Bangladesh Live News 18 May 2022

Beijing/Dhaka: Chinese companies,already suffering from a poor image in corporate ethics, continue to violatethe laws of the land in Bangladesh causing loss to the exchequer.

Chinese government-affiliatedcompanies habitually use corruption and criminality not just in Bangladesh butin entire South Asia to gain an unfair advantage. Adding to the long list ofmalpractices by Chinese companies in Bangladesh is a new case of tax evasionthat was recently unearthed (May) by the Bangladesh authorities. Sino-KemmedTrading Co., a subsidiary of Global Pet Products Co Ltd. located in Shenzhen,Guangdong, China Has declared to send consignment of coated calcium carbonateto one of its Dhaka based associate namely ‘NB Trading House’. However, onphysical examination, the Bangladesh officials recovered 120 tonnes of highvalue Dextrose Monohydrate. The Dextrose was concealed as the label was that ofcoated calcium carbonate inside.

 The consignment originating from China hadarrived (March) at Chittagong port and was carried in five containers underVashi Shipping Pvt Ltd. Had it not been detected in time, it would haveresulted in loss of Bangladeshi Tk 42 Lakhs 13 thousand to the exchequer.

Some media reports suggest that theport authorities/ customs were under tremendous pressure from senior levels notto disclose the name and real identities of Chinese companies. Chineseauthorities were apparently concerned over media reports highlighting theinvolvement of their companies involved in tax fraud in Bangladesh. Earlier,Chinese companies too have been found to be involved in tax evasion inBangladesh.

 In December 2021, Bangladesh authorities haddiscovered that China Road & Bridge Corporation (CRBC), engaged in theconstruction of road and bridges in Bangladesh, was involved in tax evasionwhile importing construction material for government projects.

Another Chinese company called ‘DigitAnti Fake Company Ltd’ (DAFC) had supplied counterfeit bandrolls (a thin ribbonwrapped on bidi and cigarette packets) resulting in fraudulent tax evasion ofover Tk 250 crore for Bangladesh. The company was also found involved inprinting counterfeit passports, ballot papers, national identity cards, birthregistration certificates, etc. In another case of evasion, Tianye Outdoor (BD)Co Ltd (TOCL), a subsidiary of Chinese company Comefly Outdoor Co Ltd hadallegedly indulged in tax evasion and fraud to the tune of about Tk 21 crore.During routine physical inspection, the Bangladesh officials had recovered highduty foreign cigarettes from consignments, which had otherwise been declared tocontain cotton yarn from China.

 China’s image in Bangladesh is already takinga beating in the wake of the total collapse of Sri Lanka due to Chinese debttrap policy.

The corrupt practices by Chinesecompanies were further eroding their credibility. Recently, the Bangladeshgovernment cancelled Chinese funding for one of its railway projects and wasreportedly mulling alternative funding options for other projects includingconverting the existing Akhaura-Sylhet meter gauge rail road into a dual gaugeand Joydebpur-Ishwardi double gauge project. Though Beijing projects itself asa reliable economic partner, its economic partnership seems Chinese companiesinvolved in tax evasion, fraud in Bangladesh