Customs Official, C&F Agent Jailed Over Tk 31 Lakh Duty Evasion

The convicts are former revenue officer Humayun Kabir and Mirza Md Ahsanuzzaman, proprietor of Kingship Shipping Agency

A Chattogram court has sentenced a former customs revenue officer and the owner of a C&F agency to prison in a case involving the alleged evasion of Tk 31.27 lakh in government revenue by declaring 20 lakh gas lighters as “chain of iron or steel.”

The convicts are former revenue officer Humayun Kabir and Mirza Md Ahsanuzzaman, proprietor of Kingship Shipping Agency.

Chattogram Divisional Special Judge Md Mizanur Rahman delivered the verdict on Wednesday (August 19), sentencing Humayun Kabir to a maximum of three years’ rigorous imprisonment and Ahsanuzzaman to two years.

The court also fined both convicts Tk 15,63,733.69 each. In default of payment, they will have to serve an additional six months in prison.

Neither accused was present in court when the verdict was delivered. The court ordered the issuance of arrest warrants against them.

The verdict was confirmed by Anti-Corruption Commission (ACC) Public Prosecutor Advocate Mohammad Kabir Hossain.

Inside the Duty Evasion Scheme

According to case records and the court’s observations, 20 lakh gas lighters were imported in 2,000 cartons under a letter of credit opened at the Khulna branch of BASIC Bank on March 11, 2010, in the name of Messrs Universal Enterprise.

The goods were identified as gas lighters in the Customs Import General Manifest (IGM). However, when the goods were cleared, the bill of entry submitted through Kingship Shipping Agency described them as “chain of iron or steel” instead.

The court observed that this was not a mere clerical error. There was a fundamental difference between the actual goods and the goods declared in the bill of entry.

By changing the description and HS code of 20 lakh gas lighters to iron or steel chains, the applicable customs duty was substantially reduced.

According to the verdict, the actual customs duty and taxes payable on the goods amounted to Tk 32,34,994.48. But based on the altered declaration, only Tk 1,07,527.10 was assessed and paid before the consignment was released.

As a result, the government was deprived of Tk 31,27,467.38 in revenue.

Customs ID Used in Duty Assessment

During the investigation, the ACC seized and examined records maintained by Chattogram Customs House.

The court found that the assessment notice for the consignment was issued on June 10, 2010, using the user ID and password of then revenue officer Humayun Kabir, with customs duty assessed at only Tk 1,07,527.10.

The court observed that, as the responsible revenue officer, Kabir had a duty to correctly classify the imported goods and assess the applicable duties in accordance with law.

The court said that assessing an abnormally low amount of duty under a completely different HS code despite the actual goods being gas lighters could not be treated as a simple mistake or negligence.

The verdict further noted that there was no evidence or plausible explanation to suggest that Kabir’s user ID and password had been used by someone else or that the assessment had been carried out without his knowledge. As he remained absconding, he also failed to provide any explanation in this regard.

C&F Agent’s Involvement

The assessed amount was deposited at the Customs House branch of Sonali Bank by C&F agent Mirza Md Ahsanuzzaman, after which the goods were released.

In his testimony, Md Shawkat Hossain said that he had not directly appointed Kingship Shipping Agency and had instead handed over the import documents to Saiful Islam.

However, the court noted that the same witness admitted that the imported goods had been cleared through Kingship Shipping Agency.

Customs records also identified Mirza Md Ahsanuzzaman, proprietor of Kingship Shipping Agency, as the C&F agent responsible for the consignment. The bill of entry had been submitted through his firm.

The court held that the claim of not being directly appointed did not negate the agency’s role in the customs clearance process.

According to the court, the submission of a bill of entry describing the actual goods as an entirely different product with a different HS code established the involvement of the C&F agency.

Court Finds Interdependent Roles

The court analysed the roles of the two accused side by side.

On one hand, the bill of entry was submitted through the C&F agent by declaring a completely different product and HS code instead of the actual goods.

On the other hand, the responsible customs officer used his own user ID and password to assess an abnormally low amount of duty based on that declaration.

The court observed that these interdependent actions enabled the consignment to be released while leaving Tk 31,27,467.38 in government revenue unpaid.

The court also noted that conspiracy is not always established through direct evidence; it can be proved through a combination of circumstantial and documentary evidence.

Sentences Under Multiple Laws

Under the verdict, Humayun Kabir was sentenced to three years’ rigorous imprisonment under Section 420 of the Penal Code, six months under Section 120(B), and one year under Section 5(2) of the Prevention of Corruption Act.

Mirza Md Ahsanuzzaman was sentenced to two years under Section 420 of the Penal Code and six months under Sections 120(B)/109.

As all sentences were ordered to run concurrently, Kabir will serve a maximum of three years, while Ahsanuzzaman will serve two years.

Both were also fined Tk 15,63,733.69, equivalent to half of the evaded duty. Failure to pay the fine will result in an additional six months’ rigorous imprisonment.

Nine witnesses testify

ACC Public Prosecutor Kabir Hossain said nine witnesses testified on behalf of the prosecution.

The court examined their testimony alongside the letter of credit, customs assessment records, bill of entry, bank records, seized documents and ASYCUDA++ data.

According to the prosecutor, the court found no material contradiction between the prosecution’s allegations and the documentary evidence.

Others discharged from the case

The investigation also brought Saiful Islam and Ishtiaq Ahmed Chowdhury into the case. Investigators found deposits of Tk 20 lakh and Tk 4 lakh respectively in their bank accounts and recommended that they be included in the charge sheet.

However, during the trial, the court found insufficient evidence to frame charges against them and discharged them by an order dated October 30, 2022.

Importer Anindya Islam (Amit), meanwhile, told investigators that he had imported the goods for his business associate Shawkat Hossain.

As no direct evidence was found linking him to the customs clearance or revenue evasion, investigators recommended his discharge, a recommendation subsequently approved by the ACC.

Duty paid later, but liability remained

According to the investigation, Tk 31,27,468 in evaded duty and taxes was eventually deposited through a pay order on July 24, 2018.

However, the court held that subsequent payment of the evaded amount did not extinguish the criminal liability arising from the offence committed at the time of the customs declaration and clearance.

Case records show that the bill of entry was submitted on June 9, 2010. The following day, the lower amount of duty was assessed and paid, after which the goods were released.

A demand notice for payment of the evaded duty was issued on February 10, 2011, but the amount was not paid at that time.

Case took years to reach verdict

Following an ACC inquiry, approval to file the case was granted on April 6, 2017, and the case was filed on April 26 of the same year.

After investigation, a charge sheet was submitted on September 4, 2019, against Humayun Kabir, Mirza Md Ahsanuzzaman, Saiful Islam and Ishtiaq Ahmed Chowdhury. The investigation report recommended that Anindya Islam be discharged.

The case was transferred to the Chattogram Divisional Special Judge’s Court on October 4, 2021.

On October 30, 2022, charges were framed against Humayun Kabir and Mirza Md Ahsanuzzaman. The court subsequently recorded testimony from nine prosecution witnesses and examined extensive documentary evidence.

After a lengthy judicial process, the court delivered its verdict on Wednesday, sentencing the former customs official and C&F agency proprietor to prison over the revenue evasion case.

The verdict once again demonstrates that misdeclaration of goods, misuse of HS codes and abuse of authority by responsible customs officials can, when combined, pose a serious risk to state revenue. At the same time, the court’s decision underscores the importance of accountability and digital records in the customs clearance system.