Tk 5,000 crore foreign investment in uncertainty

24 August 2022, 09:34 pm | Updated: 02 June 2023, 08:50 pm

Tk 5,000 crore foreign investment in uncertainty
Photo: collected

Evergreen Product Factory (BD) Limited has set a record by manufacturing and exporting 'wigs' in Bangladesh.

Since 2009, under the name of Evergreen, Dong Xin Industrial Company Limited, Master Purple Limited and 17 other companies have established wigs business in Bangladesh with reputation. The managing director of all these organizations is a Chinese investor named Chang Yoe Chong Felix.

Chong Felix also recorded an investment of Tk 5,000 crore in this sector. Bringing raw materials from China, Nilphamari Uttara EPZ is exporting the products of the company to various countries of the world including America, Europe, Russia with a reputation of 100 percent compliance.

But with the connivance of Shamim Uddin, General Manager (GM) of the shipping department of this company, the shipment of alcohol came to Bangladesh in the name of the company. Although the company's Managing Director Chang Yi Chong Felix did not know anything, a case has been filed against him in the Chittagong Port Police Station. For this reason, the investment of Tk 5,000 has fallen into uncertainty.

According to Bangladesh Export Processing Zone Authority (BEPZA), Evergreen Product Factory was established by a Chinese investor in 2009. Its Managing Director is Chang Yi Chong. Later, this foreign investor built many other companies, including Dong Xin Industrial Company Limited in Uttara EPZ at Nilphamari.

In Uttara EPZ of Nilphamari district, Chinese investor Dong Xin Industrial Company has created thousands of jobs by manufacturing wigs. Around a total of 40,000 unemployed men and women from some nearby districts have become self-reliant as they are getting scope to work at the company.

Dong Xin Industrial Company at Uttara EPZ is contributing to the development of the country by exporting wigs abroad. This wig is being exported to different countries including America, Africa, China, Canada, Japan, Ukraine. Workers at Dong Xin Company work from 8:00a.m. to 4:00 p.m.

"We make wigs in Dong Jin company. We make both small and big wigs here. A small cap takes one to one and a half days to make and a large cap takes two to three days to make," one of the employees of Dong Xin told Dhaka Prokash.

By working here, we have all become economically independent. By working here, I am educating my children along with the expenses of the family, he added.

Additional Executive Director of Uttara EPZ Ferdous Rahman told Dhaka Prokash that Dong Xin is an Evergreen company. Only wigs are manufactured here. The company exports those wigs to different countries of the world.

According to sources, the head office of the organization is Gulshan No. 1, Road No. 8, House No. 15, Dhaka. One by one, some 17 companies have been established in Bangladesh by bringing raw materials from abroad, which is a record in this sector. Besies, about 40 thousand people are working in these industries and of them 95 percent are Bangladeshi.

Almost all the raw materials of these companies are imported from China. Wigs are manufactured in Uttara EPZ and exported. As the general manager of the shipping department for this import-export work, Shamim Uddin was given the responsibility. He arranges the necessary import and export. For this purpose he uses Importer Registration Certificate (IRC). As per the Proforma Invoice (PI) he also arranges import-export as per demand.

According to sources, the consignment of liquor was seized due to lack of original documents of IRC, which was not renewed on time. Shamim Uddin tried hard to renew the IRC before the liquor shipment, but he became failure due to occasion of Eid-al-Adha. For this reason, the consignment of liquor was seized.

When the company's MD Felix went on a trip to China, the fraudulent circle tried to bring 16 thousand 725 liters of alcohol instead of 18 thousand 700kg of material polyester resin (raw materials polyester resin) using this opportunity.

The customs officials said that they were seized the liquor in physical examination after checking at Chattogram Port due to lack of original documents of IRC on July 24.

Allegedly making false declarations and importing in breach of conditions in IPO 2021-24 on behalf of Chattogram Commissioner of Customs House, Assistant Revenue Officer M Wahiduzzaman filed the case on August 1.

After knowing this information, the managing director of the company Chang Yoe Chong Felix was suddenly shocked. Because at that time he was not in Bangladesh, he was in China. Currently he unable to come to Bangladesh due to a case in his name.

Those concerned say that the general manager of this company, Shamim Uddin, got the opportunity and colluded with the exporter to make this incident happen. Because everything is mentioned in the PI, including the quantity, price of the product. No established company does anything beyond the declared product.

A top official of a corporate organization, who did not wish to disclose his name, told Dhaka Prokash that after discussing with the exporter, the importing company opened an LC in the bank with all the documents. It is mentioned in the PI. There is no opportunity to bring anything outside of it.

Without the connivance of the exporter (the company that sent the product) no other product can be given in the name of any company without giving the product of PI. It was also caught when checked by the customs office, he added.

Officials of the Bangladesh Investment Development Authority (BIDA) also said that if a foreign company wants to invest in Bangladesh, it must follow the rules and regulations. This Chinese company is not out of it. After registration, BIDA recommends for IRC specifying the amount of money to invest. Later, on the amount of investment is revised even if the amount is reduced or increased. The IRC is renewed on expiry of the specified period. Therefore, if an organization brings another product in the name of one product, it is done with the connivance of the officials concerned.

Bangladesh Bank Chief Economist Dr. Habibur Rahman told Dhaka prokash: "There is no scope for any product to come to the country without the exporting company." In this case, there is no opportunity for Bangladesh Bank to see. Because the bank of this country accepts LC with all the documents. The bank of exporter country accepts it as per the margin and the exporting company arranges to reach the importer. But sometimes he also gives some other product. It was caught when checked by the customs office. If not, it reaches the country.

Denying the complaint, General Manager of the company Shamim Uddin said, I don't understand why the case issued. Without my knowledge, wherever the signature has been forged. Because customs authorization is not done the way I do invoicing here. An application has been made to the NBR Chairman to look into the matter.

Category : Special