Customs has cancelled the bonded warehouse licence of Golden Son Ltd and fined the garments accessories and household manufacturer about Tk 433 million for misusing the duty-free provision.
The Customs Bond Commissionerate reprimanded the company for transferring duty-free imported raw materials illegally from the bonded warehouse.
The Dhaka Stock Exchange has confirmed the cancellation of the bond on its website on Wednesday.
Bonded warehouses are authorised by the customs authorities for storing goods on which duties are deferred until the produced goods are shifted for domestic consumption. On the other hand, no duty has to be paid in case of exports.
“The company failed to mend even after complaints were filed against them after investigation regarding illegal transfer of duty free imported raw materials from the bonded warehouse,” the DSE said.
Customs fined Golden Son Ltd Tk 432.9 million as the allegations were “undisputedly proven and established”.
DSE informed that customs issued the cancellation and fine on October 29 and the company has been ordered to pay the fine in 15 days.
Golden Son has done it several times, which the authorities conclude as a ‘tendency’ and decided to scrap the company’s bonded warehouse licence.
Shares of the company, which was listed in 2007 and traded as a B category scrip, fell by 2.11 percent on Wednesday to close at Tk 13.90 after opening at Tk 14.20.