In an effort to resolve long-standing conflicts between traders and customs officials, the National Board of Revenue (NBR) has instructed customs houses nationwide to release consignments of raw materials imported by bonded factories, even in cases where there are slight discrepancies in HS codes or product descriptions.
An HS code, or Harmonised System code, is the internationally recognised numerical system for classifying traded goods.
The NBR clarified that consignments cannot be detained if the primary four digits of the HS code match those listed in the importer’s bond license. Any discrepancies in subsequent digits or descriptions must be corrected later, within a timeframe set by customs authorities. Importers will be required to provide undertakings to update their bond licenses, and the Customs Bond Management System (CBMS) will allow corrections within 30 days.
NBR officials noted that nearly 90% of disputes between traders and customs involve HS codes. The new directive, they said, is expected to significantly reduce delays, port demurrage, and additional costs faced by exporters.
“A major grievance from businesses was that HS code disputes delayed goods clearance and raised expenses,” NBR Chairman Abdur Rahman Khan told The Business Standard. “We want to ensure that raw materials needed for export production are not held up under any circumstances.”
He added that importers can clear goods by submitting an undertaking in case of disagreement and stressed that any abuse of the facility will result in strict legal action.
Business leaders widely welcomed the announcement. “Every exporter has bitter experiences of harassment over HS codes,” said Shovon Islam, managing director of Sparrow Group, one of the country’s largest garment exporters. “This directive has been our long-standing demand, and we are very satisfied with the decision.”
According to the Export Promotion Bureau, Bangladesh earned $44.47 billion from exports in the 2024-25 fiscal year. Nearly 85% of those exports came from bond license-holding factories, dominated by the readymade garment sector. At present, around 5,000 companies operate under the bond system.
Bond facilities allow exporters to import duty-free raw materials and accessories, which are stored in bonded warehouses for export production. If those goods are diverted to the domestic market, companies must pay import duties ranging from 30% to 90%.
Customs authorities have often imposed strict controls on bonded imports to prevent misuse, as some firms allegedly sell duty-free raw materials locally, depriving the government of revenue and hurting domestic producers. Exporters, however, argue that genuine businesses face harassment while rule-breakers collude with corrupt officials to evade consequences.
Traders submit their required raw materials through Utility Declarations, with HS codes serving as the product’s unique identity. The first four digits broadly classify items like fabric, yarn, or buttons, while the last four digits provide details, such as the composition of fabric blends.
Most disputes arise from disagreements over those last four digits, which in the past have led to consignments being delayed for days or weeks, pushing up lead times and costs.
The NBR now says such delays should no longer happen. Corrections to HS codes can be made later, but shipments must be released immediately if the primary digits match.
Bharat Tex Special Report 2026 
