Tk. 300 crores laundered by 10 companies in the name of garment export
According to customs intelligence, 10 exporting companies have laundered Tk. 300 crore to the United Arab Emirates, Malaysia, Nigeria, Saudi Arabia and Qatar in the name of garment export.
This information was announced in a press release signed by Shamsul Arefin, Joint Director of Customs Intelligence and Investigation Department, on Monday (September 4) at noon.
According to the press release, the customs intelligence and investigation department started working on the complaint that the shipment of fraudulently made clothing products is being exported abroad through Chattogram port, due to which the product price or foreign currency is not being reimbursed. On getting the bill of export of the accused companies, the agency came to know that they have fraudulently exported the goods using the EXP of other exporters and using sample code 20 in column 24 of the bill of export. In this case, money has been laundered abroad for the entire export value without any money being reimbursed to the country.
During the investigation, 10 exporting companies have committed such fraud in 1 thousand 234 shipments at different times. Against these shipments completed exports, the quantity of goods is 9 thousand 121 metric tons, which has a potential amount of reimbursable foreign exchange of 3,53,66,918 US dollars or about Tk. 300 crore.
The companies are - Savar's Pragya Fashion Limited, Gazipur's Pixie Knit Wears and Hong Kong Fashions Limited, Dhaka's Fashion Trade, MDS Fashion, 3Strar Trading, Fortune Fashion, Anupam Fashion Wear Limited, Stylez BD Limited and Eden Style Tex.
Those 10 exporters have basically laundered a huge amount of money using the nature of transaction code 20 in the bill of export.
It can be seen from the review of the related documents of the institutions, the institutions have laundered money by showing the export of products such as T-shirts, tops, ladies dresses, trousers, baby sets, polo shirts etc. to countries like United Arab Emirates, Malaysia, Qatar, Saudi Arabia and Nigeria through fraud.
The customs intelligence also said in the notification that in the review of the bill of exports of 10 institutions, no match was found between the information stated in the bill of export and the EXP. According to the information received from the South East Bank mentioned in the bill of export, none of those 10 companies are lien to that bank. Besides, the said bank is not related with the business activities of the companies. As a result, the export value of the sales contract or exp mentioned in the bill of export through the bank has not been reimbursed or there is no chance of being reimbursed.
Pragya is fashion
Pragya Fashion Limited has laundered money through 391 export shipments including 383 in 2019 and 8 in 2020. In the exported goods shipments, 3080 metric tons of T-shirts, pants, tank-tops, pajamas etc. products have been exported to countries like United Arab Emirates and Malaysia. The value of the exported goods in the mentioned shipments is about 1 crore 8 lakh 41 thousand 699 US dollars or Tk. 92 crore 4 lakh 60 thousand 245 taka. Several C&F agents of Chattogram are involved in this fraud.
Fashion trade
Fashion trade has committed fraud in 246 export shipments including 73 in 2020, 116 in 2019, 57 in 2018. 1779 metric tons of T-shirts, pants, tank-tops, pajamas etc. have been exported to countries like United Arab Emirates, Qatar, Philippines, Nigeria, Singapore, Australia, Thailand, Sudan and Malaysia. The value of the exported products in the mentioned shipments is about 80 lakh 51 thousand 640 US dollars or Tk. 68 crore 35 lakh 84 thousand 236 taka.
MDS Fashion
MDS Fashion has committed fraud in 182 export shipments in 2020. 1376 metric tons of t-shut were among the exported cargoes. The value of the exported goods in the mentioned consignments is about 51 lakh 82 thousand 586 US dollars or Tk. 44 crore taka.
Hong Kong Fashions
Hong Kong Fashions Limited committed fraud in 156 export shipments in 2018, 2019 and 2020. 1161 metric tons of T-shots have been exported in the exported commodities. The value of the exported products in the mentioned shipments is about 47 lakh 89 thousand 606 US dollars or Tk. 40 crore 66 lakh 37 thousand 586 taka.
Three-Star Trading
Three-Star Trading committed fraud in 120 export shipments in 2020. 816 metric tons of T-shirts were exported in the exported goods shipments. The value of the exported products is 30 lakh 53 thousand 108 US dollars or Tk. 25 crore 92 lakh 8 thousand 869 taka.
Fortune Fashion
Fortune Fashion committed fraud in 59 export shipments in 2018 and 2019. 435 metric tons of t-shirts were exported in the exported product shipments. The value of the exported products in the mentioned shipments is about 15 lakh 24 thousand 813 US dollars or Tk. 12 crore 94 lakh 56 thousand 623 taka.
Anupam fashion
Anupam Fashion Wear Limited laundered 42 export shipments in 2020. 195 metric tons of t-shirts were exported in the exported product shipments. The value of the exported products in the mentioned shipments is about 8 lakh 77 thousand 470 US dollars or Tk. 7 crore 44 lakh 97 thousand 203 taka.
Pixie knit
Pixie Knit Wears Limited committed fraud in 20 export consignments in 2020. 170 metric tons of t-shirts were exported in the exported product shipments. The value of the exported goods in the said consignments is about 5 lakh 96 thousand 282 US dollars or Tk. 5 crore 6 lakh 24 thousand 341 taka.
Stylize BD
Stylize BD Limited has committed fraud in 10 export shipments in 2020. 66.8 metric tonnes of t-shirts were exported in shipments. The price of these products is about 2 lakh 55 thousand 629 US dollars or Tk. 2 crore 17 lakh taka.
Eden Style Tex
Eden Style Tax has committed fraud in 8 export shipments in 2020. 42 metric tons of t-shirts were exported in the exported product shipments. The value of the exported products is about 1 lakh 94 thousand 85 US dollars or Tk. 1 crore 64 lakh 77 thousand 816 taka.
According to customs intelligence, in most cases the exported products are T-shirts and the weight of each piece is shown to be 500/800/1000 grams or more. But actually every kg of knit fabrics makes at least 3 to 6 long sleeve T-L size t-shirts. In this case, the average weight of each T-shirt is minimum 250 grams and the number of T-shirts exported is calculated.
Besides, in some shipments, the price of export goods has been declared very low. In this case, the potential export price has been determined by taking into consideration the price of the same product in the current export shipment. The exporting company and related C&F agents have used the EXP of other exporting company in the bill of export.
C&F agents and exporters have mutual cooperation and collusion in this case of forgery. It is also said that the process of taking appropriate legal action against the institutions is ongoing.