Customs officials in Bangladesh seized two consignments of undeclared cigarette paper falsely labeled as straw paper and paper ribbon, exposing a racket that could cost the government hundreds of crores in lost revenue. Lab tests by BUET, Dhaka University, and Khulna University of Engineering and Technology confirmed the shipments contained cigarette paper, not the reported goods.
Officials said Dhaka-based RM Enterprise and Smart Move attempted to clear the goods despite laboratory findings, allegedly lobbying senior revenue officials. If released, the consignments would have deprived the state of Tk 1.7 crore ($139,000) in duties and up to Tk 135 crore ($11.1 million) in VAT from untaxed cigarettes.
Records show RM Enterprise previously imported 489 tons of raw materials under suspicious declarations, with potential tax losses estimated at Tk 4,000 crore ($329 million). Both firms were found to be operating through non-existent or front addresses.
Customs officials have blocked the release of the seized shipments and vowed further investigation into past imports.
