized shipment?
Based on previous import values, about Tk 21 crore 12 lakh in revenue is involved at the import stage alone, the directorate said, according to Dhaka Post.
The statement, as reported, does not say whether the agency alleges that the full amount was evaded. It says only that this sum is involved at the import stage. It also gives no estimate for revenue at the later stages of production and sale.
For the treasury, the distinction matters. Duty on tobacco is collected at more than one point in the supply chain, and the agency's warning covers all of them.
Why bonded tobacco duty evasion in Bangladesh worries customs
Under a bond facility, goods are imported for use in production. The arrangement depends on authorities being able to account for how the bonded material is actually used.
Customs intelligence said that if the actual use of bonded tobacco, and the goods made from it, are not properly recorded and controlled, duty and tax evasion can happen at every stage. That includes import, production and marketing, Dhaka Post reported.
The warning goes beyond this single shipment. It points to the record-keeping that bonded imports rely on: tracking raw material from the port, into the factory, and out to the market as finished cigarettes.
What happens next with the Chattogram case
The directorate said further details would be announced later, according to Dhaka Post.
Several points remain open. The statement, as reported, does not say:
- whether a case has been filed or a penalty imposed;
- whether Global Leaf Tobacco Company Limited has commented;
- what will happen to the 150 metric tons of seized tobacco.
The agency has not yet said whether its preliminary findings on the declared price of US$1 and 45 cents per kg will lead to a reassessment of duty on the shipment.