Bangladesh
Unscrupulous Chinese Companies Several Chinese firms indulging in unscrupulous practices in Bangladesh
Dhaka, June 8: Close on the heels of Chinese companies in Bangladesh being involved in illegal activities in the construction sector and printing of counterfeit documents, another case has been detected in the trade of prohibited items. Bangladesh authorities reportedly discovered (May 2022) that a Chinese company namely Hangzhou Union Biotechnology Co Ltd (HUBCoL) was trying to export prohibited items to Bangladesh.
HUBCoL is a leading Chinese brand mainly engaged in food additives and pharmaceutical materials. HUBCoL had supposedly declared to send a consignment of Soda Ash Light to one of its Dhaka based associates. However, on physical examination, BD authorities recovered 19 tonnes (788 packets) of Sodium Cyclamate (SC), concealed under the label of Soda Ash Light. The consignment had originated from CNTAO Qingdao Port, China and arrived in Chittagong.
SC is basically one type of condensed sugar, which is 30 to 50 times sweeter than the ordinary one. The Bangladesh Government has declared SC as an illegal and prohibited item. Hence, the export/import, production or use of SC in any form, is a punishable offence in the country. The consumption of SC increases the risk of contracting cancer. In order to dodge BD authorities, HUBCoL had furnished a false declaration.
In yet another case of corruption by Chinese officials in Bangladesh, it is being reported that an official of China Harbor Engineering Company (CHEC), which has been working as a sand-filling contractor at Sabrang Tourism Park, Teknaf, Cox’s Bazar, was penalized BD Taka 2.5 lakhs and sentenced (June 04) to three months imprisonment by Bangladeshi authorities for illegally selling-off sand meant for filling work.
Notably, these are not the first cases of illegal activities of Chinese companies and officials in Bangladesh. Earlier in December 2021, the authorities had found that China Road & Bridge Construction (CRBC) company, engaged in the construction of road and bridges in Bangladesh, was involved in tax evasion while importing construction material for government projects.
In January 2022, a Chinese company Digi Anti Fake Company had reportedly supplied counterfeit bandrolls (a thin ribbon wrapped on bidi and cigarette packets) resulting in fraudulent tax evasion of BD Taka 250 crore for Bangladesh. This company was also found involved in printing counterfeit Bangladeshi passports, ballot papers, national identity cards, birth registration certificates etc.
In another case of tax evasion, Tianye Outdoor (BD) Co Ltd (TOCL), a subsidiary of Chinese company Comefly Outdoor Co Ltd had allegedly indulged in tax evasion and fraud to the tune of about BD Taka 21 crore.
Recently a Chinese company named Sino-Kemmed Trading Co (SKTC), a subsidiary of Global Pet Product Co Ltd, had illegally sent 120 tonnes of high value Dextrose Monohydrate under the garb of coated calcium carbonate to one of its associates in Bangladesh. Had it not been detected in time, it would have resulted in loss of BD Taka 42 Lakhs 13 thousand to the exchequer.
The above instances of malpractices warrant an unbiased review of the functioning of Chinese companies in Bangladesh. Bangladesh authorities need to strengthen and enforce their corporate legal framework to prevent such cases.
