British American Tobacco Bangladesh Company has decided to build a general bonded warehouse worth Tk150 crore in its Savar factory to improve productivity and meet the growing demand.
A bonded warehouse is a licensed facility that allows eligible exporters to store imported goods and inputs without paying import duties and taxes.
The multinational tobacco giant's board of directors approved the capital investment on Thursday evening at the company's head office.
In a disclosure published on its website, British American Tobacco stated this investment, which will be financed through loans and internal sources, would enhance the firm's production capacity.
According to the National Board of Revenue (NBR), under the general bond licence, manufacturers can import products for home consumption with deferred payment of duties and taxes. An importer can pay the duties and taxes while releasing the goods from bonded warehouses within six months of import.
A licence-holder is allowed to import raw materials up to 80% of its annual production capacity under the benefits. The factory will have to obtain permission from the NBR to have annual import entitlement over 80%.
British American Tobacco said it has its own and rented bonded warehouses that are far away from its Savar factory, which results in the company's cost of transporting goods to go up.
So, the company decided to build a bonded warehouse in its factory to reduce this additional cost.
Source: The Business Standard
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