Cigarette Manufacturing Plant Imported Under Declaration of Packing Machines

The Customs Intelligence and Investigation Directorate (CIID) has seized a plant comprising seven machines for manufacturing and packaging cigarettes from a consignment imported through Chattogram Port under the declaration of packing and wrapping machines.

Although initial information identified six machines, a detailed examination revealed a total of seven. The consignment was declared as containing six packages.

The consignment was imported by JR Business World, a commercial importer based in Mirpur, Dhaka, with BIN 009035344-0401, from Ali Industries Limited of the United Arab Emirates.

In Bill of Entry No. C-1321878, submitted to Chattogram Customs House on November 4, the goods were declared as a “BNC Packing Line Machine Set”. The HS code 84224000, applicable to packing and wrapping machines, was used in the import declaration.

During its examination, the CIID found an HPL 225 cigarette maker, HPL packer, HPL feeder, HPL gluing machine, CP1 cigarette pack wrapping machine, SASIB boxer cigarette packing machine and a cigarette film overwrapper, also known as a cellophane overwrapper.

This means the consignment contained not only packaging equipment but also the core machinery required for cigarette manufacturing.

The declared invoice value of the consignment was $17,600. However, the CIID’s preliminary information sheet mentioned an estimated website-based value of $443,000, nearly 25 times the declared amount.

The directorate clarified that this figure was preliminary and comparative. The final assessable value and applicable duties and taxes can only be determined after verifying the machines’ models, ages, conditions and comparable import prices.

According to the import documents, the consignment had a gross weight of 5,500 kg and a net weight of 5,226 kg. Express Logistics Limited, with AIN 301760621, was appointed as the C&F agent for clearing the goods.

According to the CIID’s information sheet, the exporter’s principal business involves tobacco production and the supply of machinery for the tobacco industry.

The CIID observed that cigarette manufacturing machinery should preferably be imported through the country’s approximately 29 cigarette manufacturing companies or their authorised suppliers. It said the identities of the importers, actual buyers and end users, as well as their links to manufacturing companies, need to be verified.

According to the directorate, importing and using such machinery outside these established channels could create a risk of manufacturing and marketing counterfeit cigarettes bearing the names of well-known brands and leading taxpayers. This could deceive consumers, cause business losses for legitimate manufacturers and result in revenue losses for the government.

The incident, in which an entire cigarette manufacturing line was imported under the declaration of packing machines, has established the issue of misdeclaration of goods.

Officials said a detailed investigation would be conducted to verify the legitimacy of the import, correct classification, actual value, applicable duties and taxes, and the machinery’s ultimate use. The findings would be made public after the investigation.

The Customs Intelligence Directorate will continue its operations to ensure proper revenue collection from the cigarette sector and prevent the production and marketing of counterfeit cigarettes.