While traders are struggling to open letters of credit or LC due to dollar crisis, money laundering is going on under the guise of fruit imports and a group of unscrupulous traders have created a record of money laundering doing this, even though the Ministry of Commerce has taken several initiatives to increase import duty to discourage fruit imports but it didn’t implemented yet.
According to National Board of Revenue-NBR sources, a group of unscrupulous traders have created a record of money laundering under the guise of importing foreign fruits. Despite strict precautions, last year saw a record amount of fruit imports.
In 2022, fruits worth tk 5017 crores were imported, which is about 97 per cent more than the previous year. NBR sources said that money is being laundered by making false declarations on the import of fruits.
The Ministry of Commerce has taken several initiatives to increase the import duty to discourage the import of fruits, but it has not yet been implemented. In this situation, traders and economists have advised to stop the import of fruits.
The data of NBR said that in 2022 compared to 2021, fruit import has increased by almost 97 per cent.
Prime Minister Sheikh Hasina gave several instructions in a meeting with the secretaries of the concerned departments and ministries at Ganabhaban on November 6 to review the overall financial situation of the country and relevant issues.
Sources of the meeting said that the Ministry of Commerce proposed to increase the tax to discourage the import of luxury goods to maintain the dollar reserves. The issue of fruit import came up in the discussion because many fruits are produced in the country. If more tariffs are imposed on foreign imports, imports will fall. The demand for native fruits will increase.
Commerce Secretary Tapan Kanti Ghosh has asked Commerce Ministry to consider implementing the proposal to increase duty on 340 products a few days ago.
Md Jasim Uddin, president Federation of Bangladesh Chamber of Commerce and Industry-FBCCI told Bangladesh Pratidin, “There is no need to import foreign fruits in Bangladesh. It should be discouraged. From FBCCI we have proposed to increase duty on import of fruits.”
“Because false declarations in fruits imports are yielding huge amounts of money. But even if it is not a foreign fruit, we will continue. It must be closed. Our domestic needs will be met only with domestic fruits,” he said.
Dr. Jamaluddin Ahmed, for general secretary Bangladesh Economic Association (BEA) said, “Fruit is not an everyday commodity. As a result, there is no need to import fruits from abroad. Foreign fruits are a threat to public health as they contain formalin. Again money is being smuggled through the import of fruits.”
“Even the fruits which are being imported from abroad are being produced in many countries. There are some other fruits that can be produced in the country. NBR should stop import of fruits and review the matter. Domestic fruit growers should be protected by stopping imports,” he added.
Dr. Lelin Chowdhury, public health expert told Bangladesh Pratidin, “Examining the fruits before covid pandemic shows that formalin is more in red grapes. Apples also contain high levels of formalin.”
“The fruit imported from abroad should be checked for formalin or other chemicals. If the imported fruit is not tested, it will cause harm instead of good,” he said.
The banks are opening accounts in nameless institution without any address verification. And the money was sent four times by LC from that account. Each time, money was sent in the name of fruit import but they imported cigarettes. Sometimes garment import-exporters, sometimes data management and sometimes cargo clearing and forwarding companies are shown importing fruits.
Those concerned said, on the one hand, damage to public health, on the other hand, economic risk - such a situation has been created by unscrupulous fruit importers. Again, due to the large trade deficit in import and export and the decrease in foreign currency income, the dollar crisis has intensified in the country's bank management.
Imports of essential goods are being disrupted by insufficient supply of dollars at a time of high inflation caused by the Russia-Ukraine war after the outbreak of the pandemic subsided. Even then money laundering does not stop.
As the import of industrial raw materials and capital equipment has stopped, traffickers have chosen new tactics. Thousands of crores of money are being laundered in the name of fruit import. Information about money laundering in the name of fruit import has also come up in Bangladesh Bank's report. The governor himself has expressed anger over the matter.
Bangladesh Bank governor Abdur Rouf Talukder said on December 1 last year, “Goods imported by over invoicing up to 20-200 per cent. We have closed 100 such LCs. It is possible to stop trade-based money laundering if import can be controlled by showing lower or higher prices of products in foreign trade.”
“Apples are being imported at a lower price than the price at which they are being sold in the market. Due to low prices, the government's revenue is also decreasing from here. Thus goods are being imported through under invoicing, the price which is being shown low, is being paid through hundi. Unsent remittances of expatriates are being used in hundi,” he added.
Analysis of data from NBR and BB shows that all types of fruits are imported into the country under the category of 'Fresh Fruits' and 'Dry Fruits'. Dates, raisins and almonds are imported in dry fruits category. Fresh fruits category includes 52 types of fruits including apple, orange, pear, grape, malta, mandarin, pineapple, dry cherry, dragon, strawberry.
Statistics show that since July last year, fruit imports have increased every month compared to the previous month. Compared to July, 61 thousand 540 metric tons or 220 per cent more fruits were imported in November.
@The report was published as lead story on print and online versions of The Bangladesh Pratidin on January 18 and rewritten in English by Tanvir Raihan
