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Customs intelligence officials have uncovered four luxury cars concealed in a shipment declared as used car parts at Mongla Port, in what appears to be an attempt to import the vehicles in semi-knocked-down (SKD) form while paying significantly lower duties.
The shipment was declared as used spare parts with a customs-assessable value of around Tk 993,547, or nearly Tk 1 million.
However, a physical inspection found components belonging to four luxury vehicles whose combined estimated market value in Bangladesh could be between Tk 45 million and Tk 67 million or more, according to preliminary estimates by the Customs Intelligence and Investigation Directorate (CIID).
The vehicles identified are a 2017 Range Rover Vogue, a 2010 BMW 650i, a 2016 Lexus LX570 and a Toyota Crown Athlete.
The consignment contained 164 packages listed under 14 categories of used automobile parts, including doors, engines, gearboxes, suspension systems, shock absorbers, nose cuts, headlights, tail lights, fenders, cabins, steering wheels, bumpers, air cleaner boxes, differentials and axles.
However, during a 100-percent physical inspection, customs officials found that many of the declared “parts” were still attached to major structural sections of the vehicles, along with wiring harnesses, sensors and other essential components.
The shipment arrived at Mongla Port after customs intelligence received information that the true identity of the goods might have been concealed.
The clearance process was subsequently suspended.
On July 19, officials conducted a detailed physical examination with technical assistance from experts from the Bangladesh Road Transport Authority (BRTA) and Khulna University of Engineering & Technology (KUET).
They examined stickers, engraved numbers, markings and other identifying features on the vehicle components.
Artificial intelligence was also used to analyse the design and characteristics of the parts.
The shipment was imported by Crown Auto Mobile Services, a Dhaka-based company in Gandaria.
The exporter was Mahi Car Port in Ashikaga, Japan, and the consignment was transported aboard the vessel MV MCC Tokyo.
According to customs documents, the shipment’s invoice value was only $7,935, while the declared customs-assessable value was approximately Tk 993,547. Duties and taxes declared on the shipment amounted to about Tk 607,397.
Customs investigators are now examining whether the components should legally be treated as separate used car parts or as complete vehicles imported in SKD condition.
Under international customs classification principles, an incomplete or dismantled product may in certain circumstances be classified as the complete product if it retains its essential characteristics.
The CIID’s preliminary findings indicate that the size, arrangement and nature of the major structural components suggest that the four vehicles retained the essential characteristics of complete motor vehicles.
The exact amount of potential revenue evasion has not yet been determined.
If the vehicles are classified as SKD motor vehicles, customs authorities will have to assess each vehicle separately, taking into account factors such as engine capacity, year of manufacture, age, depreciation and applicable duties and taxes.
The preliminary investigation has also identified possible violations of relevant provisions of the Import Policy Order 2021–24, the Imports and Exports (Control) Act, 1950, and the Customs Act, 2023.
The CIID has sent its findings to Mongla Customs House, recommending that the goods be properly classified and assessed after reviewing the reports of the technical experts.
The case has raised concerns over the possible misuse of the classification of used automobile parts to bring complete or substantially complete vehicles into Bangladesh while avoiding the higher duties and regulatory requirements applicable to vehicle imports.