Customs and Bond Law

Customs and Bond Law in Bangladesh is the legal and administrative framework governing the import, export, warehousing, bonded facilities, customs duties, tariff classifications, exemptions, and enforcement actions relating to cross-border movement of goods. The primary legislation includes the Customs Act, 1969, the Import Policy Order, the Export Policy Order, and various SROs, circulars, and tariff schedules issued by the National Board of Revenue (NBR). These laws regulate customs valuation, HS Code classification, bonded warehouse operations, drawback schemes, customs clearance procedures, and penalties for evasion or non-compliance. Customs law ensures that international trade activities comply with national revenue objectives, trade facilitation standards, and security regulations. In Bangladesh, customs and bonded facilities fall under the Ministry of Finance, which supervises the National Board of Revenue (NBR)—the apex authority responsible for formulating customs policies, tariff regulations, issuing SROs, and managing revenue collection. NBR's Customs Wing administers customs controls across the country through Customs Houses and Land Customs Stations. Meanwhile, bonded warehouse licensing and monitoring are conducted by the Bond Commissionerate, which approves bonded facilities, inspects factories, and enforces compliance with conditions related to import-duty exemptions, export targets, and bonded inputs. The Ministry of Commerce also plays an important role through regulating import-export permissions, LCs, trade licensing, and industrial documentation. Customs operations in Bangladesh are structured through several key processes: import declaration (Bill of Entry), assessment and payment of customs duties, documentary verification, physical examination, and release of goods. Customs authorities classify products under the Harmonized System (HS Code) to determine applicable tariff rates, exemptions, or conditional benefits. Exporters and manufacturers operating under bonded facilities — especially in the RMG, leather, and other export-oriented industries — may import raw materials duty-free upon securing a Bond Licence. Bond officers regularly audit consumption records, export statements, and factory premises to ensure compliance. Violations such as diversion of bonded goods into the domestic market, under-invoicing, misdeclaration, or duty evasion may result in penalties, confiscation, or criminal proceedings. Disputes relating to customs assessments, penalties, valuation, HS Code classification, bonded warehouse audits, and seizure of goods are adjudicated through a structured dispute-resolution mechanism. Affected parties may file appeals before the Commissioner (Appeals) under the Customs Act, followed by further appeals before the Customs, Excise and VAT Appellate Tribunal. When legal or constitutional questions arise—such as arbitrary assessment, unlawful confiscation, or jurisdictional error—parties may seek remedies before the High Court Division of the Supreme Court through writ petitions. Additionally, criminal prosecutions relating to customs fraud or smuggling may proceed before the Metropolitan Magistrate Courts and Sessions Courts, depending on the nature of the offence. This multi-tiered judicial and administrative structure ensures enforceability and accountability within the customs and bonded system.