THIMPHU, 10 September 2021, (TON): Since January 2020 to date, 115 businesses suspected of fronting in Phuentsholing have voluntarily cancelled their licenses. Of that, 60 were trading licenses and 55 for services such as bars, restaurants, and workshops.

A Phuentsholing regional trade official said that there were 274 (179 trading and 95 services) businesses suspected of fronting in the town, including the 115.

From the remaining 159 license holders suspected of fronting, the trade office said “124 have submitted statements for non-involvement in fronting and 18 licenses were cancelled due to non-renewal or expiry of validity in the licensing system.”

Further, 16 licenses were cancelled after the license holders didn’t turn up to update and explain to the trade office despite notices being served, and a license was dropped due to information mismatch.

Regional director for trade, Sonam Dhendup said that all these 274 firms were marked as “suspected fronting.”

He said “we called them and explained. We told them they know better whether they were practising fronting or not. We gave them the opportunity. So 115 voluntarily cancelled their licenses.”

Sonam Dhendup said they could not distinguish correctly or exactly if the suspected fronting license holders are actually fronting cases.

The trade office has been raising awareness of the new penal laws and likely penalties.

He said “we want to make it clear. If they come forward, it would be good. We don’t want people to be taken by surprise when the law is implemented.”

Meanwhile, the country’s biggest trading hub is also considered as the breeding ground for fronting businesses due to the porous border.